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Suncor Energy – Focus of efforts on Climate Change Management and Solutions

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Suncor Activity on Climate Change Management

Several thrusts to company effort – internal and external

Facility GHG reduction efforts focused on fuels and energy use

GHG Technology development often worked in consortiums (ICO2N, CCP, CMC, MIT, others)

CCS is a technology approach with a long time frame supported at Suncor through selective investment in research and piloting

Environmental Technology efforts moving to a collaboration model through COSIA

Cooperation: Working together in pursuit of individual goals Collaboration: Working jointly on a common goal

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Oil Sands GHG Mitigation Roadmap Project

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Project drivers

Positioning of oil sands resource as economically & environmentally competitive – To accelerate rate of improvement, counter negative perceptions – Need for leadership and collaboration with industry, government,

stakeholders Assessment of practical actions for achieving GHG reductions

– Impact of energy efficiency and new technology, including timeline, economics and magnitude

– Metrics for benchmarking performance Use Lifecycle analysis (LCA) tools to better understand and

manage GHG intensity of oil sands-derived fuels – Update of Jacobs LCA study for AERI (2009) with actual operating data – Quantify relative impact of energy efficiency, new technologies on LCA

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Scope and deliverables

Identify and quantify energy efficiency and GHG abatement opportunities for three oil sands facility types – In Situ bitumen production, Mining and Extraction, and Upgrading

Identify major technology opportunities

Development of metrics for benchmarking

Update to lifecycle analysis (LCA) of oil sands-derived crudes

Roadmaps and recommendations

Funding provided Suncor and the Alberta Climate Change Emissions Management Corporation (CCEMC), conducted by Suncor and Jacobs Engineering

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Oilsands GHG Roadmap Summary Outcomes

Identify and quantify energy efficiency and GHG abatement opportunities for three oil sands facility types – In Situ bitumen production, Mining and Extraction, and Upgrading

– Suncor’s In-situ, Base Plant mining and extraction, and Upgrader were used as baseline

– Improvement estimates developed and categorized by type for each production facility

– Assess impact of facility integration with cogen, and use of waste heat for process needs

Identify major technology opportunities

– Suncor/Jacobs expert workshops to identify and screen new technology opportunities

– Overall impact on GHG emissions was estimated; considered timing, risk and economics

– Included evaluation of CO2 capture and storage

Development of metrics for benchmarking

– Set of primary and secondary metrics developed and validated with Suncor operating data

– Allows for the comparison of facilities, identification of improvement potential

Update to lifecycle analysis (LCA) of oil sands-derived crudes

– Updates previous work done (Jacobs for AI-EES in 2009) using Suncor operating data

– Identified impacts of energy efficiency and new technology on LCA

Roadmaps and recommendations

– Developed roadmaps to present impact, costs by area

– Recommendations for technology development and collaboration

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Mining and Extraction

100% 2.0% 0.5% 1.0% 1.0% 0.5% 5.0%90%

0.00

0.05

0.10

0.15

0.20

0.25

0.30

Baseline Flare & hydrocarbon

losses

Heat losses to earth and

water

Fuel type and use

Energy monitoring

and management

Utilization efficiency

Heat exchange /

integration & fired heater efficiency

Utilities –steam,

power, cogeneration,

hydrogen

Process / technology

changes

Control systems

Projected

GH

G E

mis

sio

ns, M

T/m

3 b

itu

men

Potential GHG Improvement *Baseline → Projected

(*): Projected GHG reduction without consideration to overall plant heat integration

Identified energy efficiency improvements could provide up to 11% reduction in energy intensity, 10% reduction in GHG emissions

– On a 100,000 bpd facility this would represent an GHG reduction potential of 400 tonnes per day

– Impact of level of heat integration on overall reduction potential has to be evaluated for each facility

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LCA Baseline Summary for Gasoline

97.4 97.293.4

107.5101.7 101.6 102.7

0

20

40

60

80

100

120

Car

bo

n In

ten

sity

, g C

O2

e/M

J of f

ue

l

Gasoline - WTW LCA CI Flaring and Fugitive

Land Use

Crude Oil Production

Transport and Delivery

Upgrading

Refining

Vehicle

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Impact of improvement opportunities

