Cenovus Energy, the Calgary-based energy company has signed a power purchase agreement (PPA) with Cold Lake First Nation, to buy electricity produced from solar power; and all the associated emissions offsets between CLFN and Elemental Energy.
Firstly, with the purchase, Cenovus Energy will advance its Environmental, Social and Governance (ESG) focus areas; by addressing and lowering its carbon and GHG footprint; however, it will also promote indigenous reconciliation through economic engagement with the communities.
Secondly, the power purchased by Cenovus will come out of the southern Alberta project; which will add around 150 megawatts of clean electricity to the region’s grid; the project will begin producing electricity around 2023.
Thirdly, the PPA Cenovus signed was for the complete output of the Southern Alberta project; it is a 15-year agreement, that will help the project reach completion in its construction; will also provide the offtake necessary to help Cenovus Energy lower its scope 2 emissions; which are represented by purchased or acquired electricity, steam, heat and/or cooling.
Moreover, about the goals of the purchase, Alex Pourbaix, Cenovus President & Chief Executive Officer, said. “Through this agreement we’re reinforcing our commitment to using multiple levers; and innovative approaches to help us in our long-term ambition of achieving net zero emissions by 2050.”
Also recommended for you: Germany and the U.S. reach agreement on Nord Strem 2. Click here to read.
Cenovus Energy engaging in more ESG focus areas, after agreement
He also remarked. “This is also an excellent opportunity to further build on our long-standing relationship with Cold Lake First Nations in its partnership with Elemental.”
On the other hand, CLFN is part of the Denesųłiné Nation with 3,000 members; and reserve lands around Cold Lake and Primrose Lake near some of Cenovus’s oil sands projects in northern Alberta. In fact, the community has been a long-time supplier of services at Cenovus’s projects.
About the relevance of the PPA, Cold Lake First Nations Chief Roger Marten, said. “Cold Lake First Nations is excited to partner with Elemental Energy; and also Cenovus on this important project. As stewards of the land, our Nation fully supports sustainable renewable energy development respecting environmental; economic, cultural and social contexts, while realizing long-term economic benefits through an ownership stake in the project.”
Finally, he remarked. “The project exemplifies the relationships we’ve built with our partners and creates an innovative path for economic reconciliation.” Cenovus has also identified further biodiversity ESG focus areas that will be targeting after the agreement. Such report will come shortly, said the company.