ERTC 2024 Conference Newspaper

11 - 14 November 2024 Lisbon

Official newspaper published by PTQ / Digital Refining

address your key challenges – whether that is getting the most out of your cur- rent assets, navigating an evolving regula- tory landscape, or preparing for long-term investments. ○ Day 1 is dedicated to making the most of your existing assets. We will explore feed- stock availability, the latest catalyst tech- nologies, and showcase real-world case studies on operational excellence. ○ Day 2 will focus on regulation, compe- tition, and efficiency. We will begin with Galp’s welcome address, highlighting its latest innovations at the Sines refinery. The day will continue with a deep dive into Europe’s standing on the global stage, fol- lowed by the eagerly anticipated Taking the Pulse session, and concluding with a celebration of industry excellence at the ERTC Awards. ○ Day 3 will look ahead to the future of

refining. How will we integrate carbon capture and hydrogen production into operations? Where will the next wave of investment come from? And how will AI transform refinery processes in the near future? These pivotal questions, and many more, will shape the conversations of the day. At the World Refining Association, we remain committed to supporting your busi- ness, ensuring that the downstream indus- try stays competitive and thrives in the evolving energy landscape. We hope you find the sessions as inspiring and enrich- ing as we’ve found in preparing them.

Welcome to the 28th edi- tion of ERTC in the vibrant city of Lisbon, proudly co-hosted by Galp! This year’s ERTC marks another important mile- stone as we continue to

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Back to the future? Where next for refining?

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grow into a truly global platform, bring- ing together refiners from across the world. With Europe’s refining sector facing strong international competition, under- standing our position in the global land- scape has never been more crucial. That is why I am pleased to welcome perspectives from major industry players like Aramco, Petrobras, Petronas, ADNOC, and YPF, who will join Europe’s refining leaders to share their views on the future of refining. Over the next three days, we have cre- ated an agenda that offers valuable insights and practical solutions to help

The technologies opening new opportunities for refineries 5 Expert help on your road to net zero: Tailored carbon capture solutions 6

Biofeed FCC co-processing and maximising low-carbon propylene yield

Kind regards,

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Sandil Sanmugam Managing Director World Refining Association

Harnessing feedstock diversity for sustainable aviation fuel production 10 Defining a robust plastics recycling pathway 11 Biomass and plastic waste

Advisory board’s key takeaways

gasification: Enabling the energy transition and circular economy MellapakEvo and the evolution of structured packing

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 Decarbonisation and refinery transforma- tion are more challenging than expected The Advisory Board discussion centred on refinery transformation and the challenge of meeting the Commission’s targets extend- ing to 2030. The board deliberated on the impacts of recent global events such as COVID-19, the Russia-Ukraine conflict, and the situation in Gaza, which have col- lectively contributed to a cautious inves- tor climate. Heightened interest rates and soaring inflation rates have exacerbated this climate, resulting in project delays and investment hesitancy. Furthermore, the board expressed a keen interest in the out- comes of upcoming government elections, as potential shifts in policies could signifi- cantly influence decarbonisation strategies. Another concern was the downward tra- jectory of EU ETS prices, currently at ¤ 61/ tonnes, which has posed a challenge in justi- fying investments in costly decarbonisation technologies. Despite the positive climate within the energy sector, with margins already tight for some refiners at ¤ 10/barrel, refinery advisors expressed the difficulty in swiftly pivoting their operations. The board agreed that we must embrace the non-linear nature of refinery transformations, empha- sising the need for more funding, particu- larly in reducing Scope 1 and 2 emissions. The board also delved into the demand and economic dynamics surrounding decar- bonised products. They pondered society’s willingness to pay amidst turbulent times and questioned the extent of their under- standing of associated costs. The board expressed an interest in envi- sioning the refinery of the future amidst this volatility, with a focus on embracing circu-

lar processes, carbon capture, green hydro- gen, and e-fuels. Additionally, they sought insights into available funding and financing opportunities, eager to learn from success- ful case studies in navigating the transition towards a decarbonised world.  buzzword of AI and future workforce Over the past year, press releases of devel- opments in artificial intelligence (AI) have come in their droves. CEOs were flooded with visions at the World Economic Forum in Davos, and it appears that the integration of AI technologies could reshape the work- force dynamics within refineries. Past ERTCs have looked at AI-driven solutions to enhance operational effi- ciency, optimise maintenance schedules, and improve safety protocols through pre- dictive analytics and autonomous systems. However, this transformation also necessi- tates upskilling and reskilling of the work- force to adapt to the evolving technological landscape. On top of the chemical engi- neering background, we foresee refinery engineers needing to acquire proficiency in data analysis, machine learning algorithms, and cybersecurity to effectively utilise and manage AI systems. What could this mean for the talent pool search? For the board, it would be interesting to hear about the impact of AI for operations, but also the promotion in the search for new talents.  European refiners face not only regional challenges but also global pressures Our advisors delved deeper into another factor affecting project progression in Europe: regulation. They were keen to assess the implications of the mid- to long-

