Federal government approves controversial Bay du Nord oil project off Newfoundland

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ST JOHN’S — Federal Surroundings Minister Steven Guilbeault has accredited a controversial new oil undertaking off the coast of Newfoundland with what Ottawa is asking the strongest emissions guidelines ever imposed.

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His determination launched Wednesday by the Influence Evaluation Company of Canada says Equinor’s Bay du Nord undertaking can proceed as lengthy it achieves net-zero greenhouse gasoline emissions by 2050.

Meaning the corporate should offset or seize any emissions the undertaking produces by 2050. The announcement says that is the primary time the federal authorities has imposed such a situation on an vitality undertaking.

“At 5 instances much less emissions-intensive than the common Canadian oil and gasoline undertaking, and 10 instances lower than the common undertaking within the oilsands, the Bay du Nord Growth Undertaking is an instance of how Canada can chart a path ahead on producing vitality on the lowest doable emissions depth whereas seeking to a net-zero future,” the information launch says.

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Till 2050, Equinor can also be legally required to contemplate and incorporate one of the best out there choices for lowering emissions. The federal government signalled Wednesday that these situations, together with net-zero by 2050, will turn into the authorized commonplace for any future oil and gasoline undertaking in search of federal approval.

Guilbeault instructed a Home of Commons committee that there’ll nonetheless be oil and gasoline produced in 2050, it simply should be produced with out emissions.

Bay du Nord is predicted to supply round 300 million barrels of oil over its lifetime, although business insiders in Newfoundland and Labrador say that determine might be greater than 800 million barrels. Equinor has mentioned Bay du Nord would probably begin pumping within the latter half of the last decade, and proceed producing for 20 to 30 years. Manufacturing is predicted to peak at round 200,000 barrels a day.

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“Equinor is happy with the sturdy assist that the Bay du Nord undertaking has acquired from stakeholders throughout the province and Canada,” firm spokeswoman Alex Collins mentioned in an emailed assertion after the choice was revealed. She mentioned the undertaking “has the potential to supply the bottom carbon oil within the nation.”

Collins famous in an earlier assertion the corporate and its companions haven’t but sanctioned the event. That call, she mentioned, is predicted “within the subsequent couple years.” Equinor has mentioned the undertaking will present about $3.5 billion in whole revenues for the cash-strapped authorities of Newfoundland and Labrador.

Premier Andrew Furey was beaming at a night information convention, saying the undertaking can be an financial driver for his province. He mentioned greenhouse gasoline emissions from the undertaking can be among the many lowest on the planet for an oil undertaking and it’ll assist meet world demand for “low-carbon, moral oil.”

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“This can be a large step ahead in our financial restoration,” Furey added.

In his determination, Guilbeault mentioned the undertaking “just isn’t more likely to trigger vital hostile environmental results” as outlined within the Canadian Environmental Evaluation Act. However local weather scientists and environmentalists have opposed the undertaking, saying it could undermine Canada’s objectives for lowering greenhouse gasoline emissions.

“(The) determination represents a triumph of the sort of politics that may solely deepen the local weather disaster and world dependancy to planet-wrecking fossil fuels,” Keith Stewart, senior vitality strategist at Greenpeace Canada, mentioned in an emailed assertion. “This determination isn’t only a local weather failure, it’s a failure to think about and put money into a sustainable vitality future for the Atlantic area.”

Caroline Brouillette, nationwide coverage supervisor at Local weather Motion Community Canada, mentioned progress on local weather over the previous couple of years is being undermined by this approval.

“Frankly I feel that is heartbreaking,” she mentioned.

Brouillette mentioned it’s coming simply two days after a United Nations local weather report that was clear there isn’t a room for extra oil and gasoline manufacturing if the world is to keep away from the worst of the local weather disaster.

“It’s so clearly not appropriate with local weather security,” she mentioned.

— With recordsdata from Mia Rabson in Ottawa