The Canadian government formally gave greenlight to the development of Bay du Nord offshore oilfield, the first deepwater mega project in the country.
Article continues below
Following a thorough and science-based environmental assessment conducted by the Impact Assessment Agency of Canada (the Agency) over four years, Steven Guilbeault, Minister of Environment and Climate Change, has agreed with the conclusions in the Agency's Environmental Assessment Report that determined the proposed Bay du Nord Development Project is not likely to cause significant adverse environmental effects when mitigation measures are taken into account.
The project is therefore allowed to proceed with strict measures to protect the environment.
The Decision Statement sets out 137 legally-binding conditions that the Norwegian company Equinor must comply with throughout the life of the project, which is approximately 500 kilometres east of St. John's, Newfoundland and Labrador.
These conditions include requirements to reduce greenhouse gas emissions (GHGs) and measures to protect fish and fish habitat, migratory birds, species at risk, air quality, human health and Indigenous peoples' use of resources.
For the first time ever, a Decision Statement has also been issued requiring the proponent to achieve net-zero GHG emissions by 2050.
In addition to reaching net-zero emissions by 2050, Equinor is also legally-required to consider best available and new technologies to allow for the adaptive management of GHGs, as well as incorporate measures to reduce GHG emissions in the design of the project.
The proponent will be responsible for reporting to Environment and Climate Change Canada and to the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) on how these measures will be incorporated into the final project design.
At five times less emissions intensive than the average Canadian oil and gas project, and ten times less than the average project in the oil sands, the Bay du Nord Development Project is an example of how Canada can chart a path forward on producing energy at the lowest possible emissions intensity while looking to a net-zero future.
Going forward, Equinor can now proceed with obtaining any other necessary authorizations and permits from federal departments as well as the C-NLOPB. ■