Case Study: Arolytics Partners with Seven Generations (Now ARC Resources) on First-Ever Full-Scale Alt-FEMP
Responsible Energy Development through Emissions Analytics
Note: Arolytics and Seven Generations conducted this work prior to the strategic combination of Seven Generations with ARC Resources.
Seven Generations Energy Ltd. (now combined with ARC Resources Ltd., and known collectively as ARC Resources) has long recognized that it is the responsibility of the energy sector to lead the way in addressing climate change while producing safe and reliable energy. As such, the company incorporated Environmental, Social, and Governance (ESG) targets within their business strategy in order to continue doing right for their community and the environment while continuing to be profitable for their key stakeholders. Their commitment to responsible development has made Seven Generations a leader amongst its Canadian peer group in reducing GHG emissions intensities, and the first to receive the EO100™ international certification for responsible natural gas production.
Investing in Leak Detection and Repair (LDAR) has been essential to Seven Generations’ success in reducing fugitive emissions. Beginning in 2018, satellite and ground-based mobile emissions detection technologies were voluntarily incorporated into Seven Generations’ methane measurement program. In 2020, Arolytics was contracted to utilize these measurements to conduct methane emissions equivalency modelling for the developments within the Montney shale gas formation in which Seven Generations owned and operated several hundred active wells and facilities at the time. Arolytics developed a methane emissions and repair simulation model (AROfemp) to estimate annual methane emission reductions that may result from implementing various LDAR programs, leveraging several years of previous emissions data. AROfemp assessed over 200 program scenarios that involved various technology types, measurement frequencies, and follow-up criteria, in order to develop a custom Fugitive Emissions Management Program (FEMP) for Seven Generations’ full asset base - the Kakwa River Project - in the Montney formation.
The alternative FEMP developed in partnership with Arolytics is the first-ever full-scale approval of an alt-FEMP in Canada. The three-year program is estimated to result in lower annual methane emissions at a decreased cost over the current provincial regulatory default approach. The alt-FEMP included two technologies -- an optical Gas Imaging (OGI) camera and Bridger Photonics’ Gas Mapping LiDAR -- deployed in the following manner:
An OGI program is conducted and covers all sites that require 1x OGI surveying according to Alberta Emissions Regulations (AER) Directives 60, section 8.10.2. Subsequent fugitive repairs were made.
Next, an aerial flyover using Bridger Photonics’ Gas Mapping LiDAR technology measured emissions at all sites covered in Step 1, in addition to sites that required screening according to AER Directive 060.
Site-level emissions were tallied by Bridger Photonics. At the top 10% greatest emitting sites, OGI was used to follow-up and detect the source of the emissions within 30 days of the emission being detected by Bridger Photonics.
At these top 10% of sites, fugitive repairs were made within regulatory timelines according to Directive 60.
GHG emission mitigation efforts such as the above LDAR program demonstrate how the company remains committed to responsible energy development and maintaining its leading ESG performance in its Canadian peer group.
About the alt-FEMP participants:
ARC Resources:
On April 6, 2021 Seven Generations Energy became a part of ARC Resources. ARC Resources Ltd. is the largest pure-play Montney producer and one of Canada’s largest dividend-paying energy companies. ARC is committed to delivering strong operational, ESG, and financial performance and upholding values of operational excellence and responsible development. Their operations are focused in the Montney region in Alberta and northeast British Columbia, and the Pembina Cardium region in Alberta. ARC has composed a history of delivering superior, long-term returns to our shareholders and trade on the Toronto Stock Exchange under the symbol ARX.
Arolytics:
Arolytics is an emissions analytics and software company formed in 2018 that specializes in enterprise management of methane. With proprietary algorithms and emissions modelling, Arolytics’ products and services optimize energy sector emissions management by evaluating technologies for cost-effective emissions management, and by providing SaaS solutions for strategic methane management.