MISSION MATTERS The Sturgeon Refinery’s Approach to Sustainable Energy Production ~ Updated Report – Issued 2021 ~

UPDATED EDITION INCLUDES 2020 PERFORMANCE HIGHLIGHTS

AT A GLANCE: YEAR IN REVIEW

ABOUT MISSION MATTERS At the Sturgeon Refinery, we believe that our mission is making an impact as the world transitions to cleaner energy sources. The inaugural edition was released in mid-2020 to showcase the refinery’s approach to sustainable fuel production from oil sands bitumen. This updated version reflects performance and operations data for calendar year 2020 (unless otherwise stated), including the significant achievement of commercial operation.

THE YEAR OF OPERATIONAL MILESTONES 2020 was memorable for many reasons. Most notable to the Sturgeon Refinery was the achievement of commercial operation for the refinery as well as the third-party operated Alberta Carbon Trunk Line system.

The refinery began processing oil sands bitumen feedstock early in 2020 and officially attained Commercial Operation Date (COD) as of June 1, 2020. The refinery is the first built in Canada in over three decades, and the first designed from the ground up to incorporate a solution for carbon emissions.

The carbon capture, utilization and storage system – Alberta Carbon Trunk Line – also attained COD in 2020.

By year end, almost 800,000 tonnes of CO2 from the refinery were captured, sequestered, and safely stored underground in geological formations instead of vented into the atmosphere. This system is one of only several dozen commercially operating carbon capture projects in the world, making it an early leader in carbon emissions management.

Both of these milestones were over a decade in the making and therefore mark 2020 as one of the most significant years in the history of North West Redwater Partnership.

MANAGING THROUGH A GLOBAL PANDEMIC Across the globe, 2020 was memorable due to the life changing impact of COVID-19. Individuals and organizations alike adjusted and re-adjusted habits, plans, protocols, budgets, and perspectives.

Inside the refinery fence line, the focus remained on the health and safety of personnel. Measures were put in place to protect workforce health, minimize the risk of transmission, and mitigate disruptions to diesel production, recognizing that fuel for transportation is an essential good. The commitment and flexibility of the workforce to continually adjust to the reality of COVID-19 kept case numbers low among personnel throughout the year. Additional support was provided, including unique programs like surplus laptops for employee families to continue education and connection online.

Community engagement shifted to provide relief from the hardships and challenges experienced by many local organizations. Community investment funding targeted organizations like schools, food banks, and smaller non-profits whose fundraising opportunities essentially vanished overnight. Some funding was earmarked for basic essentials like meals and toiletries, while other dollars helped improve mental and emotional health of youth and adults in the community.

2 AT A GLANCE: 2020 PERFORMANCE HIGHLIGHTS

ENVIRONMENT

Advancing carbon emissions management in Carbon Captured 798,623 Alberta Since Gasifier began operation in tonnes March to year end With the Sturgeon Refinery and Alberta Carbon Trunk Line both reaching full operation in 2020, the carbon Sulphur Recovered footprint of bitumen processing is reduced. Carbon Sulphur Recovery Unit since 99.6% dioxide captured from the Sturgeon Refinery serves as June 1 COD to year end an anchor supply to the Alberta Carbon Trunk Line system which is the backbone infrastructure Domestic Waste Recycled supporting a lower carbon economy in Alberta. Annual paper, plastic, wood, 91.5% organics, and concrete In less than a full year of capturing CO₂ at the refinery, nearly 800,000 tonnes of CO₂ were diverted from the atmosphere. The CO₂ was used instead for enhanced oil recovery before being safely and permanently stored. This system adds to the growing list of successful carbon capture, utilization, and storage projects around the world, helping Alberta lead the way in emissions reducing technology.

