ERTC 2025
Solving key challenges facing European refiners
RENE Gonzalez editor, PTQ
conventional heavy fuel oils (HFO) to meet evolving policy requirements in the maritime sector. Failure to comply brings penalties, and fuel suppliers must ensure the availabil- ity of low-GHG and synthetic fuels, creating market opportunity for refiners to supply those fuels. International Maritime Organization (IMO) Net-zero Framework This year, the IMO committed to net zero GHG emissions from shipping by approx- imately 2050, requiring interim reduc- tions. New regulatory instruments under discussion include GHG intensity targets, fuel standards, and low or zero-carbon fuel adoption. This puts pressure across global supply chains, including refining and fuel production. Refineries must anticipate demand for lower-CI marine fuels, synthetic fuels, and fuel blends that meet both ship engine requirements and lifecycle emissions criteria. Ready-Now Technologies Proven technologies are now available for European refiners, and the Honeywell UOP refining portfolio is continually evolving to help refinery operations transition to sutain- able fuels. Worldwide, there are now 58 UOP Ecofining ® -powered units in the oper- ating, construction, or planning phases to efficiently convert waste bio-feedstocks into renewable diesel and SAF. This can help reduce GHG emissions relative to fossil fuels by up to 80%.¹ Key players in the refining industry are embracing the transformation. For exam- did you know? Honeywell UOP’s Biocrude Upgrading technology offers an effective pathway to produce drop-in biomarine fuel from biomass
The rising global demand for alternative fuels, such as sustainable aviation fuel (SAF), biodiesel, and renewable marine fuel, as well as shifting product slates, cost pres- sures, and the risk of stranded assets are all affecting profitability for European refin- ers. Additional concerns include Capex cost pressures, volatility in feedstock quality, and the need for digitisation to achieve bet- ter asset reliability and energy efficiency. Honeywell UOP has a long history of helping operators meet these challenges, and today it continues to expand its technology offer- ings to improve product quality and diversity, while also creating modular solutions that allow for faster deployment and scalability. Regulatory Pressures Existing refineries often need substantial retrofits for their hydrotreaters, processors, and co-processing units to handle renewable or synthetic feedstocks and produce fuels that meet new standards, while the demand for conventional fuels, such as gasoline and diesel, nears its expected peak. More than any other region, European refineries are operating in a fast-changing regulatory, economic, and technical envi- ronment. Among these, there are key policy frameworks that are raising both the risks and opportunities for operators:
Forest residue
Renewable gasoline
Renewable marine fuel
Energy crops
Honeywell UOP B iocrude U pgrading
Biocrude production
Sustainable aviation fuel
Agricultural residue
Figure 1 Biocrude Upgrading enables the production of SAF and biomarine fuel
ing carbon emissions by the end of the dec- ade. Waste wood and plant residues from agriculture, forestry, and other industries, known as lignocellulosic biomass, repre- sent a promising option for refiners as an abundant and relatively inexpensive renew- able fuel feedstock. Solutions like RTP from Honeywell make these feedstocks more accessible to refiners by converting them into liquid intermediates like pyoil. Honeywell UOP’s next-generation Biocrude Upgrading technology ( Figure 1 ) offers an effective pathway for refiners to access these biomass sources to produce drop-in biomarine fuel, which can signifi- cantly reduce lifecycle carbon emissions from conventional fossil-based engines ( Table 1 ). Biocrude Upgrading technology also ena- bles the production of SAF and renewable naphtha feed for gasoline production, giv- ing refiners and project developers multiple options to monetise biocrude intermediates derived from lignocellulosic biomass. Empowering refiners to Meet Compliance Targets European refiners are navigating a complex landscape shaped by rising global demand for renewable fuels, evolving regulatory frameworks, and mounting cost and opera- tional pressures. With tightening emissions standards under the EU ETS and ambitious mandates from ReFuelEU Aviation and FuelEU Maritime regulations, refiners must adapt quickly to avoid stranded assets and remain competitive. Honeywell UOP offers a robust suite of technologies that enable co-processing of renewable feedstocks, scalable deploy- ment, and significant reductions in car- bon intensity. These ready-now solutions empower refiners to meet compliance tar- gets, diversify product offerings, and sup- port the broader energy transition. References 1 GHG reductions are based on ICAO CORSIA default lifecycle emissions values for CORSIA- eligible fuels, Table 2 – Used Cooking Oil. http:// bit.ly/4gVT1Ej 2 Ecofining technology was developed and com- mercialised jointly by UOP in collaboration with ENI.
