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Multiple Refineries Are in the Development Stages Throughout the Bakken Formation
October 8, 2014
On September 15, 2014, Quantum Energy, Inc. based out of Tempe, AZ with an office in Williston, ND, entered into a Strategic Alliance with Bilfinger Westcon Inc. of Bismarck, ND, for the development of a series of refinery projects throughout the Bakken Formation.
Quantum Energy, Inc. is proposing to develop five 21st Century Energy Centers (micro-refineries) throughout the Bakken with each one including a 20,000 barrel-per-day diesel refinery, a processing plant to strip the crude of Natural Gas Liquids (NGLs) and production of NGL byproducts. The Centers will also utilize the latest CO2 capture technology to reduce emission regulation while providing injection supply of CO2 for enhanced oil recovery (EOR). Each Center will be modeled after the Dakota Prairie Refinery currently under construction in Dickinson, North Dakota, a project by MDU Resources Group's WBI Energy unit that is expected to be completed towards the end of 2014.
In a recent press release, Quantum CEO, Andrew J. Kacic, states "This Strategic Alliance was created by the signing of a Joint Development Agreement that will seek to develop up to five 21st Century Clean Energy centers that will each include a 20,000 barrel per day diesel refinery. Our design plan includes the latest clean technology to capture the CO2 released from our facilities for use in Enhanced Oil Recovery (EOR) throughout the Bakken. Additionally, each facility will also include a natural gas liquids (NGL) stripping capacity of at least 100,000 barrels per day which will build barrel value, provide the potential for local/regional propane production and provide for significantly reduced crude volatility to facilitate enhanced rail tank car safety. We welcome Bilfinger Westcon's decision to join us as Bilfinger Westcon has been a key part of the development of the first greenfield refinery in the U.S. since 1976."
Quantum has secured two of the five sites and is in the process of securing the remaining three. The first refinery site is located in East Fairview, ND and the other site is located in Baker, MT. "Our Baker property enjoys the added advantage of having a pipeline of a major producer projected to cross through the site," states Stan Wilson, Quantum President. Now that the Baker site is secured, Quantum is beginning the permitting process and finalizing funding.
Kacic expects each refinery site to employ upwards of 100 to 150 people.
Quantum lists the following as key elements that set their micro-refinery concept apart from traditional refineries:
Lower diesel fuel costs for the area agriculture producers and other businesses. The company believes it makes no sense to pay transportation cost twice (there and back) to distant refineries in Texas and beyond - the goal is for 100% of the diesel to be used within a 100-mile radius of the facility.
Process crude to remove some of the natural gases prior to transportation which will lower the cost of propane locally.
Capture and use the C02 (Greenhouse Gases) for Enhanced Oil Recovery (EOR) to produce oil and gas in the region.
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