PTQ Q3 2024 Issue

Vol 29 No 4 Q3 (Jul, Aug, Sep) 2024 ptq PETROLEUM TECHNOLOGY QUARTERLY

Capturing high ROI when producing SAF

R efiners can co-produce renewable diesel (RD) and sustainable aviation fuel (SAF) using shared hydrotreaters and linked processing assets. This is feasi- ble because both fuels have similar production pathways and can be derived from the same feedstocks, such as vegetable oils, animal fats, used cooking oils, and other lipid-based biomass. ‘Older’ facilities already have existing infrastructure to support SAF production, including water treatment, sour water strippers, flare systems, and sulphur plants. For example, the recently reported doubling of SAF production at TotalEnergies’ Grandpuits refinery brings the site’s annual produc - tion capacity to 285,000 tons (almost double the capacity announced in 2020). At the recent 2024 AFPM Annual Meeting, Honeywell UOP’s Keith Couch noted: “There are great opportunities to repurpose old assets because infrastruc- ture already exists at decades-old refineries in Europe and USA.” Overall, co-pro - ducing RD and SAF is not only technically feasible but also economically attractive. However, aviation fuel standards are stringent, and obtaining certification for SAF produced alongside RD can involve complex regulatory approvals. SAF has stricter specifications compared to RD, especially concerning freeze point and thermal stability, which may require additional processing or more selec- tive catalysts. Regardless, refineries see the opportunity to adjust their output ratios based on market demand for RD and SAF. The primary difference in final products comes from carbon chain length and specific blending requirements for aviation fuel, which has stricter specifications for freezing point and energy density. The technology involved with hydroprocessed esters and fatty acids (HEFA) derived from biological sources is expanding to produce RD and SAF. Refiners can control product yield by adjusting process parameters such as temperature, pressure, and catalytic conditions. Utilising various feedstocks in a single process streamlines operations and maximises feedstock flexibility and utility. Refining facilities with units dedicated to processing renewable feedstocks for RD and SAF production also need to plan for low-value intermediates and waste products, such as organic residues, wastewater, glycerin, naphtha, and light gas- oils. There is anecdotal evidence that additional investments in RD, SAF, and other transportation fuels are partly due to uncertainty in the electric vehicle (EV) market. For example, Ford reported a $1.3 billion loss on EVs in the first quarter of 2024. In a research paper on Renewable Diesel and SAF by Fitzgibbon et al at McKinsey & Co, it was noted that: “Not all refineries earmarked for conversion will realise their ambitions, which could ultimately limit the number of potential conversions in the United States to as few as 30.” In any event, US RD and SAF capacity is pro - jected to reach 230,000 bpd by 2035. Current SAF production only supplies about 0.1% of global jet fuel demand. However, even though SAF production costs are higher than those of conventional jet fuel, capital is more available to develop a focus on low-carbon energy and sustainable transportation. Regulations and mandates also support SAF production. For example, fuel sup- pliers must ensure that 2% of fuel made available at EU airports is SAF in 2025, rising to 6% in 2030, 20% in 2035, and gradually to 70% in 2050. Some industry observers believe the emphasis on green energy and ‘virtue signalling’ is compel- ling financial institutions to invest in various products for the transportation sector, including SAF. With incentives like the SAF credit at $1.25 for each gallon of SAF in a qualified mixture, we are likely to hear about many new technological break - throughs in SAF production.

Editor Rene Gonzalez editor@petroleumtechnology.com tel: +1 713 449 5817

Managing Editor Rachel Storry rachel.storry@emap.com Editorial Assistant Lisa Harrison lisa.harrison@emap.com

Graphics Peter Harper

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 Q3 2024