ple, energy leader ENI leveraged Ecofining² as part of a long-term strategy to grow its renewable fuels business by convert- ing its Gela refinery in Italy into a biorefin- ery. With a processing capacity of more than 400,000 MT/year, it is projected to produce almost a third of the expected European SAF demand in 2025. Solution Pathways As renewable fuel demand continues to grow, European refiners are exploring addi- tional renewable feedstocks to help meet regulatory requirements, transition to cleaner energy, and reduce operating costs to maintain margins. Honeywell UOP con- tinues to develop new process technologies to help achieve these goals. Honeywell UOP technologies like Ecofining, Co-processing, Fischer-Tropsch (FT) Unicracking ® , UOP eFining ® (methanol- to-jet), Ethanol-to-Jet (ETJ), and RTP (fast pyrolysis) processes enable the utilisation of a wide variety of feedstock sources for SAF, diesel, and other renewable fuels. In particular, SAF can be produced with a variety of sustainable feedstocks, including vegetable oils and inedible fats, low carbon intensity alcohols, and even synthesised fuels derived from captured CO₂ and hydro- gen (i.e. RFNBO). This represents an oppor- tunity for oil and gas organisations pursuing their own decarbonisation journeys to sup- port the aviation sector with fuels that can significantly reduce the environmental impact of flight. Policies such as FuelEU Maritime and the IMO Net-Zero Framework also represent a significant opportunity for refiners to meet new alternative fuel demands for maritime fleet operators, who need to begin reduc-
European Union Emissions Trading System (EU ETS)
The ETS places a rising cost on CO₂ and other greenhouse gas (GHG) emissions from stationary industrial sources (includ- ing refineries). The tightening of allow- ances, increasing carbon prices, and risk of carbon leakage all put pressure on margins. Refiners must find ways to reduce emis- sions intensity, both in process (such as fuel gas, steam, and hydrogen usage) and from feedstock, or face high compliance costs. ReFuelEU Aviation Regulation Part of the EU’s European Green Deal, known as the Fit for 55 Package, the ReFuelEU Aviation (Regulation (EU) 2023/2405) aims to increase the share of SAF sustainable aviation fuel at EU air- ports from a minimum of 2% in 2025 to 70% by 2050, with an additional sub-tar- get for renewable fuels of non-biological origin (RFNBO) of 1.2% by 2030 and 35% by 2050. FuelEU Maritime Regulation Also part of the Fit for 55 Package, the FuelEU Maritime (Regulation (EU) 2023/1805) introduces a requirement for ships above 5,000 gross tonnage calling at EU ports to use fuels with GHG intensity, on a Well-to-Wake (WtW) basis, which is gradu- ally reduced, starting with a small percent- age in 2025 and reaching much steeper cuts by 2050. In view of these challenges, maritime fleet operators are seeking alter- natives with lower carbon intensity (CI) than
Biomarine fuel advantages
Marine fuel alternatives
Biocrude fuel advantages
• Compatible with existing vessel configurations, bunkering and fuelling infrastructures
Alternative fossil fuels
• Additional CI reduction compared to LNG
(LNG and LPG)
• Lower-cost, abundant feedstock • Comparable production cost
Biofuels
(FANE and UCOME biodiesels or HVO renewable diesel)
• Compatible with existing vessel configurations, bunkering and fuelling infrastructure • Lower production cost • Safety considerations similar to traditional fuels which are well understood
E-fuels
(e-ammonia, e-methanol)
Contact: RenewableFuels@Honeywell.com
Table 1
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