Canon has been developing a synchrotron radiation stepper system for volume production known as the XR1. The system incorporates many-original technologies. In this article, the key features of the XR1 alignment system and its performance will be discussed. To align the mask and wafer, the alignment system uses Fresnel zone plates as alignment marks. Our alignment is based on an advanced dual grating lens method. In order to attain high alignment accuracy and large process latitude, we improved the design of alignment marks and optics of the alignment scope. The alignment marks are optimized to minimize alignment error resulting from changing the gap distance between the mask and wafer, which is called telecentricity. Using these newly designed alignment marks, we have evaluated alignment accuracy. We obtained alignment accuracy 30 of 11.9(X) and 10.2 nm(Y) using etched SiN patterns on a Si substrate. Furthermore, the alignment scope is designed with multiwavelength light sources to illuminate the alignment marks. Selectable three laser diodes are applied in the optics. Multiwavelength light sources compensate each other and achieve robustness for various lithography processes.