Oil sands company Suncor Energy strengthens its focus on hydrogen and renewable fuels, divesting wind and solar
06 April 2022
Suncor Energy, a Canadian integrated energy company that is one of the top oil sands producers in the country, will strengthen its focus on hydrogen and renewable fuels to accelerate progress towards its objective to be a net-zero company by 2050. Suncor also plans to divest its wind and solar assets.
While Suncor is in the fortunate position of being long on opportunities, we are adjusting our portfolio for fit and focus. By doing so, we use our strengths, competitive advantages and resources to drive shareholder returns and value over the long term and help us meet our emissions reduction targets.—Mark Little, Suncor president and CEO
In 2002, Suncor partnered with Enbridge to build one of the first renewable energy projects in Canada and since then, Suncor has developed eight wind power projects in three provinces—Saskatchewan, Alberta and Ontario. Moving forward, Suncor will continue to participate in many aspects of the electricity value chain, including producing power through its integrated co-generation operations, through power marketing and trading, by providing customers with EV charging and potentially procuring renewable power through power purchase agreements.
Suncor’s strategy is focused on increasing shareholder returns and accelerating its progress to be a net-zero company by 2050. In support of this objective, Suncor is focusing its efforts in areas that are complementary to its base oil sands business including replacing coke-fired boilers at Base Plant with lower emission cogeneration units and accelerating commercial scale deployment of carbon capture technology.
Other targeted activities include partnering with ATCO on a project to build a world-scale hydrogen project in Alberta and deploying next generation renewable fuel technologies such as Lanzajet’s sustainable aviation fuel technology and Enerkem’s waste-to-fuels technology.
In a similar portfolio optimization undertaking in alignment with its strategies and focus on shareholder value, Suncor recently announced the intended divestment of the Norway exploration and production assets as well as the planned sell down of its Rosebank interest in the UK North Sea. The disposition process is underway with an expected close later this year.
Suncor is one of the founders of the Oil Sands Pathways to Net Zero initiative—an alliance of oil sands producers working collectively with the federal and Alberta governments to achieve net zero greenhouse gas (GHG) emissions from oil sands operations by 2050 to help Canada meet its climate goals.