Catalytic Hydrothermal Bio Crude Facility – Front End Engineering

Lead Proponent

Canfor Pulp Ltd.

Project Background

Canfor Pulp Ltd., through assistance of Clean Growth Program funding, has completed Front-End Engineering Design (FEED) work to support construction of an innovative, commercial-scale biomass to renewable low-carbon biofuel facility in Prince George, British Columbia. With a commitment to significantly advance circular economy solutions, Canfor expanded its joint venture partnership with Licella, a global leader in advanced recycling through hydrothermal liquefaction, and formed Arbios Biotech (Arbios).

With construction completed in late 2024, the Arbios facility called Chuntoh Ghuna, will be ramping up operations in 2025. The facility uses Licella’s Cat-HTR™ (catalytic hydrothermal reactor) technology platform to convert forestry residues and waste wood biomass into high-value, sustainable bio-based products which can be further refined to produce low-carbon transportation fuels.

Initially designed to convert 25,000 dry tonnes of forest residues annually into 50,000 barrels of renewable bio-oil intermediate, the Chuntoh Ghuna facility is permitted to double this capacity. The facility’s footprint also allows for potentially quadrupling its throughput volume. With over 16 years of steady technology development from pilot stages, this demonstration facility is designed to confirm that hydrothermal liquefaction can be operated continuously at scale.

The project is supported by funding from the British Columbia and Canadian governments and has been developed in collaboration with the Lheidli T’enneh First Nation, on whose unceded territory the Chuntoh Ghuna facility is situated.

Results

The Arbios biomass to renewable biofuel facility in Prince George is key to further developing the application of this first-of-a-kind technology towards the decarbonization of transportation fuels in Canada. It is expected that the project’s first processing line will produce product that is 50% less carbon intensive than fossil fuel-based gasoline and diesel. Once optimized, Arbios bio-oil is expected to be up to 80% less carbon intensive than fossil fuel with similar properties.

Benefits to Canada

The major benefits of this project, include:

• Canadian leadership in tangible action to mitigate climate change
• Economically viable transformation of under-utilized/under-valued forestry and agricultural resources into a high-value, flexible and energy dense renewable bio-oil with significant co-processing and upgrading market opportunities, providing a solution for reducing the climate impact of transportation
• Creation of high-tech engineering and manufacturing bioenergy jobs
• Enhancement of the existing hydrocarbon logistics and value chains
• Canadian market access to a renewable, low carbon transportation fuels
• Significant greenhouse gas emissions (GHG) reductions due to partial displacement of fossil fuels with renewable bio-oils
• New economic opportunities generated in resource-dependent communities across Canada that contribute to environmental sustainability, community resiliency and climate action

Next Steps

Arbios will focus on commissioning and ramping up commercial operations of the Chuntoh Ghuna facility in 2025.  As the largest hydrothermal liquefaction facility in the world, the facility serves as a blueprint for further opportunities in Canada and further afield.  By proving commercial viability at scale, this facility paves the way for similar facilities, supporting the adoption of sustainable biofuels globally.