Canadian Natural Resources Ltd. has reaffirmed its commitment to carbon capture projects while committing $90 million to these projects in 2025’s budget, as reported by Carbon Herald. This action is made as the current political climate has suffered a major shake-up following Justin Trudeau’s recent resignation.
Pathways Alliance: A Major Focus for CNRL
CNRL is also part of the Pathways Alliance, a joint venture of oil sands producers to reduce their emission to net zero by 2050. This vision is contingent upon a massive carbon capture project and thus needs considerable investment. Carbon Herald reports, that although federal tax incentives are available to support these initiatives, the crucial funding from the Canada Growth Fund remains unresolved.
Political Landscape and Funding Challenges
On many climate policies put in place under Trudeau, the Conservatives have been outspokenly critical – including the carbon tax and an emissions cap – but the party’s own plan for climate is still very amorphous. Amid this political backdrop, the Canada Growth Fund recently proposed financing the Pathways CCS project, following unsuccessful negotiations with the federal government.
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Continued Focus on Carbon Capture Projects
Scott Stauth highlighted that CNRL is using the allocated budget to advance engineering work on the Pathways project and drive carbon capture efforts at its sites. “We’re progressing these carbon capture projects on from an engineering perspective for 2025,” Stauth said.
Increased Production of Oil and Gas
Apart from carbon capture, CNRL is also planning to increase its oil and gas production by 12% in 2025. This will be through recent acquisitions and operational improvements. The company has set its 2025 operating capital budget at about $6 billion, a significant increase from the previous year.