Suncor Energy begins regulatory process to add significant low-carbon power with cogeneration at its Oil Sands operations

Suncor today took its first steps in the regulatory process to replace coke-fired boilers with two cogeneration units at its Oil Sands Base Plant as a part of its plan to remain globally cost and carbon competitive. In addition to providing the facility with steam needed for its operations, the cogeneration units are expected to export approximately 700 megawatts (MW) of electricity to the provincial grid, equivalent to roughly seven per cent of Alberta’s current electricity demand.

The project, which has been submitted to the Canadian Environmental Assessment Agency (CEAA), is expected to offer base load reliability to Alberta’s electricity grid as the province transitions to more intermittent renewable energy sources, while contributing lower carbon power supply to Alberta.

“We believe that bold, ambitious action is required by all of us to effectively tackle the climate change challenge,” said Steve Williams, Suncor president and chief executive officer. “Cogeneration provides an emissions and cost reduction opportunity for Suncor’s operations and contributes low-carbon power for the province of Alberta.”

The 700 MW of power from these cogeneration units are anticipated to come online as the provincial supply of electricity is expected to decrease due to the phase out of coalfired electricity. Industrial cogeneration’s ability to supply significant volumes of reliable base load electricity at a lower carbon intensity than combined cycle natural gas technology supports Alberta’s transition towards more sustainable energy sources.

Suncor currently has cogeneration units installed at its Oil Sands Base Plant, Firebag, MacKay River and Fort Hills facilities, and exports low-carbon excess electricity generated from these units to the provincial grid.

Suncor is continuing to evaluate the project with the final sanction decision expected to be made by the fourth quarter of 2018. Should the project proceed as planned, construction is targeted to begin in 2019, with commissioning of the cogeneration units expected to commence by 2022.