As part of our energy transition strategy, we're taking concrete action to further decarbonize our base operations. With our new GHG targets in place, our focus and commitment continues to accelerate.
Our approach
All our operations have controls and procedures in place to track, report, manage, and reduce emissions.
We closely track our scope 1 and scope 2 GHG emissions, as well as criteria air contaminants (CACs) such as sulphur dioxide (SO), nitrogen oxides (NOx), and particulate matter (PM). We also regularly test operating equipment and ambient air quality to ensure we meet all applicable regulatory requirements. We share our emissions performance broadly internally and with external stakeholders to support continuous improvement and transparency.
We are committed to reducing all types of emissions from our operations. We participate in several regional airsheds and management groups in a coordinated effort to track and manage air quality within our communities. Corporately, our understanding of emissions-related risks and opportunities is developed through coordination between various internal teams and engagement with external partners. Working collaboratively, our teams assess and plan for the various climate-related transitional and financial impacts over the near and long-term.
We use several tools and processes to help evaluate acquisitions, divestitures, new projects, and upgrades to ongoing operations. These tools include our capital investment framework, project delivery process, and enterprise risk management program.
Decarbonizing our business
A key pillar of our approach to the energy transition is reducing the emissions intensity of our current operations. By doing so, we improve efficiency, reduce risks, and reduce our environmental footprint.
Opportunities for emissions reduction are assessed both at a facility level and relative to potential efficiency gains across multiple sites. Climate-related factors also now represent a key element of stage-gate project evaluation and execution systems for new projects.
Optimizing utilization of our facilities
In 2021, we completed a targeted optimization of our G&P assets, which involved consolidating five existing facilities and redirecting gas volumes to more efficient facilities. These efforts enhanced utilization of remaining facilities by 50 to 65 percent, lowered per unit operating costs, and reduced our absolute emissions by 12 percent.
Supporting renewable energy
We are forming partnerships with solar generation providers to reduce emissions associated with power use at our facilities. In 2022, our commitment to support renewables was realized as we began to source solar power from a power purchase agreement (PPA). We also signed a new carbon-free solution PPA to start in 2025. Combined, these PPAs will account for approximately 40% of our commercial power needs.
Pursuing energy transition opportunities
To make a lasting and meaningful impact on climate change, we must look beyond our own operations and work to reduce greenhouse gas emissions across our value chain. In parallel with our efforts to decarbonize our base business, we are pursuing new low-carbon services and business models that leverage our current asset base and support our customers. We are currently exploring the potential to provide customers with low-carbon and/or biofuel feedstock, hydrogen infrastructure, and carbon capture and storage options.
We believe collaboration will be at the heart of creating a low-carbon world. Keyera is working with our customers, industry peers, suppliers, governments, and other stakeholders to facilitate the development of the technology and policy necessary to drive solutions. Through partnerships and collective action, we believe larger-scale impacts can be achieved.