REGULATI TIONS S RELATED T TO IN S N SITU AND AND MINING S SOL - - PowerPoint PPT Presentation

ALBERTA INNOVATES

REGULATI TIONS S RELATED T TO IN S N SITU AND AND MINING S SOL OLVE VENT OP OPER ERATIONS: WORKSH SHOP 4 P 4

SOLVEN ENT L T LEADER ERSH SHIP SERIES MAY 29, 29, 2019 2019

AGEND NDA

• 9:15am: Presentations
• Alberta Innovates’ Introduction – Bryan Helfenbaum
• Alberta Energy Regulator – Jon Keeler
• In situ operator: Imperial – Sandy Campbell and Diedre Norman
• 10:30am: Break
• 10:45am: Panel Session with the Presenters
• 11:45am: Wrap Up
• 12:00pm: lunch & networking

2

ALBERTA INNOVATES

3

PRIO IORIT ITIE IES & & TRANS ANSFORMATI TIONAL AL P POTENTIAL

BRYAN H N HELFENB NBAUM EXECUTIVE D DIRECTOR, A ADVANCE CED HYDR YDROCA CARBO BONS MAY 29, 29, 2019 2019

4

ALBERTA INNOVATES AT A GLANCE

ALBERTA INNOVATES AT-A-GLANCE

5

Role: Support economic diversification and job creation Canada’s largest provincial research and innovation agency: the catalyst in an environment where invention, innovation and industry thrive.

DIGITAL OMICS

ADVANCED MANUFACTURING AND MATERIALS

EMERGING TECHNOLOGIES SUBSIDIARIES

CL CLEAN E ENERGY

• AI Clean Energy develops and invests in strategic programs to achieve Alberta’s goals

for energy, the environment and economic prosperity.

• We provide insight to the GOA on climate leadership, energy diversification and water

policies, and support Emissions Reduction Alberta in technical due diligence and project management.

• Clean Energy’s strength is creating the partnerships necessary to achieve the goals.

6

ALBER ERTA RESEARCH & & I INNOVATION F FRA RAMEW EWORK RK (ARI RIF) 2030 T 30 TARGETS

7

8

Alberta Innovates Clean Energy

Recovery Technologies

REC ECOVERY T TECHNOLOGIES ES – OIL S SAN ANDS E DS EXAM AMPLES

10

11

R & D Piloting Demonstration Commercial

* Illustrative for Selected Technologies

Cost and GHG Competitiveness: Solvent-Based Technologies

ESEIEH eMVAPEX CSP HBEP SA-SAGD AACI

25% - 90% reduction of GHG emissions intensity; cost reduction

SAP HSR AH-VAPEX

SOLVEN ENT L LEADER ERSHIP S SERI ERIES

Jon Keeler – Alberta Energy Regulator Sandy Campbell and Diedre Norman – Imperial Oil

12

• Workshop 1: In Situ – May 2017
• Workshop 2: Mining – July 2017
• Workshop 3: Measurement and Monitoring – March 2018
• Workshop 4: Regulatory

13

Jon Keeler Alberta Energy Regulator

14

This presentation is unavailable for public posting

15

Sandy Campbell and Diedre Norman Imperial Oil

Alberta Innovates – Solvent Leadership Series Aspen Story

May 29, 2019 Sandy Campbell Deidre Norman

2

Cogen/steam Oil Treatment and De-Oiling Tank Farm Location

• Northern Alberta, Canada; 35 km south of Kearl Facility

Facilities Overview

• Field development using first application of Solvent Assisted – SAGD

technology

• 2 phase development with ~75 kbd bitumen processing for each phase,

steam generation and cogeneration

• 5 initial pads (~60 well pair) and ~40 future pads (~240 well pair)

