Fractal Systems and CSV Midstream announce agreement to develop partial upgrading hub
They will also jointly develop a diluent reduction
Fractal Systems and CSV have entered into an agreement to jointly develop a diluent reduction and partial upgrading hub utilizing Fractal's Enhanced JetShear technology.
Following the successful commercial demonstration of the EJS technology at a field facility, CSV and Fractal have developed a commercial scale facility design capable of providing bitumen producers with higher product value, reduced diluent costs and a reduced carbon footprint, while achieving a competitive cost structure.
Fractal and CSV have been working collaboratively since 2018 towards the development of the EJS Regional Hub project. Leveraging Fractal's innovative technology and CSV's efficient project execution expertise, the partners have agreed to work together on the next stages of development. These include further engagement with producers on long-term supply agreements and advancing engineering, consultation and regulatory work. CSV will finance, build, own and operate the EJS Regional Hub project employing the EJS technology under license from Fractal.
The EJS technology cost effectively improves bitumen product quality through reduced acidity and significantly lowers bitumen viscosity, eliminating the need for more than 50% of the diluent that is normally required to meet pipeline specification. The final product reduces operators' transportation costs and increases available bitumen export pipeline capacity by about 20%. It also reduces 'wells-to-tank' greenhouse gas emissions by approximately 10%. EJS product may also be shipped efficiently with little or no diluent by rail to refineries on the US Gulf Coast and other locations. CSV and Fractal believe that the EJS technology offers a unique opportunity for the energy industry in Western Canada.