Lima Energy signs 10-year synthetic crude supply contract with Husky Energy refinery in Ohio
1 October 2013
Lima Energy Company, a subsidiary of USA Synthetic Fuel Corporation in Washington, DC, has signed a contract to supply up to 80 million barrels of oil equivalent (boe) of its “Ultra Clean Synthetic Crude” (UCSC) to Husky Energy’s Lima, Ohio Refinery over ten years. Lima Energy is selling the synthetic crude at a discount to the oil market; the syncrude has less than 1 part per million (ppm) sulfur content.
The contract calls for volumes of up to 22,000 barrels per day (bpd) starting with an initial production volume of about 7,000 bpd.
The UCSC will be manufactured next door to the Lima Refinery, eliminating the significant supply costs and logistics of transporting oil. The Lima Refinery currently supplies about 25% of Ohio’s total gasoline needs.
The Lima Energy Company acquired the 63-acre property for the construction of the Lima Energy Project from the City of Lima, Ohio, in October 2012. The Lima Energy Project is being designed to convert solid hydrocarbon (coal, petroleum coke, and renewables) feedstock into synthetic crude.
Lima Energy says that it plans to capture virtually 100% of the CO2 produced during the process. The captured CO2, compressed into a liquid, will be sold to a third party which plans to utilize the CO2 in enhanced oil recovery operations or permanently store it in saline aquifers. Additionally, the company expects to sell “vitrified frit,” an inert silica matrix derived from inorganic components of the feedstock, for industrial use including as an aggregate in asphalt for road construction. The company also plans to capture and market elemental sulfur for use in the agricultural industry.
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