Suncor Energy's ethanol plant expansion gets the 'green' light

    SARNIA, ON, June 12 /CNW/ - Suncor Energy announced today plans to
proceed with a $120 million expansion of its St. Clair Ethanol Plant. This
investment is expected to boost ethanol production at the facility to
400 million litres per year - double the plant's existing capacity.
    Expanding ethanol production is part of Suncor's plan to invest
$750 million in renewable energy initiatives by 2012. Approximately
$250 million has been invested to date in wind power projects in Alberta,
Saskatchewan and Ontario as well as the first phase of ethanol production in
St. Clair.
    "This investment reinforces Suncor's commitment to biofuels and providing
the renewable energy options that consumers demand," said Jay Thornton,
Suncor's executive vice president responsible for renewable energy.
    The St. Clair Ethanol Plant has been in production since July 2006 and is
currently the largest ethanol facility in Canada, with a production capacity
of 200 million litres per year.
    Construction of the expanded facilities will begin immediately with
completion targeted for late 2009. Approximately 250 construction jobs are
expected to be created during the expansion with 20 new full-time positions
created once the new facilities are operational.
    A peer-reviewed study by the Pembina Institute found that blended
products from the first phase of Suncor's ethanol plant could reduce carbon
dioxide emissions (CO2) by a potential 300,000 tonnes per year compared to
conventional gasoline. The life cycle study included analysis of the impact of
corn production used as feedstock, ethanol plant operations, transportation of
products and consumer use of the ethanol-blended fuels sold through Suncor's
Sunoco retail network.
    With expansion, life cycle CO2 offsets are expected to rise to
600,000 tonnes per year - the equivalent of taking 150,000 cars off the road.
    Suncor is also in the planning stages of building a commercial
demonstration facility to develop cellulosic ethanol in Colorado with other
partners. This cellulosic ethanol facility is expected to convert wood
residues into ethanol and commercial products.
    "We're proud of Suncor's leadership position in Canada's biofuels
industry and our work to help develop next generation ethanol technology
that's expected to offer further environmental benefits," said Thornton.
"Suncor led the way in making Canada's oil sands industry a success and we're
building on that financial strength and pioneering spirit to help develop new,
cleaner energy sources for the future."

    This news release contains forward-looking statements that address goals,
expectations or projections about the future. These statements are based on
Suncor's current goals, expectations, estimates, projections and assumptions,
as well as its current budgets and plans for capital expenditures. Some of the
forward-looking statements may be identified by the words "expected",
"targeted", "could", "plans" and similar expressions. These statements are not
guarantees of future performance. Actual results could differ materially, as a
result of factors, risks and uncertainties, known and unknown, to which
Suncor's business is subject. Further discussion of the risks, uncertainties
and other factors that could affect these plans, and any actual results, is
included in Suncor's annual report 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

For further information:

For further information: Media inquiries: Jason Vaillant, (519)
383-3691; Investor inquiries: John Rogers, (403) 269-8670

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