Imperial Oil Aims for Net-Zero Emissions by 2050

Imperial (TSX: IMO, NYSE American: IMO) CEO Brad Corson, recently presented to the federal standing committee on environment and sustainable development, outlining the company's efforts to provide energy security while reducing emissions. Corson noted that Imperial has implemented a company-wide goal to achieve net-zero scope 1 and 2 emissions from operated assets by 2050. The company has already achieved approximately a 10% reduction in year-end greenhouse gas emissions intensity compared to 2016 levels.

Imperial aims to further reduce the greenhouse gas intensity of its operated oil sands facilities by 30% compared with 2016 levels by the end of 2030. The company has made significant progress in this area, including the implementation of energy efficiency improvements, next-generation solvent technologies at its cold lake operation, and the use of renewable diesel in its mining fleet at Kearl.

Last month, Imperial started production at its Grand Rapids project at Cold Lake, using technology expected to reduce greenhouse gas emissions intensity by up to 40% compared to traditional methods. The company is also piloting other technologies that could potentially reduce greenhouse gas emissions intensity by up to 90% over traditional recovery methods.

Imperial is making substantial investments in renewable energy projects as well. The company is currently building Canada's largest renewable diesel project at its Strathcona refinery in Edmonton, with an investment of $720 million. This facility is expected to produce more than one billion liters of renewable diesel annually from locally sourced agricultural feedstocks, thereby helping to reduce emissions for customers by about 3 million metric tons per year.

Additionally, Imperial is exploring the potential for lithium from brine extraction to create a domestic supply chain of a key critical mineral for use in EV batteries. The company has also tested bio-based co-processing at its refineries to deliver carbon intensity reductions in its finished products.

Imperial's commitment to reducing emissions and investing in lower-carbon technologies is evident in its ongoing efforts to contribute to a lower-emission future while delivering reliable energy for Canadians and creating value for its shareholders. Following these announcements, the company's shares moved -1.7%, and are now trading at a price of $64.69. If you want to know more, read the company's complete 8-K report here.

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