term targets in place by the Commission. One advisor commented that Europe has slowed in innovation, especially in the cur- rent climate where risk of investment is too high compared to areas like the US where the Inflation Reduction Act (IRA) is encour- aging innovation through subsidies. They were also keen to hear case studies from the Middle East and Asia to compare vari- ous strategies and pathways. Despite the negativity, there was a pos- itive outlook around certain regulations including the Carbon Border Adjustment Mechanism (CBAM), which many viewed as maintaining Europe’s competitiveness. The board was keen to understand how to make the most of the free quota before it runs out in 2035. Another area of focus was REDIII and its aim to further enhance the EU’s commit- ment to renewable energy and sustainabil- ity. REDIII promotes the use of renewable fuels of non-biological origin (RFNBOs), par- ticularly in the aviation sector. RFNBOs, including synthetic and electrofuels, are seen as crucial for reducing the carbon footprint of aviation and achieving climate goals. REDIII outlines specific requirements and incentives to encourage the production and uptake of RFNBOs, including mandates for blending into aviation fuel and financial support mechanisms. One advisor noted that we are currently only producing 300 tonnes of SAF with RFNBOs when by 2035 we need 300,000 tonnes. It was clear that the likelihood of meeting the Commission’s 2030 target appears low. For the board, it would be interesting to hear more about the growth of sustainable aviation pathways and the ramp-up in production of RFNBOs.

Women in Refining 16 Plan for corrosion when co-processing renewable feedstocks 19

Optimised coagulant programme helps refinery to increase water reuse and reduce energy use Key actions for precious metal catalysts

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25 Reshaping filtration at the forefront of the energy transition 29

Reliable laser-based gas analysis for enhanced process safety and efficiency Upgrading pyrolysis oil for greater plastic circularity

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33 Sustainable aviation fuel production via the HEFA route: Insights and innovations 34

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ERTC 2024

Back to the future? Where next for refining?

ALAN GELDER wood mackenzie

Global refining margins defied geopolitical ten- sions that drove their elevated status through 2022 and 2023, collaps- ing to below five-year his- torical averages by the

Refiners need to plan now to adapt and determine which energy transition pathway yields a competitive advantage for the future strategic drivers of earnings (net cash mar- gin, NCM) and carbon emissions. Refinery owners will respond to the relative position of their sites compared to peers and quad- rant position, as shown in Figure 2 . Key risks and uncertainties There are many risks and uncertainties with any outlook. Aside from geopolitical events, growing demand for refined prod- ucts is pivotal to improving the sector’s health. Hence, the strength of the econ- omy is key, as is the penetration rate of alternatives such as electric vehicles. Refining relies upon efficient inter- regional trade, so trade barriers/restric- tions (increasingly in vogue politically) distort competitive positions and regional utilisation levels. This could introduce regional winners and losers, but trade bar- riers generally lower GDP levels, which hurts the sector overall. Liquid biofuels remain uncompetitive without some form of support, so govern- ment policy remains a key risk. However, the ‘old ways’ of value chain integration based on a secure supply of advantaged feedstocks is critical for initial success. Refiners need to plan now to adapt and determine which energy transition path- way yields a competitive advantage for the future, which is likely to be site-specific.

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5-yr range 2023 2024 5-yr avg

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end of Q1 2024. They now appear to be stuck at floor levels, as shown in Figure 1 .

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Back to the future? Has the refining sector come full circle to pre-pandemic concerns of over-supply and the looming threat of rationalisation? The refining sector is, by nature, highly competitive, as it sits between the global commodity markets of crude oil and refined products. The oil/refined products supply chain is highly adaptable, so despite the ongoing geopolitical tensions, current weak refining margins reflect surpluses that have appeared as: • Oil demand is at record levels, but 2024 annual growth has been downgraded as the year progressed, particularly for the US and China. Crude oil prices have weakened, dragging refining margins lower. • OPEC+ is restraining oil production to retain balance in the oil market, which held light/heavy crude price differentials narrow, reducing the value of refinery complexity. • Refining capacity additions have out- paced demand growth, and these projects are now largely operational or in the latter stages of commissioning. • Freight rates have fallen, not through the easing of the Red Sea disruption, but from cleaning crude tankers so they can move diesel/gas oil cargoes in very large parcel sizes. OPEC+ production restraint has ena- bled this optionality, with the freight rate reduction lowering the support for refining margins from prior trade inefficiencies. • Even liquid biofuels facilities are suffer- ing low utilisation from over-capacity, most evident from low Renewable Identification Numbers (RIN)/certificate prices. Where next? We do not consider the outlook for refining

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Figure 1 Weekly global composite gross refining margins (2 Sept 2024)

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Figure 2 Individual refinery NCM vs Scope 1 and 2 emissions intensity ranking (2023)

to be quite so bleak. Several factors are set to improve, notably: • The surge in refinery capacity additions is largely complete, and demand for refined products is projected to continue growing until the early 2030s. This should improve overall refinery utilisation and lift margins from 2025/2026 onwards as demand growth outpaces capacity additions. • This growing pull on oil will be increasingly satisfied by medium/sour volumes, reward- ing refiners that have invested in complexity. • Petrochemical margins have been weak

due to the significant capacity overbuild in China over recent years, which has low- ered the value uplift from petrochemical integration. As this capacity overhang is eroded, in conjunction with the rationali- sation of weak standalone steam crackers, petrochemicals will return to adding value to integrated sites. • Growing decarbonisation of ‘hard-to- abate’ sectors requires additional volumes of liquid biofuels. We envisage a refining sector increas- ingly focused on being competitive in both

Contact: alan.gelder@woodmac.com

November 2024 Decarbonisati n Technolo gy Powering the Transition to Sustainable Fuels & Energy

