An upgrader is a facility that upgrades bitumen (extra heavy oil) into synthetic crude oil. Upgrader plants are typically located close to oil sands production, for example, the Athabasca oil sands in Alberta, Canada or the Orinoco tar sands in Venezuela.
Upgrading means using fractional distillation and/or chemical treatment to convert bitumen so it can be handled by oil refineries. At a minimum, this means reducing the bitumens viscosity with naphthenic solvents so that it can be pumped through pipelines (bitumen is 1000x more viscous than light crude oil). However this process often also includes some kind of cracking process, as well as separating different fractions and reducing sulfur, nitrogen and metals like nickel and vanadium. Upgraders typically consists multiple refinery units and have many variations depending on the required product. Products of an Upgrader can be: diluted bitumen, synthetic crude oil (SCO), or refined products (gas oils, distillates and naphtha). Partial upgrading is also possible, where the heavy and sour bitumen viscosity is improved just enough to reduce or eliminate the diluent needs.
Upgrading may involve multiple processes:
Research into using biotechnology to perform some of these processes at lower temperatures and cost is ongoing.