Page 5 - NorthAmOil Week 28 2021

NorthAmOil COMMENTARY NorthAmOil

Shell already operates
the Quest CCS project
at the Scotford
complex.

The conversion of the Scotford site to an according to Shell Canada’s president and coun-
“energy and chemicals park” is in line with a try chair, Susannah Pierce. If Shell proceeds with
broader reorganisation of Shell’s refining hold- building more large-scale facilities, then fewer
ings. The super-major is whittling down its projects would be required in total in order to
refinery portfolio from 14 plants last year to meet the target.
six such integrated energy and chemical parks.
It is currently in the process of closing sales of Carbon hub
its refineries in Anacortes, Washington and Shell is the latest company to propose a CCS
Mobile, Alabama, as well as its controlling stake facility for Alberta after several other energy
in a joint venture refinery in Deer Park, Texas. players also unveiled proposals for new CCS
All three sales are due to close in the fourth capacity in the province in recent weeks. Nota-
quarter of 2021, as Shell pivots from oil produc- ble developments include an alliance formed
tion and refining to petrochemicals as part of by Alberta’s five leading oil sands producers to
its broader adjustment to the energy transition. pursue net-zero GHG emissions from oil sands
operations by 2050. This initiative is anchored
Under pressure by a “major” CCS trunkline connected to a car-
Shell unveiled the proposal weeks after a Dutch bon sequestration hub, the companies said last Several other
court ruled that the super-major should reduce month.
its greenhouse gas (GHG) emissions by 45% by Separately, Suncor Energy – one of the par- energy players
2030 compared with 2019 levels. This would be ticipants in the alliance – said in May it was also unveiled
a larger cut than Shell’s existing target of a 20% partnering with ATCO on a clean hydrogen
reduction by 2030 compared with 2016 levels. project that could include a CO2 sequestration proposals for new
While Shell will contest the ruling, its CEO, Ben component. And midstream players Pembina
van Beurden, said following the verdict that the Pipeline and TC Energy have partnered on the CCS capacity in
company would seek to accelerate its energy development of a carbon transportation and
transition strategy and deepen its emissions sequestration system that would be capable of the province in
cuts. The ruling applies immediately and cannot transporting more than 20mn tpy of CO2. recent weeks.
be suspended prior to the appeal. Smaller firms are also involved in the devel-
Shell’s decarbonisation plan – likely to require opment of CCS projects in Canada, and it is
updating in the near future if it is ultimately hoped that as participation in the sector grows,
forced to adhere to the court-mandated targets the costs involved will come down. Develop-
– envisions access to an additional 25mn tpy of ment of carbon capture is in its early days but
CCS capacity by 2035. The super-major says on is already comparatively advanced in Canada,
its website that this would be equivalent to 25 thanks to the existence of Quest, as well as the
CCS facilities the size of the Quest project. Alberta Carbon Trunk Line (ACTL) system. If
However, if Polaris progresses to its second the latest proposed projects all proceed to con-
phase, this would make a “significant contri- struction, Alberta will further solidify its domi-
bution” to the company meeting its target, nance as a carbon capture player.™

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