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January 2016

HOW TO SOLVE THE OIL PIPELINES PROBLEM: WHY NOT TRY SOMETHING CALLED NEATBIT? – CHED RADIO, EDMONTON.

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One company is proposing a game-changer for the way Alberta transports oil.

Pacific Future Energy wants to build a refinery on the West Coast by 2021 that would handle only a special type of bitumen. It’s called neatbit and it’s a type of oil shipped by rail in specially designed cars.

Speaking to 630CHED’s Brenton Driedger, Markham Hislop with American Energy News says train derailments happen, but this is far safer than a pipeline.

“Instead of the dilbit pouring out and onto the environment or into the water, as soon as that neatbit hits the air it actually congeals and plugs the crack,” says Hislop.

“And in the off chance that the accident is severe and somehow some of the neatbit gets out of the car, you just bring in a backhoe and gravel truck and just shovel it into the truck.”

Hislop says the West Coast refinery would need to have a complementary plant near Edmonton to ready the product.

“That plant would strip out the diluent and turn the product back into this sort of gooey, peanut butter type of consistency and pump it into specially heated rail cars and ship it by rail over to the coast.”

Alternatively, it could open up other markets as well.

“If you can ship 216,000 barrels a day of this neatbit by rail to the coast, well, you can ship a lot more to the coast and you can ship it to the American markets as well, primarily the Texas Gulf Coast which is set up to refine about 2.7 million barrels a day.”

Hislop thinks Americans hesitant to approve Keystone XL will be happy with rail transport of neatbit.

Full soundtrack

Original story from 630CHED

NEATBIT BY RAIL AN ALTERNATIVE TO OIL SANDS’ PIPELINE PROBLEMS TO USA, ASIA MARKETS – AMERICAN ENERGY NEWS

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posted January 19, 2016

A proposed new refinery on Canada’s West Coast may have the solution to the problems of shipping Alberta oil sands dilbit by pipeline to American and Asian markets.

Diluted bitumen, known as dilbit, contains 30 per cent diluent that has to be added by the producer before the product is shipped by pipeline and then stripped by the refinery at the other end. That means almost one-third of dilbit is a product with no value.

It also means that dilbit can sink if spilled into cold rivers – think Enbridge’s huge 2010 release into Michigan’s Kalamazoo River – and oceans, which is a principal complaint of opponents.

After President Barack Obama’s rejection of the 830,000 b/d Keystone XL pipeline proposal late in 2015, and the serious difficulties experienced in British Columbia by Enbridge (Northern Gateway) and Kinder Morgan (Trans Mountain Expansion) pipeline projects, shipping oil sands bitumen to market has become a significant issue for Canadian energy companies.

Not to mention Texas Gulf Coast refineries that were hoping to buy supplies of the heavy crude oil (Canada currently provides only about 10% of that market, even though it dominates American crude imports at 45%).

But what if bitumen could be shipped in a near-solid state? And shipped not only safer, but possibly cheaper as well?

Neatbit

Neatbit by rail may be much safer than oil by rail, according to Jacques Benoit of Pacific Future Energy

According to Canada’s National Energy Board, oil-by-rail exports to the US rose dramatically from 15,980 b/d in 2012 to 116,215 b/d in 2014, though still a small percentage of the volume transported by pipelines. Just over 3 million b/d is exported to the United States, according to the NEB.

But oil sands production is slated to rise by several million b/d over the next decade or two (the timing is more uncertain after a number of projects were delayed due to low oil prices in 2015). How will that product get to market?

Is neatbit an alternative to new pipelines?

Pacific Future Energy is proposing to build a 216,000 b/d refinery in northwestern BC that would receive its feedstock from Alberta by special rail cars designed to hold and heat bitumen, which would be heated to around 80C for pumping. The rail cars would be steam heated and insulated to keep the bitumen warm for its 600-mile (1,000 kilometres) trip across the Rocky Mountains.

Jacques Benoit, chief operating officer of Pacific Future Energy, says shipping “neatbit,” as the industry calls the goo with the consistency of peanut butter, is far safer than transporting dilbit by pipeline.

