Imagine a scenario in the not-too-distant future when a whole new value- added industry springs up across Western Canada that's based on new technology, that unlocks residual energy trapped in partially depleted oil fields without emitting CO2..Western Canada is littered by hundreds, if not thousands of shut-in wells, where the underlying oil has lost its pressure, but a significant percentage of the original resource remains in place..What if shut-in oil wells were viewed as long term assets versus a long-term environmental liability?.I recognize building pipelines has become nearly impossible and oil by rail is both more expensive and accident prone than pipelines. Furthermore, I acknowledge energy inflation is on a collision course with the push to further electrify our economy. A technology solution is required that eliminates this alarming trend..As well, I believe we must re-invent the traditional energy export business model. A new business model is required and one with an even higher economic productivity than the old model..So, how do we increase our economic output, while relying less on raw energy exports for a return on investment and still achieve large scale reductions in CO2 emissions?.An example of such a business model is one centered around a single energy conversion technology that brings together power generation, petrochemicals, oil and liquefied natural gas (LNG) production under a single umbrella..In this integrated business model, the economics are less sensitive to geopolitics and international commodity cycles and more resource revenue is kept here in Canada..The center piece technology I believe makes this vision feasible is an enhanced oil recovery concept. However, instead of just producing oil, it also produces natural gas liquids, LNG and large quantities of hydrogen. Additionally, this technology is not only emissions free, but also has the added ability to function as a means of CO2 sequestration for near-by heavy industry..This is where Calgary-based Proton Technologies comes into play..Proton's intellectual property evolved out of the research initiated by Dr. Ian Gates from the University of Calgary and utilizes a collection of engineering principles collectively known as In-situ Gasification (ISG)..ISG processes inject oxygen into the depleted oil reservoir, where a controlled oxidation reaction develops, like combustion. Without going into the chemistries at play, it's sufficient to state the energy released in this oxidation process is what drives the conversion of oil to hydrogen, natural gas liquids and natural gas..Additionally, the build up of heat within the formation acts to re-pressurize the surrounding oil-in-place, which allows renewed oil production if the economics are warranted..The emissions-free aspects of this form of ISG are derived from complex chemistries associated with saline water present within the partially depleted oil reservoir, combined with wastewater, which results in generated CO2 being converted into carbonate minerals within pore space left over from oil conversion..Proton's first commercial demonstration facility is located near Kerrobert SK on a lease that holds a partially depleted heavy oil reservoir that still contains more than 200 million barrels of oil. It is also actively licensing its intellectual property globally..The balance of plant for a Proton Technologies facility primarily consists of an air separation unit (ASU), a cryogenic distillation unit (CDU) and a power generation system. The ASU separates oxygen from nitrogen in processed air, which in turn provides the oxygen is used for ISG, while the nitrogen can be sold as an industrial commodity. The CDU liquifies and fractionates hot gases released through the well-head from the reservoir, which includes hydrogen, LNG and natural gas liquids such as ethane, propane and butane..The electricity required to drive the ASU and CDU is derived from the on-site power generation system that runs on a portion of produced hydrogen. As hydrogen when combusted only produces water vapour, this is where the emissions free status for the overall balance of plant is obtained..Proton claims its ISG process will ultimately produce hydrogen at a cost lower than natural gas. Furthermore, as on-site power generated using hydrogen will not be subject to a climate tax, excess power sold to be grid will have greater margins than power generation operating on natural gas..Given the ever-increasing demand for low emission intensity electricity, I envision on-site power generation and export to the grid, will be one of the main uses for ISG produced hydrogen..The synergy between Proton`s ISG process and the petrochemical industry is derived by the availability of purified quantities of nitrogen, hydrogen, natural gas, natural gas liquids and affordable baseload quality power. The most obvious petrochemical process is ammonia production, which would make use of on-site production of pure nitrogen and hydrogen. Ammonia is widely used as nitrogen fertilizer and is increasingly being viewed as a fuel..I agree with Danielle Smith and Pierre Poilievre on their messaging about technology over climate taxation as the means of further diversifying our energy mix.
