View Full Version : Ivanhoe Energy successfully commissions its new Feedstock Facility

Suicide Jacks
March 25th 09, 12:44 AM

HOUSTON, TX, March 24 /CNW/ - Dr. Michael A. Silverman, Executive
Vice President, Technology, of Ivanhoe Energy Inc. (TSX: IE; NASDAQ:
IVAN), today announced the successful commissioning of the new Feedstock
Test Facility (FTF) for the company's proprietary technology for field
upgrading of heavy oil to light oil (HTL). The state-of-the-art HTL
testing facility will be used by Ivanhoe Energy in coming years to
support detailed engineering and design of commercial-scale HTL plants
for Ivanhoe Energy's Tamarack Project in Alberta, Canada, and
Pungarayacu Project in Ecuador, and to test crudes associated with
additional potential HTL projects.

The FTF was installed at Southwest Research Institute (SwRI) in San
Antonio, Texas, last December. SwRI is a world-class technology center
that operates testing facilities for numerous leading oil companies, as
well as other technology-intensive organizations such as NASA, the
Department of Energy and the Department of Defense. The FTF is a very
close analogue to a full-scale commercial HTL facility and is capable of
operating under a wide range of conditions. The FTF is multi-purpose and
will be used to:

The FTF will supplant the 1,000 bpd Commercial Demonstration Facility
(CDF) in Bakersfield, California, which has served its primary mission
of proving that the HTL process can be scaled up to a commercial size.
The FTF processes whole, heavy crude oils with API's as low as 6.

The unit has a) atmospheric and vacuum distillation columns, b) a
reaction section, and c) the capability of recycling of unconverted
bottoms to create an essentially bottomless, synthetic sour-crude
product. The core proprietary hot section was designed to process pure
vacuum bottoms with APIs as low as

The FTF processes 10-15 bbl/day of heavy oil on a continuous basis.
Designed by Ivanhoe Energy and constructed by Zeton Corporation at its
headquarters in Burlington, Ontario, Canada, the FTF unit was built in
four discreet modules and shipped to Southwest Research Institute in
September 2008. The first oil was processed in the third week of

Routine operation is expected to commence in early April 2009. In
addition to the newly commissioned FTF, Ivanhoe's technology group is
executing the first commercial-scale HTL basic engineering design, along
with Ivanhoe's Tier 1 contractor, AMEC U.K. This design is for a 20,000
bpd Athabasca bitumen plant at Ivanhoe's Tamarack property in Alberta.
The basic engineering is 50% complete and will be followed by front-end
engineering and a +20%/-15% Class III capital cost estimate.