Suncor Energy of Calgary has outlined details of a C$20.6bn (US$20.7bn) expansion of its oil sands operations in northern Alberta, expressing confidence that it can contain escalating costs and environmental damage associated with the oil sands boom.

The project, known as Voyageur, is designed to lift Suncor’s oil output by 200,000 barrels a day to 550,000 b/d in 2012. It is the latest in a flurry of multi-billion dollar investments in the oil sands, encouraged by surging oil prices.