Alliance formed for projects using EcoShale oil shale technology

By Patrick C. Miller | August 31, 2018

Red Leaf Resources, based in Salt Lake City, Utah, has formed a strategic technical alliance with Hatch, a global engineering and technology development firm headquartered in Mississauga, Ontario.

Under the agreement, Hatch will be the exclusive provider of engineering services for oil shale projects using Red Leaf's proprietary EcoShale oil shale technology.  Hatch will provide engineering for all process design packages, technical services and support through startup and performance testing. 

Red Leaf is developing a 10,000 barrel-per-day oil shale project at its Seep Ridge site about 60 miles south of Vernal, Utah. Construction for the project is expected to begin in 2021 with first production in 2023. Red Leaf recently awarded Hatch a contract to complete the next level of engineering on this commercial project—a front-end loading or FEL2 design, which will be completed in first half of 2019.  Red Leaf also expects to begin pre-qualifying potential engineering, procurement and construction contractors and mine operators for the project later this year. 

"Hatch is the recognized expert in engineering services for the oil shale industry and has unmatched experience in design and project development of oil shale projects,” said Adolph Lechtenberger, Red Leaf CEO. “Hatch has been a part of the development of Red Leaf's oil shale technology from the beginning. This agreement with a world-class engineering company will increase investor confidence and is a significant milestone in the launch of our Seep Ridge project."

Hatch has worked with Red Leaf since 2008 in developing EcoShale. Hatch has also been involved in the overall technology development, including analysis of the pilot plant operation and data; design of experiments; and laboratory data development.

The engineering firm has been the primary contractor for all engineering designs associated with EcoShale retorts, most notably the current, reusable drum design. Engineering designs have included yield estimates, heat and mass transfer models, retort thermo-mechanical designs and constructability analysis.

“We see this as the next step in helping oil shale projects achieve unprecedented outcomes with reduced costs and improved recovery of oil,” said Sanjiv Save, managing director of the Hatch oil and gas business unit.

In addition, one of Red Leaf's licensees, Questerre Energy Corp., announced that it’s moving to the next phase of engineering with Hatch on its large scale, integrated 50,000 barrel-per-day oil shale project in Jordan. Questerre has a memorandum of understanding for an eight-billion-barrel oil shale resource in Jordan, and Red Leaf, as licensor of the EcoShale process, is working with Questerre to support its concession filing.