Siddiqui, Muhammad-Shahid

DOE OSTI2022

Technology, technology, technology: An integrated assessment of deep decarbonization pathways for the Canadian oil sands

As a party to the Paris Agreement, Canada has an ambitious climate target of net-zero emissions by 2050. The country also holds the world's third largest oil reserves in the Alberta oil sands. Given increasing emissions from the oil sands sector, achieving Canada's net-zero target requires significant oil sands decarbonization. If, while phasing out fossil fuels, there is still a demand for Canadian oil sands, then the decarbonization of the resource production process becomes crucial. In this study, we use an enhanced version of the Global Change Analysis Model (GCAM) with a detailed unconventional oil sector for Canada, including mining and in situ resources. We ask, what is the future of the oil sands sector in deeply decarbonized global and Canadian economies? We address this question under four mitigation scenarios with varying global net-zero GHG emissions constraints, three additional representative lower carbon extraction technologies available for the oil sands sector, as well as global direct air capture (DAC) deployment. We find that lower carbon technology deployment allows a 20%–44% increase in oil sands production by 2050 for scenarios with net-zero GHG emissions in 2100 or 2075. DAC helps maintain oil sands production in the most ambitious global decarbonization scenario (net-zero GHG by 2050), without which low international oil demand makes Canadian oil sands production uncompetitive. Canadian oil sands production thus depends highly on the availability of lower carbon extraction technologies and international oil demand, which to a certain extent relies on the availability and global deployment of negative emissions technologies.

04 OIL SHALES AND TAR SANDS↗

DOE OSTI2021

Insights for Canadian electricity generation planning from an integrated assessment model: Should we be more cautious about hydropower cost overruns?

Hydropower accounts for approximately 60% of electricity generation in Canada, with growth expected in the coming decades as part of renewable energy transitions; however, frequent cost overruns threaten the viability of this growth. Here, using the integrated assessment model GCAM, we develop an endogenous representation of hydropower for Canada that accounts for market dynamics, thus permitting analysis of hydropower competition with other electricity generation technologies, both with and without cost overruns. Results show that modelling hydropower resources endogenously increases Canadian hydropower deployment relative to an assumption of fixed hydropower production, from 417 to 495 TWh annually by 2050. In scenarios that apply cost overruns at historical levels, hydropower loses market share to more easily scalable technologies like wind power. When including high cost overrun assumptions, the model determines that hydropower falls from about 73% to 65% of Canadian electricity generation by 2050, while wind power increases from about 8% to 11%. Countries may be better able to achieve electrification and renewable energy targets at lower cost by avoiding large-scale, overrun-prone hydropower and nuclear generation projects. Model results support that cost overruns are important considerations for policy decisions related to electricity sector development in Canada and elsewhere.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