MEG Low intensity Bitumen Upgrading – Field Pilot

MEG Energy Corp.


Project Type

Demonstration

Project Value

$88,400,000

Project Status

Completed

Location

Bruderheim, AB

Funding Amount

$5,200,000

Upgrading Bitumen with an Energy Efficient Process

MEG Energy Corp. (MEG) developed an innovative process called HI-Q® to efficiently convert bitumen into crude oil suitable for transport by pipeline. Funded through Round 4: Carbon Capture plus Energy Technology in 2012, the primary goal of this project was to bridge the gap between the laboratory and commercial readiness of HI-Q® by identifying, understanding and mitigating key scale-up and long-term operations risks. 

The MEG HI-Q® Low Intensity Bitumen Upgrading – Filed Pilot facility was an innovative combination of processes that convert bitumen and heavy oil into pipeline-ready crude oil, eliminating the need for transportation diluent. The concept, jointly developed by Canadian and US innovation entities, utilizes low energy and low greenhouse gas (GHG) intensity process units that enable better energy efficiency. These features of the process deliver opportunity for substantial GHG reductions from the production field to the automobile tank for Canada’s heavy oil and bitumen production. With efficient and relatively simple processes the capital and operating costs are potentially lower than in traditional upgrading, creating an economically viable and environmentally beneficial project for the Canadian Oil Sands industry. 

HI-Q® Technically Successful Based on Initial Testing

The engineering design created during the project determined a typical upgrading and refining arrangement can be constructed at commercial scale, as 98 per cent of the equipment and piping can be found in existing upgraders and refiners. The engineering design phase of the project mitigated 98 per cent of the scale-up risk. HI-Q® passed the stability and desalting tests and demonstrated an advantageous assessment for the refinery. The technology also processed very well in the hydroprocessing and catalytic cracking units. Hydroprocessing and catalytic cracking are both important processes in bitumen refinery, as they help produce a lighter more valuable product.

In addition, when compared to the benchmark, HI-Q® provided an increase in yield of four per cent, with an improved selectivity towards higher valued diesel and propylene.   

What’s next?

MEG sold the HI-Q® technology to Suncor, who referred to the technology as PURE in 2019. At the time, this significantly increased the probability for the commercialization of the technology. The acquisition aligned with Suncor’s then-growth and technology development strategy and Suncor believed PURE to be a leading partial upgrading technology. In 2021, Suncor applied and was approved by ERA to conduct a demonstration project of the technology. The project was ultimately cancelled because, while technically successful, the technology faced commercialization challenges due to high capital costs. As a result, Suncor decided to stall further commercialization and development activity.