Petroleum coke is a residual product from a part of the crude oil refining process which involves upgrading the heaviest portions of the petroleum barrel to more valuable lighter products such as gasoline and distillates using a coking unit. It is an excellent feedstock for hydromethanation and, due to GreatPoint Energy’s ability to flexibly site projects near economic feedstock supplies, offers a particular opportunity in the Alberta region of Canada where the production of petroleum coke is overwhelming demand.

In fact, there are currently tens of millions of tons of petroleum coke stockpiled in a geographically remote or “stranded” area of the region while at the same time demand for natural gas in Alberta is growing.

Vast quantities of natural gas are needed to extract and process oil sands, which is a key driver of overall demand. According to the Alberta Energy and Utilities Board, total purchased gas requirements for oil sands operations are expected to triple from current levels of 0.7 BCF/D to 2.1 BCF/D by 2015.

As demand for natural gas in Alberta increases, however, the supply from conventional sources has begun to decrease, with projections indicating that beyond 2030 the use of gas for oil sands production and upgrading will be unsustainable. Prices for natural gas have been escalating, and alternatives must be found and developed to alleviate future supply constraints.

Given these dynamics, petroleum coke represents both a real need for innovation and a tremendous market opportunity for GreatPoint Energy’s technology.

Through the use of hydromethanation:

			The Alberta stockpile could be converted to over 1 TCF of natural gas and
			Current levels of petroleum coke production in the region could be converted to 250 MMCFD

In recognition of this, GreatPoint Energy and the Alberta Energy Research Institute are together generating a program for the testing, development and ultimately commercialization of hydromethanation and its application to a variety of petroleum coke feedstock in Alberta. (For additional information, please visit the GreatPoint Energy Partners page.)