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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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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12. Ground Warm Up Maintain Gas Temperature With THERMCAT

13. 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

14. Scott Can Key Benefits of Catalytic Winterization  Reduce operating costs by 30-70 %  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

15. 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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19. 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

20. 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

21. Scott Can Reuse Gas in Building Heaters Actuator Vents or Chemical Pumps Volume Bottle Capacity - 1-2 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.

22. 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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24. 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

25. 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

26. Scott Can Contact Information ScottCan Industries Ltd. 8220 Davies Road Edmonton, Alberta T6E 4N2 Tel: (780) 463-5505 Fax: (780) 463-2273 Toll Free: 1-877-213-7832 Email: info@scottcan.com