News

(Bloomberg) -- Imperial Oil Ltd., the Canadian oil sands unit of Exxon Mobil Corp., is calling for more government funding for the nation’s industry, which is embarking on a C$16 billion ($11 billion) endeavor to deploy carbon capture and storage technology and slash emissions by 2030.

The federal government is currently offering a 50% tax credit and Alberta’s provincial government has proposed support of 12% for the roll out of the project. The oil sands industry wants to install machinery to capture emissions and transport carbon down a new pipeline to the Cold Lake region for injection into the ground. The total current government support of 62% isn’t sufficient, Chief Executive Officer Brad Corson said on an investor call.

“We are still in discussions with the government about the required fiscal support that would be necessary,” he said. “We said we need 75%.”

Imperial is a member of Pathways Alliance, a group of Canada’s largest oil sands producers. The group seeks to cut emissions by 22 million metric tons by 2030 and reach net zero by 2050 on emissions from operations.