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Canadian oil sands project to recycle up to 97% of its produced water with GE evaporation technology

Grizzly Oil Sands ULC has selected GE’s (NYSE: GE) produced water evaporation technology for its Algar Lake project near Fort McMurray, Alberta, Canada. Phase 1 of the Algar Lake Steam-Assisted Gravity Drainage (SAGD) project will produce 5,000-6,000 barrels per day of bitumen and, by using GE’s produced water evaporation process, will recycle up to 97% of the produced water. (Earlier post.)

Grizzly’s Algar Lake is one of three recent projects, including Harvest Black Gold, to choose GE’s evaporative technology to treat and recycle its SAGD wastewater, assisting this producer to minimize water consumption and comply with the Alberta Energy Resources Conservation Board (ERCB) regulations and directives pertaining to water use. Coupled with GE’s proprietary contaminant reduction system, the technology can produce a high-quality distillate suitable for use as feedwater to high-pressure drum boilers.

Until recently, SAGD produced water could not be recycled as boiler feedwater because conventional treatment technologies were unable to produce the necessary water quality. GE says that its evaporation process and contaminant reduction system is the only commercially proven method currently in use that achieves complete water recycling. It significantly reduces freshwater requirements and also offers lower total capital and operating costs.

Our selection of GE technology is the result of their experience and application of the technology in the oil sands. The team at GE has supported our Advanced, Relocatable, Modularized, Standardized (ARMS) design.

—Ryan Chase, director of projects at Grizzly Oil Sands

In addition to GE’s produced water evaporation system, GE also is providing the Algar Lake SAGD project with system design, equipment, instruments and controls, training and site support. GE will deliver equipment to the site in the first half of 2012, with installation and commissioning scheduled for the second half of 2012.

Grizzly Oil Sands was formed in early 2006 to explore for and bring bitumen into production using thermal technologies. Grizzly holds one of the largest oil sand lease positions in Alberta among independent development-stage oil sands companies with more than 700,000 net acres of oil sands leases and permits.

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