Catalysis 2023 Issue

demand for petrochemical feedstock increases, it may make sense for North American refiners to adopt a strategy for maximising FCC propylene, including high-margin chemi- cal and polymer-grade propylene. Low-priced propane is not guaranteed in the future due to increasing demand. The implication is that refinery propylene is projected to have a favourable cost position vs a grassroots PDH unit. However, to realise this opportunity, refineries will need to consider several aspects:  Integrating with a petrochemical asset or having a cus- tomer take the refinery propylene  Capturing higher value from high-purity grades  Consideration of required investments  Consideration of flexibility to capture swings in the value of products. This will be a journey for many refiners that will require significant collaboration between economics, planning, and engineering teams, and will require buy-in from the high- est level of the refineries to implement capabilities. This is the level of collaboration shown by this medium-sized US Midwest refinery, which set itself up to maximise value cap - ture from swings in gasoline and propylene pricing by lever- aging ZSM-5-based additive technology.

No OlensUltra MZ 3% OlensUltra MZ

0 +1 +2 +3 +5 +4

Feed rate, thousands of barrels per day

0 +1 +2 +3 +5 +4 +6

No OlensUltra MZ 3% OlensUltra MZ

Feed rate, thousands of barrels per day

OlefinsUltra MZ and ZAVANTI are marks of W. R. Grace & Co.- Conn.

5a and 5b ), and these yield shifts were vetted and added to the planning team’s LP model. The refinery planning team is now able to use these yield shifts to project periods when the use of the additive is economical. Beyond the value of propylene, increased octane through the use of OlefinsUltra MZ additive was also a big win for this refiner since transition into Tier 3 operation reduced octane at the refinery. With the operational data that the trial provided, the refin - ery’s economics and planning team is now able to capture opportunities beyond typical seasonal periods when gasoline margin is not as strong relative to propylene. Most recently, the refinery planning team identified that OlefinsUltra MZ additive would provide additional uplift during an unplanned event, which impacted the refinery’s octane balance. By making necessary preparations, the refinery is now positioned to use additive to help when octane is needed as well as for longer-term propylene opportunities. During opportunities when propylene and octane economics are good, this medium-sized US Midwest refinery has captured $30,000 or even more per day using OlefinsUltra MZ additive. In summary, the strong collaboration between the FCC process engineering group and the planning and economics team at this refinery led to the trial to validate the yield vec - tors from the use of OlefinsUltra MZ additive. The refinery economics and planning team now owns the vectors and gives a clear signal once an opportunity is available. Conclusions With the projected decline in fuel products demand, while Figure 5a (top) shows propylene yield as a function of feed rate, and Figure 5b (bottom) shows (RON + MON)/2. Both plots clearly indicate these yields increased with the addition of the OlefinsUltra MZ technology

References 1 Wood Mackenzie, Will the long-term gasoline surplus overwhelm the propylene market?, May 2021. 2 Wood Mackenzie’s North American Product Markets 2022 Invest- ment Horizon Outlook , Wood Mackenzie, 2022. 3 Chitalia A., McDermott M., Liu W., Spagnoli T., Fuentes G., Global Polypropylene strategic planning outlook , Wood Mackenzie, 2022. 4 Marsh M., Wery, J., On-Purpose Propylene Production, PTQ , 61, Jan 2019. 5 The second wave of global PDH expansion is underway: How big will it be and what comes next? , Wood Mackenzie, 2022. 6 Propylene and Propylene economics: The need for asset-level analysis through the down-cycle and beyond, Wood Mackenzie, 2022. 7 Yergin D., The New Map: Energy, Climate and the Clash of Nations, Penguin Books, 2020. 8 This Week in Petroleum February 3, 2021, US Energy Information Administration, [Online]. Available: www.eia.gov/petroleum/weekly/ar- chive/2021/210203/includes/analysis_print.php. [Accessed May 2022]. Nate Hager is a Process Engineer for a medium-sized US Midwest refinery and currently covers the FCC and gasoline hydrotreater. He holds a BS degree in chemical engineering from Ohio State University. Abigail (Abby) Devaney is a Technical Sales Manager for FCC Cat - alysts at W.R. Grace & Co., Philadelphia. She holds a BS degree in chemical engineering from Pennsylvania State University. Ally Payne McNamara is a Technical Sales and Services Manager for FCC Catalysts at W.R. Grace & Co. She holds a BS degree in chemical engineering from Ohio State University. Stephen Amalraj is Principal FCC Technologist, Global Customer Tech - nology, at W. R. Grace & Co., with more than 29 years of experience in FCC/petrochemicals. He holds a BS degree in chemical engineering. Bani H. Cipriano is a Strategic Marketing Manager, FCC Catalysts at W.R. Grace & Co., Columbia, managing the portfolio of maximum pro - pylene catalysts and ZSM-5 additives. He holds a BS degree and PhD in chemical engineering from University of Maryland, College Park.

Catalysis 2023