Cenovus Energy Inc. recently entered a power purchase agreement (PPA) to buy solar-power produced electricity and the associated emissions offsets from a partnership between Cold Lake First Nations and Elemental Energy Inc.

“Through this agreement we’re reinforcing our commitment to using multiple levers and innovative approaches to help us in our long-term ambition of achieving net zero emissions by 2050,” commented Alex Pourbaix, Cenovus president and CEO, in a release on July 22.

The southern Alberta project will add 150 megawatts of renewable energy to the province’s electricity grid once completed and is expected to begin producing electricity in 2023. Cenovus signed a 15-year PPA for the full output of the facility, providing the offtake contract necessary for the construction of the project and ultimately helping Cenovus mitigate its scope 2 emissions.

In addition to addressing climate and greenhouse-gas emissions, Cenovus noted in the release that the project advances another company initiative to further support Indigenous reconciliation through economic engagement.

With 3,000 members and reserve lands around Cold Lake and Primrose Lake near some of Cenovus’ oil sands projects in northern Alberta, Cold Lake First Nations, part of the Denesųłiné  Nation, has been a long-time supplier of services at Cenovus’ projects.

Its latest project with Cenovus and Elemental Energy, a Vancouver-based privately held developer, investor and operator of renewable energy projects, creates an “innovative path for economic reconciliation,” commented Cold Lake First Nations Chief Roger Marten.

“As stewards of the land, our Nation fully supports sustainable renewable energy development respecting environmental, economic, cultural and social contexts, while realizing long-term economic benefits through an ownership stake in the project,” Marten said in the release.

Elemental Energy currently has two existing solar facilities in Alberta in its portfolio of renewable energy projects.

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