“If there were to be an accident, if there was a crack in the railcar, the neatbit would fill that crack and prevent product from coming out,” he said in an interview with American Energy News.

“As soon as the neatbit hits the air at 20C it becomes a near solid again. Compare it to lava coming out of a volcano, as soon as the lava hits the air it solidifies. That’s similar to this product.”

If the neatbit should somehow escape the railcar after a derailment, clean up crews would be using a backhoe instead of vacuum trucks or skimmers, says Benoit.

Why aren’t more companies shipping neatbit instead of dilbit?

Benoit says there are currently 15,000 to 20,000 b/d of Saskatchewan neatbit finding its way to the Gulf Coast. Expanding on a large scale for Alberta oil sands bitumen requires additional infrastructure.

Oil sands operations near Fort McMurray are currently set up to ship dilbit by pipeline 250 to 300 miles (400 to 500 kilometres) to Edmonton. If Pacific Future Energy’s refinery proposal is approved, someone will have to build a plant to strip out the diluent and turn dilbit into neatbit.

Benoit says the cost is relatively small: “Once you add these units in place, they can last for a long time. It doesn’t add much to the overall transportation costs. And you have to remember that the neatbit is 100-per-cent product because it has no diluent,” which significantly improves the shipping economics, whether to the West Coast, or the Texas refineries on the Gulf Coast that consume approximately 2.7 million b/d of heavy crude and where Canada has only a small market share compared to Venezuela or Nigeria.

Benoit says the Gulf Coast refineries prefer neatbit over dilbit because it’s easier and cheaper to handle.

If the Pacific Future Energy refinery is completed by 2021 as planned, Benoit says someone is going to build the diluent stripping plant, perhaps even his own company.

Given neatbit’s safety, cost, and handling advantages, perhaps someone should build the plant sooner rather than later, especially considering the perilous state of Canadian pipeline proposals.

At the very least, someone – the Canadian government? The Alberta government? The Canadian industry? – should be investigating neatbit by rail as an alternative to pipelines.

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PACIFIC FUTURE ENERGY SUBMITS REFINERY PROPOSAL TO REGULATORS – AMERICAN ENERGY NEWS

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posted 19 January 2016

Pacific Future Energy submitted its formal proposal to build and operate what it calls the “world’s greenest bitumen-to-fuels refinery” using bitumen from Alberta’s oil sands last week.

The proposal was submitted to the BC Environmental Assessment Office, the Canadian Environmental Assessment Agency, and Northwestern BC First Nations governments, the company said in a press release.

“This is the start of our public conversation as we work to build our economic future and protect our coast in Northern BC, while recognizing and respecting First Nations rights and title,” said Samer Salameh, executive chairman of Vancouver-based Pacific Future Energy.

The project is valued at approximately $15 billion CAD and will create an estimated 3,500 direct jobs in construction and 1,000 in operation, said COO Jacques Benoit in an interview with American Energy News. Construction could begin in 2018 and production in 2021.

Pacific Future Energy plans to power the refinery with clean-energy sources that include biomass wood-waste from the regional forest industry.

The refinery would receive near-solid neatbit bitumen by rail and refine it into diesel, gasoline, and other products for export to world markets. 

Unlike diluted bitumen (dilbit) traditionally shipped by pipeline or rail, neatbit contains no diluent and has a consistency similar to peanut butter. It is stable, has low flammability and is classified as non-dangerous for transport, according to Robert Delamar, CEO of Pacific Future Energy.

“Not only would our proposal provide a value-added way to get Canadian oil to growing world markets, but it would also protect both Canada’s land and marine environments from the effects of a heavy oil or bitumen spill,” said Delamar.

“Our plan would take full advantage of the opportunity for Canada by building a ‘near net zero carbon emissions’ refinery with the world’s most advanced technology. That will ensure an environmentally superior refinery that is also financially and economically sound.”

Pacific Future Energy says the new refinery will allow export of refined products instead of diluted bitumen or other unrefined heavy-oil products.

“Transported in smaller tankers, refined products greatly reduce the risk to the marine environment in the unlikely event of a spill,” said Benoit.

