Guest: N-Solv—a potential game changer for oil sands Available now! Hatch Corporate Sustainability Report 2013 N-Solv has developed a technology and process of high importance to global customers of Alberta’s oil sands who are calling for cleaner, more efficient and more Alexander Stickler sustainable production techniques than Vice President, Business Operations, N-Solv Corporation those currently being used … Optimizing asset management costs and capabilities for hydroelectric system in central Newfoundland SUPPORT FOR QUEEN'S U SERA UPCOMING CONFERENCES Designing a high-voltage transmission link between Newfoundland and Nova Scotia Managing Ontario’s largest hydroelectric project in 40 years Hatch Corporate Office Sheridan Science & Technology Park 2800 Speakman Drive Mississauga, ON L5K 2R7 Canada Tel: +1 905 855 7600 | Fax: +1 905 855 8270 www.hatch.ca Guest: N-Solv—a potential game changer for oil sands By Alexander Stickler Vice President, Business Operations, N-Solv Corporation The N-Solv Bitumen Extraction Solvent Technology (BEST) pilot plant will demonstrate the low-temperature, primary, in situ production process for bitumen reserves using a pure, condensing solvent Since the founding of Calgary-based N-Solv Corporation in 2003, Hatch has been one of our key investors and, with their extensive experience in both conventional and unconventional oil and gas applications, has made significant contributions to the development of the N-Solv™ production process. The process is so different from existing methods that it could change the way people—engineers and environmentalists alike—think about oil sands. Hatch Corporate Office Sheridan Science & Technology Park 2800 Speakman Drive Mississauga, ON L5K 2R7 Canada Tel: +1 905 855 7600 | Fax: +1 905 855 8270 www.hatch.ca N-Solv has developed a technology and process of high importance to global customers of Alberta’s oil sands who are calling for cleaner, more efficient and more sustainable production techniques than those currently being used. That pressure was reflected in a July 27 New York Times article quoting US President Barack Obama: “…there is no doubt that Canada—at the source in those tar sands—could potentially be doing more to mitigate carbon release.” Alberta’s oil sands are of major interest to the US market because they contain over 170 billion barrels of recoverable oil, the third-largest crude oil resource in the world. 80% of that oil sands crude is too deep for surface mining, so it is extracted through in situ processes that presently use significant amounts of water and energy. The N-Solv™ oil sands technology is a potential game-changer because it: Uses no water Requires 85% less energy to produce bitumen Leaves a smaller environmental footprint than current techniques. The N-Solv™ process utilizes the proven horizontal well technology developed for steam-assisted gravity drainage (SAGD) but instead of water it uses warm propane or butane, which is injected as vapor to condense underground and wash the valuable compounds out of the bitumen. In addition to the clear environmental significance, N-Solv™ technology has lower operating and capital costs than other oil sands extraction techniques, and its solvent-based recovery process produces lighter, more valuable oil. N-Solv™ could be the solution that the oil sands industry needs. Feasibility studies indicate that the N-Solv™ technology has the potential to be viable on a commercial scale. To demonstrate this, a $70 million pilot project facility, engineered and built by Hatch, near Fort McMurray will validate the technology for commercial use. The site is expected to be producing oil by Q1 of 2014. Hatch Corporate Office Sheridan Science & Technology Park 2800 Speakman Drive Mississauga, ON L5K 2R7 Canada Tel: +1 905 855 7600 | Fax: +1 905 855 8270 Production wellhead (foreground) returns oil and solvent to the surface while the injection wellhead (background) injects warm solvent vapor www.hatch.ca With pilot results just around the corner, it is an exciting time for N-Solv and Hatch. We are on the verge of proving a technology that can produce higher value oil with lower operating costs and a smaller environmental footprint—and that may provide a