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Pilot Project to Inject CO 2 for Enhanced Oil Recovery & CO 2 Storage Project type CO 2 pilot injection Project proponent Husky Oil Operations Ltd. CO 2 source Husky facility, which includes an ethanol plant adjacent to its heavy oil upgrader in Lloydminster, Saskatchewan Capture application Oil and gas CO 2 storage type Enhanced oil recovery in shallow, thin heavy oil reservoirs CO 2 stored Up to 100 kilotonnes per year Start date for storage 2011 Project timeframe 2009 to 2012 Project location Lloydminster, Saskatchewan, Canada Funding Government of Canada $14.1 million Private sector $53.6 million Total project cost $67.7 million Project description This project will focus on targeted research and the development of a new approach in heavy oil extraction in thin heavy oil reservoirs by using injected CO 2 that could be permanently stored in the reservoirs. CO 2 will be captured from Husky’s ethanol plant adjacent to its heavy oil upgrader, then transported and injected into heavy oil reservoirs located nearby to enhance oil recovery. This project could eventually lead to the capture of up to 300 000 tonnes of CO 2 per year from the Husky ethanol plant and upgrader by purifying, dehydrating, compressing and transporting the CO 2 to heavy oil reservoirs in the Lloydminster area. Expected outcomes The project will develop new knowledge and methods for enhanced oil recovery (EOR) in heavy oil reservoirs. Because of the shallowness and thinness of such reservoirs compared with ones for conventional oil, they have not been used for CO 2 storage in the past. This project is expected to advance the industry in this area. Given the relatively large heavy oil resource in Saskatchewan and Alberta, it is hoped that in the future, such reservoirs could be used to permanently store large quantities of CO 2 . Proponent profile Headquartered in Calgary, Alberta, Husky Energy Inc. is one of Canada’s largest energy companies, with approximately 4100 employees. Husky owns a portfolio of fossil fuel-producing properties across Canada and Asia. Production ranges from shorter-term shallow oil and gas production in eastern Alberta to longer-life, deep oil and gas production in western Alberta, northeastern British Columbia and southwestern Saskatchewan as well as the East Coast of Canada. Husky also has significant holdings in the Alberta oil sands. Proponent Web site www.huskyenergy.ca Aussi disponible en français sous le titre : Projet pilote visant l’injection de CO 2 aux fins de récupération assistée du pétrole et de stockage de CO 2 For information regarding reproduction rights, contact Public Works and Government Services Canada (PWGSC) at 613-996-6886 or at [email protected]. © Her Majesty the Queen in Right of Canada, 2013 Revised March 2013

Pilot Project to Inject CO2 for Enhanced Oil Recovery ...€¦ · The project will develop new knowledge and methods for enhanced oil recovery (EOR) in heavy oil reservoirs. Because

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Page 1: Pilot Project to Inject CO2 for Enhanced Oil Recovery ...€¦ · The project will develop new knowledge and methods for enhanced oil recovery (EOR) in heavy oil reservoirs. Because

Pilot Project to Inject CO2 for Enhanced Oil Recovery & CO2 Storage

Project type CO2 pilot injection

Project proponent Husky Oil Operations Ltd.

CO2 source Husky facility, which includes an ethanol plant adjacent to its heavy oil upgrader in Lloydminster, Saskatchewan

Capture application Oil and gas

CO2 storage type Enhanced oil recovery in shallow, thin heavy oil reservoirs

CO2 stored Up to 100 kilotonnes per year

Start date for storage 2011

Project timeframe 2009 to 2012

Project location Lloydminster, Saskatchewan, Canada

Funding

Government of Canada $14.1 million

Private sector $53.6 million

Total project cost $67.7 million

Project description This project will focus on targeted research and the development of a new approach in heavy oil extraction in thin heavy oil reservoirs

by using injected CO2 that could be permanently stored in the reservoirs. CO

2 will be captured from Husky’s ethanol plant adjacent

to its heavy oil upgrader, then transported and injected into heavy oil reservoirs located nearby to enhance oil recovery. This project

could eventually lead to the capture of up to 300 000 tonnes of CO2 per year from the Husky ethanol plant and upgrader by purifying,

dehydrating, compressing and transporting the CO2 to heavy oil reservoirs in the Lloydminster area.

Expected outcomesThe project will develop new knowledge and methods for enhanced oil recovery (EOR) in heavy oil reservoirs. Because of the

shallowness and thinness of such reservoirs compared with ones for conventional oil, they have not been used for CO2 storage in the

past. This project is expected to advance the industry in this area. Given the relatively large heavy oil resource in Saskatchewan and

Alberta, it is hoped that in the future, such reservoirs could be used to permanently store large quantities of CO2.

Proponent profile Headquartered in Calgary, Alberta, Husky Energy Inc. is one of Canada’s largest energy companies, with approximately 4100 employees.

Husky owns a portfolio of fossil fuel-producing properties across Canada and Asia. Production ranges from shorter-term shallow oil and

gas production in eastern Alberta to longer-life, deep oil and gas production in western Alberta, northeastern British Columbia and

southwestern Saskatchewan as well as the East Coast of Canada. Husky also has significant holdings in the Alberta oil sands.

Proponent Web sitewww.huskyenergy.ca

Aussi disponible en français sous le titre :

Projet pilote visant l’injection de CO2 aux fins de récupération assistée du pétrole et de stockage de CO2For information regarding reproduction rights, contact Public Works and Government

Services Canada (PWGSC) at 613-996-6886 or at [email protected].

© Her Majesty the Queen in Right of Canada, 2013 Revised March 2013