The project is proposed for an area known as the Dubose Flats, approximately 30 km south of Terrace BC.

“We are engaging with First Nations in the project area in every step of this process, recognizing them as a First Order of Government and honouring the UN Declaration on the Rights of Indigenous Peoples,” said Salameh.

“Engaging with First Nations as a first order of government, with the goal of operating as full partners, is a crucial element of Pacific Future Energy’s plans.  PFEC recognizes and will respect the new industry standard of placing First Nations First.”

Pacific Future Energy now begins working with First Nations and Canadian regulators on project requirements that include public consultations, environmental assessment and engineering studies.

“We will be listening very carefully to all of the feedback that we receive and will incorporate community concerns and values in our project’s design,” added Delamar.

“We believe that social licence or permission must be earned at the concept stage of this project as well as throughout its lifecycle.”

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ENVIRONMENT: PACIFIC FUTURE ENERGY IS COMMITTED TO DOING THINGS THE RIGHT WAY IN NORTHERN B.C. — VANCOUVER SUN

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It’s quite an environmental claim: “The world’s cleanest, greenest, bitumen-to-fuels refinery.”

But this is our commitment at Pacific Future Energy Corporation, as we develop our plans to build this refinery in northwestern B.C.

We will do so through advanced technology and expertise, with the cleanest power, the highest amount of water recycling and treatment, the maximum recovery of CO2, and the smallest environmental footprint.

And we will do so through a serious commitment to “doing the right thing” as we add value, open up badly needed market access for Canada’s oil products, create and preserve jobs and income in Western Canada, protect B.C.’s coastal waters from large crude-oil tankers, while recognizing and respecting First Nations rights and title.

This week, we at Pacific Future Energy submitted our “Project Description” to federal and provincial regulators to start a public conversation about our project. This will begin a review process that could last up to two years.

If approved, construction could begin in 2018 and production in 2021, at a site between Terrace and Kitimat. We will produce primarily diesel, gasoline and jet fuel.

Our task: to earn public support over the next two years for building our economic future and protecting our coast by building this refinery.

Our Principles: One of Pacific Future Energy’s fundamental principles is that First Nations are a first order of government. PFEC recognizes and will respect the new industry standard of placing “First Nations First.” We will proceed with our Project if we are welcomed and supported.

We know that we must gain the free, prior and informed consent from First Nations who are the titleholders affected by this Project. PFEC is in full support of the UN Declaration on the Rights of Indigenous Peoples. This is reflected in PFEC’s commitment to directly engage Indigenous communities, including their families and citizens.

This requires going beyond simply upholding the current legal requirements, to establishing meaningful relationships and in some cases, partnerships with the First Nation governing bodies and their business and administrative bodies.

So why an oil refinery? Aren’t today’s oil prices unbelievably low? And doesn’t the UN Paris conference on climate change mean we are going to phase out fossil fuels? Why, then, is Pacific Future energy banking on a future strong enough to warrant a $14-billion investment in a new oil refinery in B.C.?

The UN Paris conference made it clear that innovative solutions will be required for the world to achieve its goal of limiting temperature change to 1.5 degrees from pre-industrial levels.

We believe that our “Near Zero Net Carbon Emissions” facility will be one of those innovative solutions, given that it will significantly reduce the over-all carbon impact of the upstream feedstock we will be refining.

And the long-range picture is of future demand for our key products, especially in Asia. All serious predictions are that diesel and gasoline will continue for some decades to be the main transportation fuels, as will jet fuel for aircraft. Ours will be a viable business.

The challenges are these: Can we produce cleaner fuels? And can we do so in a much, much cleaner way? We can indeed.

  • We will achieve “Near Zero Net Carbon” emissions status, thanks to new technology.
  • Our refinery will be powered by clean-energy sources that include biomass wood waste from B.C. sawmills.
  • Our diesel and gasoline fuels will meet “Euro VI” standards, fitting all world markets, and cleaner than current government standards in Canada and the U.S.
  • Our refinery will prevent bitumen from being processed in other refineries or locations where greenhouse-gas emissions are considerably higher and environmental standards are lower.
  • It will also produce no coke — meaning a dramatic reduction in emissions from eventual use of that product.

