Toronto — Shell's flagship carbon capture project generated more than $200 million (CAD) in revenue from the sale of emissions credits for unrealized reductions, a report said. new research report sell hot air From Greenpeace Canada. (1) The findings show that Canadian oil sands companies are touting carbon capture and storage (CCS) as a solution to oil sands pollution while lobbying against regulations that would limit emissions from the sector. This is what I gained during my time there. (2)
During negotiations with the Alberta government in 2008, Shell lobbied for and received a two-for-one agreement as a means of further subsidy for the project, according to disclosure documents obtained by Greenpeace. It is shown. This contract allowed him to sell two tons of credits for every ton of CO2 Shell actually captured and keep all profits.
„Selling emissions credits for reductions that don't happen is the worst kind of hot air because it literally makes climate change worse,“ said Greenpeace Canada's senior energy strategist and author. sell hot air report. „The false promises and phantom emissions surrounding this project are a powerful example of why Canada needs to put a legal cap on greenhouse gas emissions from the oil and gas sector. It has become.”
The report found that adding the value of the Phantom Credits to the $777 million (CAD) in direct subsidies awarded to Shell by the provincial and federal governments to date, it is estimated that Canadian taxpayers will be able to reduce the cost of Shell's Quest CCS project. It turned out that the company paid 93% of the cost. The Quest project reports that revenues will exceed expenses by $126 million (CAD) as of the end of 2022.
The Alberta government and oil sands companies have long touted CCS as an answer to environmental concerns about increased fossil fuel production. They have long touted ambitious targets for carbon capture, such as Alberta's 2008 climate change plan, which called for 30 million tonnes of carbon capture by 2020, but have fallen far short.
Quest's carbon capture and storage projects avoid less than 1 million tons of emissions per year. Meanwhile, greenhouse gas emissions from the oil sands have increased by 50 million tonnes since Shell began design work on the project in 2005 and by 16 million tonnes since its first full year of operation in 2016.
„This was all legal, but that doesn't make it right,“ Stewart said. “Those who pollute the environment and profit most from it must be held accountable. Oil companies must be held accountable financially for the most vulnerable people, communities and countries in the transition to clean renewable energy. It is necessary to begin a gradual reduction in production while providing support.'' (3)
The report also follows the International Energy Agency's November 2023 report on the oil industry's role in the energy transition, stating that oil and gas companies will have to phase out production and that carbon capture will reduce the entire lifecycle of carbon capture. It also notes that it should not be done because the potential for reducing emissions is very limited. It is used as an excuse to maintain the status quo.
Note to editors:
(1) Data extracted from the Alberta Carbon Credit Registry and a Shell report to the Government of Alberta show that between 2015 and 2022, 5.7 million of these “phantom” Profit from credits (labeled „additional“) was $203 million (CAD). These “phantom” credits do not cover captured or avoided carbon.
(2) https://thenarwhal.ca/pathways-alliance-emissions-cap/
(3) Greenpeace Canada claim windfall profit tax It calls on oil companies to invest in climate action and address the affordability crisis exacerbated by the high cost of fossil fuels and climate disasters. In its latest budget, the federal government failed to ensure polluters pay their fair share by expanding windfall profits taxes on the oil and gas sector.
For more information, please contact us below.
Keith Stewart, Senior Energy Strategist, Greenpeace Canada; (email protected)(416) 659-0294