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ERTC 2024

The technologies opening new opportunities for refineries

Elena Scaltritti CCO, TOPSOE

The global energy land- scape is diversifying, driven by the need to reduce emissions and achieve the goals of the Paris Agreement. Refineries are particularly

notable due to their substantial carbon footprint. According to the IEA, oil and gas operations contribute approximately 15% of global energy-related emissions, equat- ing to 5.1 billion tonnes of greenhouse gases. Fortunately, the refinery industry has a history of adapting to changing regu- lations and market demands. As the focus on energy transition and decarbonisation intensifies, refineries must innovate and adapt to new technol- ogies and regulations. Each refinery faces unique challenges and opportunities based on its specific circumstances. However, the future refinery is certain to be defined by technological advancements, optimal catalysis, and significant flexibility. Throughout the years, a recurring theme for refineries has been the need to nav- igate challenging times, evolving reg- ulations, new product demands, and necessary investments, all amid uncer- tainty about the future. This challenging and uncertain environment is once again confronting the industry today. The chal- lenges faced by our customers in the refin- ery sector are also our challenges as a catalyst and technology provider. Our col- laboration and partnership are crucial to ensuring the refinery industry’s resilience during the energy transition. Diversification and refinery revamps The energy transition and the Covid pan- demic’s impact on demand have led to the closure of several refineries in the US in recent years. In Europe, refinery closures over the past 10-15 years have been pri- marily due to increased competition from large refinery expansions in the Middle East and India. However, some US and European refin- eries have adapted by transforming into biofuel producers, highlighting the impor- tance of flexibility in refinery operations. Interest in renewable diesel and sustaina- ble aviation fuel (SAF) is now spreading to Asia and China. Diversification strategies are taking hold globally. At Topsoe, we have observed significant interest in co-processing for SAF, a cost- effective solution to meet the EU’s 2% SAF requirement by 2025. For instance, TotalEnergies recently chose Topsoe’s isomerisation catalysts for co-process- ing SAF at its Gonfreville refinery in France. This project, Topsoe’s first SAF co- processing initiative, aims to produce 40,000 tons of SAF from used cooking oil by 2025. The interest in co-processing SAF extends beyond Europe, attracting refiners in the Middle East and Asia who plan to export the fuel to Europe.

Future refineries will be defined by technological advancements, optimal catalysis, and significant flexibility

Refinery optimisation remains central Topsoe’s vision is ‘to be recognised as the global leader in carbon emission reduc- tion technologies,’ and we have developed a comprehensive portfolio of decarbonisa- tion solutions tailored to specific customer needs. Beyond helping refineries’ diversi- fication into renewable fuels and SAF, our focus areas include replacing grey fuels in refinery operations with green or low-car- bon/blue hydrogen, reducing air pollution through advanced solutions that minimise volatile organic compound (VOC), sulphur oxide (SOx), and nitrogen oxide (NOx) emis- sions, and enhancing conventional refinery operations. This means helping refiner- ies become more productive and profita- ble while reducing their emissions through improved catalysts, digitalisation, and optimised technology.

in the SynCOR unit is used as fuel in a small furnace upstream of the ATR unit, ensuring that the flue gas emitted is nearly carbon- free, further reducing emissions. The blue hydrogen produced is then used through- out the refinery, replacing all the grey hydrogen traditionally used in hydrotreat- ing and hydrocracking units. It is also used as a decarbonised fuel across the refin- ery, ensuring zero direct carbon emissions from the refinery’s heaters and furnaces. Additional efficiencies SynCOR typically uses the refinery’s fuel gas, which is today used as fuels in the heaters and furnaces. Utilising this low- quality fuel gas as feedstock in SynCOR is a significant and unique benefit, achieva- ble by pretreating the fuels gas in Topsoe’s fuel gas hydrotreating (FGH) solution. Without this step of pretreatment, the fuel gas would be flared (it would not be use- ful in the refining process), resulting in CO₂ emissions. Additionally, the heater in the SynCOR process is markedly smaller than that used in a SMR plant. The required heat in SynCOR is primarily generated within the ATR unit, where natural gas is com- busted with pure oxygen in a highly exo- thermic reaction. Consequently, only a small amount of additional heat is needed to bring the natural gas and steam to the necessary temperature at the ATR inlet, resulting in a much smaller heater in the SynCOR train. In our SynCOR technology, nearly all the carbon from natural gas is captured and sequestered through carbon capture stor- age (CCS), resulting in exceptionally low- carbon hydrogen. In conventional SMR plants, capturing CO₂ from flue gases is challenging due to low partial pressure, low CO₂ concentration, and a higher process flow. However, in advanced systems like SynCOR, CO₂ is captured in process, where it is more concentrated, at a higher pres-

did you know? In our SynCOR technology, nearly all the carbon from natural gas is captured and sequestered through CCS, resulting in exceptionally low-carbon hydrogen sure, and lower total flow, resulting in much lower Capex and Opex. This integration not only enhances CO₂ capture efficiency but also reduces the overall carbon footprint of the hydrogen production process. Fuelling up for the journey ahead The energy transition journey for refiner- ies is filled with complexities. To navigate these, strategic collaborations between refiners and technology providers like Topsoe are crucial. By working together, the industry can identify the most prom- ising future pathways, balancing regula- tory requirements, costs, and technology maturity. Topsoe works closely with its customers, from the initial brainstorming and study phases through to the deploy- ment and operation of various solutions, such as co-processing or hydrogen units. This continuous partnership ensures that refineries can optimise their processes, reduce emissions, and remain competitive in a carbon-constrained world.

