CCS Application in a New Refinery

October 28, 2019

CRIN Webinar

Introduction to North West Redwater

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• Partnership of Canadian Natural Resources and North West Refining (private)

• Formed in 2011 to develop the Sturgeon Refinery project

• Government of Alberta is an important stakeholder via long term processing agreement

• Plant site is 40 km NE of Edmonton, Alberta

• First new refinery in Canada in 35 years

Partial operation since December 2017

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Refinery Process Flow

Sturgeon Refinery – Design considerations

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• Feed is bitumen from Alberta oilsands • Pipeline blends (multiple connections) • Abundant and low cost

• Focused on maximizing diesel production with no gasoline

• Complete conversion – no resid or pet coke

• Gasifier unit (Lurgi) to supply the H2

• CARBON CAPTURE is built-in due to the Syn-Gas cleanup technology ( Rectisol ) chosen on back-end of Gasifier Unit • 3500 T/d of recovered CO2; > 1 Million T/yr

NWR Interface With the ACTL

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ACTL - Wolf Carbon

ACTL is owned by Wolf Carbon , Enhance Energy is the EOR operator (Clive reservior)

Rectisol Unit - Carbon Capture Step

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• Use of chilled methanol as an absorption medium to clean up the Syn-Gas from the Gasifier Unit

• Methanol absorbs CO2 and H2S at select temperatures • H2S /Methanol stream is separated first (-36 oC) • CO2 / Methanol stream is separated next (-59 oC)

• Does not absorb H2 or CO – these are the remaining

elements in the gas stream (raw H2) The separate methanol streams are then heated and “release” the CO2 and H2S streams

• Recovered Methanol is then chilled and recycled

-36.0 C

-59.0 C

-48.0 C

H2S and CO2 Absorption Step in Rectisol unit

H2 + CO

CO2 + Methanol

SynGas

H2S + Methanol

• Raw H2 stream sent to methanation reactor to remove CO

• CO2 + Methanol stream is heated / distilled to recover methanol and separate CO2

• H2S + Methanol stream is heated / distilled to recover methanol and separate H2S prior to recovery in Sulphur plant

Rectisol Unit (Absorber Towers)

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NWR Partnership 10

Unit 40 (Gasification) Block Flow Diagram U20 CRVR

Oxygen (Praxair)

HP Steam

CO2

Product

Hydrogen

Return Water

Key Unit Feeds:

Soot

“Filtercake” Import H2 (Air Products)

H2S to SRU

Soot Slurry

Quench Water

SH MP Steam

CCS Business Drivers for Refiners

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• Reduce NWR burden relative to industrial GHG tax system

• Alberta had SGER, has CCIR, switching to TIER in January • Federal Gov’t has OBPS as a ‘backstop’

• Offset credits are shared between ACTL and NWR stakeholders • Federal carbon price is currently $20 / T rising to $ 50 by 2022

• Low Carbon Fuel Standards (California, BC, and Canada (2022)) • CCS will be recognized as a refinery improvement that generates LCFS

credits as it will lower the Carbon Intensity of the fuel produced • Currently these credits trade at approx. $ 200 / T

• Revenue from sale of high purity CO2 to EOR producers