Read more: http://www.calgaryherald.com/business/Redford+says+government+stay+bitumen+upgrading/6052490/story.html#ixzz1kguscMr4

“We should be refining the bitumen in Alberta and we should make it public policy in the province,”

“I would prefer…we process the bitumen from the oilsands in Alberta and that would create a lot of jobs and job activity,” he said.

“That would be a better thing to do than merely send the raw bitumen down the pipeline and they refine it in Texas that means thousands of new jobs in Texas.”

The full interview with Peter Lougheed can heard on the CBC website.

*These comments occur about 17:30 min into the interview.

Province, feds partner with industry to move CCS technology forward

Fort Saskatchewan…

The Government of Alberta has taken another step toward realizing its climate change goals by signing a final agreement with Shell Canada Energy for the Shell Quest carbon capture and storage (CCS) project.

“By continuing to move CCS technology forward, Alberta is demonstrating its ongoing leadership in realizing the commercial-scale deployment of this technology and greening our energy production,” said Premier Ed Stelmach.

The project will capture and store more than one million tonnes of carbon dioxide (CO2) per year from the Scotford Upgrader and its expansion. The province has allotted $745 million in funding for the Quest project over 15 years.

“Canada is a world leader in carbon capture and storage and we are in an excellent position to use this technology on a wide scale,” said the Honourable Joe Oliver, Minister of Natural Resources. “The Government of Canada is committed to supporting innovative clean energy technologies such as the Shell Quest project which will help to bring high-quality jobs to Alberta while contributing to the responsible development of Canada’s energy resources.”

The Government of Canada is contributing $120 million toward this project through the Clean Energy fund to help demonstrate CCS technology and advance Canada’s leadership on clean energy technologies while reducing greenhouse gas emissions from energy production.

As a short-term measure to help ensure large-scale carbon capture facilities can move forward, Alberta is updating its carbon offset program to allow multiple-credits. This modification will only apply to projects that are primarily used for straight injection and sequestration – it will not apply to enhanced oil recovery projects which remain eligible for offset credits under the current system. Under the concept of multiple credits, large-scale, direct injection CCS projects that meet specific criteria will receive a bonus credit for every tonne of offset credit created through the capture and storage of their CO2.

“While we fully expect the price of carbon to rise over the long-term, CCS projects are at a stand-still globally. Raising our own price of carbon while the rest of North America focuses on other priorities would put Alberta at a competitive disadvantage,” said Stelmach. “Our willingness to update our program is an example of Alberta taking action to reduce emissions while others continue to talk.”

“Quest would be the first application of CCS technology for an oil sands upgrading operation,” says John Abbott, Shell’s Executive Vice President of Heavy Oil. “Not only would it allow us to significantly reduce the carbon footprint of our oil sands operation here in Alberta, but it will contribute to the global knowledge that will help to get other CCS projects up and running more quickly.”

Shell Canada Energy is undertaking the Quest project on behalf of the Athabasca Oil Sands Project, a joint venture between Shell Canada, Chevron Canada Limited and Marathon Oil Canada Corporation.

This agreement is part of the provincial government’s $2-billion commitment to reduce greenhouse gas emissions through CCS technology. The province also signed a final agreement with Enhance Energy in February 2011 for the construction of the Alberta Carbon Trunk Line, which is also receiving funding from the Government of Canada. Negotiations for the two remaining projects continue.

The Alberta government is working to build a better Alberta by fostering economic growth, strengthening our health and education systems, investing in infrastructure, supporting safe and strong communities and ensuring a clean and healthy environment.

The Government of Canada’s investment comes from the Clean Energy Fund which is part of Canada’s Economic Action Plan. This program provides $795 million over five years to support research and development projects that will advance Canada’s leadership on clean energy technologies and reduce greenhouse gas emissions from energy production.

Backgrounder: Shell Quest Project; Multiple Credits

Media inquiries may be directed to:

Lisa Elliott
Communications
Alberta Energy
780-427-0265
To call toll free within Alberta dial 310-0000.