Low-carbon hydrogen presents an opportunity for refineries

Refineries are large industrial users of hydrogen, most of which is currently ‘grey’ (sourced from fossil fuels without carbon capture). Hydrogen remains essential for processes such as hydrocracking, hydro- treating, sulphur removal, and upgrading gasoline. However, transitioning from grey to low-carbon or ‘blue’ hydrogen (either produced on-site or acquired) offers a sub- stantial opportunity to reduce emissions. Where CO₂ storage capacity is avail- able, existing hydrogen production facili- ties at refineries can be converted to blue hydrogen. This can be made more effi- cient through the autothermal reform- ing (ATR) production process rather than the traditional steam methane reform- ing (SMR), which is more emissions-inten- sive. Topsoe’s SynCOR™, an ATR process, produces hydrogen with exceptionally low carbon intensity (CI) by capturing up to >99% of the CO₂ generated from the pro- cess side. A portion of the blue hydrogen produced

Contact: Adam Kadhim, Product Line Director, ADSK@topsoe.com

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ERTC 2024

Expert help on your road to net zero: Tailored carbon capture solutions

Nathan Lozanoski Honeywell UOP

Action must be taken to address the climate crisis, and carbon capture is key to lowering emissions and driving business outcomes. Transforming the global economy to achieve net-zero greenhouse gas emissions by mid- century is essential to avoid the dangerous effects of climate change. Carbon capture, utilisation, and storage (CCUS) is an impor- tant lever in limiting the global rise in tem- perature to less than 1.5 º C. Without it, in fact, it will be practically impossible to reach shared climate goals while achieving busi- ness outcomes. Carbon capture is a broad, complex, and evolving field, and it is urgent that indus- tries implement and scale their climate solutions. CCUS usage needs to grow 120 times by 2050 for nations to achieve their net-zero commitments, and 70-100 new projects per year are required to get there. For successful carbon capture projects to go forward, we need ready-now technolo- gies, a price on carbon, and infrastructure and permitting to move and permanently sequester CO₂. Many companies and gov- ernments have set bold carbon-neutral pledges for as early as 2030 – a deadline that is rapidly approaching. To reach those goals, companies need to consider CCUS as a viable option in their sustainability plans because the technolo- gies are ready now, have policy support, and can significantly reduce emissions. Carbon capture capacity must increase more than 20 times to enable the capture of 840 mil- lion metric tons per year of CO₂ by 2030 to meet global emission goals. Custom Solutions for a Universal Problem As urgent as it is, there are significant chal- lenges in CCUS. National and corporate net-zero policy ambitions are not always clearly defined, with many legal, regulatory, and financial frameworks still being estab- lished. It is difficult to rapidly create a full ecosystem that embodies all elements of carbon capture amid so much uncertainty. The transition is especially important for carbon-intensive markets such as power, steel, cement, refining, petrochemicals, hydrogen, and natural gas processing. Reducing environmental impact has been difficult, and technology is continuously evolving and improving. Honeywell UOP can be your trusted part- ner in finding the best solutions. We have a full suite of pre- and post-combustion tech- nologies that can be custom-engineered. Our support spans the project life cycle from conceptual and feasibility studies through front-end engineering design (FEED), com- missioning start-up, and services during operational life. We can deliver technologies through basic engineering packages as well as modular solutions. CCUS is a key lever in reducing global emissions, accounting for 15% of overall emissions reductions in the IEA sustainable development scenario.

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Honeywell UOP offers a wide range of CCUS solutions for pre-combustion, post-combustion, and emissions tracking applications

cryogenic CO₂ capture options, which can be tailored to your needs based on: • Varying CO₂ concentrations (normal oper- ation >oxygen enrichment) • Utility sourcing (all-electric or natural gas) Our PSA and cryogenic solutions are all- electric and highly automated. They can produce a high-purity liquid product ready for transport, and synergies between them can lead to cost savings. • Plot space constraints • Level of automation. Honeywell UOP’s Advanced Solvent Carbon Capture (ASCC) enables more effi- cient capture of lower CO₂ concentration cement kiln flue gas and can be made fully electric to meet utility availability. Power Power generation accounts for roughly 40% of global CO₂ emissions, and ASCC provides an effective path to reduce the environmental impact of generators. Power and utilities generate large vol- umes of low-concentration flue gas for which ASCC enables a lower cost of cap- ture. ASCC reduces parasitic energy loads, with a patented heat exchange design that leads to lower energy consumption for sol- vent regeneration. ASCC is backed by: • 20+ years of ongoing development and testing • 8,500 hours of testing at the National Carbon Capture Center on flue gas range 2-15% • Honeywell’s extensive warranty and per- formance guarantees • Honeywell’s expertise, having designed 1,200+ solvent-based units. Refining,petrochemical,andgasprocessing A full portfolio of carbon capture technolo- gies from Honeywell UOP serves the refin- ing, petrochemical, and gas processing

