Reflections at a Time of Industry Transition

Faculty of Engineering and Applied Science

Research Report

by DR. RAY GOSINE

Dean, Faculty of Engineering and Applied Science 2003–2008 Associate Vice President Research – Memorial University of Newfoundland

by DR. GREG NATERER

Dean, Faculty of Engineering and Applied Science 2012–2022 Vice President Academic and Research – University of Prince Edward Island

Since the Faculty of Applied Science was established at Memorial University almost 75 years ago, research carried out by engineering faculty, staff and students has played a major role in supporting economic and social development in Newfoundland and Labrador (NL) through innovations related to both legacy and emerging industry sectors in the province. One of the most significant issues facing the world today is climate change. The opportunities and challenges arising for NL are enormous as the issue of energy transition is addressed. The role of engineering education and research in NL remain as important as ever as NL navigates this energy transition and its impact on the economy.

Where does the NL oil and gas (O&G) industry fit into a world that is experiencing a transition to cleaner energy systems? It is important to understand that the NL economy, and hence entities such as Memorial University that are supported by provincial investments, are inextricably linked to offshore O&G revenues (i.e., royalties and taxes), employment, and the broader economic contributions that the province needs. This industry is a key base from which diversification can occur and make a transition to a more diverse and greener economy viable. A broad range of engineering research will make it possible for the province to participate in new energy solutions, including making substantial improvements in the environmental performance of the offshore oil and gas (O&G) industry and leveraging research into other offshore energy and resource development opportunities.

Consider future projects such as Bay du Nord. Such projects provide opportunities to establish Canada as a world leader in offshore clean energy technology and innovation by pursuing strategic technologies beyond those solely focussed on O&G. They will allow NL and Canadian companies to connect with global offshore energy industries and their deep supply chains. Such projects will facilitate proof of concept testing of Canadian clean technologies such as offshore wind energy to hydrogen conversion, and also create supply chain opportunities for clean technology products and services.

These projects also afford NL opportunities to participate in world-class energy projects that will employ emerging digitalization technologies. Having such projects in the region will, in turn, have tremendous secondary benefits for a growing NL tech sector that is focussing on technology innovations for a diverse range of industry sectors and is capturing global market opportunities across those sectors. Capitalizing on these future opportunities is key to diversifying the NL economy. Research in the Faculty of Engineering and Applied Science is a key enabler of the innovation that is required to compete globally.

The obligations on the owners of offshore O&G projects with respect to research, development, education and training (RDE&T) investments in NL are significant. There is a unique opportunity for this spending to be directed toward RDE&T activities that better position NL on the leading edge of new energy solutions. For example, this could include RDE&T activities related to current engineering research activities at Memorial such as lower carbon energy production, technologies for carbon capture, use and storage (CCUS), wind energy, hydrogen and biofuels.

Even under the most aggressive energy transition scenarios, there will still be a need for significant investment in new O&G production to meet future demands for energy. In the global net-zero objectives, the O&G producers with the lowest carbon emissions intensity, coupled with the most efficient operations, will have a competitive advantage to provide the O&G resources that will be needed globally by 2050. In meeting future O&G demand, Canadian O&G production must utilize innovative technologies and approaches that minimize negative impacts on the environment and that facilitate Canada’s ability to meet its emissions targets. Research and innovation is critically needed to achieve Canada’s target of net-zero emissions by 2050.

NL needs a more diversified economy with a sustainable, renewable energy-based component that continues to grow over the coming decades. An energy transition for NL means further reduction of emissions from offshore O&G production by developing lower emission and lower carbonintensive options. Addressing the transition challenge requires new technologies and approaches to transportation and energy storage that are still evolving and need to be scaled up to be able to meet future demand. Engineering research capacity at Memorial in these areas will help create and sustain a niche for offshore energy innovation in NL. As former deans of the Faculty of Engineering and Applied Science, we have seen how our strong partnerships with the O&G industry have benefited our students. Our graduates have an extraordinary ability and desire to develop innovative solutions. Memorial's engineering programs were ranked #1 among comprehensive universities in Canada in 2021 (Times Higher Education) in terms of industry partnerships. Co-operative education has played a significant role in preparing students for this success after graduation.

A successful energy transition will require more talented young graduates from our engineering programs to drive innovations within the O&G industry towards cleaner technologies and remain optimistic about their future opportunities in NL, including opportunities that are not directly related to careers in the energy economy. Research in the Faculty of Engineering and Applied Science will continue to address the needs of our legacy industries as well as new and emerging sectors of the economy. The applications of such research and development across our economy will help NL successfully navigate the energy transition from a position of economic strength.

Reflections at a Time of Industry Transition

Research Report