Newalta Corporation has signed a deal with Syncrude Canada Ltd. to design, build and operate a commercial-scale demonstration plant for the processing of mature fine tailings.
Newalta Corporation has signed a deal with Syncrude Canada Ltd. to design, build and operate a commercial-scale demonstration plant for the processing of mature fine tailings.
“The project involves the construction of a basic building to house centrifugation equipment, electricals and piping. This is a demonstration plant to house the equipment,” said Anne Plasterer, executive director of investor relations at Newalta Corporation.
Fine tails are a byproduct of the oilsands extraction process, which contain suspended silts, clays and hydrocarbon residues. With this demonstration project, centrifuge technology is becoming an additional method for Syncrude to manage their tailings
This technology involves putting tailings through vessels, where a spinning action separates out the water.
Released water will be recycled for plant operations. The soil from the centrifuge process has sufficient density and strength to be placed in deposits, then capped and reclaimed.
The contract will take place over a three-year period at Syncrude’s oilsands mine operations near Fort McMurray, Alberta.
Newalta’s capital investment for the contract is estimated to be between $25 million and $30 million, of which the majority will be spent on equipment.
The company expects to complete construction and start operations by June 2012. Operations will be seasonal and are expected to average about six months per year. The company expects annual revenue averaging about $20 million over the three year contract period.
“The contract with Syncrude builds on our current base of eight contracts including customers that are using Steam Assisted Gravity Drainage production,” said Craig Wilkie, executive vice president of Newalta.
Newalta and Syncrude have worked together for two years in trial projects to prove the application of centrifugation for processing mature fine tailings.
Centrifuging tailings accelerates the release of water and reduces overall volume by 50 per cent or more. The implementation of the technology will be executed in three stage, with the first phase of a commercial plant starting in 2015.
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