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Shell Canada - Scotford Upgrader

The Scotford Upgrader is located next to Shell Canada's Scotford Refinery near Fort Saskatchewan, Alberta. The Scotford Upgrader uses hydrogen-addition technology to upgrade the high viscosity "extra heavy" crude oil (called bitumen) from the Muskeg River Mine into a wide range of synthetic crude oils. A significant portion of the output of the Scotford Upgrader is sold to the Scotford Refinery. Both light and heavy crudes are also sold to Shell's Sarnia Refinery in Ontario. The balance of the synthetic crude is sold to the general marketplace.

The Scotford Upgrader - which is part of the joint venture project between Shell Canada, Chevron Canada (a wholly owned subsidiary of Chevron Corporation) and Marathon Oil Sands L.P. – is operated by Shell Canada.

Upgrading

Upgrading is the process of breaking large hydrocarbon molecules (such as bitumen) into smaller ones by increasing the hydrogen to carbon ratio. These upgraded crude oils are suitable feedstocks for refineries, which will process them into refined products like gasoline.

Scotford's upgrading process adds hydrogen to the bitumen, breaking up the large hydrocarbon molecules - this process is called hydrogen-addition or hydrogen-conversion.

Hydrogen Manufacturing Unit

The Scotford Upgrader is equipped with a hydrogen manufacturing unit. The unit produces most of the hydrogen required for the hydrogen-addition process.

Environmental Advantages

With its hydrogen-addition technology, the Scotford Upgrader has significant environmental advantages:

  • It makes the best use of the very clean bitumen produced at the Muskeg River Mine, with more than 100 barrels of upgraded crude produced for every 100 barrels of bitumen processed.
  • It produces dramatically lower levels of sulphur dioxide emissions.
  • High carbon coke is not produced as a by-product.
  • The synthetic crude oils produced enable refiners to produce clean, high-quality refined products, such as gasoline and diesel fuel, with low levels of aromatics, particulates and sulphur.

Economic Advantages

More than 50 per cent of all money spent on goods and services for this project was spent with local suppliers in the Edmonton and Strathcona County areas.

More than 400 permanent highly-skilled positions have been created to operate the Scotford Upgrader. Employment information for the Scotford Upgrader is available.

The Scotford Upgrader has started construction on its first expansion, which will see at 60 per cent production capacity increase upon completion in 2010. At its peak, construction crews are expected to top 5,000 people and generate billions of dollars of investment in the Edmonton region.

Historical Facts

  • The Athabasca Oil Sands Project (AOSP) consists of the Muskeg River Mine, located about 75 kilometres north of Fort McMurray, Alberta and the Scotford Upgrader located adjacent to Shell’s Scotford Refinery, north of Fort Saskatchewan, Alberta. Once upgraded, the synthetic crude oil is sent to Shell’s Scotford Refinery and other refineries across North America and is used in the manufacture of products such as gasoline, diesel, jet fuel and petrochemicals.
  • The AOSP became completely operational in June 2003 and at full production, is capable of producing the equivalent of 10 per cent of Canada’s oil needs.
  • The Scotford Upgrader surpassed design capacity rates after start up in less time than other oil sands operators were able to achieve
  • The Scotford Upgrader was the first to be built in the Fort Saskatchewan, Alberta area remotely from an oil sands mine in northern Alberta.