Air Quality

Sulphur Emissions

Syncrude successfully operated within its license limits for emissions of sulphur dioxide in 2005, with emissions averaging 227 tonnes per day. After the start-up of Syncrude’s upgrader expansion in the second quarter of 2006, which will introduce flue gas scrubbing on a new fluid coker, emissions are expected to fall to a daily average of less than 210 tonnes per day.

Emissions Reduction Project

The engineering design for the Syncrude Emissions Reduction Project was 14 per cent complete at year-end. Procurement and construction will commence in 2006 and the project will be operational in 2009. The project involves the retrofit of a flue gas scrubbing system into the operation of Syncrude’s two original cokers. In combination with scrubbing technology also incorporated into a new coker built as part of Syncrude’s upgrader expansion project, it will reduce stack emissions of sulphur compounds by 60 per cent from current approved levels of 245 tonnes per day. Emissions of particulates will also be reduced by more than 50 per cent.

Nitrogen Oxides Emissions

Emissions of Oxides of Nitrogen averaged 55 tonnes per day in 2005, slightly lower than the 56 tonnes per day recorded in 2004. Emissions intensity was higher, due to lower than anticipated crude oil production.

Mobile equipment used in Syncrude’s mining operations is a significant contributor to our total NO_x emissions, as NO_x is formed through the combustion of fossil fuels such as diesel. Syncrude will continue to pursue emissions reductions through actions that include:

• equipment purchase specifications that require new engines to meet the latest regulatory requirements for NO_x;
• development of mine strategies that minimize haul distances and up-hill hauling, reduce rolling resistance and increase the overall efficiency of mobile mine equipment;
• participation in the Surface Mining Association for Research; and
• installation of reliable low NO_x technology combustion equipment in new plant fixtures such as furnaces, boilers and gas turbine generators.

Atmospheric Emissions

Energy Efficiency

Waste Heat Recovery A multi-year program to upgrade Syncrude’s recycle water system has resulted in a dramatic improvement in the recovery of waste heat. In fact, heat recovery has nearly doubled compared to the pre-upgrade benchmark established in 1997, representing more than 600 MW of free energy. As a result, energy inputs and emissions of greenhouse gases have been reduced. The recycle water system provides the hot water needed to extract bitumen from oil sand and the cooling water needed by Syncrude’s upgrading operation.

In 2005, Syncrude’s overall energy consumption rose to 1.43 million BTUs per barrel of production, up from 1.35 million BTUs per barrel in 2004. The volume of purchased energy consumed per barrel of production also rose, to 0.84 gigajoules, a 24 per cent increase over the 0.68 gigajoules consumed per barrel in 2004. The increases were due to reduced operational efficiency caused by extensive maintenance and turnaround work, reduced production of plant fuel gas, and start-up of new Stage 3 units.

Syncrude expects energy efficiency to improve after our upgrader expansion comes fully on line in 2006, as the project will introduce many new process units that are more efficient. Energy consumption for the year is targeted at 1.36 million BTUs per barrel of production.

Syncrude has laid out a 10-year plan to achieve a one per cent per year reduction in energy consumption per unit of production. These reductions in energy intensity will effect reductions in per unit emissions of greenhouse gases of slightly less than one per cent per year. The heart of the plan lies in improved equipment and process reliability, as this will contribute significantly to reduced energy use and GHG emissions by providing steady, reliable and energy-balanced day-to-day operation. The plan also includes Research and Development funding for future projects that will provide energy conservation benefits.

GHG Emission Calculation Audit

In 2004, as part of a government-initiated bitumen industry study, third party verification was conducted of the method used by Syncrude to calculate greenhouse gas emissions originating from our operations. It determined that Syncrude’s GHG inventory has a high degree of validity. Clearstone Engineering Ltd. conducted the audit using Syncrude emissions data for the year 2000. A second phase of the study will validate data from 1990 to 2003.

The verification is part of Syncrude’s ongoing work with government and industry stakeholders to develop a consistent and auditable approach to GHG emission calculation and reporting for the oil sands and heavy oil upgrading industry. This effort will enable the industry to meet provincial, federal and international GHG reporting requirements.

The audit found that the integrity of Syncrude’s GHG data is attributable to its rigorous and transparent approach to estimating GHG emissions using a "point source" emission model, which includes comprehensive fuel metering and compositional analysis and site-specific emission factors derived from extensive site-wide fugitive emission measurement studies.

Key Air Indicators

Resource Conservation

Actions taken by Syncrude in response to stakeholder concerns raised during our stakeholder engagement processes are noted throughout this report; these actions are indicated by the symbol.