The proposed project involves the replacement of three petroleum coke fired boilers with two natural gas cogeneration units. Should this project proceed, it could provide Suncor with the capacity to generate approximately 800 MW of additional reliable, low cost, low carbon intensity power to be sold into the Alberta grid. This project would likely require an external connection to the Alberta grid.
The figure below identifies the location of the project.
With the Alberta Climate Leadership Plan, the government has launched an Alberta-first strategy, which includes a goal to end pollution from coal-generated electricity by 2030 as one of its key features. This creates an opportunity for Suncor to participate in greening Alberta’s electricity system with a low-carbon, low-cost reliable power supply while at the same time supporting our emissions reduction plan.
A project description for the Coke Boiler Replacement project was submitted to the Canadian Environmental Assessment Agency in December, 2017. Alberta Energy Regulator (AER) applications were filed in January 2018. Suncor received key approvals from the AER in July 2018. Suncor is engaged with all required regulatory bodies as it continues to evaluate the project, targeting to make a final sanction decision later in 2019.
- Existing coke-fired steam generation boilers (CFB) at Suncor’s Base Plant provide a large portion of the steam requirements within the oil sands operations. This project will involve replacing these boilers with more thermally 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 new project could generate approximately 800 MW of additional reliable, low cost, low carbon intensity power to be sold into the Alberta grid.
- 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 with excess electricity being contributed to the Alberta grid.
- 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.
Cogeneration produces heat energy using natural gas, which would replace the petroleum coke from the coke boilers, 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 grid.
The excess power we would supply to the grid is expected to benefit the province as it has very low emissions and costs. This project is expected to support Alberta’s transition away from coal and towards more sustainable energy sources.
Our goal:
- Community and stakeholder engagement is a key component of the Coke Boiler Replacement project and we will work closely with stakeholders throughout the project.
- We will work closely with Aboriginal communities in the Regional Municipality of Wood Buffalo throughout this process, seeking to build effective, long-term and mutually beneficial relationships.
Prior to approving this project, Suncor is reviewing several factors, including determining how this project aligns with the emerging Alberta power market design. In the meantime, we are progressing some early stage activities and preparing our regulatory applications. We will continue sustaining existing assets until a decision is made on a path forward.
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- net water intake,
- GHG emissions, and
- other air emissions, including sulphur dioxide, nitrogen oxides and particulate matter.
Suncor will engage with local stakeholders to understand potential stakeholder concerns and potential mitigation measures. Our objective is that the final project development plan will reflect input provided by stakeholders including regulators and local Aboriginal communities and take into account all relevant environmental factors.
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 grid; the expected timing of the sanction decision, 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 approval and subsequent 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.