By May 14, 2017 Read More →

Alberta, Canada give $26.2 million for oil/gas clean tech projects


Oil sands SAGD well, Clean technology funding

Cenovus Energy, Field Upgrading, MEG Energy investing $43.3 million in clean technology

Alberta Innovates has teamed up with Natural Resources (NRCan) and industry partners to take three clean oil and gas technologies to commercial demonstration, according to a government press release.

“We’re focused on projects that add value to Alberta’s economy. Today’s announcement represents the potential for billions of dollars of economic impact and the reduction of millions of tonnes of GHG emissions once these projects reach commercialization,” said Laura Kilcrease, CEO, Alberta Innovates.

“AI is proud to be part of this partnership and we were happy to provide the knowledge and expertise in this space to support NRCan in selecting these high impact projects.”

NRCan is contributing $21 million and Alberta Innovates is investing $5.2 million, for a total of $26.2 million over two-years to support clean oil and gas technologies to help develop Canada’s hydrocarbon resources in sustainable ways.

The three industry partners, Cenovus Energy, Field Upgrading, and MEG Energy are investing $43.3 million in commercial demonstration.

The three companies companies were asked for comment, but only Cenovus – which will be receiving $9.5 million from government funding – replied by publication.

“We’re planning to test an oil sands extraction technology using a solvent driven process,” said Sonja Franklin, senior media advisor.

“This involves co-injecting solvent together with steam into a well at Cenovus’s Foster Creek project after approximately one to two years of steam assisted gravity drainage (SAGD).”

Unlike in previous solvent pilots conducted by Cenovus, the majority of the steam-solvent mix in this demonstration project will be solvent, between 50 and 95 per cent by weight.

“The steam will heat the solvent to about 80-100° C, and the heat and solvent are expected to sustain steam chamber growth in the reservoir,” said Franklin.

Accelerating these technologies will be a key component to making Alberta’s oil and gas economy more competitive, creating jobs, and supporting Alberta’s transition toward a low-carbon economy, according to the press release.

“Among other things, the demonstration project will evaluate the reduction in steam requirements with the goal to develop a technology that can potentially significantly lower the cumulative steam-to-oil ratio and water treatment costs associated with steam generation,” Franklin concluded.

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“Canada’s oil sands companies are constantly evolving and innovating. Developing and adopting clean technologies creates jobs and will help Canada increase its global competitiveness for years to come,” said Deron Bilous, minister for Alberta Economic Development and Trade.


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