Upgrading Bitumen using Molten Sodium

October 11, 2012 www.fieldupgrading.com 1

Upgrading Bitumen using Molten Sodium

Enabling Cost Effective Upgrading at Modest Scale

John GordonJavier

AlvareNeil

Camarta

October 11, 2012 www.fieldupgrading.com 2

Molten Sodium UpgradingBreakthrough Upgrading…Significantly Less Complex…One-Half the Capital

Intensity…Twice the Net Margin…Less Hydrogen Required…Greatly Improved

Economics…Lower emissions

October 11, 2012 www.fieldupgrading.com 3

Molten Sodium Upgrading

Reactor Separator

Electrolytic regenerationSeparator

H2 or CH4

Ni, V, Fe

Electrical Power

Na saltNa

Sulfur

Make up Na

Simple Process

October 11, 2012 www.fieldupgrading.com 4

Diluent loop

Bitumen production

Market

Sodium Upgrading

DilbitMix

Diluent StripperSweet

20 APILow resid

8 API36 API

18 API

20 API

Diluent return

October 11, 2012 www.fieldupgrading.com 5

Major Equipment Comparison

Molten Sodium CokingReactor Atmospheric UnitSolids Separator 1 Vacuum UnitCondensate Stripper

Cokers

Solids Dryer Coker FractionatorSolids Separator 2 Gas Recovery UnitElectrolysis Unit Hydrogen PlantTank Farm Naphtha

HydrotreaterUtilities Distillate

HydrotreaterGasoil HydrotreaterAmine and SRUTank FarmUtilities

October 11, 2012 www.fieldupgrading.com 6

MSU Treatment ExampleFractions boil at lower temperature

“Resid” fraction is reduced

0 0.10.20.30.40.50.60.70.80.9 10

100200300400500600700800

Dilbit treatedDilbit AR

Fraction Boil offSim

dist

Tem

p ( C

)

October 11, 2012 www.fieldupgrading.com 7

Electro Regeneration

October 11, 2012 www.fieldupgrading.com 8

Electrolysis Cells

+ +

Na2S Solution

Molten Sodium

Molten Sulfur

Anolyte

Cathode

NaSICON tube

AnodeNa2S Solids

DepletedNa2SSolution

Na2SDepletedSolids

October 11, 2012 www.fieldupgrading.com 9

Tubular Commercial CellsFor sodium waste recovery

October 11, 2012 www.fieldupgrading.com 10

Cell Life Tests Very Encouraging

Anolyte Replacement

October 11, 2012 www.fieldupgrading.com 11

Example Metrics & Economics

October 11, 2012 www.fieldupgrading.com 12

Key Crude Valuation Metrics

PropertyAthabasca Bitumen

Feed

MSU Product

Best Run

MSU ProductPotential

DelayedCoking Sweet SCO

API Gravity 8.3 27.3 29 34.8Sulphur, wt% 4.9% <0.1% <0.1% 0.2%TAN, mg KOH/g

2.8 <0.1 <0.1 <0.1

Olefins wt% 0% 1.1% <1.0% 0%MCRT, wt% 13.2% 0.3% <0.3% 0%C5 Asphaltenes

16.6% <0.3% <0.3% 0%

Ni+V, wppm 289 <1 <1 <1

October 11, 2012 www.fieldupgrading.com 13

Key Crude Valuation Metrics

PropertyAthabasca Bitumen

Feed

MSU Product

Best Run

MSU ProductPotential

Delayed

Coking Sweet SCO

DistillationIBP – 350 F 0% 4% 4% 17%350 – 650 F 14% 34% 36% 58%

650 – 1000 F 35% 43% 45% 25%1000 F + 51% 19% 15% 0%

Yield (LV%) N/A 90% 95% 82%Edmonton Price $US/bbl

$42.76 $74.52 $75.65 $80.01

October 11, 2012 www.fieldupgrading.com 14

Economics - Margin

MSU ProductPotential

DelayedCoking Sweet

SCOFeedstock Price, US$/bbl $42.76 $42.76Product Price, US$/bbl $75.65 $80.01Product Yield, LV% 95% 82%Gross Margin, US$/bbl $29.93 $23.67Operating Cost, US$/bbl $8.85 $16.30Net Margin, US$/bbl $21.08 $7.37

October 11, 2012 www.fieldupgrading.com 15

Economics – Capital & Return

MSU ProductPotential

DelayedCoking Sweet

SCONet Margin, US$/bbl $21.08 $7.37Capital Cost, US$/bbl $30,000 $60,000Capital Cost, US$MM $750 $1,500IRR, % 18.4% 1.1%NPV (10%), US$MM $602 ($835)Profitability Index 1.80 0.44

October 11, 2012 www.fieldupgrading.com 16

Emissions45% Lower CO2 EmissionsZero SO2 Emissions

October 11, 2012 www.fieldupgrading.com 17

NichesSmaller operationsDiluent scarceDecentralizedRemote

October 11, 2012 www.fieldupgrading.com 18

Next StepsPre-pilot investigation 20121st Pilot scale installation and operation 2013 – 2014

October 11, 2012 www.fieldupgrading.com 19

Contact InformationJohn Gordon

…johng@ceramatec.com…(801) 631-5961

Neil Camarta…neil.camarta@fieldupgrading.com…(403) 470-0141