industries. We can support decarbonisation efforts through new builds or retrofits with a unique perspective on optimal integra- tions with your existing process units. We offer multiple technologies that can easily be integrated into current opera- tions. Our solutions and services provide a range of options for multiple emissions points looking to efficiently and economi- cally lower the carbon intensity of the fuels and products they produce. Hydrogen and derivatives Honeywell UOP’s integrated solutions ena- ble a tailored approach to carbon intensity, hydrogen purity, and other project require- ments, delivering proven, reliable, and flex- ible solutions. As a leading supplier of hydrogen pres- sure swing adsorption (PSA) solutions to the market, we can optimise to meet your hydrogen purity and recovery targets. Designs are capable of meeting 99.99% hydrogen purity for a variety of end-use applications.² We have sold more than 1,150 PSA units in services such as hydro- gen purification, ethylene off-gas recovery, refinery off-gas recovery, ammonia, coke oven gas, gasification, methanol off-gas, and syngas purification. PSA units can also be deployed in carbon capture, ammonia cracking purification, and green hydrogen purification: • Carbon capture PSAs are typically uti- lised on hydrogen PSA tail gases where a low Capex solution is needed • Ammonia cracking PSAs are used in puri- fying hydrogen from ammonia that has been cracked when used as an energy carrier • Green hydrogen PSAs can purify hydro- gen to fuel cell requirements after produc- tion from an electrolyser.

Solutions Solutions that can make a difference are chemical and physical solvents, adsor- bents, and cryogenics and membranes. Honeywell UOP has a variety of solutions tailored for individual customers in a wide range of industries. Our team of experts can work with you to determine the best solution to meet your CO₂ emissions goals. Industries emit CO₂ in a wide range of concentrations due to the variety of fuels and processes used in their operations. Honeywell UOP’s portfolio of carbon cap- ture solutions can be tailored for project needs such as plot space requirements, utilities consumption, removal efficiency rates, and CO₂ product specifications. Industries Honeywell UOP’s CO₂ solutions can help make an impact within a wide range of industries where decarbonisation has been a challenge: did you know? Honeywell UOP’s integrated solutions enable a tailored approach to carbon intensity, hydrogen purity, and other project requirements

Cement We offer solvent, PSA, PSA + cryogenic, and

Pulp and paper Pulp and paper are unique opportunities for

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ERTC 2024

CCUS solutions, tailored for individual cus- tomers from a variety of industries: • Honeywell technology is capturing more than 35% of the world’s captured CO₂. • 5,700 sustainability projects completed since 2004, with more than $100 million in annualised savings. • Approximately 60% of R&D spend is directed towards environmental, social, and governance (ESG)-oriented outcomes. • We are committed to achieving carbon neutrality in our facilities and operations by 2035. References 1 EA Report Extract: CCUS in the transi- tion to net-zero emissions: www.iea.org/ reports/ccus-in-clean-energy-transitions/ ccus-in-the-transition-to-net-zero-emissions 2 Based on Honeywell UOP PSASIM tool results for hydrogen purity level. 3 IEA (2020), Iron and Steel Technology Roadmap, IEA, Paris: www.iea.org/reports/iron-and-steel- technology-roadmap, Licence: CCBY 4.0 4 Based on the EPA’s GHG equivalency calculator comparing nearly 7 million tons of CO₂ per year with gasoline-powered passenger vehicles on the road. 5 CO₂ equivalent emissions is a calculated value based on the combined carbon compounds emit- ted from the Hydrogen production and Carbon Capture equipment plus the combined carbon compounds in the H₂ product. 6 Based on press release issued Feb 15, 2023, announcing HON H₂ tech in Exxon Baytown facil- ity: www.honeywell.com/us/en/press/2023/02/ exxonmobil-to-deploy-honeywell-carbon-cap- ture-technology 7 Pilot plant testing at NCCC confirms greater than 98% CO₂ capture is achievable.

A full portfolio of carbon capture technologies from Honeywell UOP serves the refining, petrochemical, and gas processing industries

ment. With these technologies in our portfo- lio, we are uniquely positioned for an overall integrated flow scheme of carbon capture and hydrogen recovery. Multiple technologies are viable for car- bon capture, such as ASCC, PSA + Ortloff Cryogenic Fractionation, and standalone Ortloff Fractionation, each with tradeoffs. In addition, Honeywell has a portfolio of solutions that offers flexibility and the abil- ity to capture further value by recovering hydrogen as a fuel. Honeywell UOP Commitment to Innovation Honeywell UOP has a track record of inno- vation, a broad portfolio of carbon capture technologies, and decades of experience helping industry leaders move towards a lower carbon footprint. To help reach your climate goals, we can deliver a variety of

to-abate emissions, providing a pathway for lower carbon products we use everyday.

generating carbon dioxide removal (CDR) credits, as most feedstock originates from biomass or renewable sources. This supports additional revenue streams to make commer- cially viable projects. Challenges can arise from contaminants in the flue gases of black liquor boilers, but with appropriate pretreat- ment, ASCC is a viable technology option. Industrial and manufacturing Industrial operations need to address large and predictable amounts of low-concen- tration carbon emissions in a cost-efficient manner. Many industrial and chemical processes burn fossil or bio-based fuels to gener- ate the necessary heat for process reac- tions. Carbon capture and oxy-fuel on fired heaters and boilers are part of a multi- component strategy for mitigating difficult-

Steel Honeywell UOP is a single point of contact for carbon capture and hydrogen recovery solutions for the steel industry. Steel production represents 7% of global CO₂ emissions, and as more infrastructure is built, steel consumption will continue to grow.³ Carbon capture provides opportu- nities for integrated steelmaking to signifi- cantly reduce blast furnace gas emissions while making plans to transition to electric arc furnace (EAF) or hydrogen- based direct reduced iron (DRI). In some cases when treating steel produc- tion flue gases, hydrogen can be recovered and sold as a valuable coproduct, driving improved economics in project develop-

FOR MORE ON THE SOLUTIONS FOR THE REFINING, PETROCHEMICAL, & GAS PROCESSING INDUSTRY, CONTACT A HONEYWELL UOP REPRESENTATIVE

FOR MORE ON THE SOLUTIONS FO A HONEYWELL UOP REPRESENTAT

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Contact: Charles.Brandl@Honeywell.com

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WHAT CAN LOW DO FOR YOUR BUSINESS?

