NanosTech
AQP · Technology Brief
Proprietary
Rev. 2026

Partial Upgrade Technology
for Heavy Crude Bottoms.
Hydrogen-free. Field-deployable.

AQP processes heavy petroleum fractions at the source: raising API gravity, cutting sulfur, reducing viscosity, and eliminating total acid number in a single fixed-bed pass. The Triton catalyst generates its own hydrogen from steam. No reformer, no hydrogen supply chain.

+5°
API gravity uplift
Up to 30%
Sulfur reduction
Up to 50%
Viscosity reduction
0.0
TAN in output
01 Technology Overview

AQP is a fixed-bed hydro-processing system that partially upgrades heavy petroleum fractions, including high-sulfur crudes, vacuum residues, oil sands bottoms, and bitumen, in a single pass. It performs hydrogenation, desulfurization, and deacidification simultaneously without the need for external hydrogen supply. The result is a lighter, lower-sulfur, more transportable product that meets pipeline specifications with reduced or eliminated diluent blending.

02 The Triton Catalyst

AQP runs on the Triton catalyst family, a proprietary fixed-bed formulation developed by NanosTech. Triton generates the hydrogen required for hydroprocessing by splitting water molecules inside the reactor from steam, eliminating the dependency on external hydrogen supply or natural gas reforming. The catalyst is designed for mild operating conditions and maintains activity under high-sulfur feeds above 4.5% S, where most conventional catalysts deactivate rapidly. Industrial-scale catalyst batches are in production at NanosTech's Calgary facility.

Catalyst property Specification
Type Fixed-bed, hydrotreating
H₂ source Self-generating (in-situ, steam)
Sulfur tolerance > 4.5% S
TAN elimination Yes (output TAN = 0.0)
H₂S reduction Up to 90%
Production status Industrial scale, Calgary AB
Accepted feedstocks Suitability
Vacuum residues Primary
Oil sands bitumen Primary
High-sulfur crudes (>4.5% S) Primary
Heavy crude bottoms Primary
Tower bottoms / residuals Primary
Mixed production streams Compatible
03 Process Architecture
STEP 01
Feed pre-heat
Heavy fraction feed is pre-heated and combined with steam. No hydrogen injection required at inlet.
STEP 02
Fixed-bed reactor
The reactor is optimized with Triton or a combination of NanosTech's proprietary catalysts depending on the feed. Reactive hydrogen is generated in-situ. Hydrogenation, desulfurization, and deacidification run simultaneously.
STEP 03
Product separation
Upgraded product is fractionated into diesel, marine gas oil, and condensate streams. H₂S and water are separated and treated.
STEP 04
Steam recovery
Condensed water is recycled back as steam input. Closed loop. No external water make-up required under steady state.
04 Deployment Model
Scalability
Any volume
From 500 to 5,000+ bbl/day. Modular design. Capacity added by parallel train installation.
Siting flexibility
Field or terminal
No hydrogen pipeline or reformer required. Deploys at the wellhead, a satellite pad, or a centralized terminal.
Time to production
Catalyst ready
The AQP catalyst is commercially available and produced at industrial scale in Calgary.
NanosTech
AQP Technology Brief · Performance Specifications
Rev. 2026
02 / 03
05 Product Quality: Before and After AQP
Parameter Before AQP (typical feed) After AQP (typical output) Significance
API gravity 5° – 12° API +5° uplift (10°– 17°) Meaningful improvement in barrel marketability; partial upgrade result
Sulfur content > 4.5% S (45,000 ppm) Up to 30% reduction (partial upgrade) Reduces sulfur loading; significant reduction without full desulfurization
Viscosity High (pipeline-spec failure) Reduced up to 50% Eliminates or significantly reduces diluent requirement
Total acid number (TAN) 1.5 – 4.0+ mg KOH/g 0.0 mg KOH/g Eliminates corrosion risk; enables direct refinery acceptance
H₂S emissions High (gas treatment load) Reduced up to 90% Reduces gas treatment OPEX; improves HSE profile
Heavy bottoms fraction 49.9% of barrel (mixed stream) 0% (fully converted) Eliminates the lowest-value fraction entirely
Distillate yield (diesel) 25.5% of barrel 36.0% of barrel +41% increase in the highest-value product fraction
High-value distillate (total) Baseline Up to 30% yield uplift More of the input barrel reaches premium product streams

Performance values are representative of the Triton catalyst operating on heavy crude bottoms and vacuum residue feeds. Results vary by feed composition, operating pressure, and temperature. Full test data available on request.

