Scott Can THERMCAT Catalytic Gas Infrared Explosion Proof Heaters PTAC Green Toolbox September 29-30, 2003 Peter Howie Scott-Can Industries Ltd

Scott Can About Scott-Can Industries Ltd.  Based in Edmonton  Supplier and manufacturer of Catalytic Units  A reputation for innovation  Provide Catalytic Heaters for:  Oil and Gas heating in Hazardous Areas  Powder paint curing ovens  Domestic radiant heaters  Allied with Infragas of Turin, Italy  A world leader in catalytic equipment

Scott Can Infrared Catalytic Heater Basics  Developed to allow safe and efficient heating in the presence of hydrocarbon vapours  Catalyst reduces the temperature of methane oxidation below the ignition temperature  Heaters produce flameless infrared radiant energy to safely heat hazardous areas  98% fuel efficient  No NOx or CO generated

Scott Can Catalytic Heaters - Oil & Gas Industry  Over 200,000 heaters in service in western Canada’s oil and gas industry today  Space heating for well site buildings, meter stations, dehydrators, compressor sites and oil batteries.  Pipeline installation of shrink coating  Familiar to most field operators

Scott Can The Need  An economic solution to maximize the use and mitigation of methane emissions  Ideal Solutions should:  Generate an economic benefit  Be low capital cost and easy maintenance  Not cause other problems – high reliability  Reduce GHG equivalent emissions

Scott Can The Catalytic Solutions  Based on off the shelf catalytic heater components  Heaters already in use for building heat  Well suited for remote/isolated locations  Low cost and safe compared to other options  Provide other economic and intangible benefits  GHG emissions reduction of 21tCO 2 eq/tCH 4 reduction for fuel replacement

Scott Can Green Roles for Catalytic Heaters  Small Vent Streams in Isolated Facilities  Standard Catalytic Building Heaters  Use vent gas to back out fuel  Small Variable Vent Streams  Catalytic Converter Prototype Available  Converts methane to CO 2 for Supplemental Process Heat or GHG Reductions  Dilute Fugitive Streams  Reduce Methane in Building Exhaust Air

Scott Can Case 1 - Winterization Heaters  Catalytic Heater Winterization Systems installed on three well sites in Husky’s Saskatchewan heavy oil operations (Fall 2000)  All with underground fuel lines to tank burners  Winterization achieved by heating gas to keep ground and piping system from freezing  Combined with insulating above ground lines

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Ground Warm Up Maintain Gas Temperature With THERMCAT

Scott Can Winterization Heaters – Lessons Learned  Based on field trials  Units have operated reliably through –25 degrees and blizzards  Systems can be started up in winter; fall start-up is better to build up heat in the ground  Use vent gas for both catalytic heaters and tank heaters  Best application – Sites with buried fuel lines to tanks

Scott Can Key Benefits of Catalytic Winterization  Reduce operating costs by %  Rapid economic payout  <3-4 months if propane backed out  <1 yr if purchased natural gas backed out  Low Cost Alternative for Freeze Protection  Easily Retrofitted  High Operability and Low Maintenance  GHG equivalent emissions reductions achieved

Scott Can Case 2 – Line Heater  Designed to prove ability of catalytic heaters to run on low pressure gas (under ½ psig) where backpressure is undesirable  Also tested benefits of heating the production upstream of the tank vs. in the storage tanks  Skid mounted, portable unit designed to be retrofitted into existing production lines

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Next Steps for Line Heater Systems  They work and are ready for wider use  Improved foam breakdown and oil/water/sand separation in the tanks  Consume Vent Gas rather than venting it  Additional work required to quantify:  Overall efficiency vs. fire tubes in tanks  Quantify impacts on tank treating effectiveness  Equipment Price Range $13,300-$15,000  For 120,000 BTU/hr line heaters

Scott Can Expanding Catalytic Heater Uses  Use Instrument or Power Gas to provide building heat  Use existing building heaters  REUSE instrument or power gas  Best where heating load profile generally matches the vent gas supply profile

Scott Can Reuse Gas in Building Heaters Actuator Vents or Chemical Pumps Volume Bottle Capacity ft3 Catalytic Building Heater 2-6 scfph/ft 2 of heater Safety Shutoff Valve & Restriction Orifice SOV Set at 3”w.c. Make-up gas regulator Set at 5”w.c.

Scott Can New Concepts in Development  Concentrated Stream Converter  Small & variable vents mainly methane (<50 m3/d)  To handle small variable flows where flaring and other solutions are not practical  Waste Heat Supported Reactor  Collect and convert fugitives in building vents  Use hot exhaust streams to maintain reaction  Eliminate traces of methane at low cost

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Summary  There already are catalytic options available for small concentrated vent streams  THERMCAT is ready to go  We are also developing new catalytic options  Targeting economic or low cost systems  Catalytic solutions can meet the need  Competitively vs. other options

Scott Can Acknowledgements  Husky Oil for their funding support for initial and on-going work  BP and Nexen for their interest in field testing new concepts  New Paradigm Engineering for suggesting new concepts and supporting field testing  Dr. Bob Hayes for COURSE and NSERC funded work on new concepts  PTAC for Project launches and workshops

Scott Can Contact Information ScottCan Industries Ltd Davies Road Edmonton, Alberta T6E 4N2 Tel: (780) Fax: (780) Toll Free: