Capital Valuation Project

By: raelleen
Suncor Energy, Inc

Project: Suncor had attempted to value the use of environmental resources in project planning, but the valuation results had been uneven. The “price” of resources (H2O, CO2, SO2, land use, etc.) either swamped the NPV calculation or it barely registered in the 1st decimal place. Suncor had developed one “cost” model which could be used outside of the capital planning/NPV calculations. The SGE Immersion team evaluated the best models to use for the company’s capital investment decision-making process that could consider optimal use of financial capital against water conservation, land use & reclamation, air emission reduction and risk mitigation, reputational value, and stakeholder concerns.