Swan Hills Synfuels
Suite 1900, 407 – 2nd ST SW , Calgary, Alberta, Canada

Swan Hills Synfuels, privately held and based in Calgary, Alberta, Canada, is focused on the development of clean energy conversion facilities which convert low-cost energy supplies into clean high-value products. There are two main components to Swan Hills Synfuels’ business: gas conversion and gas manufacturing/supply.

• Gas Conversion: Swan Hills Synfuels’ gas conversion developments will convert gas into higher value products. These gas conversion facilities will use pipeline quality sweet natural gas as their input. Gas conversion developments use proven, well-established processes in their operation. Natural gas producers could be able to realize global commodity price-based netbacks for their natural gas by financially contracting for “tolling” capacity in the gas conversion facilities.
• Gas Supply: Swan Hills Synfuels has developed expertise and operating experience in deep In-situ Coal Gasification (ISCG).
• Benefits to Albertans: Swan Hills Synfuels’ gas conversion developments will create a new clean energy industry in Alberta. By using natural gas to make higher value products, we are adding value to Alberta’s natural gas resource here at home and diversifying the Alberta economy.

History

• 2005 – The company is formed as an energy conversion development enterprise, using gasification. Initial concentration examines a full spectrum of gasification technologies and business opportunities.

• 2006 – Exclusive focus on in-situ coal gasification as the key synthetic gas supply begins mid-2006 and leads to a series of activities to secure coal resources in Alberta.

• 2007 – The year commences with preliminary engineering and design work on the demonstration project. Throughout the remainder of that year the management and project team is developed and work progresses on the Swan Hills ISCG demonstration project (Demo Project).

• 2008 – Development work and preliminary engineering begins on commercial-scale energy conversion developments in parallel with project execution activities on the Demo Project. Swan Hills Synfuels receives an $8.83 million grant from the Province of Alberta in support of the Demo Project.

• 2009 – In June, the Demo Project successfully commenced operations. The summer of 2009 marked the completion of the first phase of Demo Project, resulting in a range of measurable successes to assist in future development stages of commercial ISCG synthetic gas manufacturing projects.

• 2011 – An extended operational run of the Demo Project was completed successfully, confirming process performance and forming the economic basis for ISCG synthetic gas manufacturing to provide long-term cost-certain reliable gas supply for gas conversion units.

• 2012 – Expanded focus on engineering and commercial work for first gas conversion development, known as the Gas to Clean Fuels (GCF) Project.

• 2013 – First GCF Project development site selected at Bickerdike, Alberta. Preliminary engineering and regulatory application preparation work is advanced. Public consultation initiated.

• 2014 – Work on the Bickerdike GCF Project advances: Project execution strategies developed, product offtake letters of intent signed, public open house held, in addition to continued progress of the preliminary engineering and regulatory application preparation.

• 2015 – Present – Shifted focus to natural gas based value add product developments at the Bickerdike site in Alberta, and utilizing its deep ISCG expertise on international projects

Vision

Swan Hills Synfuels is a leading developer of clean energy conversion projects. Swan Hills Synfuels converts low-cost feedstock (initially natural gas) into high value clean energy products. Feedstock supply options include purchased or self-produced natural gas, or manufactured synthetic gas using in situ coal gasification (ISCG) of Swan Hills Synfuels’ large reserves of deep coal.  Swan Hills Synfuels is respected for its expertise and experience in gas conversion, natural gas production, and synthetic gas manufacturing project development. We operate in a safe and environmentally responsible manner, and are valued members in the communities in which it operates. Swan Hills Synfuels is a sought-after partner for clean energy projects, and a supplier of choice among customers for clean, reliable energy products.

Gas Conversions

Swan Hills Synfuels is developing a natural gas conversion facility at Bickerdike, Alberta, to convert natural gas feedstock into higher value products in demand globally. Using established, proven processes, the Facility will use purchased pipeline specification, sweet natural gas as its feedstock, thus taking advantage of the current abundance of natural gas in Alberta. This gas will be converted into high value products for sale in global markets .  By using natural gas to make these products, Swan Hills Synfuels is adding value to Alberta’s natural gas here at home, and converting it into valuable clean finished products that will increase Alberta’s participation in global markets and help diversify Alberta’s economy.  The Facility could provide opportunities for natural gas producers to realize global product-based prices for their natural gas resources through attractive tolling arrangements.

Tolling for Natural Gas Supply

Gas conversion facilities could offer natural gas producers the opportunity to financially contract with Swan Hills Synfuels for “tolling” capacity. These contracts would enable natural gas producers to earn a netback price for their natural gas based on higher value global product prices.

Gas Manufacturing

Swan Hills Synfuels has secured a deep coal resource base that can support the development of over 16 TCF (natural gas equivalent) of synthetic gas, based upon the results of its ISCG Demonstration Project (Demo Project) in the Swan Hills area of Alberta.  Through the results of the Demo Project, Swan Hills Synfuels has shown that ISCG, together with CCS, can cleanly tap the energy potential of Alberta’s vast deep unmineable coal reserves.

Gasification History

Gasification was first developed in the 1800s and has been used commercially throughout the world for more than 100 years. A variety of industries have utilized the technology including chemical production, fertilizer manufacturing, and electrical power generation. Today, the majority of the operating gasification plants worldwide are surface gasification plants designed to produce chemicals, fuels, electricity, and fertilizers.

Gasification Market

As of 2008, there were 420 gasifiers at 140 facilities in operation globally, the majority of these being surface gasification plants (source – GTC). World gasification capacity is projected to grow by more than 70% by 2015 with much of the growth occurring in Asia (source – GTC). A number of factors contribute to a growing interest in gasification, including volatile oil and natural gas prices, more stringent environmental regulations, and a growing consensus that CO2 management should be required in power generation and energy production.