On top of all that, it will protect B.C.’s coast from the risks presented by large tankers carrying diluted bitumen or heavy crude oil. The ships carrying our products to Asia will be smaller, and their cargoes will mean vastly less environmental risk.

We do not require a pipeline. We’ll bring in non-dangerous, near-solid “neatbit” by train. It is stable, essentially inert during transportation, and cannot explode. It is so safe railcars do not have to carry warning signs.

In the end, Industry will not gain market access through British Columbia unless it is prepared to commit to the highest environmental standards. It must also be prepared to commit to the principle that B.C. should receive its “fair share” of fiscal and economic benefits associated with gaining market access. PFEC does not see these as burdens, but as opportunities for everyone.

All these points — and our commitment to “doing the right thing” — add up to the world’s cleanest, greenest oil refinery for British Columbia’s west coast.

Robert Delamar is CEO of Pacific Future Energy.

 

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First Nation takes wait and see approach to northwest B.C. refinery plans — TERRACE HERALD

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A recent proposal for a project to ship refined petroleum products off the North Coast has come out ahead of the game compared to others, says a First Nations leader whose traditional territory takes in the proposed site.

“They seem to have it way more together,” said Kitselas chief councillor Joe Bevan, in comparing the Pacific Future Energy refinery project to previous proposals he’s seen cross his table such as the Kitimat Clean refinery plan and the Enbridge Northern Gateway project which ship unrefined crude offshore.

Like the Kitimat Clean proposed refinery, Pacific Future Energy would be a massive facility to process tar sands bitumen into a refined product and shipped by tanker to Asia from a terminal in Kitimat in what a company press release says would be small tankers.

Both have tagged the provincial Crown land Dubose Flats area between Kitimat and Terrace, which is within Kitselas First Nation traditional territory, as a location.

Each would then have a pipeline network to pump final products to export terminals with the one for Pacific Future being potentially located on Portland Inlet.

And like the Kitimat Clean proposal, Pacific Future Energy plans to forgo both pipeline and traditional petroleum rail transport by moving a very dense form of undiluted bitumen that has the “consistency similar to peanut butter” and thus would be less likely to spread were an accident to happen en route, according to a Pacific Future Energy release.

Pacific Future Energy, whose board of directors includes former federal international trade minister Stockwell Day, is planning a refinery which would produce up to 160,000 barrels a day of diesel, 40,000 barrels a day of gasoline, 13,000 a day of kerosene, and 10,000 a day of liquefied petroleum gas or propane. Butane would also be produced.

The company says it would need 3,500 people for construction and 1,000 for operations.

Pacific Future says the construction could potentially begin in 2018 with a 2021 production start date. It’s valued at approximately $15 billion.

Billed as a green, the oil refinery would also be powered by waste wood generation using local wood products and have tight emissions controls.

Bevan said Pacific Future Energy first approached his First Nation a year ago, and submitted a detailed project proposal just before Christmas which Bevan said will take about a year for his lands and environmental team to review before any decision might be made support the project.

A recent B.C. Supreme Court ruling related to the Enbridge Northern Gateway project, which has been approved by the federal National Energy Board subject to more than 200 conditions, stated the provincial government failed to sufficiently consulted with First Nations through its participation in an environmental review of the project.

“We have been engaging with them for just over six months,” said Bevan of his meetings with Pacific Future Energy. “Right now we are in the midst of that review. Like I always say, let’s just work our way through the review and make our comments and concerns be known.”

As for Kitimat Clean, Bevan said the owner of that company, David Black (who is also the owner of Black Press which publishes The Terrace Standard and other northwestern B.C. newspapers) did not have an adequate project plan for them to review when their support was requested several times over the last few years.

“He was interested in that site as well, but there was a lack of engagement with ourselves and lack of following processes,” said Bevan of the Kitimat Clean plan.

Black is now eyeing another potential location closer to Kitimat which is within Haisla traditional territory.

The two refinery proposals come at a time when the new federal government has begun deliberating on how it would follow through on a 2015 election promise to ban crude oil-carrying tankers from the north coast.

