Alberta
Cenovus CEO Pourbaix to step down, become executive chair; Jon McKenzie to be new CEO
By Amanda Stephenson in Calgary
Cenovus Energy Inc. chief executive Alex Pourbaix will step down from his CEO role later this year to devote more time to his evolving role as an outspoken champion of Canada’s oilsands industry and its decarbonization ambitions.
The Calgary-based energy company said Thursday that Pourbaix, who has led Cenovus since November of 2017, will become executive chair, while chief operating officer Jon McKenzie will become CEO in a transition that will take place after the company’s annual meeting set for April 26.
On a conference call with analysts, Pourbaix said the change will allow him to focus his attention on external efforts, including working with all levels of government to advance the oil and gas industry’s decarbonization goals.
Cenovus is a member of the Pathways Alliance, a group of oilsands companies that together have pledged to spend $24.1 billion to reduce greenhouse gas emissions from oilsands production by 22 million tonnes by 2030.
Pourbaix has been one of the most outspoken advocates of the Pathways plan and has been heavily involved in the group’s efforts to secure federal and provincial support for a massive proposed carbon capture and storage transportation line that would capture carbon dioxide from oilsands facilities and transport it to a storage facility near Cold Lake, Alta.
“Next to safety, there is nothing more important to Cenovus and our industry than reaching a durable solution between government and industry to achieve our emission aspirations,” Pourbaix said.
“Once I move to the executive chair position, I intend to dedicate even more time to this pivotal external issue for both Cenovus and our industry.”
Pourbaix was one of the prominent industry voices who successfully lobbied the federal government for the creation of an investment tax credit for carbon capture and storage projects in Canada, which was announced in the federal budget last year.
However, he has also been vocal in his stance that more government support is needed before companies will pull the trigger on investing in carbon capture. Pourbaix and other oil and gas sector leaders have said Canada needs to do more to stay competitive with the U.S. and its Inflation Reduction Act, which they say offers more incentives for the technology.
Environmental groups have been critical of the industry’s lobbying for more support, given the record profits oil and gas companies earned in 2022 due to sky-high commodity prices.
Cenovus earned $6.45 billion in 2022 compared with $587 million in 2021.
Pourbaix said Thursday that he wants to see the industry, the federal government, and the Alberta government come to some type of “durable” agreement as to what this country’s emissions reduction ambitions are. He added that a structure needs to be put in place to make sure the oil and gas sector can achieve those goals while still remaining economically viable.
“I think it’s just incredibly important for Canadians that we find a way for this industry to be able to continue to thrive, and the way we’re going to do that is by constantly improving our environmental leadership,” Pourbaix said.
Alberta Premier Danielle Smith released the contents of a letter to Prime Minister Justin Trudeau Thursday in which she calls for the creation of a minister-led working group aimed at coming up with a coordinated CCUS federal-provincial incentive program.
Smith said Alberta is willing to coordinate a federal CCUS income tax credit with an expansion of the province’s current Alberta Petrochemicals Incentive Program (APIP) to include carbon capture projects.
But she said Alberta will not cooperate if Ottawa continues to push ahead with introduction of its proposed Just Transition legislation, or with a pledged federal cap on emissions from the oil and gas sector.
The announcement of the change at Cenovus’ executive level came as the company reported a fourth-quarter profit of $784 million or 39 cents per diluted share for the quarter ended Dec. 31 compared with a loss of $408 million or 21 cents per diluted share a year earlier.
Revenue in the quarter was $14.1 billion, up from $13.7 billion in the last three months of 2021.
Cenovus reported total upstream production amounted to 806,900 barrels of oil equivalent per day for its most recent quarter, down from 825,300 a year earlier.
Total downstream throughput was 473,500 barrels per day, up from 469,900 in the fourth quarter or 2021.
On the call with analysts, McKenzie — who joined Cenovus in 2018 from Husky Energy as chief financial officer, and was instrumental in Cenovus’s merger with that company — said he expects a smooth transition to the CEO role, with little change in corporate focus.
“Both Alex and I have our fingerprints all over the corporate strategy, and we developed this in a partnership together with the rest of our leadership team,” McKenzie said.
Pathways Alliance president Kendall Dilling said in an emailed statement Thursday that he is grateful Pourbaix will continue to devote his energy to the group’s ambitions.
“Alex’s contributions to not only the creation of Pathways Alliance, but to our continued efforts to decarbonize our industry’s production, have been monumental,” Dilling said.
This report by The Canadian Press was first published Feb. 16, 2023.
Companies in this story: (TSX:CVE)
From the Canadian Energy Centre
Deep Sky Alpha facility will trial technologies that suck CO2 from the sky
Innisfail, Alta. is set to host the world’s first test centre for technology that removes carbon dioxide directly from the air to fight climate change.
This June, Montreal-based Deep Sky completed construction of a $110-million carbon removal innovation and commercialization centre in the town about 120 kilometres north of Calgary.
It is a key piece of the company’s vision to build 100 large-scale facilities across Canada and become a pioneer in the emerging market for direct air capture (DAC) technology.
“As of this summer, we will begin not only carbon removal, which is actually sucking it out of the air through these very powerful fans, but also liquefying it and then putting it underground for storage,” Deep Sky CEO Alex Petre told CTV News.
Work began in August 2024 on the project known as Deep Sky Alpha, which aims to begin testing up to 10 different DAC technologies in real-world conditions. It is expected to be up and running this August.
The Government of Alberta is investing $5 million in the facility through Emissions Reduction Alberta.
The Deep Sky Alpha direct air capture test facility in Innisfail, Alta. Photo courtesy Deep Sky
Deep Sky’s facility will capture up to 3,000 tons of CO2 per year over the next 10 years, with room for future expansion.
