Suncor to divest wind, solar assets and focus on hydrogen, renewable fuels

Canadian energy company Suncor revealed April 4 that in order to drive shareholder returns and reduce emissions, the firm will strengthen its focus on hydrogen and renewable fuels and divest its wind and solar assets. The move is expected to accelerate progress toward Suncor’s objective of being a net-zero company by 2050.

Suncor stated it is focusing efforts in areas that are complementary to its base business including replacing coke-fired boilers at its Base Plant with lower-emission cogeneration units and accelerating commercial-scale deployment of carbon-capture technology. Other targeted activities include partnering with Calgary-based ATCO on a project to build a world-scale hydrogen project in Alberta and deploying next-generation renewable fuel technologies like Lanzajet’s sustainable aviation fuel (SAF) technology and Enerkem’s waste-to-fuels technology.

“While Suncor is in the fortunate position of being long on opportunities, we are adjusting our portfolio for fit and focus,” said Mark Little, Suncor president and CEO. “By doing so, we use our strengths, competitive advantages and resources to drive shareholder returns and value over the long term and help us meet our emissions-reduction targets.”

Suncor says it has played a pivotal role in developing the Canadian renewable power industry. “In 2002, Suncor partnered with Enbridge to build one of the first renewable energy projects in Canada and since then, Suncor has developed eight wind power projects in three provinces—Saskatchewan, Alberta and Ontario,” the company stated. “Moving forward, Suncor will continue to participate in many aspects of the electricity value chain, including producing power through its integrated cogeneration operations, through power marketing and trading, by providing customers with EV charging and potentially procuring renewable power through power-purchase agreements.”

Suncor recently announced the intended divestment of the Norway exploration and production assets as well as the planned sell down of its Rosebank interest in the U.K. North Sea. “The disposition process is underway with an expected close later this year,” Suncor stated.