Sherritt Successfully Completes Pilot Testing of Innovative Process to Upgrade Alberta Bitumen at Lower Cost
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Sherritt Successfully Completes Pilot Testing of Innovative Process to
Upgrade Alberta Bitumen at Lower Cost
TORONTO, May 7 , 201 8 – Sherritt International Corpora tion (“Sherritt”) (TSX:S) today
announced that its Alberta-based Technologies division has successfully completed a pilot -
scale demonstration of a proprietary process to upgrade bitumen. The process has the ability to
eliminate the need for addition of diluent , a high-cost thinning agent that reduces heavy oil
viscosity, and improve pipeline capacity.
“Sherritt has identified a new application of our proven processing capabilities that addre sses a
significant need within Alberta’s oil sands industry to reduce co sts and improve pipeline
capacity,” said David Pathe, President and CEO of Sherritt International. “ The successful pilot-
scale demonstration marks an important first step in commercializing this technology, and builds
on our unique metals processing expertise to create longer term growth opportunities. Our next
testing phase is expected to involve more extensive collaboration with Alberta bitumen
producers and include demonstrations of our upgrading process on a larger scale.”
Sherritt’s innovative process to upgrade bitumen is based on more than 60 years of experience
developing hydrometallurgical processes and the use of autoclaves, and stems from research
previously conducted by Sherritt in the area of coal liquefaction. Sherritt’s process is based on
the use of reactor technology that involves combining hydrogen with bitumen under pressure at
high temperature in the presence of a proprietary catalyst suspended through mechanical
agitation.
Sherritt’s process was first tested in 2015 to upgrade Cuban heavy oil. More recently, Sherritt
completed test work on several bitumen products from Alberta. All test work has been
completed at Sherritt’s technology facility in Fort Saskatchewan, Alberta.
In recent tests, Sherritt upgraded bitumen with a 10 O American Petroleum Institute (API) gravity,
a unit of measurement to gauge the density of oil, to a lighter 24O API gravity product with no
loss of liquid. When blend ed with raw bitumen, the upgraded bitumen product met pipeline
transportation specifications and had lower sulphur, naphthenic acid, heavy metals and micro -
carbon residue than the Alberta benchmark diluted bitumen blend, Western Canadian Select.
The addition of diluent to bitumen for transportation though pipelines is estimated to cost Alberta
bitumen producers more than US$6 billion annually. Numerous studies on the partial upgrading
of bitumen point to benefits such as eliminating high-cost diluent, alleviating pipeline constraints,
and increasing the value of crude oil to refiners , and reducing emissions. According to the
University of Calgary’s School of Public Policy, the value uplift of partial upgrading of bitumen is
estimated at $10 to $15 per barrel of bitumen.
About Sherritt
Sherritt is a world leader in the mining and refining of nickel and cobalt from lateritic ores with
projects and operations in Canada, Cuba and Madagascar. The Corporation is the largest
independent energy producer in Cuba, with extensive oil and power operations across the
island. Sherritt licenses its proprietary technologies and provides metallurgical services to
mining and refining operations worldwide. The Corporation’s common shares are listed on the
Toronto Stock Exchange under the symbol “S”.
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For more information, please contact:
Joe Racanelli, Director of Investor Relations
Telephone: 416-935-2457
Toll-Free: 1-800-704-6698
Email: [email protected]
www.sherritt.com
Forward-Looking Statements
This press release contains certain forward-looking statements. Forward-looking statements can
generally be identified by the use of statements that include such words as “believe”, “expect”,
“anticipate”, “intend”, “plan”, “forecast”, “likely”, “may”, “will”, “could”, “should”, “suspect”,
“outlook”, “projected”, “continue” or other similar words o r phrases. Specifically, forward-looking
statements in this document include, but are not limited to, statements set out in this press
release relating to future upgrading demonstrations , potential collaboration and
commercialization and the benefits of partial bitumen upgrading.
Forward-looking statements are not based on historic facts, but rather on current expectations,
assumptions and projections about future events, including future upgrading demonstrations
and results; the potential benefits of partial bitumen upgrading and the ability to achieve various
objectives, goals and plans , towards commercialization or otherwise . By their nature, forward -
looking statements require the Corporation to make assumptions and are subject to inherent
risks and uncertainties. There is significant risk that predictions, forecasts, conclusions or
projections will not prove to be accurate, that those assumptions may not be correct and that
actual results may differ materially from such predictions, forecasts, conclusions or projections.
The Corporation cautions readers of this press release not to place undue reliance on any
forward-looking statement as a number of factors could cause actual future results, conditions,
actions or events to differ materially from the targets, expectations, estimates or intentions
expressed in the forward -looking statements. These risks, uncertainties and other factors
include, but are not limited to the risks and uncertainties set out in the Annual Information Form
of the Corporation for the period ending December 31, 2017, which is available on SEDAR at
www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive and
should be considered in conjunction with the risk factors described in this press release and in
the Corporation’s other documents filed with the Canadian securities authorities.
The Corporation may, from time to time, make oral forward-looking statements. The Corporation
advises that the above paragraph and the risk factors described in this press release and in the
Corporation’s other documents filed with the Canadian securities authorities should be read for
a description of certain factors that could cause the actual results of the Corporation to diffe r
materially from those in the oral forward -looking statements. The forward -looking information
and statements contained in this press release are made as of the date hereof and the
Corporation undertakes no obligation to update publicly or revise any oral or written forward -
looking information or statements, whether as a result of new information, future events or
otherwise, except as required by applicable securities laws. The forward-looking information and
statements contained herein are expressly quali fied in their entirety by this cautionary
statement.