As part of its commitment to sustainability, Suncor has been exploring the potential for carbon capture and storage (CCS) at our oil sands operations. This technology is one of the key tools to reducing GHG emissions, especially in Alberta where emission points are located close to suitable storage reservoirs.

At the same time, the company has been one of 19 active members and supporters of the Integrated CO2 Network (ICO2N) initiative, which promotes the development of capture, transportation and storage technologies and works with governments to advocate for supportive policy.

The announcement of a $2 billion carbon capture and storage fund by the Alberta government in the summer of 2008 led Suncor and other companies to actively consider investing in CCS projects. Suncor was placed on the initial short list for participation.

However, the downturn in commodity prices and the delay in our growth plans, including CCS host facilities at Voyageur, became significant factors in assessing the project. The high costs of CCS and the uncertainty of future North American greenhouse gas (GHG) policies also made moving forward a real challenge. As a result, Suncor did not prticipate in the final bid for Alberta government CCS project funding.

Suncor remains supportive of CCS — it's part of the technology mix the company is looking at for the long term. But it's also very capital intensive. Without clarity on long term future GHG regulations and the company's need to focus on the core business, it wouldn't be fiscally responsible for Suncor to invest heavily in CCS right now.

In the meantime, as the industry works on reducing CCS costs, Suncor remains committed to seeking improved energy efficiency solutions, using technologies to reduce our carbon footprint and developing renewable energy and lower carbon fuels, along with working to improve the commercial viability of CCS at our oil sands operations.

Suncor remains an active member of ICO2N.

Suncor is also a long-time partner in the Carbon Capture Project, which consists of some of the world's leading energy companies and various government organizations, working together on research and new technologies to help make CCS a reality.