107.5 106.2103.0

101.7 100.8 98.6101.6 100.2 98.7

102.7 102.2 101.2

0

20

40

60

80

100

120

Car

bo

n In

ten

sity

, g C

O2

e/M

J of f

ue

lGasoline - WTW LCA CI

Flaring and Fugitive

Land Use

Crude Oil Production

Transport and Delivery

Upgrading

Refining

Vehicle

SAGD Bitumen SAGD Dilbit Mine-Upg-Ref Mine(PFT)-Ref

Range of Comparable Intl. Crudes

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GHG reduction potential – by facility type

In-Situ Mining & Extraction

Upgrading Timing - Uncertainty

Operational Improvements

2% 2% 2% -Near term (1-3 years) -low risk

Capital Improvements

6% 8% 5% -Mid term (3-5 years) -moderate risk

New Technologies

20% 30% 10% -Long term (10+ years) -higher risk

Study identified significant potential for reductions from operational and capital improvements, new technologies

– Further study work and evaluation needed to confirm any single improvement opportunity

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Summary of major findings

Significant potential for energy and GHG emissions improvements: – In Situ: ~6% (energy intensity) and ~8% (GHG intensity) – Mining/Extraction: ~11% (energy intensity) and ~10% (GHG intensity) – Upgrading: ~12% (energy intensity) and~ 7% (GHG intensity) – Further work to validate each opportunity before possible implementation

New technology offers potential for significant improvements in 10+ years: – In Situ: 20%, Mining/Extraction: 30%, Upgrading: 10% – CCS offers largest % reduction potential of any technology, but is uneconomic

Integration can have large impact on GHG emissions – Integrating in-situ/extraction with cogen reduces GHG intensity by up to 5%. – Integrating extraction/upgrading operations reduces extraction GHG intensity by

30-50%.

Energy efficiency metrics for benchmarking developed/validated with Suncor data

– Needs further input collaboration with industry, government

Lifecycle analysis (LCA) for oil sands-derived fuels updated in the study – Useful to compare relative impact of opportunities, optimize new facility design – Further work needed to reduce uncertainties

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Suncor Energy Management System

Overview of EMS Project objectives, approach and results

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Vision and Objectives of Initiative

Vision:

“Develop a standardized, best practice Energy Management System as part of Operational Excellence. The EMS will systematically monitor and manage energy use and energy efficiency to achieve the company-wide 10% energy efficiency improvement goal by 2015, and continuous improvement beyond 2015.”

Drivers: Energy use is single largest variable cost, and directly linked to GHG

emissions

Objectives: Implement a sustainable, corporate-wide energy management system

for use at all Suncor operating facilities. Achieve stated goal of a 10% improvement in 2007 energy intensity by

2015, as committed to in 2009 Report on Sustainability

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Key elements of successful EMS

Integrated Energy Management Culture

Focused Processes and Actions

Appropriate Organizational

Structure

Strong Leadership

Engaged & Committed Leadership

Challenging Goals, Policies, & Principles

Metrics and Data-Driven Decisions

Integrated Energy Efficiency Organization

Responsible Line Organization

Timely Recognition of Success

Consistent & Targeted Business Planning Process

Commitment to Training & Development

Effective Communication System

Standard Improvement Methodology

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Suncor’s EMS implementation approach

Site-level workshops – Operations, engineering and energy management specialists – Develop appropriate benchmarks and tracking tools – Identify operational and capital improvements

Track and manage energy usage Focus on continuous improvement

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EMS progress to date

EMS implementation completed at 3 refineries

– Denver, Edmonton, Montreal

– Immediate energy savings of ~2% achieved within first 6 months

– Additional ~5% of reductions identified through projects

– Improved focus on continuous improvement

Oil Sands EMS implementation to take place over next two years

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Summary

GHG Roadmap provides both tools for the sector and indication of areas of focus for Suncor to reduce GHG footprint

Energy Management is a standardized process driven approach that yields both early and longer term fuel use reductions

LCA is a useful tool for comparative analysis

Collaboration on efforts with outside groups helps to accelerate performance improvement