Enhance Energy Inc.
C02 Pipeline System

Enhance Energy plans to be the first company in Alberta to implement a large scale CO2 enhanced oil recovery and sequestration project and build Alberta’s first CO2 pipeline distribution system.

CO2 Supply

The Enhance CO2 Pipeline System will have enormous environmental benefits for Alberta. In the initial phase, the pipeline project will have the same impact as taking 330,000 cars off the road and 1,600,000 cars at full capacity. Besides the environmental benefit for the province, the pipeline will provide Albertans with additional jobs and the incremental royalties and taxes it will generate through enhanced oil recovery.

The Enhance CO2 Pipeline System will be capable of gathering CO2 from several sources in the Alberta’s Industrial Heartland and transporting the CO2 to existing mature oil fields throughout South-Central Alberta. These oilfields will see significant increases in production as CO2 is permanently stored in the reservoir. The capture and permanent storage of CO2 will result in significant reductions in emissions of greenhouse gases in Alberta. The initial supply of CO2 will come from North West Upgrading Inc. and Agrium Inc.

The system will have a design capacity of 25,000 tonnes per day with initial throughput planned at 5,000 tonnes per day.

The Enhance CO2 Pipeline System will consist of:

drying and compression facilities at the north end in the Heartland Industrial Region on the Agrium and North West Upgrader sites, which will process the CO2 that will be collected and bring the product up to pipeline specifications;

a pump station east of Fort Saskatchewan in the Heartland Industrial Region, to be called the Elk Island Pump Station, that will boost pressure on the pipeline system;

the pipeline operations and control centre located at the Elk Island Pump Station;

receipt facilities at the south end of the system near Clive, which will allow distribution of the CO2 to the conventional oil and gas fields in the area; and

a high vapour pressure (HVP) pipeline between the source and the delivery point, connecting the north and south facilities.

Enhance anticipates regulatory applications for the proposed project to be completed by spring of 2009; and depending on the timing of regulatory approval, construction could begin as early as the first half of 2010, with startup in the first quarter of 2011.

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