ADAM KADHIM Product Line Director, Hydrogen Topsoe

KNOWING YOUR LOW-CARBON POTENTIAL As decarbonization requirements go up, refining companies are looking for cost-efficient ways to bring their carbon intensity down. One way to go is low-carbon hydrogen. Using low-carbon hydrogen has the potential to support refining businesses and the energy transition by reducing the carbon intensity of fossil transportation fuels.

Discover the power of low at www.knowing-low.topsoe.com

ERTC 2024

Biofeed FCC co-processing and maximising low-carbon propylene yield

R. González and S. Brandt W. R. Grace

With the refining industry striving towards decarbonisation of operations and pivot- ing towards the production of lower car- bon-intensity products, new challenges and opportunities are arising. Close col- laborations between partners are vital for adapting the existing assets of the refin- ing industry to assure a rapid progression in the world’s journey towards lower CO₂ emissions.¹ Propylene is one of the main petrochemi- cal products from crude oil refinery oper- ations. While current market conditions for propylene are somewhat suppressed globally, there is a projected increase of 45 MM tpy in global demand for C₃= by 2030, which will drive the demand for fluid catalytic cracking (FCC) propylene accord- ingly.² Propylene produced by the FCC already has a favourable carbon intensity compared to other on-purpose processes.³ The application of ZSM-5-containing tech- nology to improve FCC propylene yields is favoured due its neutral impact on the heat balance of FCC units and, therefore, Scope 1 emissions. In addition to its favourable carbon inten- sity, the carbon impact of FCC C₃= can be further reduced by using ZSM-5-based technology and/or co-processing biogenic feedstocks to the FCC unit. Grace has been partnering with a number of refiner- ies globally to contribute to assessing the opportunities and risks of co-processing bio-derived feeds, as well as closely moni- toring commercial trials and servicing con- tinuous operation. 1, 2, 4, 5 FCC proceeds via a b -scission mech- anism on the active sites of the catalyst ( Figure 1 ).⁶ The end product of b -scission is C₃=. To further reduce the carbon inten- sity of the FCC C₃= co-processing, some bio-derived feed streams to the FCC unit can be considered.³ The higher the co-processing rate, the greater the impact on the carbon inten- sity of the related FCC products. Assuming an equal distribution of the renewable car- bon among the FCC products, the co- processing rate (mass-based) can be directly related to a reduction in carbon intensity. Consideration of the oxygen content of the renewable feed source is required, as this oxygen content is mostly converted to water, carbon monoxide (CO), and CO₂ yields. It can be estimated that considering a co-processing rate of 10 wt% renewable feed with an oxygen content of about 10 wt% (in the range of many seed oils), the carbon intensity of the resulting C₃= would reduce by 9%. The ultimate impact of co-processing renewable feed components on the yield structure is likely to be different to this the- oretical mass balance approach. However, this must be determined in FCC unit pilot plant testing and commercial applications, as they depend on the fossil feed type,

the FCC process is propylene. The demand for low carbon intensity and bio-derived polyolefins is increasing, and the adaptabil- ity and sophistication of the FCC process are ideal conditions to contribute to meet- ing the demand for bio-derived polymers. Grace is supporting several refining cus- tomers on their paths to decarbonise the FCC unit’s operation and products. In addi- tion, Grace’s expertise in product purifica- tion by adsorbents or hydrogenation and downstream processing to polyolefins is providing solutions for the new challenges that can arise with the co-processing of bio-derived feed streams. References 1 Lee, G., Brandt, S. and Holder, D., Maximizing renewable feed coprocessing at an FCC, PTQ , July 2023. 2 Peréz, E, et al. , Decarbonize the FCCU through maximizing low-carbon propylene, Hydrocarbon Processing , March 2024. 3 Cipriano, B., Cooper, C. and Brandt, S., Paving the way to low-carbon propylene from the FCC unit, Decarbonisation Technology , November 2023. 4 Gonzalez, R., Bescansa, M., Fernandez, A., Mena, A. and Rivas, C., Defossilizing the FCCU via coprocessing of biogenic feedstocks: From laboratory to commercial scale, Hydrocarbon Processing, July 2023. 5 Riley, B., Brandt, S. and Bryden, K., Co-processing of bio-based feedstocks in the FCC unit, Decarbonisation Technology , August 2022. 6 den Hollander, M., Wissink, M., Makkee, M. and Moulijn, J. A., Gasoline conversion: reactiv- ity towards cracking with equilibrated FCC and ZSM-5 catalysts, Appl. Catal. A: General, 223 (2002), 85. 7 Seiser, R., Olstad, J. L., Magrini, K. A., Jackson, R. D., Peterson, B. H., Christensen, E. D. and Talmadge, M. S., Coprocessing catalytic fast pyrolysis oil in an FCC reactor, Biomass and Bioenergy, 2022. 8 Harding, R. H., Zhao, X., Qian, K., Rajagopalan, K. and Cheng, W.-C., Fluid catalytic cracking selectivities of gasoil boiling point and hydro- carbon fractions, Industrial and Chemical Engineering Research , 35 (1996), 2561. Contact: Stefan.brandt@grace.com did you know? the adaptability and sophistication of the FCC process are ideal conditions to contribute to meeting the demand for bio-derived polymers