Imagine a scenario in the not-too-distant future when a whole new value- added industry springs up across Western Canada that's based on new technology, that unlocks residual energy trapped in partially depleted oil fields without emitting CO2..Western Canada is littered by hundreds, if not thousands of shut-in wells, where the underlying oil has lost its pressure, but a significant percentage of the original resource remains in place..What if shut-in oil wells were viewed as long term assets versus a long-term environmental liability?.I recognize building pipelines has become nearly impossible and oil by rail is both more expensive and accident prone than pipelines. Furthermore, I acknowledge energy inflation is on a collision course with the push to further electrify our economy. A technology solution is required that eliminates this alarming trend..As well, I believe we must re-invent the traditional energy export business model. A new business model is required and one with an even higher economic productivity than the old model..So, how do we increase our economic output, while relying less on raw energy exports for a return on investment and still achieve large scale reductions in CO2 emissions?.An example of such a business model is one centered around a single energy conversion technology that brings together power generation, petrochemicals, oil and liquefied natural gas (LNG) production under a single umbrella..In this integrated business model, the economics are less sensitive to geopolitics and international commodity cycles and more resource revenue is kept here in Canada..The center piece technology I believe makes this vision feasible is an enhanced oil recovery concept. However, instead of just producing oil, it also produces natural gas liquids, LNG and large quantities of hydrogen. Additionally, this technology is not only emissions free, but also has the added ability to function as a means of CO2 sequestration for near-by heavy industry..This is where Calgary-based Proton Technologies comes into play..Proton's intellectual property evolved out of the research initiated by Dr. Ian Gates from the University of Calgary and utilizes a collection of engineering principles collectively known as In-situ Gasification (ISG)..ISG processes inject oxygen into the depleted oil reservoir, where a controlled oxidation reaction develops, like combustion. Without going into the chemistries at play, it's sufficient to state the energy released in this oxidation process is what drives the conversion of oil to hydrogen, natural gas liquids and natural gas..Additionally, the build up of heat within the formation acts to re-pressurize the surrounding oil-in-place, which allows renewed oil production if the economics are warranted..The emissions-free aspects of this form of ISG are derived from complex chemistries associated with saline water present within the partially depleted oil reservoir, combined with wastewater, which results in generated CO2 being converted into carbonate minerals within pore space left over from oil conversion..Proton's first commercial demonstration facility is located near Kerrobert SK on a lease that holds a partially depleted heavy oil reservoir that still contains more than 200 million barrels of oil. It is also actively licensing its intellectual property globally..The balance of plant for a Proton Technologies facility primarily consists of an air separation unit (ASU), a cryogenic distillation unit (CDU) and a power generation system. The ASU separates oxygen from nitrogen in processed air, which in turn provides the oxygen is used for ISG, while the nitrogen can be sold as an industrial commodity. The CDU liquifies and fractionates hot gases released through the well-head from the reservoir, which includes hydrogen, LNG and natural gas liquids such as ethane, propane and butane..The electricity required to drive the ASU and CDU is derived from the on-site power generation system that runs on a portion of produced hydrogen. As hydrogen when combusted only produces water vapour, this is where the emissions free status for the overall balance of plant is obtained..Proton claims its ISG process will ultimately produce hydrogen at a cost lower than natural gas. Furthermore, as on-site power generated using hydrogen will not be subject to a climate tax, excess power sold to be grid will have greater margins than power generation operating on natural gas..Given the ever-increasing demand for low emission intensity electricity, I envision on-site power generation and export to the grid, will be one of the main uses for ISG produced hydrogen..The synergy between Proton`s ISG process and the petrochemical industry is derived by the availability of purified quantities of nitrogen, hydrogen, natural gas, natural gas liquids and affordable baseload quality power. The most obvious petrochemical process is ammonia production, which would make use of on-site production of pure nitrogen and hydrogen. Ammonia is widely used as nitrogen fertilizer and is increasingly being viewed as a fuel..I agree with Danielle Smith and Pierre Poilievre on their messaging about technology over climate taxation as the means of further diversifying our energy mix.