- Acceleware (AXE) has secured regulatory approval for a commercial-scale pilot program of its RF XL clean technology
- RF XL, a Radio Frequency Heating technology, is designed to improve the extraction of heavy oil and bitumen and reduce production costs
- The pilot program is part of a partnership with Broadview Energy, which was signed on May 20, 2020
- The approval allows the company to begin the execution phase of the program, with construction to start as early as January next year
- Acceleware (AXE) is currently up 14.29 per cent and is trading at C$0.16 per share
Acceleware (AXE) has secured regulatory approval for a commercial-scale pilot program of its RF XL clean technology.
RF XL, a Radio Frequency Heating technology, is designed to improve the extraction of heavy oil and bitumen.
The approval, which was issued by Alberta Energy Regulator (AER), relates to an agreement with Broadview Energy, which was signed on May 20, 2020. According to the deal,
Acceleware will farm-in to Broadview’s Marwayne Project, located near Lloydminster in the Cold Lake Oil Sands region. The deal also contemplates the terms for future purchases of the RF XL technology by Broadview.
In addition, Acceleware will receive ownership and economic benefits of all petroleum products produced in both the first and second test phases. However, this is subject to a gross overriding royalty of up to 7.5 per cent, payable to Broadview.
With regulatory approval now in place, Acceleware will be able to begin the execution phase of the pilot program, including the ordering of long-lead equipment and materials.
Construction is expected to begin as soon as January next year, with heating scheduled to begin as early as March. The initial heating phase is anticipated to take six months, but may be extended to capture additional information on the efficiency and operation of the technology.
Geoff Clark, CEO of Acceleware, commented on the approval.
“We have had the RF XL converter electronics in our hands for several months now, and with this approval we are moving full-speed ahead to secure the materials and contractors required to execute the test successfully.
“Acceleware appreciates the ongoing support of our funders, Emissions Reduction Alberta and Sustainable Development Technology Canada, and our pilot project partner, Broadview Energy Ltd,” he added.
Acceleware (AXE) is currently up 14.29 per cent and is trading at C$0.16 per share at 1:19pm EDT.