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. CO2 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 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 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 site:

www.huskyenergy.ca
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