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Figure 1 Catalytic cracking reaction mechanisms²

SR-SCT MAT pilot plant test results

91% VGO + 9% Palm oil

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Figure 2 SR-SCT MAT results of C₃= yield for 100% fossil-based VGO and a blend with 9 wt% palm oil²

ing of renewable feed co-processing, the effects of trace oxygenates are often not considered. Nevertheless, these are likely to occur with oxygen-containing feed streams. Trace amounts of oxygen- ates are commonly found in fossil feed- based FCC product streams like liquefied petroleum gas (LPG) or cracked naphtha. Increasing the combined FCC feed oxygen content by the co-processing of renew- able feed streams like vegetable oils will increase the amount of these oxygenate species. This might negatively influence the downstream processing of the FCC unit products while also causing products to exceed specification limits. Pilot plant testing will help understand the magnitude of changes in oxygenates and water, CO, and CO₂ yields. In addition, close cooper- ation with the catalyst supplier will help discover areas of concern and monitoring requirements. Conclusions The drive towards decarbonisation and the energy transition inspire the refining industry to a new way of thinking, recon- sidering value chains and associated pro- cess schemes. The importance of the FCC process in refining and its high flexibility makes it one of the main processes to be considered for adaptation to new opportu- nities arising. Besides lower carbon intensity transpor- tation fuels, one of the target products of

unit conditions, and FCC catalyst proper- ties. To assess the amount of C₃= stem- ming from the renewable feed component, highly sophisticated analytical methods for modern carbon determination might be required.⁷ Data testing for some renewable feed types and test conditions within Grace showed that the renewable carbon- containing feed might be preferentially con- verted to C₃= compared to fossil feed com- ponents. Figure 2 shows bench-scale pilot plant testing results, which indicate that the C₃= yield in this case increased by about 0.3 wt% FF by blending 9 wt% palm oil with the vacuum gasoil (VGO). Considering the incremental yield concept,⁸ it is esti- mated that palm oil yields 6-7 wt% FF C₃=, nearly double the yield of the fossil-based VGO in this particular case. While Figure 2 illustrates the potential C₃= increase by renewable co-processing, challenges with co-processing should be considered. These potential challenges are often associated with the significantly higher oxygen content of the renewa- ble feed component relative to traditional feedstocks. Despite the absence of added hydrogen (H₂), the FCC process offers a high degree of deoxygenation of renew- able feed streams. Most oxygen species are converted to hydrocarbons and water, CO₂ and CO, which will leave the FCC unit on the reactor side and could pose chal- lenges downstream. In pilot plant test-

9

ERTC 2024

Harnessing feedstock diversity for sustainable aviation fuel production

Javier Torroba johnson matthey

large-scale applications. Furthermore, the modular design allows for easy scalability, readily enabling plant size to be adapted to match available feedstock quantities. Our largest announced project to date has an expected capacity of 13,000 barrels per day once operational. Heat management is a critical factor in the FT process due to its highly exothermic reactions. The FT CANS reactor features a unique configuration that enhances heat transfer and control. This design minimises temperature fluctuations within the reac- tor, ensuring optimal reaction conditions and improving product yield and selectiv- ity. The efficient heat management also reduces the risk of hot spots and thermal degradation of the catalyst. The FT CANS reactor also boasts a high conversion rate, with CO conversion effi- ciencies exceeding 90%.⁴ This high conver- sion rate is achieved through an innovative radial flow design that maximises contact between the syngas and the catalyst. The reactor’s design facilitates efficient mass transfer, allowing for higher productivity and selectivity towards desired hydrocar- bon products. Case Studies and Real-World Applications ○ Louisiana Green Fuels Project: The Louisiana Green Fuels project illustrates the application of FT CANS technology using forestry waste as feedstock. Once operational, this project is expected to con- vert one million tons of forestry waste into 32 million gallons of biofuels annually. The project plans to incorporate carbon capture and sequestration (CCS) to further reduce emissions, with the aim of achieving one of the world’s lowest carbon footprints for fuel production. ○ Repsol and Aramco eFuel Plant: Another notable project is the Repsol and Aramco eFuel plant in Bilbao, Spain. This facility plans to produce synthetic fuel using green H₂ and CO₂ as feedstocks by integrating FT CANS technology with HyCOgen. The plant is designed to demonstrate commer- cial-scale production, converting more than 2,000 tons of CO₂ annually into high-qual- ity synthetic products, which can be refined into transportation fuels. ○ DG Fuels Project: DG Fuels has chosen FT CANS technology for its first SAF plant located in Louisiana, USA. This plant is the largest announced SAF production facil- ity in the world planning to use FT technol- ogy. With an expected capacity of 13,000 barrels per day once operational, it plans to utilise waste sugar cane biomass as feed- stock, converting it into synthetic crude, which will be further processed to produce SAF. This project highlights the scalability and efficiency of the FT CANS technology in large-scale SAF production.

