Suncor Energy Inc.

Suncor Energy Inc.

December 07, 2006 00:00 ET

Suncor Energy releases 12th annual climate change report

Calgary, Alberta (December 7, 2006) — Suncor Energy Inc. today released its 12th Annual Progress Report on Climate Change. The report provides an update on Suncor's efforts in 2005 to manage greenhouse gas emissions as guided by the company's seven-point Climate Change Action Plan.

Company-wide, Suncor's total greenhouse gas emissions for 2005 were 9.9 million tonnes, a 7.9% drop from 2004. However, greenhouse gas emission intensity (emissions per barrel of oil) increased by 3.7%.

Suncor's greenhouse gas performance in 2005 was affected by a fire at its oil sands facility near Fort McMurray, Alberta, which reduced annual production levels by nearly 25% from 2004. But total greenhouse gas emissions from the facility decreased at a slower rate, due to several energy-intensive steps the company took to protect its operating units from cold weather damage.

"From the point of view of our climate change objectives, 2005 was a challenging year," said Rick George, Suncor's president and chief executive officer. "But we are back on track with our efforts to actively manage greenhouse gas emissions."

Suncor made progress in a number of areas of its climate change action plan in 2005. The company continued to be a leader in renewable energy development through the construction of Canada's largest ethanol plant (which opened in 2006) and by advancing plans for its fourth wind farm. Suncor also helped launch an industry initiative to develop a broad-based carbon capture and storage solution for Canada.

Suncor's greenhouse gas management initiatives have resulted in total reductions of 42 million tonnes of carbon dioxide between 1990 and 2005. However, because of significant production growth during that period, total absolute emissions since 1990 have doubled.

"Managing the impacts of growth will remain a significant challenge," George said. "However, we are determined to close the gap through a commitment to innovation, leading edge research and sound management of our day-to-day operations."

Suncor Energy Inc. is an integrated energy company headquartered in Calgary, Alberta. Suncor's oil sands business, located near Fort McMurray, Alberta, extracts and upgrades oil sands and markets refinery feedstock and diesel fuel, while operations throughout western Canada produce natural gas. Suncor operates a refining and marketing business in Ontario with retail distribution under the Sunoco brand. U.S.A. downstream assets include pipeline and refining operations in Colorado and Wyoming and retail sales in the Denver area under the Phillips 66® brand. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.

 Suncor Energy (U.S.A.) Inc. is an authorized licensee of the Phillips 66® brand and marks in the state of Colorado. 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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Darcie Park
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