Office of the Minister
Natural Resources Canada
Ottawa
613-996-2007

Stephen Doolan
Media Relations
Shell Canada
1-877-850-5023
media-desk@shell.com

Media Relations
Natural Resources Canada
Ottawa
613-992-4447

February 16, 2011
Bitumen refinery agreement promotes value-added development
Heartland project supports carbon capture for enhanced conventional oil recovery
Edmonton… The Alberta government has successfully negotiated contracts for two projects that will advance upgrading and refining of bitumen in Alberta, increase supplies of diesel fuel and enhance Alberta’s position as a secure supplier of clean energy.

The first project with the North West Upgrading / Canadian Natural Resources Limited (CNRL) Partnership will lead to construction of a new bitumen refinery in Alberta’s Industrial Heartland, northeast of Edmonton, as part of the government’s bitumen royalty-in-kind (BRIK) initiative.

For the second project, the Alberta government and Enhance Energy Inc. have agreed to terms and conditions specific to the first major carbon capture and storage (CCS) project in the province. Enhance will build the Alberta Carbon Trunk Line (ACTL), a pipeline which will deliver carbon dioxide (CO2) captured from the refinery, to be used for enhanced oil recovery from existing conventional oil fields.

“This new refinery and CO2 pipeline will significantly advance Alberta’s capacity for refining bitumen into value-added products and increase recoveries from Alberta’s conventional oil reserves,” said Premier Ed Stelmach. “These projects underline Alberta’s commitment to responsible, cleaner energy production.”

Construction of Phase One of the bitumen refinery is targeted for completion in mid 2014. It will process for market 37,500 barrels daily of Crown bitumen in addition to 12,500 barrels per day of bitumen from Canadian Natural Resources Limited (CNRL). The refinery will process the Crown’s bitumen for a processing fee which will result in the Crown receiving higher revenues created by the higher-priced refined bitumen products. The two projects will create about 10,000 jobs during construction, plus associated spinoff employment.

During this first stage, the refinery will produce more than 5.5 million litres/day of ultra-low sulphur diesel while capturing over three thousand tonnes of CO2 daily. Enhance Energy will then transport the CO2 via the 240-km ACTL pipeline to conventional oil recovery projects throughout central Alberta where it will be injected into oil reservoirs to make the tough-to-extract oil flow more freely.

“These projects are a win-win for Albertans,” Energy Minister Ron Liepert said. “They represent a major step forward in producing value-added products while at the same time reducing greenhouse gas emissions. The potential of the enhanced conventional oil recovery ensures on-going jobs, investment and activity in surrounding communities.”

Alberta’s Carbon Capture and Storage Development Council estimated in 2009 that sufficient enhanced oil recovery capacity exists in Alberta to potentially store 450 megatonnes of CO2 and produce an additional 1.4-billion barrels of oil from conventional reservoirs throughout the   province, potentially generating up to $25 billion in additional provincial royalties and taxes. Approximately 18 per cent of conventional reserves in place are recovered using current technology. Injecting solvents, such as CO2 into the reservoirs can increase total recovery rates to 26 per cent.

The Government of Alberta announced its intention in 2008 to collect oil sands bitumen royalty volumes in-kind to encourage upgrading, refining and petrochemical development in Alberta. A Request for Proposals to purchase or process 75,000 barrels per day of Crown owned bitumen was issued in July 2009 and negotiations began with the partnership in May 2010.

As the steward of the resource for Albertans, the Alberta government is entitled to take its royalty share of bitumen production in-kind, as it currently does for conventional oil production. Bitumen royalty in-kind and other value-added initiatives add value to the bitumen resource, diversify Alberta’s economy, increase resource revenues and create jobs in the province.

The Alberta government has committed $2 billion to reduce greenhouse gas (GHG) emissions through carbon capture and storage. The projects developed with support from the funding program and industry will help the province be at the forefront of developing clean energy technology. The four projects, including the ACTL supported through Alberta’s CCS program are expected to reduce GHG emissions by five-million tonnes per year beginning in 2015.

