BA Energy is a wholly owned subsidiary of VCI. VCI formed BA Energy with the mandate to design, construct and operate the BA Energy Heartland Upgrader to upgrade bitumen and heavy oil feedstocks into high quality synthetic crude oils in the greater Edmonton area by applying the VCG technology.

The BA Energy Heartland Upgrader is a merchant bitumen upgrader being constructed in the Astotin heavy industrial area of Strathcona County, northeast of Edmonton, Alberta. BA Energy received AEUB approval in mid 2005 to upgrade up to 260,000 bbl/d of merchant bitumen from the Alberta oil sands. The upgrader is being built in three phases. Each phase is planned to include one ADC™ unit and one USP™ unit combined in one train. Each train will be capable of processing 77,500 bbl/sd of bitumen blend (54,500 bbl/sd of bitumen).

BA Energy has been granted the exclusive and perpetual right to fully commercially exploit the VCG Technology within the greater Edmonton area.