PTQ Q3 2026 Issue

A Colin Baillie, Hydro/Resid Strategic Marketing Manager, colin.baillie@grace.com and Stefan Brandt, Director, FCC Market Development, Stefan.brandt@ grace.com, W. R. Grace & Co. (Grace) Looking beyond 2030, the refining technologies we consider most compelling are ebullated bed residue hydrocracking (EBRHC) and the increasing integration of new raw mate - rials in refineries. EBRHC represents a unique growth area within refinery processes. It continues to be attractive to refiners because it offers several advantages over alternative residue upgrading processes, such as fixed-bed resid (FBR) hydrotreating, visbreaking, and coking. Another exciting trend to consider is the introduction of new raw materials in refineries, such as inputs derived from bio- or waste-derived origins or byproducts from power-to-liquids (PtL) processes. EBRHC converts a significant portion of vacuum resi - due (VR) into valuable distillates, reducing low-value fuel oil production, with up to 90 wt% (538+°C) conversion achievable. This is significantly higher than the 30-40 wt% conversion typically achieved with FBR hydrotreat - ing. Another advantage versus FBR hydrotreating is that fresh catalyst can be continuously added and withdrawn, maintaining high activity, extending unit run lengths and avoiding periodic shutdowns. In addition, EBRHC allows for greater feedstock flexibil - ity, unlocking additional refinery profitability through the processing of challenging, contaminant-laden crudes. For example, the maximum feed metals content for the EBRHC process is typically 700 mg/kg, which is significantly higher than the 200 mg/kg maximum associated with FBR hydrotreating. Whereas coking achieves residue upgrading through a carbon rejection process, EBRHC is fundamentally differ - ent in that it proceeds via hydrogen addition. This results in lower coke and sediment formation, leading to bet - ter yield and reliability, while hydrogen incorporation into the cracked products enhances product quality. Two new EBRHC units started up in late 2025, while an additional

seven units are either under construction or in planning. EBRHC is a particular area of focus for the proprietary ART Hydroprocessing technology. Beyond bottom-of-the-barrel conversion technologies, the integration of new raw materials entering refineries has long-term opportunities for the industry. The introduction of biomass-derived streams, such as fats, oils and greases, into refinery units is happening in multiple refineries globally today, and interest continues to grow. Co-processing in refin - eries is still in its nascent stages. However, as this becomes more important due to government incentives, subsidies, and product quality implications, refiners are uncovering ways to increase the processing rates of these unique feedstocks. Technologies to tackle these opportunities, such as new catalytic solutions that suppress the effect of oxygen intro - duction (see Figure 1 ) into FCC units,1 will support the refining industry in maximising co-processing opportuni - ties with biogenic feedstocks. The processing of waste-derived streams, such as plastics-derived pyrolysis oils (PDPO), is currently limited by the availability and processability of these feedstocks. Regulatory uncertainty and bankability are among the fac - tors hindering the development of upstream production capabilities. With further development of PDPO capacities, greater quantities of those feeds for the petrochemical and refining industry will become available, allowing more vis - ibility into potential opportunities for improvement. Available information highlights a significant change in the nature and concentration of contaminants in these feeds, resulting in more strain on equipment and catalyst deactiva - tion in refineries. Outstanding metals tolerance, paired with innovative approaches to new contaminants management, will become important for applications co-processing these feeds. Catalyst suppliers will continue to work on improving the metals tolerance of their catalyst offerings and/or come up with innovative designs for catalyst staging in fixed-bed applications to improve catalyst consumption or cycle length. PtL is expected to gain momentum in the mid-2030s, with initial plants expected to start up around that time. The chemistry of typically considered PtL approaches (via Fischer-Tropsch or methanol chemistry) enables the devel - opment of synthetic pathways for the specific production of olefins, gasoline, diesel, aromatics, and sustainable avia - tion fuel (SAF). Possible side products would be suitable for refinery processes to maximise carbon circularity through - out the transportation fuels and petrochemical value chains. For example, Fischer-Tropsch waxes or byproducts might become available as valuable feedstocks in existing assets of refineries.2 The continued advancement of EBRHC and the intro - duction of new refinery feedstocks represent compelling opportunities to enhance conversion, increase flexibility, and drive long-term value across the refining industry. One thing is clear: catalyst design and process enhancements will unlock the full value potential of these unique streams. 1 Hunt et al., Lessons learned from FCC biofeed coprocessing, Hydrocarbon Processing , January 2026. 2 Dupain et al., Catalysis Today 106 (2005) 288-292.

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Cat-to-Oil ratio

ROT = 538˚C (1000˚F), VGO

ROT = 516˚C (960˚F), VGO

ROT = 516˚C (960˚F), VGO + 20% Canola ROT = 538˚C (1000˚F), VGO + 20% Canola

Figure 1 Total aldehyde content in liquefied petroleum gas (LPG) in Grace’s DCR pilot plant testing of vacuum gas oil (VGO) with and without the addition of canola oil, plotted vs reactor outlet temperature (ROT)¹

PTQ Q3 2026