7 Ways to Generate Carbon Credits in Alberta Oil & Gas

Publication Date

July 6, 2022

Overview

Businesses of all sizes across different industries face increased pressure to be more sustainable. Luckily, it’s no longer the case that green strategies come at the expense of corporate goals and profitability.

7 Ways to Generate Carbon Credits in Alberta Oil & Gas

Businesses of all sizes across different industries face increased pressure to be more sustainable. Luckily, it’s no longer the case that green strategies come at the expense of corporate goals and profitability. Today, we’re seeing businesses lean into emission reductions and sustainable strategies without compromising growth or profitability. In many cases, they’re generating revenue from their green approach to business.

Reducing corporate emissions can have a huge positive impact on both our environment as well as company bottom lines in an increasingly competitive market. There are even new pathways to generate carbon credits to earn extra revenue by adopting practices that reduce emissions.

For the energy industry in Alberta, there are numerous ways upstream oil and gas producers can earn carbon credits by adopting clean technologies and implementing specific emission reduction projects.

Before digging into what exactly these credit generation opportunities are, let’s talk about what a carbon credit is.

A carbon credit (also called carbon offset) represents the voluntary reduction, removal, or avoidance of greenhouse gas (GHG) emissions, measured in tonnes of carbon dioxide equivalent (tCO₂e). By cutting emissions beyond what is required, offsets play an important role in meeting GHG emission reduction targets, as they can be used to offset emissions made elsewhere. Carbon credits are often created through agricultural or forestry practices. However, they can be made by nearly any project that reduces or avoids emissions, including in the energy sector.

Companies like Radicle work with businesses to identify these emission reduction opportunities and generate carbon credits. There are currently seven ways that oil and gas companies in Alberta can generate carbon credits.

Here’s a breakdown:


•Converting high-bleed pneumatic devices to low-bleed pneumatic devices

Replacing high-bleed devices with devices that vent less than 0.17m3/hour can significantly reduce pneumatic venting.


•Converting pneumatic devices from instrument gas to instrument air systems

Installing instrument air systems to supply compressed air to pneumatic devices replaces using natural gas to drive pneumatics.


•Replacing gas-driven pneumatic devices with electric devices

This includes devices such as electric control instruments or solar-powered electric chemical injection pumps (electrification).


•Carbon Capture and Storage (or Utilization and Storage)

Capturing CO2 emissions for permanent storage in deep saline aquifers or in Enhanced Oil Recovery (EOR) schemes.


•Gas Conservation

Conservation of previously vented gas for use as fuel gas, recovery and reinjection, or power/heat generation.


•Vent Gas Combustion

The capture of vented emissions, re-routed to high-efficiency combustors or existing flares.


•Renewable electricity

This includes solar, wind, geothermal, and waste heat recovery.


While this list outlines the current opportunities available to the Alberta oil and gas industry, new credit generation avenues are actively being worked on that will be available in the future for oil and gas businesses outside the province.

If you’re ready to take the next step towards becoming a more sustainable business, or you’d like to learn whether your company’s current or future projects could be eligible to generate carbon credits under one of Radicle’s existing or potential pathways, our team of experts is ready when you are. Get started here.

Help the planet. Become sustainable.