SAFETY & HEALTH Supporting Goal Zero for a safe, healthy worksite 1,520,897 Total Hours Worked in 2020 Personal safety performance at the Sturgeon Refinery hours consistently ranks in the top quartile among industry leaders. The refinery has been accumulating Total Recordable Injury consecutive hours of lost time injury free work since 0.39 2018. In 2020, the 4-million-hour milestone was Frequency (TRIF) surpassed. Lost time injury free hours continue to accumulate into 2021 with a proactive approach to Lost Time Incident Frequency 0.00 safety. (LTI)

An extraordinary effort on measures, procedures, and behaviors minimized the impact of COVID-19, keeping the workplace healthy and maintaining operations. Running Total of Consecutive 4.6 million Rates of infection remained very low among refinery Hours Worked LTI Free hours personnel, all of whom progressed well through Since September 2018 to present recovery.

134 Emergency Response Training activities

3 PEOPLE Recognizing service achievement and adaptability Full Time Employees 313 people The inaugural year of the Service Awards program celebrated employees who surpassed milestones years of service. Our longest serving employee was Average Years of Experience recognized for 15 years. The program is now an 19 years annual part of employee recognition. Full Time Employees

Adaptability was at the forefront as shift schedules, Average Years with NWR 4 years rotations, work locations, and workspaces were Full Time Employee adjusted due to COVID-19. Additional support and resources were available to help manage the transition. In one unique initiative, nearly 100 refurbished tablets and laptops from NWR surplus Students, Work Terms, Co-op 7 people were provided to employees whose children shifted to online learning at home or family members were Embedded/Resident isolated. The technology enabled education and 260 people connection to continue as the pandemic evolved. Contractor Personnel

COMMUNITY Managing through pandemic challenges Invested Since Program Inception $755,000+ Community investment in 2020 targeted (2015) organizations and initiatives greatly impacted by COVID-19. Where possible, the approach to investment had a multiplier effect where recipient Local Organizations Funded in 28 organizations spent funds in the region, adding to 2020 the economic impact (i.e. purchase of supplies, services or resources from local providers). Over Winter 40% of spending was directed to learning and wear for Annual United Way Item Drive education. Additionally, seniors support helped kids and combat isolation, youth clubs were able to adapt families their activities, and local food banks supplied meals and other essential goods for families in need.

Partnerships with organizations like Skills Canada- Alberta allowed a successful redeployment of their model of skilled trades exploration. Their Skills in the Classroom program had farther reach than ever before: over 9,000 students in the province with over the half of the schools being new to the program.

4 REPORT CONTENTS

Leadership Message ...... 6 Partners ...... 6 Overview ...... 7 Mission ...... 7 Values ...... 7 Canada’s Newest Refinery ...... 7 Planet Stewardship ...... 8 Raising the Standard for Environmental Performance ...... 8 Carbon Solution ...... 8 Positioned for Global Climate Trends ...... 9 Carbon as a Valuable Asset ...... 9 Preserving Air Quality ...... 10 Enhancing Water Management ...... 10 Optimizing Land Use...... 11 Maximizing Waste Recycling ...... 12 People Commitment ...... 13 Workforce and Careers ...... 13 Personal and Process Safety Excellence ...... 13 Emergency Preparedness and Training ...... 14 Partnerships and Support ...... 15 Community Investment ...... 15

5 LEADERSHIP MESSAGE

At its core, the Sturgeon Refinery was founded on a mission to create value added energy products while achieving the highest goals for sustainability wherever possible. Using leading technology to maximize product yield and quality, the refinery also raises environmental performance benchmarks for today and in the future.

The Sturgeon Refinery, designed to process 79,000 barrels per day of diluted bitumen from Alberta’s oil sands into much higher value refined products, was conceived with sustainability at the forefront. It is the world’s only refinery designed from inception to minimize its environmental footprint through carbon capture. Not only does this mitigate greenhouse gas emissions and support a lower carbon footprint, but it results in the production of cleaner, lower carbon, high value refined products demanded in global energy markets.

Our gold standard environmental leadership demonstrates to the world that Albertans not only recognize the long-term value of stewardship and the sustainable development of the oil sands, but are fundamentally committed to paving the way for sustainable energy production. Through deliberate choices in facility design and operations, the refinery has increased efficiency to preserve the quality of our air, water, and land.

