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OPTI Canada Inc. plans heavy oil project south of Fort McMurray

July 18, 2000

Calgary, Alberta - OPTI Canada Inc. (OPTI) has begun the process of seeking regulatory approval for the construction and operation of a heavy oil (bitumen) in-situ recovery and field upgrading project, approximately 40 kilometres southeast of Fort McMurray. The first phase of the project is projected to produce 30,000 barrels per day of bitumen, and has a total cost currently estimated at C$450 million. Pending regulatory and OPTI board approval, construction will begin in 2002, with full operations estimated to start in 2004.

The Long Lake Project, named after a small lake on the lease, would use the Steam-Assisted Gravity Drainage (SAGD) process. This process involves drilling pairs of horizontal wells into the ground. One well is used to inject steam into the ground to heat the bitumen. The bitumen melts and drains to a second well where it is collected and flows to the surface. The SAGD process is currently used at several pilot projects throughout the province.

In addition to the SAGD facilities, OPTI plans to construct upgrading facilities at the site using proprietary technology developed by OPTI's parent company, ORMAT Industries. This field upgrading process will be demonstrated by OPTI in 2001 at a plant currently under construction near Cold Lake.

Following the initial construction of the first phase of the Long Lake SAGD and upgrading modules, OPTI plans to add facilities to use the upgrading by-product as fuel in the SAGD steam generators. Additional phases could eventually increase production to 60,000 barrels per day of bitumen, depending on further evaluation of the lease and market conditions.

"The Long Lake Project allows us an opportunity to apply our unique field upgrading technology on a commercial scale," says Jim Arnold, Vice-President, Development, OPTI Canada. "As a member of the ORMAT Group of Companies, we will also apply our proven capabilities in sustainable and eco-efficient energy development."

The project is located approximately 8 kilometres southeast of the Hamlet of Anzac. The lease, comprised of 77 sections, is jointly owned by OPTI and Suncor Energy Inc., following an agreement with Suncor announced in August of 1999. OPTI will design, construct and operate the project. Suncor has an option to participate in the project.

The project is expected to create 60-80 permanent jobs in the area and up to 300 construction jobs. OPTI has begun the process of seeking regulatory approval by preparing a "public disclosure" document with information about the project. The company is also collecting data to help in preparing an environmental impact assessment (EIA). The "terms of reference," which define the parameters of the environmental impact assessment, will be published in the coming months and stakeholders are encouraged to forward comments and concerns to OPTI toll-free at 1-877-818-6784 or through the company's web site at www.opticanada.com.

OPTI Canada was established in 1999 to focus on the recovery and upgrading of Canadian heavy oil using appropriate and eco-efficient technologies. OPTI has an office in Calgary, Alberta and is a member of the ORMAT Group of companies. ORMAT is a world leader in remote, high reliability power generation systems using renewable energy sources, such as geothermal (the internal heat of the earth), solar and fuel-free electricity generation from waste heat. For the past 35 years, ORMAT has been involved in the development, engineering, construction and operation of energy projects world-wide.

Suncor Energy Inc. is a Canada-based, international integrated energy company operating an oil sands plant in Fort McMurray, Alberta; a natural gas business in Western Canada; a refining and marketing operation in Ontario; and an oil shale development program in Queensland, Australia. Suncor common shares (symbol SU) and preferred securities are listed for trading on the Toronto and New York Stock Exchanges. For more information on Suncor, visit www.suncor.com.

For more information on the Long Lake Project, visit www.opticanada.com or contact:

Phil Rettger 1-800-793-8903

This news release is not for dissemination in the United States or to any U.S. news services. The securities of OPTI Canada Inc. have not been registered under the United States Securities Act of 1933 or the securities laws of any state in the United States and may not be offered or sold in the United States unless an exemption from registration is available.