$60M deal to process Syncrude tailings
Newalta has signed a contract worth $60 million with Alberta oil sands developer Syncrude Canada for a demonstration project that will process mature fine tailings resulting from oil sands mining.
CALGARY: Newalta Corp. has signed a contract worth $60 million with Alberta oil sands developer Syncrude Canada Ltd. for a demonstration project that will process mature fine tailings (MFT) resulting from oil sands mining.
Newalta, a Calgary-based environmental services company with offices across Canada and in the US, said the project follows two years of trial projects with Syncrude to prove the application of centrifugation (use of centrifugal force to isolate suspended particles from water) for processing MFT.
The three-year contract, which involves a capital investment of between $25 million and $30 million, is expected to generate revenue of about $20 million per year over a three-year period at Syncrude’s oil sands mine operations near Fort McMurray, Alta.
“The contract with Syncrude builds on our current base of eight contracts including customers that are using Steam Assisted Gravity Drainage (SAGD) production,” said Craig Wilkie, Newalta’s executive vice-president.
The demonstration project will involve 30 Newalta people.