We work every day to make sure Albertans’ expectations and values are represented in our actions. We demonstrate our commitment to sustainability in everything we do – with our people, within our communities, and for our environment. We believe the combination of our business model, exceptional safety standards, talented workforce, and active engagement gives us the ability to create long-term value for our partners and shareholders while contributing to a lower carbon economy.

PARTNERS

50% Owner Operator 50% Owner 75% Feedstock Supplier 25% Feedstock Supplier

6 OVERVIEW

MISSION To build, operate and grow a safe, profitable and environmentally responsible bitumen refinery creating high value products for Alberta and the world.

VALUES Integrity. Respect. Trust. Results.

CANADA’S NEWEST REFINERY The Sturgeon Refinery is the first refinery built in Canada in over 35 years. The only refinery designed from the outset with a carbon capture solution, it uses leading technology to maximize performance and minimize environmental impacts. In fall 2013, shovels officially broke ground on the project site. Peak construction saw over 8,500 workers on the project daily, in addition to thousands of jobs in engineering firms and fabrication shops.

The refinery has been processing light synthetic crude oil (SCO) into diesel and other products since December 2017. The switch to bitumen feedstock occurred in early 2020 and commercial operation was officially achieved on June 1, 2020. Phase One of the Sturgeon Refinery is designed to process approximately 79,000 barrels per day of diluted bitumen from Alberta’s oil sands into much higher value products. This includes low-carbon ultra-low sulphur diesel, vacuum gas oil, diluent, and natural gas liquids.

Future Site of Sturgeon Refinery, 2006 Sturgeon Refinery, 2019

7 PLANET STEWARDSHIP

The Sturgeon Refinery was conceived with environmental sustainability at the forefront. The refinery was designed to exceed today’s environmental requirements by setting the high standards that the future demands.

RAISING THE STANDARD FOR ENVIRONMENTAL PERFORMANCE While Canada’s energy sector helps supply global energy demand, the sector must continue to adapt to the growing scrutiny and pressure to elevate environmental performance. Companies that hope to prosper and maintain social support must have an articulate and intentional plan for environmental stewardship. It is prudent to not only meet but exceed current standards with a mindset to anticipate future regulatory requirements and public expectations.

In addition to greenhouse gas emissions mitigation and the ability to produce lower carbon products using carbon capture, the Sturgeon Refinery operates at a high standard in all areas of environmental performance. Through deliberate choices in facility design and operations, the refinery has increased efficiency and reduced impacts on air, water, and land.

CARBON SOLUTION The Sturgeon Refinery uses state of the art, commercially proven and reliable technology designed to maximize product yield and quality, deliver maximum economic return while simultaneously setting environmental performance benchmarks for today and in the future.

The Sturgeon Refinery is the first heavy oil refinery in the world designed from inception to incorporate gasification technology with integrated carbon capture. This bold approach to capitalizing on proven technology in a unique configuration was decided over 15 years ago, at a time with no specific requirements for carbon management. Although this technology choice came with a greater capital cost, the investment supports the sustainable commercial success of an environmentally competitive asset for generations to come.

The Sturgeon Refinery uses gasification to convert the heavy bottoms (a substantial waste product of bitumen) into both the hydrogen required for refinery operations and a pure, dry CO2 stream that is cost effectively captured instead of vented into the atmosphere, eliminating as much as 70% of the refinery’s total CO2 footprint at optimum capacity. This captured CO2 is then sold to third parties for enhanced oil recovery and permanent storage and provides a pathway to one of the lowest carbon intensity diesels available from any complex oil refinery.

Gasification with carbon capture aligns with the ambition of jurisdictions around the world to reduce greenhouse gas emissions, and allows the Sturgeon Refinery to produce globally demanded lower carbon products with a competitive environmental advantage.

8 POSITIONED FOR GLOBAL CLIMATE TRENDS The Sturgeon Refinery’s technology enables the production of environmentally competitive finished products, ideally positioned to satisfy shifting demands and regulations toward cleaner fuel alternatives.

