Established in early 2021, our Low Carbon Technologies (LCT) organization’s remit includes supporting operational emissions reductions objectives, monitoring global efforts to reduce emissions and prioritizing lower carbon opportunities for future competitive investment. In 2024 this included: 

• Reducing operational emissions through monitoring, measurement, retrofits, new designs, and reporting at both a source and site level.
• Assessing the use of carbon capture and sequestration (CCS) to reduce our Scope 1 and Scope 2 emissions.
• Securing high-quality nature-based and technology offsets to mitigate residual, hard-to-abate emissions.
• Suspending our blue ammonia project on the Gulf Coast due to market immaturity and the pace required for commercial investment.
• Evaluating potential low carbon power projects including enhanced geothermal system opportunities, and exploring electrification efforts at many of our operations.
• Evaluating other opportunities that have significant adjacency to our skill sets, through the lens of competitive returns. Advancing emerging technologies by participating in joint industry partnerships and pilots.

Geopolitical factors have changed substantially over the last five years as global priorities have shifted. This underlines the importance of monitoring signposts and adjusting our business accordingly. Our evaluation suggests that further market maturity, market adoption and related policies and regulations remain uncertain for commercial scale use of hydrogen and CCS.

We will continue to approach low-carbon efforts with the same discipline we follow in our traditional business investment and capital allocation process. This includes keeping costs low, leveraging competencies, identifying viable economic opportunities, and anticipating and managing risks while focusing on projects with competitive returns potential.

In our Canada business unit (BU), the Surmont CCS initiative advanced with the completion of early stage engineering. Project efforts included definition of capture systems for boiler flue gas and the development of the technical and economic foundations. This initiative forms a cornerstone of our carbon capture strategy, supporting long-term emissions reductions and regulatory alignment in both base and future assets.

Significant momentum was also achieved through our involvement in the Pathways Alliance COâ‚� transportation and storage project. During the reporting period, engineering contributions and commercial support were provided to help progress a regional CCS project and support Canada’s broader climate objectives.