CALGARY, AB, Oct. 21, 2021 /CNW/ - Whitecap Resources
Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to
announce that it has signed a memorandum of understanding ("MOU")
with Federated Co-operatives Limited ("FCL") to use Whitecap's
expertise in carbon capture utilization and storage ("CCUS") to
assist FCL in achieving their emissions targets in Saskatchewan.
The MOU contemplates the capture of CO2 by FCL from
the Co-op Refinery Complex in Regina and the Co-op Ethanol Complex near
Belle Plaine, Saskatchewan, which
would then be compressed, transported and sequestered by Whitecap
(the "FCL Project"). Carbon
dioxide sequestration will be performed by Whitecap as part of the
Weyburn unit CO2
Enhanced Oil Recovery ("EOR") operations or by injecting into a new
saline storage facility.
The resulting infrastructure and CO2 supply handling
capability would support Weyburn
unit expansions as well as enable other operators to pursue
greenfield CO2 EOR operations in Southeast Saskatchewan. Further, this project
enables the potential for significant investment in carbon capture
at other industrial sites in the Belle
Plaine, Moose Jaw and
Regina areas.
As operator, Whitecap currently sequesters 2 million tonnes of
CO2 annually in the Weyburn unit, and the FCL Project supports the
capture of nearly 500,000 tonnes of additional industrial
CO2 emissions per year. The Weyburn unit is the world's largest
anthropogenic carbon sequestration project, having stored over 36
million tonnes of CO2 since its first injection in the
year 2000.
"The pathway to a lower carbon economy is through carbon capture
and we are excited to partner with FCL to support their plans for
decarbonization" said Whitecap CEO Grant
Fagerheim. "The Government of Saskatchewan has taken a leadership role for
CCUS, most recently with its announcement on September 7, 2021, and their support, along with
that of the Petroleum Technology Research Centre, CCS Knowledge
Centre and the Saskatchewan Ministry of Energy and Resources, will
allow the FCL Project to meet its environmental goals and provide
significant economic benefits to the Province of Saskatchewan."
"The transition to a low-carbon economy is one of the largest,
but most necessary, shifts we'll have to make in our long history,"
said FCL CEO Scott Banda.
"Carbon capture and the work we're
doing with Whitecap is just one of multiple paths we're exploring
as part of a strategic plan to integrate sustainable solutions into
our operations to improve environmental performance."
"Today's announcement firmly positions Saskatchewan as a world leader in innovative
carbon capture technology and is just the beginning of significant
private investment opportunities in the CO2
sequestration value chain," Energy and Resources Minister
Bronwyn Eyre said. "This proposed
project will include CO2 enhanced oil recovery, which
lowers GHG emissions by 82 per cent compared to traditional
extraction methods while increasing production. This is good news
for the environment and the economy."
Whitecap's New Energy team will be initiating a Front-End
Engineering and Design ("FEED") study to provide centralized
compression, transportation and sequestration for the FCL Project.
The presence of large scale CO2 injection capacity for
EOR at Weyburn creates a unique
opportunity to minimize up front sequestration costs and to improve
the economics of future carbon capture projects for our industrial
partners. FCL expects carbon capture facilities to be completed at
the Co-op Ethanol Complex in 2024 and the Co-op Refinery Complex in
2026.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and
forward-looking information (collectively "forward-looking
information") within the meaning of applicable securities laws
relating to the FCL Project and the Company's plans and other
aspects of our anticipated future operations, management focus,
priorities, strategies, financial, operating and production results
and business opportunities. Forward-looking information typically
uses words such as "anticipate", "believe", "continue", "trend",
"sustain", "project", "expect", "forecast", "budget", "goal",
"guidance", "plan", "objective", "strategy", "target", "intend",
"estimate", "potential", or similar words suggesting future
outcomes, statements that actions, events or conditions "may",
"would", "could" or "will" be taken or occur in the future,
including statements about our strategy, plans, focus, objectives,
priorities and position. In particular, and without limiting the
generality of the foregoing, this press release contains
forward-looking information with respect to: plans with respect to
the capture of CO2 by FCL and the sequestration and use
of the captured CO2 by the Company; that the resulting
infrastructure and CO2 supply handling capability from
the FCL Project will support Weyburn expansion and will enable other
operators to pursue greenfield CO2 opportunities; that
the FCL Project will enable the Company to capture nearly 500,000
tonnes of additional CO2 per year; that the support from
the Petroleum Technology Research Centre, CCS Knowledge Centre and
the Saskatchewan Ministry of Energy and Resources will allow the
FCL Project to meet its environmental goals; that the FCL Project
will provide significant economic benefits to Saskatchewan; that the FCL Project will enable
the potential for significant carbon capture investment; that the
Company's New Energy team will initiate a FEED study to provide
centralized compression, transportation and sequestration for the
FCL Project; EOR using CO2 having capacity at
Weyburn will minimize up front
sequestration costs; the improvement in economics by utilizing
sequestration for EOR; and that FCL will complete carbon capture at
its Ethanol Complex in 2024 and at its Refinery Complex in
2026.
The forward-looking information is based on certain key
expectations and assumptions made by our management, including that
the parties will enter into binding commitments with respect to the
FCL Project on the terms and timing presently contemplated and that
the various approvals and government incentives required to
complete the FCL Project will be obtained. Although we believe that
the expectations and assumptions on which such forward-looking
information is based are reasonable, undue reliance should not be
placed on the forward-looking information because Whitecap can give
no assurance that they will prove to be correct. Since
forward-looking information addresses future events and conditions,
by its very nature they involve inherent risks and uncertainties.
These include, but are not limited to: the risks that the parties
will not enter into binding commitments with respect to the FCL
Project on the terms presently contemplated or at all; that the
various approvals and government incentives required to complete
the FCL Project will not be obtained on the terms presently
contemplated or at all; and that the anticipated benefits of the
FCL Project will not be realized.
Our actual results, performance or achievement could differ
materially from those expressed in, or implied by, the
forward-looking information and, accordingly, no assurance can be
given that any of the events anticipated by the forward-looking
information will transpire or occur, or if any of them do so, what
benefits that we will derive therefrom. Management has included the
above summary of assumptions and risks related to forward-looking
information provided in this press release in order to provide
security holders with a more complete perspective on our future
operations and such information may not be appropriate for other
purposes.
Readers are cautioned that the foregoing lists of factors are
not exhaustive. Additional information on these and other factors
that could affect our operations or financial results are included
in reports on file with applicable securities regulatory
authorities and may be accessed through the SEDAR website
(www.sedar.com).
These forward-looking statements are made as of the date of this
press release and we disclaim any intent or obligation to update
publicly any forward-looking information, whether as a result of
new information, future events or results or otherwise, other than
as required by applicable securities laws.
SOURCE Whitecap Resources Inc.