Home > activity > [terra battle 2]Net Zero: Terra Nova in limbo after N.L. government rejects equity stake

[terra battle 2]Net Zero: Terra Nova in limbo after N.L. government rejects equity stake

Time:2021-07-08 15:15:54

  Welcome to Net Zero, your daily industry brief on clean energy and Canadian-resource politics.

  The Lead?

  Newfoundland and Labrador’s provincial government has rejected a request from the companies involved in the Terra Nova offshore oilfield to purchase an equity stake in the troubled project.

  “The risk has proven to be too great for a project so late in its life,” said Energy Minister Andrew Parsons, noting that an equity share will come with additional costs at the time of abandonment. “I’m calling on project owners to continue to work to find an equity solution.”

  The Terra Nova oilfield sits 350 kilometres off the southeast coast of St. John’s, and it first began producing oil in January 2002. In order to access the remaining oil reserves, the field’s infrastructure needs a significant investment in maintenance and upgrades.

  The seven oil companies that operate the field, including Suncor, Exxon Mobil, and Equinor, aren’t united on footing the bill, according to Mark Little, president of Suncor, which owns the largest share in the project. Little added that a decision about whether to abandon the field is expected by next week.

  In a bid to save the project, the provincial government offered the energy companies a combination of cash from?an oil industry recovery fund created with federal money and a break on royalty payments to the governments that added up to nearly half a billion dollars, according to Parsons, who says the deal has not yet been accepted but remains on the table.

  “We are at an impasse,” said Parsons. “Despite significant efforts on the part of all parties and a significant financial offer by the provincial government, the future of the Terra Nova project remains uncertain.” The Chronicle Herald has more details.


  Poland is facing court action from five of its citizens over its failure to adequately address the potential harms of climate change. The plaintiffs argue that the eastern European nation has infringed upon?their rights to life, health and family life by delaying action to cut national carbon emissions and continuing to support the coal industry.

  The claimants are seeking a firm commitment from the government to reduce greenhouse gas emissions by at least 60 per cent by 2030 compared with 1990 levels, and to being climate neutral by 2043. Poland has been hesitant to phase out coal, as the industry employs about 80,000 people and is politically influential. The Guardian has that story.

  Private equity firms are launching an auction for the French solar firm Reden in a deal that could value the clean energy company at up to 2 billion euros. Recently, investors have sought out businesses that can help the world’s economies shift away from fossil fuels and stave off potentially catastrophic climate change, according to Reuters.

  Founded in 2008, Reden develops, builds and operates photovoltaic solar plants in Europe, South America, and Latin America. The company generated over 105 million euros in earnings last year and the company’s equity value is 250 million euros, according to the auction’s information sheet.

  Meanwhile, Prince Charles is emphasizing the importance of business and private sector finance in solving the climate crisis. Charles hosted a meeting of bosses from some of the world’s leading companies on Thursday, a day before the chief executives hold their first meetings with G7 leaders.

  “We do have, I think, a potentially game-changing opportunity to drive forward the partnerships between government, business and private sector finance that are absolutely vital if we are to win the battle to combat climate change and biodiversity loss,” he said.

  On Friday morning at 9:06 a.m., West Texas Intermediate was trading at US$70.43 and Brent Crude was going for US$72.58.

  In Canada

  Alberta’s finance minister is defending the province’s decision to invest in the Keystone XL pipeline, whose contract was officially terminated by TC Energy earlier this week. The province is now on the hook for $1.3 billion in taxpayers’ money.

  “We did commit to delivering on pipelines, and we made a calculated decision around investing in the Keystone XL pipeline, a pipeline that would have provided $30 billion of wealth creation for Albertans over the next 20 years,” Travis Toews told the provincial legislature on Thursday.

  Opposition NDP critic Joe Ceci renewed a call for the government to release details surrounding its contract with TC Energy to confirm the calculated $1.3 billion hit to Alberta’s bottom line. The Canadian Press has more.

  Staying in Alberta, the province’s auditor general is criticizing the provincial government for its failure to fix problems in a program that is supposed to ensure that coal and oilsands companies clean up after themselves. Doug Wylie said too often clean up gets shuffled between Alberta Environment and Parks and the Alberta Energy Regulator.

  “There is an impact beyond accounting and process issues,” Wylie said on Thursday. “This impacts sites and it impacts people within the province.”

  Finally, the Liberal government’s climate-accountability law passed through clause-by-clause review at the House of Commons’ Environment committee earlier this week, and could soon head to the Senate after hints from the government that it might move cut short the remaining debate.?Bill C-12, the Net-Zero Emissions Accountability Act, would set legally binding emissions targets as Canada seeks to reach net-zero carbon emissions by 2050.

  “We’re not going to move any more of our amendments because I believe this process is broken,” Conservative Environment critic Dan Albas said during a recent meeting of the House Environment committee. iPolitics has the full story.

  Canadian Crude Index was trading at US$55.60 and Western Canadian Select was going for US$56.39 this morning at 9:06 a.m.


  Keystone XL is cancelled – so now what? (CBC News)

  Varcoe: A ‘watershed event’ as energy sector moves on net-zero action, hydrogen complex in Alberta (Calgary Herald)

  Feds’ two billion tree goal hinges on provincial buy-in (National Observer)

  António Guterres on climate crisis: ‘We are coming to a point of no return’ (The Guardian)

  Italy has a tough task ahead on climate change (The Economist)

  Ban Ki-moon wants to solve climate crisis with kindness (National Observer)

  Electric Vehicle Orders Are Zooming at Ford (Scientific American)

  G7 leaders face make-or-break moment in climate crisis (The Guardian)

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