Suncor Energy Inc. says it is now committed to a net-zero-by-2050 carbon emissions target.
The new goal is an upgrade from its previous target set in 2015 to reduce emissions intensity from upstream operations by 30 per cent by 2030, and matches the net-zero target set by oilsands producer rival Cenovus Energy Inc. early last year.
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Suncor says it expects to reduce greenhouse gas emissions by 10 megatonnes per year by 2030 from 29 megatonnes per year in 2019 by reducing emissions in its base business, growing its renewable fuels, electricity and hydrogen businesses, giving customers access to cleaner fuels.
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The announcement was made ahead of Suncor’s investor day presentation, during which it said it will focus its planned $5-billion annual capital spend through 2025 on optimizing its existing oilsands production, refining and marketing operations while cutting costs and growing low-carbon businesses.
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It says the changes will allow it to generate an annual $2 billion of incremental free funds flow by 2025.
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The funds are to be used to increase dividends, buy back shares and reduce debt.
“For decades, Suncor has been evolving and growing its business _ transforming a budding oilsands resource into one of the world’s most reliable and ESG-leading oil basins in the world,” said CEO Mark Little.
“We will continue to produce oilsands for many decades to come, driving significant shareholder returns and value, and delivering further emissions reductions on our journey to net-zero by 2050.”
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