Captured CO2 will be transported by tanker trucks about 200 kilometres north to Sturgeon County where it will be injected more than two kilometres below the surface into the Meadowbrook Carbon Storage Hub.
Operated by Bison Low Carbon Ventures, the project is the first approved under Alberta’s open-access carbon sequestration hub initiative and is expected to begin operations before year-end.
“We’re going to line up these eight units side by side and run them to see how they operate in the summer and in the cold of winter,” said Damien Steel, former Deep Sky CEO who continues to serve as a company advisor.
“We’ll be tracking everything to see how all these best-in-class technologies compare – what are their strengths and weaknesses – so that ultimately we can choose the best solutions to scale up for the major commercialization of carbon removal projects that are needed.”
Unlike typical carbon capture and storage (CCS) projects that scrub CO2 from the exhaust of heavy industrial facilities such as power plants, refineries, cement plants or steel mills, DAC utilizes different technology to remove much lower concentrations of CO2 directly from the atmosphere.
According to the International Energy Agency (IEA), there are 27 DAC plants operating worldwide, capturing almost 10,000 tonnes of CO2 per year. In order to reach net zero emissions by 2050, the IEA estimates DAC capacity must expand to more than 60 million tonnes per year by 2030.
Deep Sky selected Alberta for its test facility because of the province’s experience with CCS, including its advanced regulatory system for CO2 sequestration.
“To be successful at carbon removal you need three things: you need access to geologic storage, you need talent, and you need a reliable supply of renewable power to operate DAC facilities. Canada is blessed with these things, and Alberta especially has all of these attributes in spades,” Steel said.
Deep Sky Alpha is one of several clean tech projects underway in a five-acre industrial park in Innisfail as part of an economic diversification plan that was launched in 2022 to make the town a centre for energy innovation.
A municipal solar farm and a power plant that burns garbage and will be equipped with CCS to eliminate emissions are also under development.
Deep Sky says that more than 110 jobs were created during the construction phase of its Innisfail project and it will employ 15 people for annual operations.
Subsequent commercial plants it hopes to build across Canada will employ approximately 1,000 workers for construction and 150 for annual operations.
Steel said he expects the DAC test facility will become a destination for those looking to advance CCS projects around the world, showcasing Canadian expertise in the process.
“My hope is that not only will we learn and improve carbon removal technology, but we will also put Canada on the map in terms of being a place where innovation can thrive and this industry can work,” he said.
“It will be a place where corporate leaders, government officials and customers from around the world can come and see what direct air capture really is, how it works, and how Canada is the place to do it.”
Alberta’s Heritage Fund reaches new heights
Alberta is growing the Heritage Fund for what matters most – saving for the future to ensure a strong health care system, quality education and the lowest tax environment in Canada. By investing in the Heritage Fund, by 2050 Alberta will be on the path to energize its economy, create new opportunities and fund projects that make life better for all Albertans.
This $2.8-billion contribution marks a new record for the fund and keeps the province on track to reach its goal of $250 billion by 2050. The goal is to grow the fund to the point where, after 2050, Alberta would be able to withdraw some of the income the fund earns each year while still allowing it to grow over time. Those withdrawals could help cover fluctuations in resource revenue, invest in important infrastructure and keep taxes low.
“Alberta is turning resource strength into lasting financial security. By growing the Heritage Fund, we’re strengthening core services like health care and education, while preserving the low-tax Alberta advantage. This $2.8-billion boost to the Heritage Fund is a bold step that sets the province on the path to success and puts Albertans first.”
“This investment is a key step in securing a prosperous future with stable revenues and competitive taxes for Albertans today and tomorrow.”
Alberta’s government recently launched their plan, Renewing the Alberta Heritage Savings Trust Fund: A Roadmap to Securing Alberta’s Future. This plan outlines how Alberta will grow the Heritage Fund to $250 billion by 2050 through strategic investments, global partnerships and strong governance, securing long-term economic growth and stability. These strategic investments will eventually fund the public services and infrastructure vital to supporting the growing province.
Central to the plan is the leadership of the Heritage Fund Opportunities Corporation. The updated corporation will modernize the fund’s management and help Alberta access global investment opportunities to create meaningful wealth and future prosperity. Led by board chair Joe Lougheed, the corporation will strengthen the governance of Heritage Fund assets and support investment decisions independent from government.
“Our role is to ensure the Heritage Fund is managed with the highest standards of governance and independence. By embracing global opportunities and modernizing oversight, we’re safeguarding Alberta’s wealth to deliver steady, long-term prosperity for Alberta’s future generations.”
This historic boost to Alberta’s Heritage Fund isn’t just about the numbers – it’s about building a future where families thrive, communities grow and Alberta stays strong no matter what comes next.
Quick facts:
- Alberta’s government invested $2.8 billion from the 2024-25 surplus cash in the Heritage Fund, growing the fund to $30 billion from $27.2 billion in 2024-25.
- This is up from $22.9 billion in 2023-24, the previous fiscal year.
- Alberta’s goal is to grow the fund to $250 billion by 2050.
- Once $250 billion is reached, interest from the fund will help stabilize resource revenue, invest in infrastructure and keep taxes low.
- Since 2019-20, the Heritage Fund has grown more than 84 per cent:
- from $16.3 billion to $30 billion.
- Since 2022-23, the Heritage Fund has grown more than 41.5 per cent:
- from $21.2 billion to $30 billion.
- The board of the Heritage Fund Opportunities Corporation brings together the skills and expertise of Alberta and international leaders in investment management to set Alberta up for long-term success. The current members are:
- Joe Lougheed, board chair, Alberta
- Kate White, director, Alberta
- Jacqueline Curzon, director, Switzerland
- Jouko Karvinen, director, Finland
- Chana Martineau, director, Alberta
- Mary Ritchie, director, Alberta
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