Bevan, who was at a meeting this week in Prince Rupert called by federal transport minister Marc Garneau to discuss how that ban would be put in place, said he’s waiting for details on the shape of the moratorium.

He added that transporting the “neatbit”, which is the term for a dense form of bitumen which would be transported by rail, would be a challenge.

“It’s shipping bitumen by rail. It comes in as a solid and they heat it up and liquefy it and then drop it off, and I am just like wow, I’ve never heard that before…,” said Bevan.

He also questioned the kind of system that would be needed to transport bitumen-laden rail cars on CN’s line south toward the Dubose area.

Kitimat-Stikine regional district director Jessica McCallum Miller, who represents the area containing the proposed refineries, said she would support any decision made by the Kitselas regarding the proposals.

“From my understanding, a lot of residents, myself included, see Canada’s long term prosperity and future enveloped more so in sustainable energy efficiency,” she added.

In a statement released yesterday, Kitimat Clean’s Black said he’s close to filing an environmental description of his multi-billion project with federal and provincial authorities.

Black said the promise by the federal government to ban crude oil tankers from the North Coast “reinforces the advantage of putting in a refinery and keeping oil out of tankers.”

The list of Pacific Future Energy executives includes executive chairman Samer Salameh who is also the chief executive officer of the multi-billion dollar Mexican industrial conglomerate Grupo Salinas.

Also on the list is Shawn Atleo, a former head of the national Assembly of First Nations.

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Pacific Future Energy begins public conversation about its plans to build world’s greenest refinery

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Pacific Future Energy now has submitted its formal proposal to build and operate the world’s greenest bitumen-to-fuels refinery in northwestern BC to local First Nations governments as well as to federal and provincial regulators.

“This is the start of our public conversation as we work to build our economic future and protect our coast in Northern BC, while recognizing and respecting First Nations rights and title,” said Samer Salameh, executive chairman of Vancouver-based Pacific Future Energy.

The project would receive near-solid neatbit™ bitumen by rail from Western Canada and refine it into diesel, gasoline, and other products for export to world markets.

Unlike diluted bitumen (dilbit) traditionally shipped by pipeline or rail, neatbit™ has a consistency similar to peanut butter. It is stable, has low flammability and is classified as non-dangerous for transport.

“Not only would our proposal provide a value-added way to get Canadian oil to growing world markets, but it would also protect both Canada’s land and marine environments from the effects of a heavy oil or bitumen spill,” said Robert Delamar, CEO of Pacific Future Energy.

“Our plan would take full advantage of the opportunity for Canada by building a ‘near net zero carbon emissions’ refinery with the world’s most advanced technology. That will ensure an environmentally superior refinery that is also financially and economically sound.”

Jacques Benoit, chief operating officer of Pacific Future Energy, said: “The project will allow export of refined products instead of diluted bitumen or other unrefined heavy-oil products. Transported in smaller tankers, refined products greatly reduce the risk to the marine environment in the unlikely event of a spill.”

The project is proposed for an area known as the Dubose Flats, approximately 30 km south of Terrace BC.

“We are engaging with First Nations in the project area in every step of this process, recognizing them as a First Order of Government and honouring the UN Declaration on the Rights of Indigenous Peoples,” said Salameh.

“Engaging with First Nations as a first order of government, with the goal of operating as full partners, is a crucial element of Pacific Future Energy’s plans.  PFEC recognizes and will respect the new industry standard of placing First Nations First.”

The project is valued at approximately $15 billion CAD and will create an estimated 3,500 direct jobs in construction and 1,000 in operation.

Pacific Future Energy plans to power the refinery with clean-energy sources that include biomass wood-waste from the regional forest industry. This, it says, could benefit BC’s forest sector and create additional employment.

Pacific Future Energy now begins working with First Nations, the Canadian Environmental Assessment Agency and the BC Environmental Assessment Office on project requirements that include public consultations, environmental assessment and engineering studies.

“We will be listening very carefully to all of the feedback that we receive and will incorporate community concerns and values in our project’s design,” added Delamar. “We believe that social licence or permission must be earned at the concept stage of this project as well as throughout its lifecycle.”

