The HUTF

Alberta is continually seeking new ways to enhance the viability and value-added upgrading of its energy resources. Alberta Energy is focusing on developing a comprehensive energy strategy that looks beyond extraction and maximizing the potential of our resources to enhance the growth of Alberta’s refining and petrochemical industries.

The Government of Alberta and industry representatives have developed a vision that expects and enables opportunities for hydrocarbon upgrading and bitumen to play a leading role in Alberta's broader energy strategies. Given the size of the oil sands resource, it has the potential to be a long-term supply of competitively priced refining and petrochemical feedstock.

The HUTF was established in February 2004 to produce an action plan for achieving maximum upgrading of Alberta’s bitumen resources. The task force consists of 119 members from 85 organizations representing government and industry (including bitumen producers, refiners, and petrochemical stakeholders). The priority objectives and subsequent actions of the HUTF include the following:

• Develop a business case to support an eco-industrial complex for the upgrading of bitumen into transportation fuels and petrochemicals in Alberta.
• Develop an environment that supports the development of technology and processes that will secure a favourable competition position.
• Review best practices and benchmarks for successful jurisdictions that have developed concentrated energy industrial complexes.
• Identify the labour, infrastructure and logistical challenges to development in Alberta.

HUTF - Vision and Mandate

Vision 2020
Alberta to achieve a competitive hydrocarbon upgrading industry through refining and petrochemical plants that expand the markets for Alberta’s bitumen resource and produces higher valued products in Alberta.

Mandate
To develop information, strategies and recommendations for attaining the vision:

• Describe the prize (e.g. benefits for both Albertans and industry).
• Build the market-based business case for upgrading hydrocarbon resources in Alberta.
• Identify opportunities and challenges.
• Conduct additional studies such as market effects, capital cost and downstream integration.
• Develop and evaluate strategies for industrial integration, market penetration and technology development.
• Provide advice to government on how to achieve the vision.

The HUTF vision of what success looks like by 2020

• World-scale integrated industrial complexes that upgrade bitumen to produce competitively priced, higher value products such as synthetic crude oil, base and specialty chemicals and other refined products.
• Bitumen production reaches three million barrels per day with a significant portion upgraded in Alberta.
• Flexible manufacturing and transportation infrastructure provides broad access to various markets.
• Albertans benefit from increased resource royalties, a higher tax base, a well-paid and skilled workforce and an increased proportion of higher value product exports.

Action Plan
In order to successfully achieve the vision and mandate for the HUTF, an action plan has been established. The action plan includes the following three main initiatives:

1. Develop the general business case for upgrading hydrocarbon resources to higher value products in Alberta:
   • Complete market analysis studies that include an investigation of market logistics, refined products and chemicals market.
   • Additional studies may be required to provide further information and insight, such as, capital cost benchmarks, technology development, market access, downstream integration studies (industrial and consumer products) and infrastructure requirements.
   • Identify opportunities, barriers and options.
   • Confirm economic advantages/disadvantages to upgrading bitumen in Alberta versus other locations based on delivered cost to market approach, including capital depreciation.
   • Conduct detailed analysis of economic benefits of upgrading to Albertans.
2. Communicate and market the opportunities:  
   • Develop strategies to publicize and promote the business case(s) that highlight Alberta’s opportunities and advantages for upgrading and market access for refined products, petrochemicals and fence line industries. The target audiences are local and international investment communities and governments.
   • Continue to work with industry to build consensus as to information, facts interpretations and attractiveness.
   • Develop strategies to communicate the short-term and long-term benefits of hydrocarbon-based manufacturing in Alberta to the public.
3. Provide advice to government:  
   • Communicate short-term and long-term benefits of hydrocarbon-based manufacturing to senior bureaucrats and elected representatives.