PTQ Q2 2025 Issue

drop-in gasoline that is different from what we are making today. x The current refining strategy is to retain olefins in FCC gasoline (to the extent possible in a Tier 3 sulphur-in-gas- oline world) and generate the remaining octane through catalytic reforming to make light aromatics from paraffins. HRC gasoline solution HRC gasoline technology takes the opposite strategy. It strives to minimise aromatics and olefins in gasoline for three reasons:  Ethanol octane synergy: Ethanol has a much higher octane-blending value with paraffins than with either ole - fins or aromatics (ethanol octane synergy). To illustrate this concept, an HRC paraffin-rich low-carbon intense BOB requires a refinery-supplied octane of only 81 to make 87 octane gasoline (87E10). This is because ethanol blends at 145-150 octane with HRC BOBs compared to only 115 octane with conventionally produced BOBs. Conventional gasoline with significant olefins and aro - matics requires a refinery-supplied octane of 84 to make the same retail product. That is a lot of extra octane. This relationship holds for E15 gasolines as well, which means 50% more octane from ethanol octane synergy. See HRCFuels.com for more on this concept. v Catalytic reforming is the wrong process to make octane going forward. The catalytic reforming process has a large carbon footprint in the refinery (Scope 2 emis - sions). It also operates with a significant liquid yield loss – about 20% typically. That 20% could go to HRC gaso- line (reformer feed typically has few olefins and aromatics) and capture ethanol octane synergy. Finally, aromatics from reforming are hydrogen deficient and made from hydro - gen-rich naphtha.Number 3 below explains why this last point is important. w High-paraffin gasoline (HRC gasoline) is hydro - gen-rich, so it generates 12% less CO₂ per mile driven than conventional gasoline. Paraffinic molecules have the highest energy content, while aromatics have the lowest. This CO₂ tailpipe reduction is needed for the next 25-50 years. Furthermore, as we move into the renewable era of gasoline, renewables in the gasoline range will predomi- nantly be paraffinic. As they are blended into HRC gasoline, the carbon footprint of the gasoline will be further reduced. HRC gasoline really changes the strategy for making gas- oline in the renewable fuels era. However, ethanol octane synergy is not enough to provide an 88-octane finished gasoline pool. HRC gasoline relies on a set of special gaso- line additives to allow refiners to hit the pool octane target. Aromatic amines The patented HRC gasoline technology calls for highly paraffinic gasoline blendstocks and the use of aromatic amines to achieve the desired standard octane specifica - tions for finished gasoline. Aromatic amines (see Figure 2 ) are gasoline boiling range compounds with very high octane-blending values (about 425 octane). According to US EPA regulations, they are substantially similiar to gas- oline and can be registered as gasoline additives with the

Aniline

Ortho- Toluidine

Meta- Toluidine

n-Methyl- Aniline

Para-Toluidine

F igure 2 Aromatic amines for HRC gasoline

these credits has increased drastically, much like the retail value of octane shown in Figure 1. Starting in 2005, a series of federal and state renewa- ble fuels standards were passed, requiring the blending of 10% ethanol. This was the beginning of the renewable fuels era. Ethanol has emerged as the (renewable) oxygen- ate of choice, with 10% ethanol mandatory in all US gaso- line. As currently blended, ethanol contributes three octane units, with refineries contributing 85 octane units to create an 88-octane finished gasoline pool. Remarkably, during this 50-year period of continuous reinvention of the composition of gasoline, the average fin - ished gasoline pool octane stayed almost constant at 89 plus or minus 1, which is what the world demands. Challenges Slow progress is being made in the renewable fuels era. The clear intent is to reduce CO 2 emissions. While hydro- carbon renewables are making headway in the distillate High-paraffin gasoline (HRC gasoline) is hydrogen-rich, so it generates 12% less CO₂ per mile driven than conventional gasoline fuel arena, significant volumes of hydrocarbon renewables in the gasoline boiling range have not yet arrived. Burning gasoline in internal combustion engines accounts for more than 30% of the CO 2 generated by fossil fuel combustion for transportation. Let us summarise the current situation:  Ethanol is here to stay, as E10, E15, E20 or even E85. It is the only renewable gasoline blendstock of significant vol - ume. While E10 and E15 are drop-in gasolines, E85 is not. v The small volume of renewable naphtha produced as a by-product of renewable distillate plants is increasing, but its low octane further strains a high-cost octane market. w There is a tremendous need for better, lower cost, environmentally friendly drop-in gasoline in the US. The promise of 100% zero-emission vehicle (ZEV) new car pro- duction by 2035 is a challenging goal, but it appears to be receding into the future. The average age of vehicles on the road today means that the US gasoline-powered light vehicle inventory in 2050 will be at least 50% of what it is today. To make a difference in CO₂ emissions, those cars need to run on a

PTQ Q2 2025