econext supports Bay du Nord development

For Immediate Release
March 21, 2022

“The science is clear: the world must decarbonize,” said Kieran Hanley, econext’s Executive Director. “What is also true is that the process of moving beyond fossil fuels is an enormous global undertaking that will take many years.”

“Thus, in a world that still needs oil – the reality is that the continuous pursuit of low-emissions production is a worthy contribution to the fight against climate change.” Hanley said that during this period of transition, oil should come from a place like Canada where environmental, safety, and human rights standards are high.

“We cannot impact the speed at which other nations decarbonize, nor can we impact global demand for oil,” said Hanley. “What we can do is change the game in terms of how oil is produced.” Hanley points to The Net Zero Project as an important effort in that regard for Newfoundland and Labrador – and Canada. “The energy transition involves both decreasing the impact of oil and gas activities and large investments into clean energy projects.”

“Newfoundland and Labrador can become a clean energy powerhouse,” said Hanley, alluding to the rich cache of undeveloped renewable energy resources in the province. Hanley said that the province should have a ‘laser-like’ focus on the decarbonization of its domestic economy and the development of clean energy. “Electrifying transportation and industries, creating the hydrogen economy, building wind and offshore wind projects – this is the future of our province, but we need financial resources to accomplish that.”

“We should be focused on this future; but without the ability to progress reasonable projects like Bay du Nord, reaching that potential will become infinitely harder for this province.” Hanley said that revenues accrued from the project should be re-invested into Newfoundland and Labrador’s clean energy future.

The impact of the offshore industry goes well beyond revenues and royalties; it has played a central role in developing the province’s cleantech sector. “Previous offshore projects have helped to create a wave of ocean technology firms which now export their products and services worldwide, helped to establish internationally-recognized research and development resources and capacity within the province, and helped to foster a world-leading cluster of companies and institutions developing and deploying environmental sensing, monitoring, and characterization technologies.” Hanley said that a targeted focus on emissions reductions can have a similar transformational effect on clean technology development in the province – a prospect supported by the results stemming from Canada’s highly impactful Emissions Reduction Fund.

Canada is the fourth largest producer of oil and gas in the world. Hanley said that the country has a responsibility to push the boundaries of technology and processes to ensure that what is produced is the most environmentally sound as is possible. “The Bay du Nord project represents a step-change in greenhouse gas emissions intensity for oil projects in Canada, and production offshore Newfoundland and Labrador is already 30 percent below the global average.”

“The Bay du Nord project is extremely important for the future of our provincial economy on a number of different fronts,” said Hanley. “It is an important part of Newfoundland and Labrador’s energy transition and is key to helping us unlock our clean energy potential.” Hanley said the project has undergone one of the world’s most rigorous regulatory processes, and that econext is confident that it will be approved.

“Finding the right balance on environment and economy is a difficult business,” said Hanley. “The Bay du Nord project is a big step in the right direction.”

econext is an association of businesses that accelerates clean growth in Newfoundland and Labrador and works on behalf of over 200 members to foster environmentally sustainable economic development. More information can be found at https://econext.ca.

Media Contact:
Kieran Hanley
Executive Director
kieran@econext.ca

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