TC Energy Corp (TRP.TO), a Canadian pipeline operator, might spend millions of dollars on plans to reduce emissions by converting to renewable energy to power its vast network of gas and oil pipelines in Canada and the United States. A better response to a call for information on wind energy for ventures in the United States has cheered Calgary-centered TC Energy, which ships gas and oil through approximately 100,000 kilometers of the pipelines, one of the largest networks in North America.
“We started with simply our liquids pipeline, and it gives us a lot of optimism that we will be able to pivot fast to the natural gas pipeline industry both in the United States and in Canada,” president of power and storage at the TC Energy, Corey Hessen, informed Reuters. TC’s intention to use wind and solar energy instead of the natural gas to fuel pipelines is similar to the smaller-scale initiatives by competitor Enbridge Inc (ENB.TO). It would help the company meet investor expectations to enhance its environmental performance. Hessen stated, “It’s a large award and a pretty great opportunity.”
According to him, the initiative is the smartest near-term chance for TC to contribute to the energy transition. Energy companies all around the world are attempting to limit the amount of greenhouse gas emissions released during the production and transportation of oil and gas. The oil and gas sector in Canada is the country’s greatest emitter. If TC Energy does not decrease its emissions, the growing carbon price in Canada might add a major cost to its bottom line. Canada has vowed to minimize emissions by 40-45 percent by 2030 compared to 2005 levels and raise the carbon price from C$40 per ton to C$170 per ton by 2030. It also imposes an output-based pricing scheme on commercial carbon emitters like TC.
As per the company website, TC’s scope 1 & 2 emissions – emissions it creates or that are created to provide it with power – from its gas and oil pipelines totaled over 14 million tonnes in 2019. TC said it is still calculating how many tons of carbon pollution would be saved if renewables were used to power pipes. According to the business’s most recent sustainability report, the corporation spent C$69 million in 2019 on existing carbon pricing schemes, up from about C$62 million in 2018. TC anticipates that majority of its assets in Canada, the United States and Mexico will eventually be subject to carbon emission laws.