Can you future-proof a refinery against climate change concerns? Shell thinks so

On a sunny spring afternoon, Shell's massive Scotford industrial complex northeast of Edmonton heaves with activity. 

There are dozens of smokestacks in every direction of the plant, which churns out not only gasoline and jet fuel, but propane and other materials, on a site that's larger than downtown Edmonton. 

Grey and brown steel pipes snake from one building to another and back again, like a spaghetti buffet. About 50 different tanks hold a variety of oils, fuels and gases. 

At a glance, it's not the kind of facility people might imagine as part of the company's efforts to reduce its carbon emissions. But it is.

The refinery is one of five in the world that Shell has selected globally to transform into a low-carbon energy production facility, which the company says it intends to keep operating for decades to come, even as it aims to reach a 2050 goal of net-zero emissions. 

"It's the ambition to be here for many decades to come," said Mark Pattenden, a senior vice-president with Shell Canada, during an interview at the Scotford facility.

Achieving those climate targets — now less than three decades away — while operating such a massive refining operation may seem far-fetched, but the company has begun to take steps toward transforming the facility.

It's a common dilemma facing many companies throughout Canada's industrial sector: finding ways to future-proof their business amid increasing concerns about the environment and the harmful effects of climate change around the globe.

"As the pandemic recedes, climate change and the transition to a low-carbon economy will move to the top of the policy agenda," said the Canadian Manufacturers and Exporters in a report, noting the transition will be difficult, but has the potential to be rewarding as "global demand for clean technology is increasing at an explosive rate."

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Canadian companies are taking different approaches in the face of environmental pressure.

Oilsands companies in Alberta are proposing to reach net-zero emissions by 2050 largely through using carbon capture and storage facilities. Last year, Suncor Energy sold its wind and solar business, but wants to expand its biofuel and hydrogen production.

Meanwhile, pipeline firm Enbridge is expanding the number of its renewable energy projects including offshore wind, while TC Energy is developing projects like pumped-hydro electricity storage

Shell's Scotford facility was first built in 1984 as a refinery, and later expanded to add an upgrader to process oilsands bitumen into different types of crude oil. The two plants work together to produce gasoline, diesel and jet fuel, in addition to some gasses such as propane and butane.