Emissions Reductions Alberta announces support for FSG Field Prototype Project

Fort Saskatchewan, 8 May 2018

Emissions Reductions Alberta (ERA) CEO Steve McDonald joined Shannon Phillips, the Minister of Environment and Parks and the Minister Responsible for Climate Change in the Government of Alberta, to officially announce funding for nine projects, including the FSG Field Prototype, selected through the ERA Oil Sands Innovation Challenge.

“Albertans know that our economy and our environment go hand-in-hand. These new technologies will reduce emissions while also creating jobs, reducing costs and boosting competitiveness,” said Shannon Phillips, Minister of Environment and Parks and Minister responsible for the Climate Change Office. “Our investments in innovation continue to position Alberta as a forward-looking energy producer and climate change leader.”

ERA's $70.6 million commitment is leveraged for a combined project value of more than $720 million for Alberta’s oil sands sector. This is ERA’s biggest challenge to date in terms of funding.

“ERA’s mandate is to identify and accelerate technologies that have the greatest potential to reduce GHGs,” said ERA CEO Steve MacDonald. “Each of the technologies associated with these nine projects is in the final stages of development and each has the potential to transform Alberta’s oil sands development by significantly reducing both emissions and costs.”

The projects were selected through a competitive process and were required to include an oil sands producer as the lead applicant or as a substantial partner. In total, 47 projects were submitted for consideration. The technologies will help Alberta’s oil sands industry meet the provincial climate leadership oil sands legislated emissions limit of 100 megatonnes by 2030. Together, they are estimated to result in potential greenhouse gas emissions reductions of up to 4.1 million tonnes of annual CO2 emissions reductions in Alberta by 2030.

The contribution from ERA to the FSG Field Prototype Project, led by Cenovus Energy Inc., will be up to $10 million. Cenovus will partner with FSG Technologies Inc. to demonstrate FSG technology for production of steam for in-situ oil sands extraction.

FSG Technologies’s novel boiler design enables more efficient steam generation and eliminates much of the water treatment infrastructure typically required to support in situ projects, which is expected to result in meaningful cost reductions and lower GHG emissions. FSG units could be deployed in lieu of conventional once-through steam generators and associated water treatment equipment at new in situ extraction facilities, while smaller scale versions could be used at existing facilities. The FSG technology has the potential to reduce GHG emissions by up to 14% compared to conventional steam generation and water treatment. In addition to reducing GHG emissions, implementation of an FSG in-situ facility is expected to achieve up to a 20% reduction in capital expenditures and a 15% reduction in operating expenditures, compared with conventional technology.

Click here ( http://www.eralberta.ca/thisisbig/ ) for more details on this announcement and the selected projects.

Sylvain Montreuil