Refining India 2024 Conference Newspaper

refining india 2024

Scope 1 and 2 decarbonisation roadmap for an oil refinery Dashboard (waylay)

Arjun Balakrishnan worley

• Operational optimisation of site utility system: Enhancing the efficiency of the site’s steam and power system to reduce overall energy consumption and emissions. w Fuel switch projects • Biomass as fuel in boilers: Replacing nat- ural gas conventional boilers with biomass boilers to utilise renewable energy sources. • Switch heaters to low-carbon hydro- gen: Transitioning heaters from refinery/ fuel gas/fuel oil/natural gas to low-carbon hydrogen to reduce emissions.  Import green hydrogen Substituting natural gas with imported green hydrogen was also considered, reduc- ing the refinery’s carbon footprint.

Achieving net-zero greenhouse gas (GHG) emissions is a critical goal for many indus- tries worldwide, including the refining sec- tor. The Refinery Decarbonisation Study aims to achieve this objective by 2050, addressing Scope 1 and 2 emissions and some aspects of Scope 3. This case study provides a comprehensive analysis of the two-phase approach taken to develop this roadmap, highlighting the methodolo- gies, key projects, timelines, and expected benefits. Background Refineries are significant contributors to global GHG emissions due to their energy- intensive processes. Reducing emissions from such facilities involves complex chal- lenges, including the need for advanced technologies, substantial investments, and strategic planning. The Refinery Decarbonisation Study was initiated to create a clear and action- able pathway to net-zero emissions from a Scope 1 and 2 perspective. It focuses on both direct emissions (Scope 1) and indi- rect emissions from purchased electricity and heat (Scope 2). Study Phases and Methodology The study was conducted in two distinct phases: Phase 1: Screening of decarbonisation options Objective: Identify and evaluate a broad range of potential options for reducing and offsetting GHG emissions at the refinery. Methodology: • Identification of options: A total of 42 options were identified, including direct abatement measures, carbon capture and storage technologies, switching to low- carbon fuels, CO₂ valorisation, and GHG offsets. • Evaluation criteria: Each option was

External pressure

Customers

Legislation

C apex

Net - zero roadmap

Internal targets

LCH trends

Financial

Milestones

CCUS

Technology developments

GHG oset

Credits?

CCUS

OxyFuel

Electric heaters

When to act?

Figure 1 Net Zero Roadmap considerations

Description of Key Projects The detailed evaluation phase led to the identification of key projects crucial for the refinery’s journey to net-zero emissions with respect to Scope 1 and 2. These pro- jects are categorised into different areas, such as carbon capture, direct abatement, fuel switch, and CO₂ transport and storage. The most significant projects are:  Carbon capture • Convert grey hydrogen to blue hydro- gen: Implementing carbon capture tech- nology to convert existing grey hydrogen production to blue hydrogen, significantly reducing CO₂ emissions. • Power plant carbon capture: Capturing CO₂ from cogeneration units, which provide both electricity and heat to the refinery. • Boiler carbon capture: Installing carbon capture systems on boilers to reduce emis- sions from combustion processes. v Direct abatement projects • Hydrogen management study: Using hydrogen pinch and recovery technology like PSA and membrane to recover hydro- gen from the fuel gas system and reducing the usage of hydrogen in the major hydro- processing and cracking units. This reduces the need for additional hydrogen production and associated emissions.

assessed based on several criteria, includ- ing technical feasibility, potential for future advancements, economic viability, and overall impact on emissions reduction. • Scoring and selection: Options were scored based on weighted criteria to reach a final ranking. The top 20 options were selected for further detailed evaluation in Phase 2. Options evaluated in Phase 1:  Direct abatement measures v Implementing carbon capture and stor- age technologies w Switching to low-carbon fuel x CO₂ valorisation y GHG offsets Phase 2: Detailed evaluation of selected options Objective: Conduct an in-depth assess- ment of the 20 selected options from Phase 1 to develop a detailed roadmap for achiev- ing net-zero emissions. Methodology: • Technical considerations: Evaluations included the maturity of existing technol- ogies, potential for future advancements, and feasibility of implementation. • Economic considerations: Detailed cal- culations of costs and benefits for each option, including Capex and Opex analyses. • Net-zero implications.

 CO₂ valorisation pathways Two CO₂ utilisation options were consid-

ered during Phase 2: • Methanol from CO₂

• Synthetic aviation fuel (SAF) from CO₂. These options were found to be economi- cally unattractive at present due to future price trends of products and raw materi- als. However, it is recommended to per- form market studies at appropriate times as specified in the roadmap timeline.  CO₂ transport and storage • Store captured CO₂ via pipeline: Developing infrastructure to transport and store captured CO₂, ensuring its sequestration.  GHG offset projects • Nature-based solutions: Implementing nature-based solutions, such as reforesta- tion, to offset GHG emissions and enhance biodiversity. • Direct air capture: Installing a direct air capture plant to offset the remaining GHG emissions required to reach net zero. • Buying high-quality credits. Decarbonisation Roadmap and Timelines Recommended roadmap The recommended roadmap is designed to be technically feasible and economi- cally viable ( Figure 1 ). It incorporates a mix of different options to reduce the risk of sunk capital. It aims to achieve a 35% CO₂ reduction by 2030 and net-zero emissions by 2050. Key roadmap routes Route 1: Maximum CO₂ capture case Advantages: Lower abatement costs. Challenges: High CO₂ sequestration or uti- lisation volume. Route 2: Least CO₂ capture case Advantages: Reduced CO₂ sequestration or utilisation requirement, reduced plot area. Challenges: Higher operating costs and higher abatement costs due to green hydro- gen prices.

Base Case GHG Emissions

Sensitivity Pricing Condition for low carbon fuels

Sensitivity Pricing Condition for GHG Oset

Execution Details

Net Zero Options

Ensure 20% Reduction by 2030

Stage Gate Condition

Stage Gate

Technology Providers

Stage Gate Condition

Stage Gate

Net Zero Options

Risks & mitigation

Enablers/Trigger Points

Technology Providers

Enablers/Trigger Points

Execution Details

Technology Providers

Execution Details

Enablers/Trigger Points

Execution Details

Risks & mitigation

Enablers/Trigger Points

Risks & mitigation

0.5

Residual GHG Oset - Purchase NBS Credits

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056

Figure 2 Net Zero Roadmap skeleton