Increased Adoption of Lower Carbon Fuel Standards As more and more regions adopt cleaner fuel standards, refineries will need to find ways to lower their carbon footprint. At both the national and provincial/state level, governments are adopting policies and regulations that will gradually reduce the carbon intensity of fuels over time. In order to meet the standards currently being proposed in North America, a traditional refinery would need to blend expensive biofuels, implement other carbon reducing initiatives, or purchase credits.

With the unique CO2 capture solution, pending the passage of the draft Clean Fuels Regulation in Canada, the Sturgeon Refinery’s diesel meets the standards and generates credits as a result of the capture, utilization, and storage of CO2.

CARBON AS A VALUABLE ASSET

The CO2 captured from the Sturgeon Refinery serves as an anchor supply to the Alberta Carbon Trunk Line (ACTL) Project. At full capacity, the ACTL is the largest carbon capture, transportation, utilization and storage project in the world that exclusively uses captured industrial .

The c is used for enhanced oil recoveryCO₂ before being permanently stored, kick-starting an innovative new industryaptured of converting CO₂ a waste product of the oil sands and other industries into a valuable commodity.

Enhanced oil recovery uses CO2 collected from a Designed at the same time as the Sturgeon Refinery, the ACTL variety of sources to convert a waste byproduct into a project represents valuable tool for low carbon oil production. Image supplied by: Enhance Energy, a partner in the management solution for Alberta’s industrial development. ACTL project a significant investment in a CO₂ HIGHLIGHT: This solution captured, transported, utilized, and stored nearly 800,000 tonnes of from the Sturgeon Refinery during 2020 to reduce the carbon emissions of bitumen refining. CO₂ CO₂

9 PRESERVING AIR QUALITY The Sturgeon Refinery is located in a 4,500 square kilometre airshed monitored by Fort Air Partnership, a non-profit organization that collects and reports air quality data in the region. As one of the newest industrial facilities in the hub of Alberta’s Industrial Heartland, it was incumbent upon the refinery to use best available technology and practices to preserve air quality.

Sulphur recovery is critical in maintaining air quality by reducing sulphur oxide emissions during the refining process and producing fuels with ultra-low sulphur content. The sulphur recovery technology in the Sturgeon Refinery was chosen to exceed stringent regulatory requirements, enabling a recovery rate as high as 99.8% at optimum capacity.

Similar to CO2 capture, this recovery not only has an environmental benefit, but allows an otherwise waste stream to be used as a valuable commodity for use in fertilizer production and other industrial processes.

A comprehensive suite of additional measures to address all sources of air emissions, in addition to sulphur recovery and CO2 capture includes: • The use of low NOx (nitrogen oxide) burners throughout the refinery significantly reduces the amount of NOx, an air pollutant, produced during combustion. • Internal floating roof tanks are used for storage of feedstock, naphtha, and diluent to minimize emissions. • Five tanks containing intermediate products, most operating at higher temperatures are equipped with a vapour recovery and combustion system to safely contain and incinerate volatile vapours. • Leak Detection and Repair (LDAR) Program identifies volatile organic compound fugitive emission sources and initiates repair in a timely manner minimizing site fugitive emissions.

ENHANCING WATER MANAGEMENT Water management philosophy is based on water reuse to limit fresh water intake from the North Saskatchewan River and minimize treated water discharge. The site is intentionally designed to retain storm water and recycle it for use as plant process water. Maximizing air cooling coupled with advanced water treatment technology including ultrafiltration and membrane bioreactors, the total amount of fresh water withdrawn from the river is minimized to the extent possible while maintaining efficient operations of the water treatment system.

The system of water ponds on the refinery site allows for the collection and storage of water for a variety of uses, helping to minimize the draw of fresh water from the river.

