Suncor Energy to move ahead with C$1.4bn Coke Boiler Replacement Project
Suncor Energy said that it will invest CAD 1.4 billion on the 800MW Coke Boiler Replacement Project to power its Oil Sands Base Plant, located 25km north of Fort McMurray in Alberta, Canada.
As part of the Coke Boiler Replacement Project, the Canadian energy company will build two new cogeneration units to replace three old petroleum coke-fired boilers.
The three existing coke-fired boilers provide a significant portion of steam needed for the operations of the Oil Sands Base Plant. The replacement natural gas-fired cogeneration units will generate the steam needed for the extraction and upgrading operations at the Oil Sands Base Plant.
Construction on the Coke Boiler Replacement Project is likely to begin in the fall of this year and the cogeneration units are expected to be commissioned by 2023.
Suncor Energy announces C$1.4bn Coke Boiler Replacement Project at its Oil Sands Base Plant. Photo courtesy of Suncor Energy Inc.
The power generated from the Coke Boiler Replacement Project will be exported to the Alberta Interconnected Electrical System and is expected to cover about 8% of the current demand for electricity in the Canadian state.
Mark Little – president and CEO of Suncor Energy said: “This is a great example of how Suncor deploys capital in projects that are economically robust, sustainability minded and technologically progressive.
“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.”
Suncor Energy also said that the Coke Boiler Replacement Project will benefit the economy, people and neighboring communities by creating reliable and low cost, low GHG, electricity.
Additionally, sulphur dioxide and nitrogen oxide emissions from the Oil Sands Base Plant are expected to be brought down by almost 45% and 15%, respectively, following the completion of the power project.
The flue gas desulphurization (FGD) unit used for lowering sulphur emissions associated with coke fuel will no longer be needed for the operations, said Suncor Energy. The Canadian energy company also said that the FGD unit’s decommissioning will also bring down the volume of drawn from the Athabasca River by nearly 20%.