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Backgrounder: North West Upgrading/CNRL Partnership, BRIK and Enhance Energy

For more information on BRIK visit: http://www.energy.alberta.ca/BRIK.asp

The BRIK agreements can be found at:
Processing agreement – http://www.energy.alberta.ca/Org/pdfs/BRIKagreement2Process.pdf
Marketing agreement – http://www.energy.alberta.ca/Org/pdfs/BRIKagreement2Market.pdf

Media inquiries may be directed to:
Bob McManus
Communications
Alberta Energy
780-427-1083

To call toll free within Alberta dial 310-0000.

February 16, 2011

North West Upgrading CNRL Partnership

• This agreement covers phase one of a potential three phase 150,000 barrels per day (bbd) bitumen refinery located in Alberta’s Industrial Heartland.
• Phase One, 50,000 barrels per day to be complete by mid 2014 to produce products such as:
  • 36,000 bbd of ultra-low sulphur diesel (159 litres/barrel = 5.72 million litres);
  • 18,000 bbd of naphtha; and
  • 14,000 bbd diluent.
• Captures 3,500 tonnes/day CO2 in the first phase (1.27 million tonnes/year).
• Estimated Phase One refinery construction cost: $5 billion.
• Employment:
  • On-site construction, equipment fabrication at shops and modularization yard fabrication:  will create 8,000 jobs, starting in the fourth quarter of 2011; and
  • Engineering – including engineers, support personnel and designers – will average 600 people for two years starting in the second quarter of 2011.
• It is estimated that this activity will contribute $4.6 billion to Alberta’s economy and an additional $408 million in tax revenues for the Alberta government.
• The project will generate $922 million in federal government and $53 million in local government revenues.
• The refinery will be constructed in modules, utilizing expertise and capacity available in the Edmonton area.
• North West Upgrading Inc. is a private, Calgary-based company founded in 2004.
• CNRL is a publicly traded company headquartered in Calgary that is one of the largest producers of heavy oil in Canada.

Bitumen royalty-in-kind (BRIK)

• BRIK gives the Crown right to collect oil sands bitumen in place of cash royalties, which can then be used to encourage upgrading, refining and petrochemical development in Alberta.
• BRIK is aimed at:
  • Fostering value-added oil sands development;
  • Enhancing the bitumen market in Alberta; and
  • Maximizing the value of Crown barrels received.
• A Request for Proposals (RFP) to purchase or process up to 75,000 barrels of in-kind bitumen on behalf of the province was issued in July 2009 and closed in January 2010.
• Subsequent RFPs could follow every two to three years depending on market conditions.
• The Province could have up to 400,000 barrels of bitumen royalty-in-kind available by 2030.

Enhance Energy Inc.’s Alberta Carbon Trunk Line (ACTL)

• The ACTL will receive CO2 from the North West/CNRL refinery and a further 1,600 tonnes/day from the Agrium Fertilizer plant near Redwater.
• The CO2 will be shipped via the ACTL to east-central Alberta for use in enhanced oil recovery.
• The ACTL project is receiving $495 million under the Government of Alberta’s Carbon Capture and Storage Funding Act.
• Estimates are that injecting CO2 will help producers recover additional oil from conventional oilfields in east central Alberta that will have the potential to generate up to $15 billion in royalties for Albertans.
• The company estimates 2,000 people will be employed during the construction of the pipeline.
• Engineering and procurement are currently underway and construction is set to begin in 2012.

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Media inquiries may be directed to:
Bob McManus
Communications
Alberta Energy
780-427-1083

To call toll free within Alberta dial 310-0000.