10 Specifics include:

• Retention and segregation of site stormwater into designated water ponds, which are sized larger than similar industrial facilities to maximize collection and recycling as process water • Selection of demineralization processes that result in minimum regeneration/rejection rates • Ambient air coolers for approximately 80% of process cooling • 100% recovery and recycling of steam condensate • Maximization of stripped sour water recycled within the process units • Provision to route a portion of treated waste water for use within the process systems • Utilization of a vent condenser to recover condensate in surplus low-pressure steam

When fresh water is required from the North Saskatchewan River, the Sturgeon Refinery benefits from connection to a third party multi user water system that draws water with a single intake. This single intake reduces disturbance and allows multiple industrial users to tap into the system for their water requirements as per their regulatory license.

The small stream of water from the site wastewater treatment facility is sent to the Alberta Capital Region Wastewater Commission for further treatment.

OPTIMIZING LAND USE The Sturgeon Refinery site was strategically selected on land zoned for heavy industrial within Alberta’s Industrial Heartland to both minimize land disturbance and maximize sustainable business integration.

The site allows access to robust existing infrastructure, including highways, rail, power transmission lines, utility gas, potable water and wastewater service lines. This minimizes the need for added infrastructure, maximizes integration and provides efficiency benefits superior to a stand-alone site.

The Sturgeon Refinery’s focus on minimal land disturbance resulted in maintaining a designated wildlife corridor and a wetland compensation plan that restored and preserved three times the area of wetlands lost to development on Sturgeon Refinery land.

The Sturgeon Refinery site was also selected for its low soil permeability to further reduce risk to groundwater. In addition to adhering strictly to all requirements for secondary containment and handling of stored process fluids, a comprehensive groundwater monitoring network has been established within and around the site. Data is maintained and analyzed to monitor groundwater quality trends and implement appropriate corrective action to minimize groundwater impact from the facility.

11 MAXIMIZING WASTE RECYCLING A robust system of waste collection and recycling was implemented at the beginning of facility construction and remains in place currently. Items such as scrap metal and beverage containers are returned for a refund, and all funds are reinvested back into the community. Materials such as paper, plastic, wood, organics, and concrete are recycled or recovered to minimize the waste sent to landfill.

HIGHLIGHT: 92% of non-hazardous waste generated at the Sturgeon Refinery site is diverted from landfills via recycling or recovering. The exception is ‘Garbage’, which is only 8% of the total weight in 2020.

12 PEOPLE COMMITMENT

Commitment to health and safety is an integral part of the culture and business. Diverse skill and creativity coupled with continuous training and development creates a high-performance refinery team.

WORKFORCE AND CAREERS The Sturgeon Refinery is committed to a positive and safe work environment where all workers are respected, valued, and productive. Our Code of Conduct reflects the values of Integrity, Respect, Trust and Results, and articulates our standards for ethical business practices and behaviours in all business activities. As well, a set of core competencies govern how we work together to meet our overall mission. Our core competencies are: Collaboration, Safety Commitment, Communication, Leadership, Initiative, and Adaptability.

The Sturgeon Refinery recruits employees who are of the highest caliber. Candidates are selected based on education, experience, general knowledge, skills, past performance, and credentials that best meet our needs while adhering to a commitment to providing equal opportunity to all qualified persons.

HIGHLIGHT: Since work began on the Sturgeon Refinery, nearly 40,000 people have been directly involved. Most of the workforce is Alberta based, though individuals from nearly every continent around the globe contributed to the refinery.

PERSONAL AND PROCESS SAFETY EXCELLENCE The Sturgeon Refinery implements a comprehensive program for personal and process safety management, involving all functions and levels in the organization.

A transparent reporting culture combined with a commitment to continuous improvement from all site personnel helps aim for GOAL ZERO safety excellence. All actual and potential incidents are reported to learn and eliminate causes, ultimately driving loss of containment and personal safety incidents to zero.

Sturgeon Refinery leadership is committed to continuous site improvement through promoting active participation in health and safety by all levels of the organization.

