Reducing GHG emissions is an important step in moving the world to a more sustainable energy path.
We recognize our stakeholders’ concerns about the risks related to climate change, and believe we have a responsibility to proactively address and reduce our GHG emissions.
Keyera closely monitors our Scope 1 and Scope 2 emissions, as well as regulatory developments and emerging best practices.
Our sustainability team works across the organization to model and understand the environmental, financial and long-term impacts of our emissions and to identify corresponding risks and opportunities. Our emissions performance is also included in our overall enterprise risk management process, and we continue to incorporate current and potential climate-related risks into Keyera’s risk matrix to ensure emissions considerations are included as part of our planning, risk mitigation and management strategies.
Emissions-related impacts are considered by management when evaluating major capital expenditures, technological and other investments, as well as possible acquisitions and divestitures. Emissions considerations play an important role in our operational facility design and life cycle planning, as well as in our corporate strategic decision-making process.
In addition, our integrated portfolio of assets continues to place increasing emphasis on lower-emission resources, including our natural gas and natural gas liquids business. We believe cleaner-burning natural gas will replace more emissions-intensive hydrocarbons. As LNG becomes increasingly prevalent globally, we believe we will play a role in the value chain to deliver natural gas to markets that need it.
As we pursue our vision to be the North American leader in delivering energy infrastructure solutions, we know that it is critical that climate issues and the transition to a low-carbon economy be embedded into our business strategy. Our integrated infrastructure assets provide significant opportunities for Keyera to pursue low-carbon and emission reduction service opportunities. We have a dedicated team responsible for identifying new opportunities that will not only reduce carbon intensity but also produce economic benefits. Given our existing portfolio of integrated assets, carbon capture and sequestration, as well as blue hydrogen production, are among the opportunities we see on the horizon.
Reductions through optimization
One of the pillars of our corporate strategy is “maximizing the utilization of our facilities.” We relentlessly seek to improve the efficiency of our current network of assets, not only to optimize production and reduce costs, but also as a way to reduce our overall carbon footprint.
Perhaps the most significant example of these efforts is our recent Gathering and Processing optimization plan. This plan, involving a multi-disciplinary approach from our operations, sustainability, business development, regulatory and land management teams, resulted in the decision to shut down and consolidate eight gas plants and where possible, redirect gas to our most efficient facilities.
Through these consolidation efforts, Keyera anticipates it will reduce gross CO2 equivalent emissions by approximately 20% by the end of 2021, compared to our 2018 asset base.
In 2018, Keyera also made the decision to shut down the sour gas processing equipment at our Strachan facility. In doing so, we reduced our GHG emissions at the facility by approximately 46% from 2017 to 2019.
Investing in technology Technology will continue to play a key role in our transition strategy
A key objective of our continued investment and use of technology is to enhance utilization, decrease emissions, reduce compliance costs and maximize our efficiency. One example is the use of digital assets to enable closer monitoring of our operations, increased automation and enhanced data analysis.
Potential emissions impacts influence operational decisions regarding the selection and modification of equipment and the adoption of operational controls, at several Keyera facilities. Keyera has established an Emissions Reduction Opportunity (ERO) task group to support this effort. The ERO task group focuses on identifying, evaluating and implementing emissions reduction opportunities for GHGs, methane, nitrogen oxides (NO2), benzene, and other emissions across our company.
Carbon sequestration & cogeneration Exploring alternatives
We have acid gas injection capabilities (a form of carbon sequestration) at five gathering and processing facilities. The acid gas injection process is an environmentally beneficial way of disposing of carbon dioxide (CO2) and hydrogen sulfide (H2S) created as a by-product of gas treatment services. Acid gas injection is more efficient and produces less emissions than sulphur recovery. As of 2019, Keyera had sequestered 1,005,555 tonnes of CO2 through acid gas injection since 1996
Electricity and fuel use are large components of Keyera’s overall emissions releases, as well as significant operating costs. To manage these costs, increase efficiency, and reduce carbon emissions, Keyera continues to explore the use of waste heat recovery and generating our own electricity at some of our facilities. We have added waste heat recovery units at our Rimbey and Strachan facilities, and have cogeneration units at three of our facilities, including our recently developed Wapiti gas plant. We are exploring using similar higher efficiency technologies as well as solar technology at other plants.
One of Keyera’s emission reduction initiatives is our partnership with Samsung Renewable Energy Inc. for a 25-megawatt (MW) capacity solar generation facility. The facility will be located north of Drumheller, Alberta, with construction commencing in the fall of 2021. When the facility begins commercial operation in mid-2022, Keyera will be the sole purchaser of the renewable electricity produced. The forecasted 53,000 MWhs of power produced is equivalent to about 10% of Keyera's total annual consumption – enough to power about 4,000 houses annually. This is equal to more than 28,000 tonnes of annual carbon emission offsets that will be applied to lower the carbon intensity of Keyera's assets.
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