06 Output Product Slate

AQP converts heavy petroleum fractions into three commercially valuable output streams. Product slate distribution varies by feed characteristics and reactor operating conditions. The values below are representative of a heavy crude bottoms feed.

Output product Specification Market Value vs. heavy bottoms input
Diesel / distillate fraction Low sulfur, reduced TAN Transport fuel, export Highest value product
Residual marine gas oil (RMG) Low sulfur, low TAN Bunker fuel market Premium bunker grade
Condensate / naphtha fraction Light end, low viscosity Diluent offset, blendstock Replaces purchased diluent
Unreacted heavy fraction Reduced sulfur, lower TAN Residual fuel / further processing Positive value (vs. negative input)
07 Comparative Advantages vs. Conventional Processing
Constraint Conventional hydrotreating AQP
Hydrogen supply External reformer or pipeline required Self-generating (in-situ)
Deployment location Centralized refinery or upgrader Field, terminal, or any point
Minimum viable scale High (capex-intensive) Low (starts at 500 bbl/day)
Target output Full refinery output (fuel production) Partial upgrade (barrel value)
Gas contract required Yes No
High-sulfur feed tolerance Limited without pre-treatment Yes (> 4.5% S without pre-treatment)

AQP is not a competing technology to refinery hydrotreating. It is a complementary, upstream step that improves the value of the crude before it reaches any downstream facility.

NanosTech
AQP Technology Brief · Business Case
Derived from field data
03 / 03
08 Business Case · Scenario A: 100% Heavy Bottom Barrel Input

This scenario isolates the economic impact of AQP on a pure heavy bottoms feed stream: the fraction of production that carries negative value as-is. Each input barrel values at -$6.99/bbl, a liability that grows with volume. After AQP partial upgrading, the same barrel yields a blended output product worth +$3.20/bbl. The table below shows the value composition of each side.

Scenario A · 100% Heavy Bottoms Input
Per-barrel value conversion: before and after AQP
+$10.19/bbl swing
Input barrel value (before AQP)
Heavy bottoms fraction Negative
Corrosion liability (TAN > 1.5) Discount
Diluent cost to reach pipeline spec Discount
Pipeline tariff premium (high viscosity) Discount
Blended netback -$6.99/bbl
AQP value swing
+$10.19
per heavy bottom
barrel processed
Output barrel value (after AQP)
Diesel / distillate (low sulfur) Highest value
Residual marine gas oil (RMG) Bunker premium
Condensate / naphtha (diluent offset) Offset purchase cost
TAN eliminated, corrosion premium removed Refinery premium
Blended netback +$3.20/bbl

Output product values are blended across the full product slate derived from the heavy bottoms feed. Diesel fraction pricing is based on reduced-sulfur distillate market rates. Contact NanosTech for full yield distribution and pricing methodology.

09 Annual Revenue Uplift · 100% Heavy Bottoms Feed
Heavy bottom barrel volume (input) Value before AQP (per year) Value after AQP (per year) Annual revenue uplift
500 bbl/day -$1.3M +$0.6M +$1.9M / year
1,000 bbl/day -$2.6M +$1.2M +$3.7M / year
2,000 bbl/day -$5.1M +$2.3M +$7.4M / year
5,000 bbl/day -$12.8M +$5.8M +$18.6M / year

Calculated at $10.19/bbl swing on 365 operating days. Excludes OPEX, capital recovery, and transport savings from diluent reduction. These are additive benefits not reflected in this table.

10 Business Case · Scenario B: Mixed Production Stream

A 4,000–4,700 bbl/day facility with a mixed production stream had 49.9% of its barrel trapped in heavy bottom fractions. AQP eliminated those fractions and reallocated volume into diesel and distillate. Same input barrel. Same input volume. Significantly better economics.

Net revenue per barrel
$10.78
$15.87
+47% netback from the same input barrel
Diesel / distillate yield
25.5%
36.0%
+41% more barrel volume reaching the highest-value product stream
Heavy bottom fraction
49.9%
0%
Fully eliminated. Converted into transportable, sellable product streams

Based on a 4,000–4,700 bbl/day processing facility operating on a mixed crude production stream. Heavy bottoms fraction was 49.9% of input barrel before AQP. Results will vary by feedstock composition and operating conditions.