Suncor Energy Inc.

Suncor Energy Inc.

July 25, 2006 00:00 ET

Suncor Energy announces a clean start for diesel fuel

Completes next phase of planned $1.2 billion investment in Ontario

(All financial figures are in Canadian dollars.)

Sarnia, Ontario (July 25, 2006) — Suncor Energy Products Inc. today launched a new era of ultra low sulphur diesel (ULSD) with the opening of a new diesel desulphurization unit at the company's Sarnia, Ontario refinery. The new facility, part of Suncor's planned three-year $1.2 billion investment in the province, is expected to reduce sulphur emissions from Sunoco diesel fuel by up to 97%. 

ULSD is a clean burning diesel fuel that reduces tailpipe emissions, which in turn reduces ground level ozone and ambient levels of compounds that contribute to smog. All on road diesel sold at Canadian retail outlets as of September 1, 2006, must meet the ULSD threshold of 22 parts per million (PPM) sulphur and 15 PPM after 2006. All vehicle engines are compatible with this improved fuel. 

"Today's diesel is not the same as diesel 20 years ago," says David MacMillan, Suncor's manager of fuels quality. "Not only are we seeing ultra low sulphur diesel enter the market, but the quality and performance of diesel has also been enhanced. For example, the additives in our reformulated Gold Diesel help diesel-fuelled cars and trucks run better, which can reduce the need for expensive engine maintenance even during cold winter months."

In 2005, Suncor's Sunoco-brand introduced an improved Gold Diesel to the market. Gold Diesel is a fuel that provides superior engine performance, including maximum fuel-economy, excellent detergency, quicker and smoother starts and quieter operation. Like other ULSDs, Gold Diesel also reduces levels of smoke and overall emissions.  

Diesel is changing in other ways as well. In May 2006, Suncor began supplying the Toronto Transit Commission (TTC) with biodiesel for the TTC's fleet of 1,491 buses. Suncor biodiesel is an environmentally enhanced diesel fuel created by blending petroleum diesel with soy-based biodiesel. Biodiesel reduces carbon monoxide and particulate emissions, which are major contributors to smog.

The new diesel desulphurization unit is the first part of a planned two-phase, $800 million investment in Suncor's Sarnia refinery. The next step involves upgrading existing equipment to further integrate the refinery with new oil sands production.

Together with Suncor's new $120 million St. Clair Ethanol Plant, as well as a series of upgrades to Sunoco brand retail stations, Suncor plans to invest over $1.2 billion in Ontario over three years.

"Suncor's investments in Ontario are providing real economic and environmental benefits," said Tom Ryley, President, Suncor Energy Products Inc. "It's good for Suncor, it's good for our customers and it's good for the province."

This news release contains forward-looking statements identified by the words "planned", expected" and similar expressions which are based on Suncor's current expectations, estimates, projections and assumptions made in light of its experiences and the risks, uncertainties and other factors related to its business. Actual events could differ materially as a result of changes to Suncor's plans and the impact of events, risks and uncertainties discussed in Suncor's current annual information form, annual and quarterly reports to shareholders and other documents filed with regulatory authorities.

Suncor Energy Products Inc. is a wholly-owned subsidiary of Suncor Energy Inc., an integrated energy company. In addition to a refinery in Sarnia, Suncor Energy Products has a network of more than 300 Sunoco-branded retail and Fleet Fuel cardlock sites and has a 50 per cent joint venture interest in more than 200 Pioneer and UPI retail sites. Suncor Energy Products Inc. manufactures, distributes and markets transportation fuels, heating oils and petrochemicals primarily in Ontario. Sunoco in Canada is separate and unrelated to Sunoco in the United States, which is owned by Sunoco, Inc. of Philadelphia.

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For further information, visit our website at www.suncor.com or contact:

Jason Vaillant
Manager, Communications and Stakeholder Relations
519-383-3691

Patricia Anderson
Director, Government Relations and Communications
416-733-7141