PTQ Q4 2022 Issue

by adopting a dual-source strategy and ordering better catalysts from different suppliers at much better prices for its site, proving it was possible to eliminate future $20 mil- lion bad surprises in catalyst cost. But it came too late for Petroplus. Within one month of the bespoke referenced presentation, Petroplus’ creditors cut off financing, and Petroplus declared insolvency and immediately shut down five refineries, eventually leading to bankruptcy. Conclusion It is well proven that a refiner which changes out one FCC pretreater or hydrocracker and two diesel hydrotreaters a

next catalyst purchase, https://hoekstratrading.com/wp-content/up- loads/2021/01/Hoekstra-Trading-Offer-Letter-Research-Report-3.pdf 4 Hoekstra G, Catalyst Selection, a Refiner’s Perspective, AFPM paper AM-14-20, https://hoekstratrading.com/wp-content/up - loads/2018/02/AM-14-20-Hoekstra-Catalyst-Selection.pdf, available as a video: www.youtube.com/watch?v=yyAs5WF5Q0o 5 Pongboot N, Refinery catalyst selection - facts and fictions you

should know, Hydrocarbon Processing, 3Q 2022. 6 Petroplus Analyst Day, Ingolstadt, Dec 8, 2011.

George Hoekstra is President, Hoekstra Trading LLC. Email: George.hoekstra@hoekstratrading.com

year can realise $50 million/year in margin improvement and procurement cost sav- ings by implementing a one-step improve- ment in catalyst performance. This is based on good independent testing and a dual- sourcing strategy versus a strategy that relies on internal knowledge, paper studies, and repeat buying from the same supplier. A large refiner can multiply these benefits yearly by replicating the changes across its entire fleet of hydroprocessing units. This catalyst strategy helps refiners and suppli - ers alike by increasing profitability, take-up, and replication of new hydroprocessing catalysts. Recommendation Refiners no longer need to spend 10s of millions of dollars/year on catalyst develop- ment and selection. What should a refiner spend today to support those charged with the responsibility to make these $50 million/ year catalyst decisions for their company? We recommend that the engineers and procurement specialists responsible for hydroprocessing catalyst selection should have an annual budget of 1% of $50 mil - lion/year, or $0.5 million/year for third- party spend. This should be funded by that refining company (not by the catalyst suppliers!), and those people should be held accountable for prudent use of that resource to deliver continuous, measur- able profit improvement from their catalyst selection process every year. References 1 Mayo S, N Gudde, E Brevoord, F Plantenga, G Hoekstra, ULSD in Real Life, NPRA paper AM- 02-38, https://hoekstratrading.com/wp-content/ uploads/2022/07/Akzo-ULSD-in-real-life-AM- 02-38-hoekstra-gudde.pdf. 2 Hoekstra G, ULSD – Ensuring the unit makes on-spec product, NPRA paper AM-06-47, https://hoekstratrading.com/wp-content/up- loads/2022/07/AM-06-47_Hoekstra.pdf. 3 Hoekstra Trading LLC, Before you make your

Hoekstra Trading Independent Catalyst Test Reports OUR REPORT WILL HELP YOU: • Simplify catalyst selection • Choose the right catalyst with confidence • Save hundreds of thousands on your next catalyst purchase We have tested catalysts from all major suppliers. Our reports provide full test data, analysis, and activity rank- ings. Our reports are available for immediate delivery. Our team brings the industry’s leading independent lab, innovative test methods, and sound, objective analysis. Our real-world experience includes 150 catalyst testing runs and 100 catalyst decisions.

HoekstraTrading LLC www.hoekstratrading.com george.hoekstra@hoekstratrading.com +1 630 330-8159

PTQ Q4 2022