Signed BRIK Agreement Bolsters Alberta’s Value-Added FutureEdmonton, Alberta (February 16 ,  2011) – A coalition of value-added supporters promoting “Refine It Where We Mine It” commends the successful negotiation for the province’s Bitumen Royalty in Kind (BRIK) program. The coalition believes the agreement between the Government of Alberta and North West Upgrading (NWU) is a giant stride forward in the value-added direction and sees the initiative as a significant benefit by creating high value jobs for Albertans.

“We must secure the most value from our raw resources for the benefit of all Albertans. We can only do this by ensuring the growth of a vibrant, value-added sector in Alberta,” says Don Rigney, Mayor of Sturgeon County and Chair of Alberta’s Industrial Heartland Association. “Initiatives like the Government of Alberta’s BRIK program and NWU’s project are key to growing our province’s value-added industrial base and ensuring a sustainable, stable, competitive, and prosperous future.”

NWU’s planned 150,000 bpd bitumen refinery in Sturgeon County, northeast of Edmonton, will process only a portion of the bitumen that Alberta produces, but this portion has enormous significance. A project of this type creates thousands of high value jobs in engineering, construction, operations, and maintenance. Over the three phases of their project, NWU estimates the creation of an average of 600 engineering jobs, 8,000 construction jobs, 500 permanent jobs, and spin-off and support jobs throughout the province.

Tax revenue and GDP are also generated, in addition to helping maximize the royalties from Alberta’s bitumen. Furthermore, the benefit of upgrading a raw product like bitumen increases the GDP value of this resource by 25 – 40%. In addition, NWU’s project includes a one-step conversion process of bitumen to finished products such as diesel fuel and an integrated Carbon Capture and Storage solution, strengthening Alberta’s economy while respecting the environment.

“The Government of Alberta’s decision to proceed with BRIK is a significant step toward spurring further development of the petrochemical industry,” explains Rigney. “The by-products of bitumen upgrading and refining are valuable feedstock for the petrochemical industry and could be the catalyst for attracting additional investment from world-class companies.”

Albertans deserve a competitive economy and greater benefit from Alberta’s bitumen resources. Initiatives like the BRIK program provide valuable jobs to Albertans, enhance value-added activity, and diversify and strengthen Alberta’s economic and energy future.

For more information on supporting value-added in Alberta, visit refineitwherewemineit.ca.

Refine It Where We Mine It is a campaign supporting an increase in upgrading and refining capacity in Alberta. Coalition members include Alberta’s Industrial Heartland Association, Building Trades of Alberta, Edmonton Economic Development Corporation, Fort Saskatchewan Chamber of Commerce, and Merit Contractors Association.

Contact:
Neil Shelly
Executive Director, Alberta’s Industrial Heartland Association
neil@industrialheartland.com
780.998.7453

Suite 202, 9906 102 Street
Fort Saskatchewan, Alberta
Canada T8L 2C3
780-998-7453
www.industrialheartland.com
inquiries@industrialheartland.com

Alberta’s Industrial Heartland Association (AIHA) is a non-profit organization representing the municipalities of the Counties of Lamont, Strathcona, Sturgeon, and the Cities of Edmonton and Fort Saskatchewan. AIHA strives for sustainable development within its defined industrial zone in accordance with Eco-Industrial Principles.SUBSCRIBE | UNSUBSCRIBE

Download the whitepaper here: AB Future Oct 25 – Whitepaper

By Dave Cooper, Edmonton Journal October 26, 2010 7:50 AM Be the first to post a comment

EDMONTON – Work at the Capital Region’s two major industrial projects, worth about $8 billion and employing thousands of skilled contract workers, is almost complete.

And work on the next major project, the North West Upgrading plant near Redwater, won’t begin until spring at the earliest if it’s approved before the end of the year.

South of Wabamun Lake, the $1.9-billion, 450-megawatt Keephills 3 high-tech coal-fired power plant is in its early commissioning stages, with combustion and electrical transmission testing underway.

The number of contract workers has fallen steadily, from 1,800 to fewer than 600 this month as more and more of the operation is turned over to joint owners Capital Power and TransAlta Utilities.

