Canada’s largest energy firm, Suncor Energy Inc. (SU) and the diversified industrial conglomerate General Electric Co. (GE) announced that they have entered into two agreements aimed at improving the environmental performance of the oil sands in Alberta. The deals have created an investment opportunity of about $18 million.
The agreements are for the development of new technologies that would facilitate lower water usage in the oil sands and reduced green house emissions. Apart from Suncor Energy and GE, the deals involve other parties from Canada's Oil Sands Innovation Alliance (COSIA).
One of the two agreements involves developing a water treatment project that would lead to a reduction in water usage, energy consumption and greenhouse gas emissions. The pilot project would also lower capital spending and operating costs for oil sand operators. Moreover, a partnership between Suncor Energy, GE and Alberta Innovates has been extended to form a Joint Industry Project.
Additionally, a Memorandum of Understanding was signed by six COSIA members to develop Joint Industry Projects so as to improve environmental performance. These projects have an investment potential of about $13 million.
Suncor Energy stated that working toward development of the Canadian oil sands, in which the company has a strong presence, should benefit not only its stakeholders but also the energy industry at large.
Notably, Suncor Energy is Canada’s premier integrated energy company with operations involving oil sands development and upgrading, conventional and offshore crude oil and gas production, petroleum refining, and product marketing under the Petro-Canada brand.
Calgary, Alberta-based Suncor Energy and Fairfield, CT-based General Electric both have a Zacks Rank #3 (Hold).
Meanwhile, one can consider better-ranked players from the broader energy sector such as ConocoPhillips (COP) and EQT Corp. (EQT), both of which sport a Zacks Rank #1 (Strong Buy).
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