Alberta, oilpatch begin public fight with federal government over new fuel regulation
New titanium industry could grow out of oilsands waste
A private spat between Alberta and the federal government is becoming a public fight focused on Ottawa's proposed clean fuel standard — a measure aimed at reducing greenhouse gas emissions with significant economic consequences for many industries, including the oil and gas sector.
The Alberta government fears the new regulation could harm the province's economy, which is still recovering from a recent recession.
Most Canadians have never heard of the clean fuel standard (CFS) before, but the policy would raise prices for gasoline, diesel, natural gas and other sources of energy. These price rises would be in addition to the increase stemming from the federal carbon tax.
The CFS is part of the federal government's effort to reduce greenhouse gas emissions and reach its international climate change commitments under the 2016 Paris Agreement. The CFS aims to make all fuels cleaner, and includes policies such as adding ethanol to gasoline or requiring more renewable natural gas to be produced from landfills and food waste.
While a carbon tax targets the person using the fuel, the CFS is aimed at companies supplying the fuel.
"It is a policy that has kind of crept up on people because we have been more concerned with the carbon taxes and other policies that have been brought forward," said Warren Mabee, from Queen's University's Institute for Energy and Environmental Policy. "There will be a cost involved. People will notice an increase on certain bills."
As concerns mount, the federal government has delayed the release of the CFS. The proposed regulations for liquid fuels will be announced in spring 2019, while the regulations for gas and solid fuels will only come out in fall 2020.
New titanium industry could grow out of oilsands waste
After several years and nearly $100 million of research, engineers say they have developed new technology to extract valuable metals from the waste produced by the oilsands in northern Alberta.
Canadian Natural Resources and Titanium Corp. have a proposal to construct a $400-million facility at CNR's Horizon oilsands site to produce titanium and zircon from the materials left over from bitumen production.
Zircon is used to make ceramic tiles and other products, while titanium is used in products ranging from golf clubs and bicycles to aircraft and missiles.
Not only could the facility be profitable, but it could also reduce the environmental footprint of the oilsands,say the researchers behind the technology.
"We're looking at the opportunity to produce valuable metals in addition to our conventional products," said Meera Nathwani-Crowe, a manager of innovation at Canadian Natural Resources, which is partnering with Titanium Corp. to develop the project.
We call it creating value from waste.
- Scott Nelson, Titanium Corp.
"We're very optimistic," said Scott Nelson, chief executive of Titanium Corp. "This would be the first project. There are six sites that are candidates for our technology. So this would be an enormous new industry for Alberta — the production of minerals from the oilsands to be exported around the world — particularly China."
As oilsands facilities collect and process bitumen from underground, materials left over are dumped into large tailings ponds. The proposed facility would extract the titanium and zircon before the waste is sent to the tailings ponds. Additional bitumen and solvents may also be recovered.