CED

October 2012

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Industry Beat Capture and Storage Project The technology is key to carbon dioxide reduction strategies. Shell will construct the first carbon capture and storage (CCS) project for an oil sands operation in Canada. The Quest project will be built on behalf of the Athabasca Oil Sands Project joint venture owners (Shell, Chevron and Marathon Oil) and with support from the governments of Canada and Alberta. CCS is critical to meeting the huge projected increase in global energy demand while reducing carbon dioxide (CO2) emissions, explained Peter Voser, chief executive officer of Royal Dutch Shell plc. "If you want to achieve climate change goals, CCS has to be part of the solution. We are helping to advance CCS technology on a number Shell to Construct World's First Oil Sands Carbon of fronts around the world, but Quest will be our flag- ship project." The Athabasca Oil Sands project produces bitumen, which is piped to Shell's Scotford Upgrader near Edmonton, Alberta. From late 2015, The Quest CCS project will capture nearly one million tons per year of CO2 from the Scotford Upgrader located near Edmonton, Alberta, and transport it up by an 80-kilometer under- ground pipeline to a storage site north of the Scotford site. Here, it will inject it more than two kilometers underground into a porous rock formation called the Basal Cambrian Sands (BCS), which is located beneath layers of impermeable rock. Sophisticated monitoring technolo- gies will ensure the CO2 is permanently stored. In 2011, Quest received the world's first certificate of fitness for its storage development plan from Det Norske Veritas (DNV), an international risk management firm. To improve efficiency, up to 50 percent of project work will be done offsite at a construction yard yet to be selected. Shell will use third-party construction facilities in Edmonton, helping the continuing development of key construction capacity in the province. Large pre- assembled modules will then be delivered to the Shell site for installation. Both the Canadian federal and Albertan provincial Mining trucks in Ft. McMurray, Alberta, carry nearly 400 tons of material. The oil and sand is mixed with warm water and stirred to separate the oil from the sand. The heavy oil is then diluted for transmission by pipeline 493 kilometers south to the Shell Scotford Upgrader, located near Edmonton, Alberta. Quest will be one of the largest applications of carbon capture and storage (CCS) projects in the world. governments have identified CCS as an important tech- nology in their strategies to reduce CO2 emissions. The Alberta government will invest $745 million in Quest from a $2-billion fund to support CCS, while the Government of Canada will invest $120 million through its Clean Energy Fund. Shell has received the necessary federal and provin- cial regulatory approvals for Quest. Construction has begun and will employ an average of about 400 skilled trades workers over approximately 30 months. Congressman Patrick Meehan Visits Stephenson Equipment U.S. Rep. Patrick Meehan (PA-07) toured Stephenson Equip- ment's Prospect Park, Pa., facility on Aug. 6, 2012. "It's busi- nesses like Stephenson's that will be affected by the tax increase slated to take place in January," said Rep. Meehan. "The uncertainty in our tax code is really hurting small businesses and Congress needs to act to ensure we don't raise taxes on small businesses, the backbone of our economy." Pictured left to right: AED Senior Director of Government Affairs Daniel Fisher; Vice President Matt Essig; President Dennis Heller; Congressman Pat Meehan (R-PA); and Executive Vice President and CFO Bob Criste Photo courtesy of Construction Equipment Guide. 14 | www.cedmag.com | Construction Equipment Distribution | October 2012 (continued on page 16)

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