“Basically we are turning on things to make sure they work. And we will be producing power and running the plant before we go online into the provincial power grid,” spokesman Mike Long said.

That could be later this spring, between April and June.

Near Fort Saskatchewan, work on Shell Canada’s $6-billion Scotford Upgrader expansion is also winding down from a high of 5,500 contract workers to several hundred.

“We are in the pre-commission stage, testing all the units,” spokesman Randy Provencial said. “There are thousands of valves to test, pressure points on piping. We are in that process with the first unit right now.”

Shell will bring on the utilities and support unit first, then probably the hydrogen manufacturing unit. Only later will the units linked to oil production come on.

“There are five blocks within the upgrader expansion. So think of five city blocks with two dozen houses on each, and each of those must be tested,” he said.

Shell aims to have a “smooth and flawless” startup early next year.

The upgrader will add 100,000 barrels per day of oil to the market, raising Scotford’s total production of synthetic crude to 255,000 bpd, much of which is sent next door to the Shell refinery.

Earlier this month, Shell withdrew its regulatory application to build a 400,000-bpd upgrader expansion, but said it would spend $2 billion in the future to further enlarge its Muskeg River and Jackpine mines and production at its Scotford refinery as well as expand upgrader output.

However, the firm signalled last winter that it would be focusing on conventional oil production in other areas of the world.

The Keephills and Scotford projects were selected last year for new carbon capture and storage technologies.

The Alberta and federal governments announced $779 million in funding over 15 years to help kick-start the Pioneer Project, which will capture a stream of gas from Keephills 3 (K3) and store one million tonnes a year underground in liquid form. In addition, using super-critical combustion, the new K3 power plant will emit 24-per-cent less carbon dioxide per megawatt hour (MWh) than four coal plant units that are expected to be retired in the near future by other producers.

Shell received $865 million for its CO2 capture and storage project, which send gas from Scotford into storage deep underground or into a planned carbon pipeline for use in enhancing oilfield output.

Read more: http://www.edmontonjournal.com/business/Power+plant+upgrader+near+finish+line/3726431/story.html#ixzz13UD6UUX3

Published: 07/13/2010

Ottawa, July 13, 2010: Today, Canada’s largest business association released the second in a series of reports calling for ways that the energy sector can bolster Canadian prosperity.

Energy is Canada’s strategic advantage and encouraging the development of the energy sector and its entire value chain will leverage its vast resource base, providing even greater benefits for all Canadians-more jobs, more investment and more tax revenues that can be used to pay for Canadian social programs and other government priorities. A long-range, inclusive Canadian Sustainable Energy Strategy would allow the energy sector to develop sustainable industries-including chemical manufacturing, carbon capture and storage, resource upgrading, advanced nuclear manufacturing and the manufacturing of energy production parts and equipment-farther up the value chain.

“Energy is one of Canada’s greatest resources and it is vital to the economy in every part of the country,’ says Perrin Beatty, President and CEO of the Canadian Chamber of Commerce. ” Real opportunities remain to create even more value for Canada than it already gets from the energy sector-more jobs, more investment and more tax revenues.”

In Powering up Canadian prosperity: Growing the energy-sector value chain, the Canadian Chamber of Commerce explores actions that would help to enable growth in the entire energy value chain. The recommendations to the federal government include:
Achieve harmonization or mutual recognition of regulations and assessments among governments in Canada and, in the long term, among governments in North America, so that investments in the energy sector are not hampered by excessive red tape. The goal must be “one project, one assessment.”

Continue to provide financing and incentives for the research, development and commercialization of new energy technologies.

Invest in smart electricity infrastructure across Canada and improve the east-west linkages across Canada.

Develop a cross-Canada agreement to recognize credentials for skilled workers.

Provide advice and assistance to potential investors in the energy sector-particularly SMEs-to help them collaborate on large projects.

- 30-

Contact:
Kathryn Anderson
Director, Communications and Marketing
Office: 613.238.4000 ext. 231