Canadian Natural Resources Ltd (CNRL) has affirmed its commitment to carbon capture initiatives, allocating $90 million in its 2025 budget, despite the recent resignation of Prime Minister Justin Trudeau and the ensuing uncertainty surrounding Canada’s climate policies.
The Calgary-based energy giant is a key player in the Pathways Alliance, a consortium of oil sands producers aiming for net-zero emissions by 2050.
This ambitious goal hinges on a large-scale carbon capture project, which requires significant investment. While the federal government has introduced tax incentives to support such projects, the crucial funding from the Canada Growth Fund remains unresolved.
The Conservative Party, led by Pierre Poilievre, has been critical of many of the Trudeau government’s climate policies, including the carbon tax and emissions cap. However, the party’s own climate change strategy remains largely undefined.
Despite this political backdrop, CNRL president Scott Stauth emphasized the company’s continued focus on the Pathways project. He stated that the allocated budget will primarily fund engineering work for the Pathways project, as well as other carbon capture initiatives at various company sites.
“We’re progressing these carbon capture projects on from an engineering perspective for 2025,” Stauth said.
Relevant: Environmentalists Call For Review Of Pathways Carbon Capture Project
The Canada Growth Fund, a $15 billion public fund established to support clean technology, has recently made a specific proposal to finance the Pathways CCS project. This development follows earlier unsuccessful negotiations between Pathways and the federal government.
In addition to its carbon capture efforts, CNRL plans to increase its overall oil and gas production by 12% in 2025, driven by recent acquisitions and operational improvements. The company has also set its 2025 operating capital budget at approximately $6 billion, reflecting a significant increase from the previous year.
CNRL’s commitment to carbon capture demonstrates a proactive approach to addressing climate change concerns, even amidst evolving political landscapes and regulatory uncertainties.
Read more: Canada Growth Fund Mulls Funding Oil Sands Carbon Capture Project
