Husky Energy Unveils Carbon Capture and Enhanced Oil Recovery Initiative

May 17, 2012

  Ed Connolly, Senior VP of Heavy Oil explains the carbon capture process.
  Left to right: Cut Knife-Turtleford MLA Larry Doke, Husky Energy CEO Asim Ghosh, Lloydminster Mayor Jeff Mulligan and Vermilion-Lloydminster MLA Richard Starke attended the ribbon cutting for the CO2 facility opening.

Lloydminster, Saskatchewan - Husky Energy unveiled its carbon dioxide (CO2) capture and liquefaction project in Lloydminster, a facility that allows the Company to recover more oil from existing fields while reducing emissions at its ethanol plant.

"This remarkable project gives us two bangs for the same buck," CEO Asim Ghosh said of the technology. In addition to enhanced oil recovery and reduced emissions, the project demonstrates Husky's commitment to its business foundations. "The CO2 Capture and Liquefaction project represents how we are capturing full value from our facilities, and how we're using technology to improve our performance," Ghosh said.

The facility, which began operating in mid-March, converts approximately 250 tonnes of CO2 produced by the ethanol plant each day into a high-pressure liquid. CO2 is a byproduct of the plant's fermentation process, where more than 350,000 tonnes of non-food quality grain and corn is used to produce approximately 130 million litres of ethanol per year.

The liquid CO2 is then stored on site in three 900,000-gallon bullets - each holding one day's worth of production - until it is transferred to the heavy oil fields by tanker trucks. Once there, the CO2 is vaporized and injected into reservoirs to make the oil easier to extract. The application offers the potential to sustain Husky's heavy oil production in the area for many years.

Husky received $14.5 million from the federal government's ecoENERGY Technology Initiative to develop and demonstrate carbon capture and storage technologies, one of eight companies in Western Canada to obtain funding. As well, the Saskatchewan government has provided funding for the field piloting program through its Petroleum Research Incentive Program.

Husky is Western Canada's largest producer of ethanol and a pioneer in marketing ethanol-blended fuels. The Company is transforming its heavy oil foundation business toward more long-life thermal projects and horizontal drilling, reinforcing its position as a leading Canadian heavy oil producer.