Hydrotreating also reduces or removes This is no longer the scenario. Flint points time. What is new to our upgrading
chemical impurities, such as nitrogen, out that if oil sands production is to industry is the rising cost, and
sulphur and trace metals, from hydrocarbon continue to grow, alternatives to gas need questionable long-term availability of
molecules. This is very important because to be found. natural gas in the quantities the industry
impurities can be environmental concerns, needs.”
and they cause problems at the refineries. A number of companies are already
working on alternatives.
While heavy oil upgrading is a long
established technology in Alberta, it isn’t
without its challenges. Huge amounts of
natural gas are used to produce the
hydrogen needed in the upgrading
process.
A second issue facing Alberta upgrading
operations is producing a synthetic crude
“Hydrogen consumption is typically 1,000
standard cubic feet per barrel of synthetic
crude oil,” explains Len Flint of LENEF
North West Upgrading Inc. plans on using that meets refinery needs. While current
hydrogen addition technology called synthetic products coming out of Alberta
hydrocracking for its upgrader. The process are low sulphur, with zero residue, they
uses heat and pressure to crack long-chain lack some of what conventional light oils
bitumen molecules and then adds can offer.
hydrogen to stabilize the lighter
hydrocarbons that result from the
reaction.
Consulting, the primary author of the “Our process generates two primary
Alberta Chamber of Resources’ Oil Sands products,” says North West president Rob
“It gives refiners difficulty in what we call
distillate cuts,” Flint explains. “These
fractions are highly aromatic and that
imparts poorer quality when transformed
into jet or diesel fuel.”
Technology Roadmap. It takes around 400 Pearce. “The first is condensate used to
standard cubic feet of natural gas to transport the bitumen feedstock to us by A final challenge facing upgrading
produce that hydrogen using the steam pipeline. The second, our primary output, is researchers is developing a scalable field
methane reforming technology, the current a light sweet bottomless crude that should upgrader that meets economic
method of choice with Alberta upgraders. trade at a premium to W TI [ West Texas thresholds. With new thermal recovery
Intermediate].” operations for heavy oil on a smaller scale
This method was chosen during times of than oil sands mines, field upgrading
abundant supplies of low-cost natural gas. The big difference between the North would lighten heavy oil and bitumen so it
West upgrading technology and could be transported by pipeline without
traditional technologies is that it won’t rely expensive condensate added to make it
on natural gas for hydrogen generation. flow. One company says it has the answer
to this challenge.
“We will be gasifying the heaviest
minimal-value material to produce Ivanhoe Energy believes a technology it
hydrogen for our internal needs,” Pearce recently purchased, which was originally
explains. “This has the advantage of largely used to process wood and biomass, could
eliminating the purchase of high-cost revolutionize the heavy oil industry by
natural gas for the process, leaving that reducing the scale required for upgrading
natural gas for higher value purposes, like operations and diminishing reliance on
heating homes.” natural gas.
Len Flint is a big fan of this approach to In January, Ivanhoe Energy announced it
hydrogen generation. Flint says by burning had completed a successful extended
residues as fuel or for hydrogen commercial demonstration of rapid
generation, upgraders should be more thermal processing (RTP) at a facility in
profitable. And there are other advantages. California.
“If you start to use the worst part of your
own bitumen barrel for energy and
hydrogen, you lessen the burden of
upgrading the remaining material,” he
explains.
“It’s here, it has arrived, it exists and it is
proven,” says Leon Daniel, Ivanhoe Energy
president and CEO. “It is the biggest
advance that could be possible for heavy
oil production.”
Nexen and OPTI Canada are using similar The testing took place at Ivanhoe’s
technology to convert commercial demonstration facility (CDF)
bottom-of-the-barrel asphaltenes into in Aera Energy’s Belridge heavy oil field
synthetic gas to produce hydrogen for near Bakersfield, California. Over a number
upgrading, as well as to generate steam for of months, the company tried out RTP
their thermal recovery operations at their with a variety of crudes and operating
60,000-barrel-per-day Long Lake criteria. Ivanhoe acquired RTP through a
development. recent merger with Ensyn Group, which
originally developed the technology in
“The concept of gasifying refinery residues the 1980s.
New field upgrading technologies could limit the for hydrogen, energy and power is not
cost of entry into the oil sands industry new,” Flint points out. “It has been
PHOTO BY Joey Podlubny practiced in European refineries for some
“Following our acquisition of Ensyn Group
and the heavy oil upgrading technology