Construction could begin in 2018 and production in 2021.

The full Project Description document submitted to regulators is online at: http://www.pacificfutureenergy.com/project-description

 


 

About Pacific Future Energy (http://www.pacificfutureenergy.com/)

Vancouver-based Pacific Future Energy is a Canadian-controlled company that has been developed to finance, design and construct the world’s greenest oil refinery in British Columbia, in partnership with First Nations. Its goals include creating jobs and economic stability at home, diversifying Canada’s oil industry and protecting BC’s coast from large oil tankers.

TECHNICAL BACKGROUNDER

Facts and figures from Pacific Future Energy:

  • Pacific Future Energy is committed to building a refinery with the lowest CO2 emissions possible, working to achieve low carbon intensity and Near Zero Net Carbon emissions. Key features include:
    • Use of the best available technology and the highest possible operational efficiency to process Canadian resources;
    • The highest amount of water recycling and treatment;
    • Maximum recovery of carbon dioxide;
    • The use of clean energy to power the refinery, including the use of wood-waste biomass;
    • Capturing carbon from various processes.
  • Pacific Future Energy’s refinery will eliminate the production of coke, which is a common by-product of oil refining. Coke is a significant source of greenhouse gas emissions and will not be produced by this refinery.
  • The refinery could produce up to 160,000 barrels a day of diesel, 40,000 barrels a day of gasoline, 13,000 a day of kerosene (jet fuel) and 10,000 a day of LPG (liquefied petroleum gas, or propane). Butane will also be produced.
  • The refinery would be built in large pre-fabricated modules, brought in by ship from Asia, then hauled by truck to the site, and assembled there.
  • The use of biomass could help revive sawmills in the region. More than a dozen sawmills have closed in recent years; a key problem being inability to get rid of waste wood and biomass. There could be at least a million tonnes of wood waste in the region. That could produce power for the refinery and allow mills to re-open.
  • Pacific Future Energy anticipates four trains per day to supply needed neatbit™ for the project, with each train approximately 120 cars in length
  • Pacific Future Energy will mandate the use of newer, safety TC-117 model tanker cars with enhanced safety features.

Alberta firm helps BC toward world’s greenest refinery

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Formation Liquids Logistics Limited, based in Red Deer, Alberta, and a leader in energy logistics, has announced its intention to invest in Pacific Future Energy’s proposal to build the world’s greenest bitumen-to-fuels refinery in British Columbia.

Pacific Future Energy Corporation (PFEC) has submitted its proposal to federal and provincial regulators. This began a review process that could last up to two years.
Construction could begin in 2018 and production in 2021, at a site between Terrace and Kitimat in northwestern BC. The project will cost an estimated $15 billion.

Formation Liquids Logistics (FLLL) has 28 years experience in the product-by-rail industry. It will help feed PFEC’s refinery with Western Canadian “neatbit” by rail. Neatbit is bitumen in a safe and near-solid form. From it, the refinery will produce diesel, gasoline, and jet fuel.

PFEC will open up new market access for Canada’s oil products and protect BC’s coastal waters from large crude-oil tankers, says Robert Delamar, CEO of the Vancouver-based company.

“We are proud that Marvin and Brandt Trimble of FLLL have chosen to invest in our vision to build the world’s greenest refinery,” said Delamar. “They are leaders in their field. FLLL will become the primary operator of our proposed rail facilities, and we couldn’t be happier to work with a firm that shares our values, and holds an unimpeachable record with respect to the safe transport of bitumen on rail.”

Marvin Trimble, president of FLLL, said: “FLLL has worked with most of the major producers in Western Canada and supports PFEC’s vision to open new markets in Asia for products from Canadian bitumen.  We have a strong record of providing better-than-pipeline economics to the oil industry in Western Canada, and we are confident that our facilities will be able to deliver to PFEC a steady supply of feedstock in a safe and environmentally optimal fashion.”

As both PFEC and FLLL are private companies, the terms of the financing are not being disclosed at this time.


