The Project involves the replacement of three aging petroleum coke-fired boilers with two highly efficient natural gas cogeneration units. The use of cogeneration will generate approximately 800 megawatts (MW) of reliable, low cost, low-carbon power to the Alberta Interconnected Electrical System.
The Coke Boiler Replacement Project is located at Suncor’s Oil Sands Base Plant, 25 kilometres north of the city of Fort McMurray, Alberta.
The figure below identifies the location of the project.
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A project description for the Coke Boiler Replacement Project was submitted to the Canadian Environmental Assessment Agency in December 2017. Suncor received all of the key approvals from the Alberta Energy Regulator (AER) in July 2018 and from the Alberta Electric System Operator (AESO) in November 2018. All Alberta Utilities Commission (AUC) approvals were received in July 2020. The project was sanctioned in September 2019. Construction began in the fall of 2019, with commissioning to the cogeneration units expected by Q4 2024. Suncor will continue to be engaged with all required regulatory agencies as the Project proceeds. Third Party applications supporting the Project are the TC Energy Northern Corridor Expansion project which is expecting approval in Q4 2021 and ATCO's transmission facility operator application with the AUC that is expecting approval by Q3 2021.
Construction peak will occur in 2023.
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- Existing coke-fired steam generation boilers at Suncor’s Base Plant provide a large portion of the steam requirements within the Suncor oil sands operations. This project will involve replacing these boilers with modern, highly efficient, natural gas-fired cogeneration technology, which generates two products: low-carbon electricity (which the province requires to meet its stated climate goals) and steam (which Suncor requires to supply its Base Plant operations).
- The project will generate approximately 800 MW of additional reliable, low cost, low carbon intensity power to be exported to the Alberta Interconnected Electrical System.
- Suncor is primarily focused on ensuring reliable steam supply for its facilities, but believes that implementing cogeneration is the most cost and carbon efficient method of producing both steam and power to meet demands.
- Because of the 24/7 nature of our Base Plant operations, this is expected to provide a reliable and stable power source.
- The Coke Boiler Replacement Project has the potential to make a measurable environmental contribution in support of the provincial and national climate change strategy. The Project is expected to reduce our air emissions, including sulphur dioxide and nitrogen oxides, as well as net water intake.
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Currently, Suncor uses petroleum coke, a byproduct of our upgrading operations to generate heat in large boilers. The heat is used to make steam, electricity, boiler feed water and hot water to run our Oil Sands Base Plant operations.
Cogeneration produces heat energy using natural gas, which would replace the petroleum coke fuel, with the added benefit of producing electricity. Suncor’s systems are designed to fulfill its facility electrical demands first, and then deliver any excess power to Alberta’s Interconnected Electrical System.
The excess power we would supply to the grid is expected to benefit the province as it is a by-product and is produced at a low cost. This project is well positioned to contribute towards Alberta’s transition away from coal and towards more sustainable energy sources.
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Our goal:
- Community and stakeholder engagement is a key component of the Coke Boiler Replacement Project and we will continue to work closely with stakeholders throughout the project.
- This includes Indigenous communities in the Regional Municipality of Wood Buffalo. Throughout this engagement process, Suncor seeks to build effective, long-term and mutually beneficial relationships.
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A traditional Indigenous smudging ceremony took place at the construction site in November 2019.
Throughout construction, Suncor representatives will continue to share information with RMWB communities in support of our regulatory obligations. Ongoing engagement will continue during start-up and commissioning.
- net water intake,
- GHG emissions, and
- other air emissions, including sulphur dioxide, nitrogen oxides and particulate matter.
Suncor will continue to engage with local stakeholders. Our project development plan reflects input provided by stakeholders including regulators and local Indigenous communities.
Consistent with Suncor’s commitment to continued investment in the region, this project may also:
- create employment opportunities
- promote economic growth and business development
- provide valuable revenues for governments
- increase access to education and training
- enhance community investment
This publication contains certain forward-looking information and forward-looking statements (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian and U.S. securities laws. Forward-looking statements in this publication include statements regarding the Coke Boiler Replacement Project, including the benefits expected therefrom such as: that excess electricity may be sold to the Alberta Interconnected Electrical System; the expected timing of construction and first steam; that the project will reduce our air emissions and net water intake and make a measurable environmental contribution in support of provincial and national climate change strategy; Suncor’s expectations around the socio-economic benefits which could be attained through the Project, including employment opportunities, economic growth, enhanced community investment and the provision of valuable revenue for governments; our expectations surrounding stakeholder engagement; and that the Project will provide a reliable, stable and low cost power source. The completion of the Coke Boiler Replacement Project is subject to numerous factors, including several that are outside of the control of Suncor and there is no guarantee that the project will proceed or be completed. Forward-looking statements are based on Suncor's current expectations, estimates, projections and assumptions that were made by the company in light of its information available at the time the statement was made and consider Suncor's experience and its perception of historical trends. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Suncor. Suncor's actual results may differ materially from those expressed or implied by its forward-looking statements, so readers are cautioned not to place undue reliance on them. Suncor’s most recently filed annual information form/Form 40-F, annual report and quarterly report to shareholders and other documents it files from time to time with securities regulatory authorities describe the risks, uncertainties, material assumptions and other factors that could influence actual results and such factors are incorporated herein by reference. Copies of these documents are available without charge from Suncor at 150-6 Avenue S.W., Calgary, Alberta T2P 3E3, by calling 1-800-558-9071, or by email request to info@suncor.com or by referring to the company’s profile on SEDAR at www.sedar.com or EDGAR at www.sec.gov. Except as required by applicable securities laws, Suncor disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