much-needed solution to today’s tough political questions about water use and greenhouse gas emissions from the oil sands. If it does what we expect, the N-Solv™ process will certainly be an industry and environmental game-changer. I look forward to sharing the news in 2014. For further information, please contact: Alexander Stickler, MBA, P.Eng. Vice President, Business Operations, N-Solv Corporation AStickler@n-solv.com Alex Stickler manages commercialization and technology development activities for N’Solv Corporation. Previously, he was the Director of Hatch's solar power business, and was a consultant in Hatch’s Technologies business unit where he focused on financial analysis, market studies, due diligence work, and strategy formulation for emerging industrial technologies. Hatch Corporate Office Sheridan Science & Technology Park 2800 Speakman Drive Mississauga, ON L5K 2R7 Canada Tel: +1 905 855 7600 | Fax: +1 905 855 8270 www.hatch.ca Optimizing asset management costs and capabilities for hydroelectric system in central Newfoundland Nalcor Energy has been operating the Exploits generation system since 2009. With a total output of about 100 MW, the system includes 16 generating units among sites in Grand Falls, Bishop’s Falls and Buchans, as well as eight dams and other structures. Ranging in age from 10 to over 100 years, many components are at or near the end of their service life. The Exploits River total watershed of 10,241 km2 includes 5,089 km2 of controlled watershed and runs over 200 km from its source to the Bay of Exploits in the northeast The previous owner’s maintenance strategies varied considerably from plant to plant depending on the facility age and available resources. Nalcor faced the challenge of developing a modern, comprehensive and affordable asset management strategy to bring the generation Hatch Corporate Office Sheridan Science & Technology Park 2800 Speakman Drive Mississauga, ON L5K 2R7 Canada Tel: +1 905 855 7600 | Fax: +1 905 855 8270 www.hatch.ca assets to the current Canadian utility industry standards and ensure reliable performance of all assets across the system. Nalcor hired Hatch to do a full condition assessment of the assets, deliver a 20-year Capital Expenditure Plan and prioritize system upgrades. At the heart of the project was Hatch’s unique HydroVantage (HV) optimization software system. The HV model incorporates 120 failure-probability curves derived from benchmarked industry records of equipment failures in hydroelectric facilities. These curves can be further broken down by failure modes, which themselves can be described through their contribution to retirement, frequency of occurrence and degree of damage that is caused to the component as a result of the failure. The model allows for multiple intervention schemes, such as replacement, rehabilitation, upgrade, spare parts, enhanced maintenance or installation of monitoring equipment to be introduced, and calculates the optimal mode and timing of intervention. We also introduced a valuable tool for recording inspection data. eInspector allows on-site inspectors to enter field information through a Web-enabled iPhone-size device for storage in an online database, complete with operational history, key performance parameters, photographs, and written records of potential problems. eInspector will greatly improve access to historic data while greatly simplifying ongoing condition assessment and reducing the cost of future updates to the plan. In the long term, the assessment of CAPEX requirements for hydroelectric facilities is a live document and should be updated regularly. Hatch assessed 364 subsystems/components and made 434 intervention recommendations for upgrades to the latest utility standards. The final multimillion-dollar, risk-informed CAPEX plan was levelized based on annual spending constraints and risk-optimization considerations. It achieved a 5% lower net present value (NPV) of CAPEX and risk costs versus traditional methods of developing and levelizing CAPEX plans. A paper describing this project received the Best Technical Paper award in the ‘Market Trends & Strategies’ category at HydroVision 2013 in Denver, Colorado. For further information, please contact: