Summary. highest, exceeding that of the United Arab Emirates. Crude oil from oil sands accounts for

Summary 1. Canada's situation Canada’s crude oil production is approximately 3.15 million barrels per day, the world’s seventh highest, exceeding that...
Author: Eric Eaton
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Summary 1. Canada's situation Canada’s crude oil production is approximately 3.15 million barrels per day, the world’s seventh highest, exceeding that of the United Arab Emirates. Crude oil from oil sands accounts for approximately half of total crude oil production, and while conventional oil production will decrease, production from oil sands is forecast to increase. Oil sands production has increased annually since the rise in oil prices beginning in the first half of 2002. As described below, enormous costs are involved in oil sands production due to the different methodology used in treatment. However, since crude oil prices in recent years are trending towards greatly exceeding the $30-$40 per barrel level of viability for oil sands production, costs will be recovered, and profits extracted, and an expansion of production is therefore possible. World demand for petroleum is expected to increase steadily with increasing demand from developing nations such as China and India, and crude oil prices are therefore forecast to increase. Within the context of Canada’s enormous reserves, and innovation in extraction technology, production of crude oil from Canadian oil sands is expected to increase. Calculations by the Canadian Association of Petroleum Producers (CAPP) predict that by 2015 production will be approximately three times that of 2006, exceeding three million barrels per day.

2. Necessary of the project and expected benefits The process of producing bitumen from oil sands may employ one of two methods – mining or in-situ. In mining, the surface layer of oil sand is excavated using a giant shovel and transported in a giant truck, then agitated with the addition of hot water (steam) to recover the bitumen. The wastewater, which includes sand, heavy metals, bitumen residue, and the added water, is stored in tailing ponds. Hot water in the form of steam is produced by turbines. The water is drawn from the Athabasca River and undergoes general water treatment; it is then heated by the boiler and sent to the generator. The amount of water used is thought to be from two to four times the amount of oil produced. More than 70% of the water is recycled and used for bitumen recovery.

The reason for storing the wastewater in tailing ponds is that these tailings contain toxic substances, such as naphthenic acid, and the quantity of wastewater requiring treatment reaches thousands of tons every hour, but advanced, high-speed wastewater treatment technology able to purify the wastewater to a sufficient level that it can be returned to the river does not exist. For this reason, suitably large storage ponds are required as tailing ponds. Next, we explain the SAGD process. In the SAGD method, high-temperature, high-pressure steam is injected into subterranean oil sand layers to increase the liquidity of the bitumen in the oil sand layers, and the subterranean bitumen is recovered together with the hot water. To begin with, the hot water included with the recovered bitumen contains sand, heavy metals, and so on. After decompression, this enters the separator, which separates it into bitumen, produced water, and vapor. The produced water that is separated out is polluted with a large amount of oil. After lowering the temperature using a heat exchanger, oil is removed from the water using a skim tank, IGF (Induced Gas Flotation), and a filter. Raw water drawn from a water well is added to the deoiled produced water and, after passing through hot lime softening and a WAC (Weak Acid Cation) exchanger, it is reused as BFW (Boiler Feed Water). Steam produced by the boiler is injected into subterranean oil sand layers.

Bitumen production has the following water problems. Mining method (1) Depletion of water resources. (2) Massive consumption of fuel for heating. (3) Dispersal of pollutants from tailing ponds (penetration of wastewater into the ground, smells). (4) Corrosion by salts.

In-situ method (1) Depletion of water resources. (2) Deterioration in thermal efficiency, and corrosion due to contamination in boilers and heat exchangers.

We will examine the application of high-speed water treatment technology using Hitachi’s unique membrane-magnetic separation. This system consists of a flocculation process and a separation process. In the flocculation process, coagulant, ferromagnetic particles, and polymer are added and the mixture is agitated. In the separation process, the flocs including ferromagnetic particles are

removed by magnets. Also, we will examine the use of Hitachi’s water-soluble organic matter treatment system using Hitachi’s unique adsorption and electrolysis technology. This system consists of a adsorption process and a electrolysis process. In the adsorption process, water-soluble organic matter is removed from water. In the electrolysis process, adsorbent is regenerated by the decomposition of the water-soluble organic matter. In this way, its reuse reduces waste products, with environmental benefits.

Application of the existing water treatment process for mining as used in this project is described below. Fig. 1 shows the replacement of tailing ponds with the oil-water separation technology of this project in a combination of hydrocyclone and tailing ponds, a representative processing system for wastewater with mining. The wastewater from the bitumen extraction process is first processed in a hydrocyclone, and the oil content of the water flowing from the hydrocyclone separated with the oil-water separation technology of this project to recycle the water. Fig. 2 shows the use of COD processing technology of this project in the existing water treatment process of the in-situ method. The oil content is separated from the wastewater using the skim tank, induced gas flotation, and an oil removal filter, calcium removed with hot lime softening, and COD treatment technology inserted.

Current process

Development system

Oil and sand

,

Hot water Oil sands

Extraction plant Hot water (85ºC)

Pre-processing

Aggregation tank Floc

Cyclone

Tailing Pond

Magnetic separation tank Sludge

Reheater Filter separation tank

Supernatant liquid (4ºC) Treated water (50ºC)

Fig.1 Application to wastewater treatment system for mining

【現状プロセス】 Current process

【開発システム】 Development system

from Separator

Skim Tank Hot Lime Softening Induced Gas Floatation

COD Removal Weak Acid Cation Exchanger

Oil Removal Filter to Boiler Feed Water Tank

Fig. 2 Application to wastewater treatment system for in-situ method

The following benefits are obtained from the use of the water treatment technology of this project in treatment of wastewater from oil sands production.

