Techno-economic analysis of small modular reactor for oil sands extraction and upgrading in Canada

Steam-assisted gravity drainage method is currently the most widely used in Canada for bitumen extraction in the oil sands. The method requires injection of high-temperature steam continuously to allow the bitumen to become more fluid and enable pumping to the surface. Once recovered, the bitumen can be upgraded into synthetic crude oil and sent to refineries. The extraction and upgrading processes require large amounts of energy including steam, hydrogen, and electricity. Typically, natural gas is used as the main fuel source, which causes significant greenhouse gas emissions. Nuclear technology can provide reliable sources of heat and electricity for bitumen extraction and hydrogen production while addressing greenhouse gas emissions and reducing the dependency on natural gas. This study present a conceptual economic analysis of small modular reactors for oil sands extraction and upgrading. Several scenarios were analyzed aiming to achieve deep emission reductions and possibly lower production costs. Further, sensitivity analyses were performed to determine the effects of key parameters on production costs and emissions. The results showed that by replacing natural gas with nuclear energy, the extraction and upgrading facilities can potentially prevent more than 90% of life cycle greenhouse emissions from being released into the atmosphere. Although nuclear technologies are not currently cost competitive with natural gas cogeneration or once through steam generator, increases in natural gas prices and carbon prices would allow nuclear energy to become more competitive. With a carbon price of $170 per tonne, nuclear energy can be a feasible and economical solution in supporting the transition of the Canadian oil sands industry into the new low-carbon economy.