North West's upgrading facility is designed to maximize the production of clean ULSD, which is in short supply. North West will produce a low temperature ULSD suitable for the extremes of the prairie winter, and a high quality export ULSD that meets the low carbon and high cetane requirements of the U.S. market. By integrating the best process technologies with gasification and carbon capture and storage, North West will produce enough clean diesel to help supply the increasing demands of Alberta's growing economy while significantly reducing the carbon footprint of upgrading/refining and adding value in the province.

"The Alberta and Western Canadian markets are short of diesel with current demand being met by costly imports from the U.S.," said Robert Pearce, Senior Vice President, Corporate Development, North West Upgrading. "Through this strategic sales agreement, North West will meet a critical need for clean diesel in Alberta and help eliminate expensive imports."

North West Upgrading Inc. is an Alberta-based company building an independent, heavy oil upgrader in Alberta's Industrial Heartland. The Upgrader will significantly increase the economic value of Alberta's bitumen and heavy oil production by producing light, low sulphur product, 85% of which is Ultra Low Sulphur Diesel and diluent. North West's process eliminates production of coke, uses gasification to make hydrogen from the heaviest components of bitumen and enables the capture of pure carbon dioxide. A commercial arrangement to sell carbon dioxide for Enhanced Oil Recovery makes North West the only upgrader designed with an integrated CO2 management solution. The North West Upgrader will have a total processing capacity of 231,000 barrels per day of blended feedstock over three phases. Site preparation is complete and the first phase of operations is expected to commence in 2012.