Calgary-based Cerilon Inc. recently gained approval for the development of a new gas-to-liquids (GTL) facility in North Dakota.

Williams County, in the western part of the state, near the border with Montana, approved the development of the innovative plant in April 2024.

The facility will transform natural gas into high-performance synthetic products, including Group III+ base oils, ultra-low sulphur diesel and naphtha. This approval marks the development of the first large-scale, natural gas-fed GTL plant in North America. Cerilon plans for the facility to produce around 24,000 bbls/d of products once complete.

The company says this will be the first GTL project globally to include carbon capture and sequestration on a commercial scale.

Ron Opperman, CEO of Cerilon GTL ND Inc., stated in a press release, “We’ve worked hard to meet the county’s high expectations for the project in its early phases of design and engineering.

“This approval is significant because it signals we have thoroughly demonstrated our plans to create substantial economic benefit while also carefully considering and mitigating the potential impacts of this project’s development.”

In January 2023, the Williams County Board of County Commissioners approved a loan of $10 million to Cerilon GTL to purchase land in the Marley Crossing area for the construction of the plant.

Cerilon chose the site, near Trenton, N.D., based on its proximity to significant natural gas supplies, as well as access to road and rail transportation, and existing local infrastructure.

The first plant is expected to provide the blueprint for future facilities, as Cerilon aims to develop two 24,000-bbl/d facilities on the same site. The firm hopes that it will be able to replicate the plant on other sites in the future.

A final investment decision is expected in mid-2026 with construction on the first facility to begin shortly thereafter for project start-up in 2028. The facility will be fully operational in 2029. 

The plant will use feedstock of 240 mmscf/d of natural gas to produce about 5,800 bbls/d of Group III+ base oils, 3,600 bbls/d of ultra-low sulphur diesel, and 14,600 bbls/d of naphtha.

Cerilon hopes to secure all the necessary permits for project development by the end of the year.

The process

To achieve the GTL process, Cerilon will apply the widely used Fischer-Tropsch (FT) method. At the facility, natural gas will be converted into synthesis gas (syngas). The FT method will then be used, which involves a series of reactions that convert the synthesis gas into a waxy feedstock. Finally, a suite of technologies will be applied to upgrade the waxy feedstock into higher-quality final products.

The FT process has been used for almost a century; however, GTL products have grown in popularity in recent years as they are seen as being of higher quality as well as burning more efficiently than their hydrocarbon-based counterparts. Liquids are also easier to transport than gases, as less energy is lost in the transportation process.

Cerilon says its ultra-low sulphur diesel is virtually odourless, non-toxic, more readily biodegradable, and can be stored longer, making it suitable for use in sensitive or confined environments. The company is also the first producer of Group III+ base oils in North America. These oils increase energy efficiency, which helps reduce greenhouse gas emissions and enhance fuel efficiency, it says.

Cerilon

Cerilon’s portfolio consists of transitional energy, chemical and professional services companies. Privately-held, the company has shown interest in expansion to the southeast United States and Western Canada, as well as in the Middle East and Africa, based on the initial success of its North Dakota project.

It views GTL as key to supporting the world’s growing chemical needs while reducing the carbon footprint of energy operations. Cerilon also sees the use of CCS technology as critical for reducing the emissions of its activities and expect to incorporate the technology into operations at the company’s future plants.

“Our immediate focus is the successful completion of our planned Cerilon GTL North Dakota facility,” Cerilon CEO Nico Duursema told DOB Energy. “Our expansion plans in our energy transition vision embrace multiple facilities.

“Our energy solution will enhance energy security, job creation, and provide products highly in demand. This offering, backed with global partners, will be replicable in other geographies with speed-to-market benefits. This opens up global expansion opportunities, including other greenfield locations in the United States and Canada, as well as future potential growth in the Middle East, South America, and Africa.”