13 This includes committees and activities such as: • Committees: Health, Safety, and Environment; Safe Work Standards; Joint Health and Safety; Process Safety Management Steering Committee • Communications: Fresh Start in January annually; onboarding packages; regular safety bulletins, alerts, and publications to raise site awareness • Audit and Inspection Programs: Monitoring of compliance to Safe Work Standards; Leadership unit inspections HIGHLIGHT: Personal safety performance at the Sturgeon Refinery consistently ranks in the top quartile among industry leaders. The site is currently over 4 million hours of lost time injury free work.

EMERGENCY PREPAREDNESS AND TRAINING

Drills and Exercises Mutual Aid Membership The Emergency Operations The refinery is one of 38 Centre (EOC) is a well members of Northeast established and trained Region CAER, a local team using the Incident mutual aid organization Command System (ICS) that trains, plans and standardized approach shares best practices for

guided by a formal emergency response. Emergency Response Plan. Members include local municipalities and More than forty members industrial companies, who of the EOC partake in drills often partake in drills typically once per month together (photos at left) to to ensure capacity and hone skills and build

expertise in the event of an relationships. incident.

Emergency Training Engaging Neighbours Emergency response Well established programs capacity consists of: and protocols are in place to communicate with key • 9 dedicated and stakeholders about regular

trained responders operational updates or in whose sole role is the event of an incident. preparedness and This includes annual visits response to landowners along • 79 refinery operators pipeline routes, involving trained in fire and stakeholders in emergency rescue as a simulations, and

supplement to their participating in local core role community open houses.

14 PARTNERSHIPS AND SUPPORT Over the last decade, the Sturgeon Refinery team has worked with communities in the region to explore training, career opportunities, engagement, and partnerships. This includes community investment and direct employment for Indigenous, females, and students, along with support to strengthen communication. Partnerships are chosen specifically to enhance quality of life for surrounding communities. Three notable examples include:

Women Building Futures Skills Canada-Alberta Life in the Heartland This partnership changed 43 The inaugural Try-a-Trade in the Unique to Alberta’s Industrial women’s lives, and diversified the Heartland event was in 2018 Heartland region, this initiative face of industry at site. Graduates whereby the multitude of trades- has over a decade of engagement included 39 registered related careers was showcased to with local residents to inform and apprenticeships and two in our region’s future workforce. The educate about industry. Biannual technical training. The program event grew tremendously in 2019 open houses allow residents to provided an average annual and successfully shifted to a connect directly with site leaders, income increase of 203%, virtual format in 2020. It is and various other tools are used to changing the lives of these women organized by Skills Canada- connect citizens to information in and their families, including 46 Alberta with the help of industry a simple, efficient manner. The children; 25% of the women were and schools. Sturgeon Refinery actively Indigenous. supports events and resources.

COMMUNITY INVESTMENT The Sturgeon Refinery places a high value on engaging with community. From annual campaigns for United Way that raise several hundred thousand dollars, to local Food Bank drives for the surrounding communities, to Adopt-A-Family programs every Christmas, the goal is to give back and build stronger communities.

A robust recycling program – including wood, drywall, aluminum, steel, organics, concrete, bottles, scrap metal and beverage containers – diverts tonnes of waste from landfills and amasses refunds redirected back into the community. The focus is on local programs that promote strong family support systems, youth community involvement and education, and the rural heritage within our region.

A portion of these refunds were earmarked for an innovative challenge to help reduce waste in the region. Community groups submitted ideas to the Waste into Worth Challenge, and ten winners were chosen based on creativity, impact to the community, and ability to turn waste into something of value.

HIGHLIGHT: Over $750,000 of recycling refunds have been invested into playgrounds, festivals, technology for libraries and schools, 4-H, literacy, firefighter bunker gear, community gardens, victim services, cultural activities, leadership training, educational tours, mental health training, historic sites and more.

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The Sturgeon Refinery is the world’s only refinery designed from the ground up to minimize our environmental footprint through carbon capture and storage, while producing the cleaner, high value products needed to meet North America’s demand for energy.

Web: nwrsturgeonrefinery.com Twitter: @NWRSturgeon Facebook: SturgeonRefinery Linked In: North West Redwater Partnership

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