PTQ Q2 2023 Issue

Vol 28 No 3 Q2 (Apr, May, Jun) 2023 ptq PETROLEUM TECHNOLOGY QUARTERLY

Refinery of the future

I t could be safe to say that refinery operations will continue to focus primarily on fuels production, with margins capturing opportunities that typically involve co-processing hydrocarbon feedstocks with non-fossil-based feeds ranging from biofeedstocks to plastic waste-derived pyrolysis oils. That ‘narrative’ began appearing recently. However, if margins opportunities are there, along with the ability to resolve challenges created by a wider range of contaminants, ‘it’s all grist to the mill’ for upgrading low-value streams (such as LSFO), and future down- stream configurations will reflect sustainability-based strategies involving a wider range of products and intermediates. Speaking in this issue’s Q&A section, Nieves Álvarez, Senior Advisor in Oil Refining/Petrochemical Technology, MERYT Catalysts & Innovation, said, “In the future, it seems that the use of hydrocracking, RFCC, and coker could be advanta- geous if FCC CO 2 emissions can be captured and converted with biohydrogen or green hydrogen towards e-fuels, olefins, and aromatics.” She added, “As always, these alternatives will depend on the crude oil processed in the refinery, the prod - uct market, and, importantly, the capital investment it is willing to make.” According to Honeywell UOP in the Q&A, “Optimal unit configurations for reduc - ing or even eliminating low-value refinery streams like HSFO and LSFO are deter - mined on a case-by-case basis, as this mainly depends on existing assets/refinery configuration, feed sources, total investment, bankability, and price sets.” The com - pany adds that “several optimal configurations can be considered, all of which can be classified into two categories: hydrogen addition and carbon rejection-based configurations.” It clarifies that “Conventionally, carbon rejection configurations (SDA + (R)FCC or DCU + (R)FCC)) were typically deemed more economically via- ble in regions with high hydrogen prices and/or large gasoline markets.” Optimal configurations have always depended on global, regional, and local eco - nomics. Nevertheless, it is critical to consider optimum use of H 2 (avoid product giveaways) and integration of similar pressure level units. Considering the energy transition, which involves switching from fuels to maximum petrochemicals, decarbonisation, and the hydrogen economy, hydrogen addition configurations are typically becoming the preferred choice. Whether these configurations prevail going forward or extend the layers of carbon rejection systems, AI/ML-based technology will bridge efforts to imple - ment competitive strategies. In the Q&A, Mike Aylott, Chief Technology Officer at KBC, says, “Digital technologies are significant enablers of smart manufacturing throughout petrochemical enterprises, from plant floor to boardroom.” He explains that IIoT sensors, coupled with robotics, drone technology, and AI/ML, enable plant managers to change how rotating equipment is monitored and maintained. Now, operators are freed from daily inspection rounds because the sensors plus AI flag early warnings of trouble, allowing robotics to guide visual inspections. Aylott says, “Reliability improves with continual monitoring; combining pre - dictive AI algorithms with better data directs maintenance efforts to where it is needed, which leads to fewer unplanned shutdowns.” Some operational aspects, such as water treatment, taken for granted by refiners a generation ago, need to change when considering that water is becoming such a scarce resource. Again, digital solutions provide a real-time view of how each step change in water use reduction affects key performance indicators. Going forward, digital solutions will accompany almost all aspects of refinery operations.

Editor Rene Gonzalez editor@petroleumtechnology.com tel: +1 713 449 5817 Managing Editor Rachel Storry rachel.storry@emap.com Graphics Peter Harper US Operations Mark Peters mark.peters@emap.com tel: +1 832 656 5341 Business Development Director Paul Mason sales@petroleumtechnology.com tel: +44 7841 699431 Managing Director Richard Watts richard.watts@emap.com Circulation Fran Havard circulation@petroleumtechnology. com

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PTQ (Petroleum Technology Quarterly) (ISSN No: 1632-363X, USPS No: 014-781) is published quarterly plus annual Catalysis edition by EMAP and is distributed in the US by SP/Asendia, 17B South Middlesex Avenue, Monroe NJ 08831. Periodicals postage paid at New Brunswick, NJ. Postmaster: send address changes to PTQ (Petroleum Technology Quarterly), 17B South Middlesex Avenue, Monroe NJ 08831. Back numbers available from the Publisherat $30 per copy inc postage.

Rene Gonzalez

PTQ Q2 2023