Decarbonisation Technology - August 2023 Issue

Using existing assets to advance your CO 2 journey

As refineries come under pressure to hit net-zero goals, they are turning to more sustainable practices, investing in technology to reduce carbon emissions

Matthew Clingerman Sulzer Chemtech

T he refining industry is evolving. Under pressure to reduce their carbon footprint, refineries are investing heavily in technologies and processes that are more sustainable. Renewable fuels, carbon capture, and hydrogen receive increased attention as they offer a direct pathway towards decarbonisation. At the same time, improved operational efficiency and targeted modifications to existing units can also improve profitability while lowering carbon emissions. For this reason, a robust decarbonisation strategy will consider grassroots investments as well as revamps of existing units. Industry challenges In the refining industry, asset utilisation and profitability often collide with new governmental policies. This can make transformational change more difficult to navigate. Each new policy enacted brings fresh challenges, with new requirements designed to evolve with increasing blending targets or diminishing credits. This can increase both the pace and complexity of necessary investments. California’s Low Carbon Fuel Standard, for example, is a well-established system with a progressive carbon reduction target but with financial incentives that are subject to market conditions. Compliance with the US EPA’s renewable fuel standard continues to be a multimillion-dollar yearly expense for refineries with renewable fuels production below volume obligations. Renewable energy directives call for increased blending amounts of biomass-based fuels. Many of these schemes provide a financial incentive, but they all require capital investment to reach compliance.

The combination of new government policies and a challenged process environment leads to the question of ongoing profitability. Greenfield investments can yield sizeable returns, but focusing solely on grassroots units ignores opportunities to be found in modifications to existing assets. Revamps often come with challenges such as feedstock compatibility, safety, and operational efficiency. For example, waste plastics pyrolysis oils or biomass-based feeds raise concerns about the mechanical reliability and long-term operability of the redesigned unit. However, the right decarbonisation-related revamps can also increase profitability. Successfully navigating these challenges will enhance margins and improve unit and operational flexibility to shift as markets change. Examining core assets Separation and conversion units, such as an FCC or hydrocracker, are vital processes within a refinery. However, many downstream units, such as off-gas treating and hydrotreaters, have become core operating units as they ensure refineries meet the existing clean air and clean fuel regulations. More recently, renewable diesel units, either co-processing or repurposed from an existing hydrotreater, have also become integral to today’s refineries looking to participate in expanding sustainable fuels initiatives. Refineries have often viewed revamps of existing assets through the lenses of optimisation and profitability. The goal has been to extract maximum value from a barrel of oil in the most efficient and economical manner