Benefits

• Up to 25% reduction in both GHG intensity per barrel and water use

Water Treatment

Typical Well Pad

Aspen Project Summary

Example SAGD Schematic

Source: MEG Energy

3

Jan 2013: Initiated consultation with Indigenous groups Dec 2013: Filed Aspen regulatory application (Scheme, EPEA & Water Act) Oct 2015: Project update to SA-SAGD and non-saline water Apr 2016: EIA deemed complete Aug 2016: 6 indigenous groups requested a federal environmental assessment (CEAA) Mar 2017: CEAA decided not to designate project for federal environmental assessment Mar 2017: Filed for consultation adequacy with ACO May 2017: Requested AER to review Statement of Concerns (SOCs) Jan 2018: Received consultation adequacy from ACO May 2018: AER assigns public hearing for Project Oct 2018: AER cancels public hearing for Project Nov 2018: Order in Council received for Scheme approval

• Adequacy review = 10 months
• Regulatory review = 59 months

Aspen Regulatory Milestones

Gov’t: Alberta Energy Regulatory (AER); Aboriginal Consultation Office (ACO) IOR

2013 2019

Q1 - Q4 2013 Q4 2016 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4

ACO Adequacy AER Decision

Approval Consultation ACO Review AER Regulatory Review Hearing Process & Prep Hearing Cancelled Order in Council

//

4

Challenges and Opportunities

• Regulatory Updates
• Terminology
• Indigenous influence in regulatory process
• Regulator Risk Tolerance
• Breaking down silos
• External factors

5

Testing of an enhanced recovery method called Enhanced Bitumen Recovery Technology (EBRT)

• Gravity drainage process
• Uses 90% light hydrocarbon oil (diluent) and 10% steam at ultra-low operating pressures
• Preparing trial within Aspen project area to demonstrate the process and validate it for commercial

use, integrated with Aspen CPF

• 2 horizontal wellpairs, in McMurray formation
• Expected to recover over 95% of diluent after wind-down

Imperial awarded $10M by Emissions Reduction Alberta towards EBRT Process advantages:

• Up to 60% reduction in GHG emissions
• Up to 90% reduction in water use
• Lower operating pressure

Pilot Program (EBRT)

6

• Introduced pilot program after Aspen regulatory approval
• Shared high level summary of project with map location to each

Indigenous group with overlapping traditional territory (7 groups)

• Provided a draft scheme and EPEA application to groups for a technical

review

• Technical consultants produced memos based on their review to

communicate concerns and questions

• Workshop at Imperial’s research center discuss questions and concerns;

provided a tour of the lab

• Adjusted pilot program application based on memos and workshop

discussion

• Submitted application to regulator

EBRT Consultation Process

7

Pilot Program requires:

• Experimental scheme approval
• To maintain confidentiality of pilot results, a separate scheme approval

required for the pilot

• EPEA approval amendment
• Pilot integrated into Aspen with steam production and bitumen

processing managed at Aspen CPF

• Public Lands Act approvals
• Well pad, road, pipeline and powerline
• Well, Facility and Pipeline Licenses
• D56 licences

Regulatory Considerations - EBRT

16

BREAK

17

PANEL SESSION

Jon Keeler – AER Sandy Campbell – Imperial Diedre Norman – Imperial

18

WRAP UP

GOING F G FORWAR ARD D …

• Survey Results:
• Upgrading: Fact or Fiction?
• Solvent Choice: Best solvent for your reservoir?
• Solvents vs. Additives: Are they mutually exclusive?
• Solution Gas: Impacts to life of the solvent and operations?
• Solvent Alternatives: Dimethyl ether and others?
• Solvent Loss and Recovery: What does end of life look like?
• Solvent Sourcing and Transportation: Where & How?
• Solvent Life Cycle Analysis: Well to Wheel impacts?
• Barriers to Deployment: What’s missing?
• Public Opinion: How do we make SOLVENT sound less scary?

19

GOING NG FORWA WARD …

• Today’s presentations will be posted on Alberta Innovates’ website and a

link will be forwarded to attendees.

• Workshop 5: Fall 2019
• Any follow up thoughts?

Reach out to Vanessa at Vanessa.White@AlbertaInnovates.ca

20

21

LUNCH & NETWORKING

Thank you for joining us today!