Hyperion Resources Plans To Invest $10 Billion in South Dakota

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Researched by Industrial Info Resources (Sugar Land, Texas). Hyperion Resources Incorporated (Dallas, Texas) in planning to invest $10 billion to construct a 400,000 barrel per day crude oil refinery and an Integrated Gasification Combined Cycle (IGCC) power plant in Elk Point, South Dakota. The company chose the potential site because it is in the Canadian crude oil corridor. The site is close to good rail and highway transport. In addition, it is in the vicinity to many major markets and near an abundant source of water. The planned refinery will process sour Canadian crude oil into low sulfur gasoline (LSG) and ultra low sulfur diesel fuels (ULSD) supplying the U.S. market, primarily in the Midwest region. There were several locations in the Midwestern U.S. that were considered, and then Hyperion announced a location in Union county, Elk Point, South Dakota for the potential location. The acquisition of the land is still moving forward and the final site will be announced by mid 2008.

There are a number of consultant companies involved with the engineering of the refinery, such as Baker & O’Brien Incorporated, ERM, Foster Wheeler, Mustang Engineering, Process Energy Solutions, RTP Environmental Associates, and UOP. The refinery will incorporate the following process units: crude & vacuum unit, delayed coker, distillate hydrotreater, hydrocracker, naphtha hydrotreater, isomerization unit, reformer, benzene removal unit, and a merox unit. The IGCC plant will consume the by products from the refinery producing hydrogen, power, and steam. The permit process for the facility will continue through 2009. The proposed construction is anticipated to begin early 2011, with start up in 2015. The project will create 1,800 permanent jobs when full operation commences.

Hyperion operations consist of oil & gas production in the United States. The company has made its mark by achieving maximum value from challenging properties, including mature energy fields. In addition to oil and gas, Hyperion and its affiliates operate and invest in real estate, agriculture and other ventures.

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