Satish Bhan, PhD, PEng Senior Project Manager, Renewable Power Niagara Falls, Ontario, Canada +1 905 357 6989 SBhan@hatch.ca Hatch Corporate Office Sheridan Science & Technology Park 2800 Speakman Drive Mississauga, ON L5K 2R7 Canada Tel: +1 905 855 7600 | Fax: +1 905 855 8270 www.hatch.ca Designing a high-voltage transmission link between Newfoundland and Nova Scotia NSP Maritime Link Inc. (NSPML), a subsidiary of Emera Inc. (EMA-TSX), is undertaking a major interconnection of transmission systems between Newfoundland and Nova Scotia. The new 500 MW, +/- 200 kV HVDC link will facilitate the delivery of renewable power generated from the Lower Churchill hydroelectric project at Muskrat Falls to the Nova Scotia electricity market. The Maritime Link project will include many new stations and transmission lines in Newfoundland and Nova Scotia, as well as 180 km of subsea cable Construction components in Newfoundland include: 300+ km of overhead 230 kV AC and +/- 200 kV HVDC lines 230 kV AC to +/- 200 kV HVDC converter station at Bottom Brook Hatch Corporate Office Sheridan Science & Technology Park 2800 Speakman Drive Mississauga, ON L5K 2R7 Canada Tel: +1 905 855 7600 | Fax: +1 905 855 8270 www.hatch.ca Interconnection with 230 kV AC stations at Bottom Brook and Granite Canal HVDC overhead-to-underground transition station at Cape Ray Grounding site at Indian Head and about 30 km of associated grounding line. Components in Nova Scotia include: HVDC underground-to-overhead transition station at Point Aconi 46 km of +/- 200 kV HVDC overhead transmission line +/- 200 kV HVDC to 345 kV HVAC converter station at Woodbine substation Interconnection of the converter station with the 345 kV Woodbine substation Grounding site at Big Lorraine and about 43 km of associated grounding line. The marine component, which includes the 180 km submarine cable across the Cabot Strait, is being designed and engineered separately from the overland components of the project. NSPML conducted initial planning studies and established the link’s rating as 500 MW, using +/200 kV in an HVDC bipole configuration and voltage source commutation (VSC) AC/DC converter technology. Hatch began work on the project in January 2012 when NSPML engaged us to provide conceptual and functional design services for the terrestrial components. Our scope was extended in late 2012 to include the engineering studies and preparation of technical specifications for the AC/DC converter stations. These services were completed in March 2013. We also provided support for regulatory submissions, responses to interrogatories and for expert witness appearance at the regulatory hearing. NSPML selected the Hatch team again in April 2013 to provide detailed engineering services for the project. This latest scope includes: Detailed design of overhead transmission lines, transition stations and grounding sites Site preparation works for interconnection stations Design of telecommunication facilities associated with the Maritime Link project Accommodation facilities at Granite Canal and some access roads. We expect detailed engineering to be complete in February 2014. A key feature during this stage was the establishment of a design office in Halifax, Nova Scotia to comply with the Benefits Agreement signed between the provincial governments of Nova Scotia and Newfoundland. Hatch Corporate Office Sheridan Science & Technology Park 2800 Speakman Drive Mississauga, ON L5K 2R7 Canada Tel: +1 905 855 7600 | Fax: +1 905 855 8270 www.hatch.ca A team of 14 engineers and designers from Hatch offices in Mississauga, Winnipeg, Calgary and Montréal in Canada and Santiago, Chile relocated to Halifax to ensure smooth collaboration with the NSPML team there. For further information, please contact: Ifti Khan, PEng Project Manager, Transmission & Distribution Halifax, Nova Scotia + 1 902 422 3213 Ext 6813 Iftikhar.Khan@hatch.ca Hatch Corporate Office Sheridan Science & Technology Park 2800 Speakman Drive Mississauga, ON L5K 2R7 Canada Tel: +1 905 855 7600 | Fax: +1 905 855 8270 www.hatch.ca Managing Ontario’s largest hydroelectric project in 40 years Construction is well under way for Ontario Power Generation’s Lower Mattagami River (LMR) hydroelectric