Relying on a single feedstock for sustain- able aviation fuel (SAF) production is not a realistic option. The amount of SAF needed for the aviation sector to meet the growing number of mandates and targets around the world is likely to require contributions from all feedstocks and multiple process routes. While a lot of focus to date has been on hydroprocessed esters and fatty acids (HEFA) from used cooking oil, there is a lim- ited amount of this feedstock, with around 80% of the feedstock used in the EU com- ing from imports.¹ Although regions including the US, Europe, and the UK have led the way with mandates and incentives for SAF produc- tion, which has attracted feedstocks from around the world, as other regions inevita- bly bring in their own domestic targets, the reliance on importing feedstocks is a big threat to meeting SAF targets. Relying too heavily on HEFA and importing feedstocks is not a long-term solution. Quite simply, the status quo is flawed. Diversification of feedstocks is vital for the resilience of the biofuels industry. Relying on a single type of feedstock may leave fuel suppliers vulnerable to market volatility and supply chain disruptions in an emerging market. Fuel suppliers are the obligated parties under mandates in the EU and UK and are expected to deliver against SAF targets in regions like the US, Japan, and a growing list of others. By incorporat- ing a variety of feedstocks, both fuel suppli- ers and countries can take control of their own destinies and secure the SAF they need from domestic feedstocks. However, is there an alternative that can use a wide range of feedstocks, available around the world, to unlock domestic SAF production at scale and ensure countries can produce the SAF they need? Feedstock Diversity to unlock SAF at scale The Fischer-Tropsch (FT) process is based on a syngas platform and is an ASTM- approved route to produce synthetic SAF blendstocks. Syngas is a mixture of carbon monoxide (CO) and hydrogen (H₂), and the FT process builds the hydrocarbon chains needed for SAF. Syngas can be produced from a huge range of feedstocks, such as municipal solid waste (MSW), waste bio- mass, and captured carbon dioxide (CO₂) emissions (when combined with H₂). This means the FT process provides a route to produce the SAF required to meet man- dates around the world and avoids over- reliance on a single feedstock. Companies such as Johnson Matthey (JM) are leading the way in delivering syngas technology and the versatility provided by the FT route to SAF. Feedstocks for syngas production MSW can be gasified to produce syngas. This process not only provides a valuable source of syngas but also aids in waste

Diverse feedstock

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Syngas is then processed into dierent types of low-carbon fuels. Reducing dependence on a single resource increases sustainability and energy security

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management by reducing landfill use. JM’s proprietary technology ensures efficient cleanup and conditioning of the syngas, preparing it for subsequent FT synthesis. Forestry waste can provide another abun- dant and renewable feedstock. Gasification of forestry biomass produces syngas, which can then be processed through the FT pro- cess to yield high-quality synthetic fuels. This approach supports responsible forest management that reduces the risk of wild- fires by utilising waste materials.² Utilising captured CO₂ in combination with green hydrogen, produced via electrol- ysis using renewable energy, can provide a viable route to syngas. JM HyCOgen™ (reverse water gas shift) technology facil- itates this, helping to reuse CO₂ emis- sions and contributing to climate change mitigation. Agricultural residues, such as corn stover, wheat straw, and rice husks, are another significant source of biomass that can be converted into syngas. Using them as feed- stocks for SAF can create value from waste materials. MSW, forestry, and agricultural resi- dues are all eligible SAF feedstocks under CORSIA with qualifying default life cycle emissions below the fossil jet fuel bench- mark (89 gCO₂e/MJ).³ Technical Overview: Converting Diverse Feedstocks into SAF The FT process is a key technology for con- verting syngas into liquid hydrocarbons, which can then be refined and blended into various fuels, including diesel, kerosene, and SAF. The FT process requires several crucial steps:  Syngas production: Syngas, a mixture of CO and H₂, is produced from various feedstocks such as MSW, biomass, or CO₂ and H₂. This syngas is then fed into the FT reactor. v Catalysis: Inside the FT reactor, the syngas contacts a catalyst, typically iron or cobalt-based. The choice of catalyst depends on the desired product slate and the type of feedstock used. w Chemical reactions: Under tempera- ture (200-350°C) and pressure (10-40 bar), the catalyst facilitates the chemical

DiD you know? The FT CANS™ technology developed by JM and bp represents a significant

advancement in Fischer-Tropsch technology

reactions that convert syngas into longer- chain hydrocarbons. The primary reaction typically includes the formation of paraffins following the general reaction formula:

(2n + 1)H₂+nCO → C n H( 2n + 2 ) + nH₂O

x Product formation : These hydrocar- bons are typically primarily straight-chain alkanes, which can be further processed into different types of fuels through hydroc- racking and other refining processes. y Product upgrading : The FT process can produce waxes and lighter hydrocarbons that need upgrading to meet fuel speci- fications. Hydrocracking, isomerisation, and distillation are common upgrading pro- cesses that convert FT products into high- quality diesel, naphtha, and kerosene. FT CANS, a Step-Change Improvement in FT Technology The FT CANS™ technology developed by JM and bp represents a significant advance- ment in FT technology. This reactor design offers several technical benefits that enhance the efficiency and scalability of the FT process. The FT CANS technology utilises a modu- lar reactor design that significantly reduces the amount of catalyst required. This reduc- tion leads to lower capital costs by approx- imately 50% versus traditional fixed-bed FT, and lower operational expenses, making the process more economically viable for

Evolving Policy and Regulatory Support The success of feedstock diversification

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