RE:ComparisonsMany investors knew that Putin’s war would drive up oil prices and they wanted to profit from it. Many don’t believe there is a climate crisis or if they do then the grandkids can look after it.
They also know the oil sands is going to get a $17 Billion gift from Canadian taxpayers to ship diluted bitumen to California via the TMX. To top that off, the oil sands operators are asking for a $115 tax credit for every MT of CO2 they capture in order to reduce the $150/MT cost they will soon incur if they don’t capture it. The oil sands operations produce about 70 million MT per year. What a deal!
The Canadian Gas Association says that the potential for RNG in Canada is about 1,100 billion cubic feet per year. RNG projects capture methane which is considerably more intensive as a GHG than CO2. You can do the math, but it would require implementing only 15% of the Canadian RNG potential to reduce GHG emissions by an amount equal to the entire oil sands operations
Unlike Carbon Capture and Storage, RNG facilities use well-proven technology. The capital cost would be very much less than the CCS systems the oil sands producers are proposing. RNG projects would also achieve reductions much sooner
If RNG producers were provided anywhere near the same level of benefits that the oil industry then Canadian RNG equipment suppliers like GRN would be doing exceptionally well. The majority of their projects would no longer have to be in Florida, California, Brazil, Italy, and other logistically challenging and administratively costly locations. Canadian engineering and construction jobs would be created.
Its too bad that the oil industry has a lock on subsidies and that so many investors are unwilling to support solutions that will mitigate the growing climate crisis. This is unlikely to change soon.