PTQ Q1 2023 Issue

2022 Carbon metric benchmark line

2022 Hydrogen consumption vs. % PetChem

100

0.40

Increasing PetChem

2022 benchmark for given PetChem make

Better solution

98

More H required to produce PetChem Improved utilisation reduces external H input

0.35

96

Increasing PetChem

Inferior solution

94

Produces higher value product Signicant amount of FG

2022 benchmark for given PetChem make

0.30

92

Inferior solution

90

0.25

88

Better solution

86

0.20

80

100

80 0 % total PetChem on crude & other raw materials 60 40 20

0

20

40

60

100

% total PetChem on crude & other raw materials

2022 Utilities metric benchmark line

2022 Emissions benchmark line

1.0

35 40 45 50 20 25 30 10 15 5

2022 benchmark for given PetChem make

2022 benchmark for given PetChem make

0.8

Inferior solution

0.6

Inferior solution

0.4

Increasing PetChem

Increasing PetChem

Produces higher value product

More work to create PetChem molecules More energy required

0.2

More CO emissions More energy required

Better solution

Better solution

0

0

0

20

40

60

80

100

80 0 % total PetChem on crude & other raw materials 60 40 20

100

Wt-% PetChem on crude*

2022 Water metric benchmark

Key economic performance vs. % PetChem

18

3.5 4.0

50,000

2022 benchmark for given PetChem make

40,000

16

3.0

Inferior solution

2.5

14

30,000

IRR, %

2.0

12

20,000

1.5

Increasing PetChem

NPV, $MM

1.0

Consumes more water per barrel of crude

10

10,000

0.5

Better solution

8

0.0

80 0 % total PetChem on crude & other raw materials 0.20 60 40 20

80 0 % total PetChem on crude & other raw materials 60 40 20

100

100

Figure 2 E6: a quantified leading indicator

achieve strategic shifts. These generally fit into one of four approaches, or pillars. The first potentially significant approach is a shift away from fuels production toward a strategy favouring petrochemicals production. In this strategy, the operator takes advantage of the market dynamics of slowing growth for gasoline and die - sel and the growing demand for petrochemicals. This approach may reduce or eliminate production of traditional transportation fuels that are ultimately com - busted. This can be performed incrementally, for example by directing the LPG from an FCC into a propylene recovery unit for the ultimate production of polypropylene. Or it can be a wholesale overhaul of the business model and mar - kets served. This strategy could have a significant positive impact on Scope 3 emissions.

The second pillar considers feedstock substitution. This could entail installing a new process unit to produce sus - tainable aviation fuel or green diesel or could be the incre - mental approach of coprocessing renewable feedstocks through an existing hydrotreater, hydrocracker, or FCC to produce renewable fuels. This also would have a positive impact on Scope 3 emissions. The third pillar focuses on Scope 1 emissions by installing technology to capture carbon at the source and then trans - porting this CO₂ for further use or sequestration. Carbon capture is likely most applicable to the process stacks associated with the FCC unit and steam methane reformer. Application to fired furnace stacks also is possible. The fourth pillar involves technology and energy-focused improvements. This is aligned with the E6 framework and

52

PTQ Q1 2023

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