Calgary, Alberta – In addition to driving shareholder returns through its core business, Suncor (TSX: SU) (NYSE: SU) will strengthen its focus on hydrogen and renewable fuels to accelerate progress towards its objective to be a net-zero company by 2050. Optimizing the portfolio to drive shareholder returns and continue to reduce emissions requires focus and discipline. Therefore, Suncor plans to divest its wind and solar assets.
“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 chief executive officer. “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 has been a sustainability leader for over twenty years and 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. Moving forward, Suncor will continue to participate in many aspects of the electricity value chain, including producing power through its integrated co-generation operations, through power marketing and trading, by providing customers with EV charging and potentially procuring renewable power through power purchase agreements.
Suncor’s strategy is focused on increasing shareholder returns and accelerating its progress to be a net-zero company by 2050. In support of this objective, Suncor is focusing its efforts in areas that are complementary to its base business including replacing coke-fired boilers at Base Plant with lower emission cogeneration units and accelerating commercial scale deployment of carbon capture technology. Other targeted activities include partnering with 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 technology and Enerkem’s waste to fuels technology.
In a similar portfolio optimization undertaking in alignment with its strategies and focus on shareholder value, 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 UK North Sea. The disposition process is underway with an expected close later this year.