Mining (1) Improvement in rate of water reuse. (2) Reduction in fuel consumption for reheating when reusing water. (3) Reduced dispersion of pollution associated with reduced use of tailing ponds. (4) Reduced corrosion of plant.

In-situ method (1) Improvement in rate of water reuse. (2) Reduced fuel consumption and corrosion through prevention of boiler and heat exchanger contamination.

Use of the oil-water separation technology of this project in the treatment of wastewater from mining reduces the need for tailing ponds, thus reducing ground penetration of wastewater, and reducing evaporation. This, in turn, improves the rate of water reuse, and reduces dispersion of pollutants into the air and ground. The temperature of the water from the hydrocyclone is approximately 40ºC, however due to the time required for treatment of the wastewater, this temperature drops to an average of 4ºC. In conventional mining used in the extraction of bitumen, the supernatant liquid in the tailing ponds of the water reuse system must be reheated to 60ºC before use. With the Hitachi oil-water separation technology, the water is treated in less than ten minutes, cooling of the water is prevented, and the fuel consumed in reheating for use is dramatically reduced. Use of the COD treatment technology in the wastewater treatment process of the in-situ method reduces the COD concentration of the water supplied to the boiler, improves the rate of reuse of the water, and reduces fuel consumption by preventing contamination of boilers and heat exchangers. Furthermore, by reducing corrosive substances, maintenance is reduced, and the lifespan of plant is increased.

3. Project implementation structure and management system As described above, this research has expanded the possibilities of water reuse operations using this technology at both mining and SAGD oil sands production sites in Canada. Since water reuse operations require only oil-water separation technology (COD treatment technology is not required) with mining in particular, commercialization of the technology is best achieved through introduction of the oil-water separation technology in mining operations, and use with the SAGD method when operations are running smoothly (oil-water separation plant + COD treatment plant). The market is expected to move from the current use of mining as the primary method, to SAGD method in the future. The primary steps in project implementation are as follows. Using an oil sands project (e.g., CNRL Horizon Project) considering operation of the water treatment plant as a target, conduct bench testing at an oil sands production site from 2011. The project implementation system under consideration is shown in Fig.4.20. The Japanese party will consist of Hitachi Ltd. as the core of the project, in combination with a Japanese trading company, the Canadian party consisting of a Canadian oil sands company, and cooperation between Japanese and

Canadian government organizations. Detailed design of a pilot plant will commence following bench testing, and the plant will be demonstrated in operation in 2009. Funding for design, manufacture, and demonstration of the pilot plant will be sourced from the Japanese government, owned capital, the Canadian and Alberta governments, and the company involved. Following demonstration of the pilot plant, it is hoped that the Japanese party will receive an order from the Canadian party, and operation of the actual plant will commence operation in 2011. Depending on the results of demonstrations of the pilot plant scheduled for 2009, it is possible that the Japanese party will commence sales activities directed towards oil sands companies other than those involved with the pilot plant.

4. Benefits to the Social Environment Expected from the Project, Effects on the Social Environment in Association with the Project and an Outline of Measures to Reduce these Effects The primary effect of this project is the possibility of a reduction in the water uptake volume, and improvement in the quality of discharged water as mentioned above, and the benefits for the Canada’s ecosystem, and protection of the tourism resources of its natural environment. Also, suppression of natural fermentation in the vicinity of tailing ponds, a cause of methane gas and other odors, will improve the perception of the oil sands industry by local inhabitants and tourists, improving understanding of the industry, and contributing to its development. The effects of this project are not limited to matters of water volume and quality, but to a reduction in natural gas consumption, and reduction in the carbon dioxide emissions. Canada reserves of natural gas are significantly less than its oil reserves, and the project will also have a positive effect in terms of Canada’s energy policy, while at the same time raising Canada’s international presence in terms of its contribution to the prevention of global warming. Because the main purpose of this project is to improve the environment, it has no impact to the environment.

5. Opportunities for participation by Japanese companies An Alberta Oil Sands Seminar was held in Tokyo on October 11, 2007. Eddie Isaacs, executive director of the Alberta Energy Research Institute (AERI) from Canada, noted that AERI sees the topics of importance for oil sands production sites as (1) reducing natural gas consumption, (2)

increasing water reuse, (3) reducing carbon dioxide emissions, and (4) adding value to oil, and pointed out that the province of Alberta wishes to acquire technology from nations such as Japan with advanced environmental technologies. Use of the technology, which is the subject of this research, will contribute to a reduction in consumption of natural gas, increased reuse of water, and reduction in carbon dioxide emissions. Japanese companies with environmental technologies such as water treatment expertise previously focused on development of business (water purification, sewage treatment) within Japan, however many of these companies are now looking to overseas development in the industrial water treatment market, and Japanese trading and manufacturing companies have related companies in Canada. On this basis, the possibilities of Japanese participation in the business of water treatment in oil sands production are excellent.

All rights reserved. The copyright of this material is held by the Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry (METI). Reproduction of all or part of this material without express permission of the copyright holder is strictly prohibited. The Japan External Trade Organization (JETRO) was commissioned by METI to produce this material. Japan External Trade Organization (JETRO) Industry and Technology Division Industry and Technology Department Ark Mori Building 6F, 12-32 Akasaka 1-chome, Minato-ku, Tokyo, 107-6006 JAPAN TEL:03-3582-5542 FAX:03-3582-7508