​Suncor green lights $1.4B oilsands cogen plant

Suncor Energy's oilsands Base Plant. Image: Joey Podlubny/JWN

CALGARY — Suncor Energy Inc. says it will spend $1.4 billion to replace coke-fired boilers with two natural gas-fired cogeneration units at its oilsands base plant north of Fort McMurray, Alta.

The company says the units will provide steam generation for its extraction and upgrading operations and generate 800 megawatts of power that will be sold into the Alberta grid.

The change is expected to reduce costs and help deliver approximately $250 million of Suncor's targeted $2 billion of incremental annual cash flow by 2023.

Suncor says replacing the coke-fired boilers with cogeneration will reduce greenhouse gas emissions associated with steam production at the base plant by approximately 25 per cent.

Sulphur dioxide and nitrogen oxide emissions are also expected to be reduced by approximately 45 per cent and 15 per cent respectively.

The project is expected to be in-service in the second half of 2023.

© 2019 The Canadian Press

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