Suncor Energy is replacing its coke-fired boilers at its Base Plant north of Fort McMurray.
The oil giant announced on Monday they’re adding two cogeneration units which will provide reliable steam generation for their extraction and upgrading operations.
The units will help generate 800 megawatts of power which will be transmitted to Alberta’s grid which is equivalent to eight per cent of the province’s current electricity demand.
“This is a great example of how Suncor deploys capital in projects that are economically robust, sustainability-minded and technologically progressive,” said Mark Little, president, and chief executive officer, in a release
“This project generates economic value for Suncor shareholders and provides baseload, low-carbon power equivalent to displacing 550,000 cars from the road, approximately 15% of vehicles currently in the province of Alberta.”
The project is expected to reduce GHG emissions with steam production by around 25 per cent.
The units will cost around $1.4 billion and should be in-service by the second half of 2023.