Gas Conversion

Overview

Swan Hills Synfuels is developing a gas to clean fuels (GCF) conversion facility (Facility) at Bickerdike, Alberta, to convert gaseous feedstock into advanced clean fuels, such as sulphur-free gasoline, propane, and electricity. Using established, proven processes, the Facility will initially use purchased natural gas as its feedstock, thus taking advantage of the current abundance of natural gas in Alberta. This gas will be converted into clean fuels products for transportation, industrial, commercial or residential energy markets.

By using natural gas to make gasoline, Swan Hills Synfuels is adding value to Alberta’s natural gas here at home, and converting it into valuable clean finished transportation fuels and other products used every day by Western Canadians.

The Facility will provide opportunities for natural gas producers to realize oil-based prices for their natural gas resources through attractive tolling arrangements.

The GCF Facility will convert natural gas feedstock first into methanol. The methanol is then converted into finished gasoline. Small volumes of Liquid Petroleum Gas (LPG) and Dimethyl Ether (DME), a clean burning diesel substitute, are also manufactured as part of the process. The Facility will produce a small quantity of excess power which will be sold into the Power Pool of Alberta. The Facility will also be designed to use synthetic gas from Swan Hills Synfuels’ future ISCG commercial development as feedstock.

The GCF Facility will manufacture gasoline as its primary product, producing about 20,000 barrels per day (bbl/d). This facility will diversify and locally grow the gasoline supply in western Canada.

A staged implementation of the GCF Facility is planned, with the first phase (GCF 1) planned with a 5000 bbl/d gasoline output (enough to fuel a typical day’s drive of 100,000 cars and trucks on Alberta roads), and associated LPG and DME, starting up in 2018. Subsequent phases will require the construction of additional facilities adjacent to those associated with GCF 1. It is anticipated that subsequent phases will be developed soon after the start-up of GCF 1; however, the timing of these phases will be dependent on market conditions.