Dallas-based Hyperion Resources has proposed building a 400,000 b/d refinery in Elk Point, S.D., to process heavy crude oil from Canada. The full-conversion greenfield refinery is a key component of the larger Hyperion Energy Center (HEC), which would include a hydrogen-producing integrated gasification combined cycle (IGCC) power plant to generate hydrogen, power, and steam. The HEC would be accessible to TransCanada's proposed Keystone pipeline from Hardisty, Alberta, to Cushing, Okla.

The $10 billion refinery would integrate the following components: crude distillation unit; vacuum distillation unit; naphtha hydrodesulfurization unit; sulfur removal/sweetening; splitter; distillate hydrodesulfurization; delayed coker; hydrocracking unit; petcoke gasification; catalytic reformer; and C5/C6 isomerization unit. The facility would produce propane, butane, reformulated blendstocks, conventional gasoline, subgrade blends, propane/propylene, jet fuel, and ultra low sulfur diesel.

On June 3, 2008, the proposed project crossed an important hurdle when Union County, S.D., voters approved a referendum changing zoning for the Energy Center site from agriculture to a planned development.

The permitting phase is underway. The approximately 48-month construction phase would begin in 2010, with full operation beginning in 2014.

The company states that approximately 4,500 workers will be needed during construction of the HEC. Some 1,800 permanent jobs are expected for the ongoing operation of the refinery.