project located 165 km south of Timmins in northeastern Ontario. With 500 MW of new generation capacity, LMR is the largest hydroelectric development in Ontario in almost 40 years. The project involves decommissioning the existing 52 MW Smoky Falls powerhouse and replacing it with a new 270 MW (3 x 90 MW) generating station; as well adding one unit at each of the downstream Little Long (70 MW), Harmon (70 MW) and Kipling (70 MW). Looking south over the new Smoky Falls powerhouse construction site (photo courtesy of Ontario Power Generation) Hatch Corporate Office Sheridan Science & Technology Park 2800 Speakman Drive Mississauga, ON L5K 2R7 Canada Tel: +1 905 855 7600 | Fax: +1 905 855 8270 www.hatch.ca Hatch is Owner’s Representative for contract administration, site office support, site quality assurance, oversight support, design and procurement review, document control and records management, and environmental support. We’re also coordinating liaison services to promote collaborative and harmonious relations among the design–build contractor, trade unions and the Moose Cree First Nation. About a quarter of the 1,250 on-site workers are from the Moose Cree First Nation, which is a substantial equity partner in the project. Archaeological and historical investigations were conducted to ensure that proposed construction was not on ancestral burial grounds. Construction began in January 2010 and is scheduled for completion in March 2015. For further information, please contact: Fadi Chidiac, MASc, PEng Senior Project Manager, Renewable Power Niagara Falls, Ontario, Canada +1 905 357 6982 FChidiac@hatch.ca Hatch Corporate Office Sheridan Science & Technology Park 2800 Speakman Drive Mississauga, ON L5K 2R7 Canada Tel: +1 905 855 7600 | Fax: +1 905 855 8270 www.hatch.ca Hatch supports the new SERA program at Queen’s University We are pleased to announce Hatch’s support of the Sustainable Engineering in Remote Areas (SERA) program, designed by Dr. Mark Green, professor and associate head of Queen's University. SERA will provide Canadian businesses with a pool of uniquely qualified engineering graduates who are well prepared to work at challenging project sites in remote areas. Students enrolled in the six-year program will study engineering as well as aboriginal culture and sustainability, and will conduct research into natural resources and energy, information and communications technologies, and economic development and education for aboriginal people. SERA is a collaboration among many other partners including the National Sciences and Engineering Research Council of Canada (NSERC), Ontario Waterpower Association, Assembly of First Nations, the Royal Military College and universities of Manitoba and Ottawa. Hatch’s commitment includes financial support, internships for Collaborative Research and Training Experience (CREATE) program students, and participation in the SERA program steering committee. Hatch Corporate Office Sheridan Science & Technology Park 2800 Speakman Drive Mississauga, ON L5K 2R7 Canada Tel: +1 905 855 7600 | Fax: +1 905 855 8270 www.hatch.ca Upcoming Conferences Oil Shale Symposium October 14–16, 2013 Golden, Colorado, USA Hatch is a proud sponsor at the 33rd Oil Shale Symposium at the Colorado School of Mines. Umesh Shah will present on “Prediction of EcoShale™ production profile using CFD and kinetic models”. Power of Water Canada October 20–22, 2013 Niagara-on-the-Lake, Ontario, Canada Hatch is a proud sponsor of the largest gathering within the hydroelectric sector in Canada. Richard Donnelly will present on “Risk-based solutions to dam safety”. Visit Hatch at Booth 28. Generate 2013 (Clean Energy BC) October 26–29, 2013 Vancouver, BC, Canada Visit Hatch at Booth 2. APPrO 2013 (25th Anniversary Canadian Power Conference & Networking Centre) November 19–20, 2013 Toronto, Canada Visit Hatch at Booth 203 and meet our power generation and transmission experts. Marine Renewables Canada November 20–21, 2013 Ottawa, Canada Marie-Hélène Briand will present on “Setting standards for a new industry”. Hatch Corporate Office Sheridan Science & Technology Park 2800 Speakman Drive Mississauga, ON L5K 2R7 Canada Tel: +1 905 855 7600 | Fax: +1 905 855 8270 www.hatch.ca