 

SUPPORTERS OF PACIFIC FUTURE’S PROPOSED B.C. REFINERY BACK SOLID BITUMEN – Globe and Mail

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Backers of a proposed B.C. refinery want to transport Alberta bitumen in solid form inside tank cars along Canadian National Railway Co.’s existing lines and convert the substance into diesel and gasoline at a site north of Kitimat.

Pacific Future Energy Corp. executives, who are seeking to export refined petroleum products to Asia, say the bitumen will be in a form that resembles peanut butter in a refrigerator. The substance, called “neatbit,” would be ideal to transport by rail and poses much less risk to the environment than diluting the bitumen into molasses-like “dilbit,” the executives say.

“Neatbit is a near-solid that has the consistency of peanut butter and does not flow unless heated,” Pacific Future Energy said in a 120-page project description prepared for the B.C. Environmental Assessment Office and Canadian Environmental Assessment Agency. “It has very low flammability. As a result, it is exempt from Transport Canada’s Transportation of Dangerous Goods Regulations and can be transported safely by rail car.”

Pacific Future Energy has selected an 850-hectare site to construct the $11-billion (U.S.) bitumen refinery, choosing the Dubose Flats industrial site after eliminating options near Prince Rupert. The backers will need to negotiate permission to use the provincial Crown land, midway between Terrace and Kitimat. That land is under the legal jurisdiction of the B.C. government and is part of the traditional aboriginal territory of the Kitselas and Haisla.

Three or four trains, each with 120 railcars filled with neatbit, are anticipated to run daily on CN’s rail lines, according to Pacific Future Energy’s filing to environmental regulators. The Vancouver-based energy company commissioned engineering firm SNC-Lavalin Group Inc. to prepare the report.

The report by SNC-Lavalin said construction is slated to start in 2018 at the Dubose Flats site, 30 kilometres north of Kitimat. About 3,500 construction jobs are forecast over a two-year period, and 1,000 full-time refinery positions.

“The main components of the project will include a new bitumen oil refinery constructed from about 26 modules that will be manufactured and shipped via heavy-lift vessels or barges from Asia,” it said.

The goal is to begin exports as early as 2021, though it would likely take until 2024 to process 200,000 barrels a day of bitumen and achieve full production of diesel, gasoline, jet fuel and butane.

Plans call for huge refinery modules to arrive in Canada via Douglas Channel. But Pacific Future Energy would enlist other firms and First Nations to build two pipelines to an export site along Portland Inlet, roughly 120 kilometres northwest of Kitimat.

“Early third-party studies suggest a marine terminal could be situated along the Portland Inlet, in the event such a development were to secure the support of a host First Nation,” the report said. An estimated $1-billion will be needed to construct the two pipelines and another $1-billion for the Portland Inlet export terminal.

The refinery would incorporate cleaner technology, including using wood-waste biomass to help generate electricity. During the production process, petroleum coke would be eliminated as a byproduct. The goal is to keep emissions of carbon dioxide to a minimum.

Pacific Future Energy’s team includes executive chairman Samer Salameh, chief executive officer Robert Delamar, chief operating officer Jacques Benoît, chief strategy officer Mark Marissen and chief financial officer Jeremy Friesen. Other key figures include former international trade minister Stockwell Day and two prominent aboriginal advisers, Shawn Atleo and Ovide Mercredi.

A-in-Chut Business Group, jointly owned by Mr. Atleo, has formed a joint venture with SNC-Lavalin to become the refinery project’s leading investors.

The regulatory filing comes as Kinder Morgan Canada’s proposed expansion of its Trans Mountain oil pipeline from the Edmonton area to Burnaby faces community and environmental opposition while Enbridge Inc.’s Northern Gateway pipeline proposal remains stalled.

Pacific Future Energy is seeking to gain an edge over rival plans, notably one touted by newspaper publisher David Black, who is hoping to forge ahead with his competing Kitimat Clean refinery venture on the Dubose Flats site. Another proposal, Eagle Spirit Energy, is striving to upgrade bitumen either in Alberta or northeast B.C. before piping the material to the West Coast for export.

Follow Brent Jang on Twitter: @brentcjang

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