Fractal Systems announced Tuesday that it is partnering with CSV Midstream to build a commercial hub facility where producers can access its partial upgrading and diluent reduction technology.
In a statement, CSV Midstream CEO Daniel Clarke said that with its unique approach to project execution, it can confidently deliver a project that simultaneously reduces greenhouse gases, increases producer netbacks and relieves export constraints on existing pipeline and rail infrastructure.
“With the current challenges facing western Canadian producers, the innovative technology developed by Fractal has the potential to be a real game changer,” he said.
Fractal’s Enhanced JetShear (EJS) system has undergone years of field testing, including a successful commercial demonstration program with Cenovus Energy in 2017. In early 2019 the company announced up to $12.5 million in combined funding from Sustainable Development Technology Canada and Emissions Reduction Alberta to develop a plan to deploy EJS at a major pipeline hub in Alberta.
The technology works through reduced acidity to lower bitumen viscosity, eliminating the need for more than 50 percent of the diluent that is
normally required to meet pipeline specification. The ESJ product increases available bitumen export pipeline capacity by about 20 percent, and may also be shipped efficiently with little or no diluent by rail to refineries on the US Gulf Coast and other locations, Fractal said.
In mid-2016, third-party environmental consultant ClimateCHECK confirmed that EJS can reduce “well-to-tank” GHG emissions by approximately 10 percent.
CSV will finance, build, own and operate the EJS Regional Hub project, employing the technology under license from Fractal. The design calls for approximately 50,000 bbls/d of bitumen feed, or 70,000 to 75,000 bbls/d of diluted bitumen.
“Relationships with government funding agencies have been established, and Fractal and CSV have entered into discussions with producers to prepare for the successful development of the EJS Regional Hub project,” the companies said.
The next stages of development include “further engagement with producers on long-term supply agreements and advancing engineering,
consultation and regulatory work.”