Husky Energy CO2 Capture and Liquefaction Project
Saskatchewan Petroleum Research Incentive
Climate Change and Emissions Management Fund
ecoENERGY Technology Initiative
Canada’s Husky Energy began capturing CO2 at its Lloydminster ethanol plant in mid-March 2012, for use in enhanced oil recovery projects in new and existing reservoirs, as part of an ongoing pilot programme.
The majority of Husky's heavy oil assets are located in the Lloydminster region of Alberta and Saskatchewan, where it has already been deploying alternative methods of EOR to unlock resources. The company says the proximity of its heavy oil upgrader and asphalt refinery has created useful synergies; the recent start-up of CO2 capture at its ethanol plant for use in EOR operations is another example.
Since late 2010, Husky has been operating two solvent EOR pilots at its Edam and Mervin fields. The construction of two additional CO2 injection pilot sites, at Lashburn and Tangleflags, got under way at the same time as the CO2 capture and liquefaction plant at Lloydminster.
Husky is currently developing the Lashburn CO2 Capture Demonstration Project, with financial assistance of $2.9 million from the Alberta Government's Climate Change and Emissions Management Fund, awarded in July 2012. The project would capture CO2 from a steam assisted gravity drainage facility and store it at a nearby oilfield. The project needs to secure additional funding partners and approvals in order to proceed.
Husky aims to capture around 100,000 tonnes of CO2 per year, or 250 tonnes per day, from the ethanol plant, where it will be compressed and transported to the heavy oil reservoirs by tanker.
The CO2 capture and liquefaction plant began operating in mid March 2012, in line with the company’s schedule to begin field implementation of the technology from 2012.
Husky received $14.5 million from the federal government's ecoENERGY Technology Initiative to develop and demonstrate carbon capture and storage technologies, one of eight companies in Western Canada to obtain funding. The Saskatchewan government has provided funding for the field pilot through its Petroleum Research Incentive Program. More information and news
Mel Duvall, manager, media & issues, 001-403-513-7602