The economic and technical evaluation of heavy oil upgrading technologies has been the subject of many studies conducted by the Alberta Oil Sands Technology and Research Authority (AOSTRA). Based on the findings of these studies, major pilot plant demonstrations of four high conversion hydrogen addition processes, using Alberta feedstock, were undertaken by AOSTRA and the process developers. This paper gives the results of a recent detailed study conducted by AOSTRA to compare the economics of one of these high conversion hydrogen addition processes, based on its test achievements, with the economics of upgrading processes representative of those currently in commercial use in Alberta. In this study capital and operating cost estimates were developed for an upgrader complex, centrally located in Alberta, utilizing the following three alternative upgrading schemes, ing with separate hydrotreating. -Low conversion LC-Fining combined with delayed -Flexicoking of unconverted bottoms and separate hydrotreating. -VEBA Combi-Cracker (VCC) -High conversion hydrogen addition with integrated hydrotreating. Each scheme was designed to process 60,000 barrels per calendar day of Cold Lake bitumen and produce a synthetic crude oil that could be substituted for conventional crude oil. With the capital and operating cost estimates as the base, detailed economic and sensitivity analyses were performed. The results of these analyses, as measured by the 'Price Available for the Bitumen", indicated that high conversion hydrogen addition processes with integrated hydrotreating, such as VCC, offer a significant economic advantage over the currently employed coking processes combined with separate hydrotreating and over the low conversion hydrogen addition processes combined with separate hydrotreating and coking of unconverted bottoms.Technology does have an impact.
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