PTQ Q4 2023 Issue

• Comparing and implementing improvements in the envi- ronmental performance of products during production • Optimising supply processes and gaining a competitive advantage • Enhancing investment returns. 4 Legislation published under the European Union’s Green Deal, a strategy towards sustainability goals, emphasises the importance of life cycle thinking and analysis (Net Zero Industrial Act, Taxonomy Regulation, Transition to Circular Economy, Sustainable Transport, Zero Pollution). As indi- cated in Figure 1 , the legislation of the EU Green Deal focuses on LCT and LCA, taking a significant step towards achieving sustainability. This approach will contribute to reducing environmental impacts, utilising resources more efficiently, and creating a green and sustainable economy. Moreover, some countries like Denmark make the completion of LCA studies a pre- requisite for the declaration of ‘sustainability’. 5 Investments planned to combat climate change are expected to align with the Taxonomy Regulation 6 published under the Green Deal. It is stated that investments compatible with the

portfolio has been initiated by reducing emissions. The plan is built on four main pillars: sustainable refining, zero-car - bon electricity, biofuels, and green hydrogen. Efforts are underway at the refineries to manage the envi - ronmental impacts of operations and planned investments through an integrated approach using LCA, aligning with sustainable development goals and the 2050 carbon-neu- tral strategy. Methodology for refinery LCA The refineries initiated their LCA and LCT studies in 2018, guided by national and international developments. Currently, the evaluation of environmental impacts has begun to be quantitatively addressed through LCA, bring- ing an innovative perspective to integrated environmental management. This has brought about the need for ‘change management’. Qualification requirements, integration of LCA perspectives in evaluating operational and investment costs, and other related issues have emerged in the process of change management. Refiners primarily aim to create awareness in production and R&D departments by organising various information sessions and training programmes highlighting the ben- efits and methodologies of these studies. Simultaneously, they have supported the process with concrete examples by conducting LCA studies for specific projects. In this context, refiners have begun managing environ - mental impacts of both their existing processes and those planned or included in the investment scope through the LCA method. The following steps were followed in the LCA studies of existing processes: • Firstly, energy production models were developed for all refineries. These models calculate emissions generated during steam production, electricity generation, or fuel utilisation • The functional unit, boundaries, and purpose of the study were defined. The refineries aimed to conduct LCAs for the sub-processes that make up refinery processes. This enables the identification of flows that have the most sig - nificant environmental impact in each sub-process, facili - tating effective management and comparison between sub-processes • Within the scope of inventory analysis: ◾ Input-output flows (mass balance) were determined by following the site-based flow diagrams of the respective processes ◾ Continuous emission measurement systems in stacks, routine analyses conducted as part of refinery operational performance management systems, and additional analy- ses conducted for the LCA study were utilised. It is crucial to identify parameters with environmental impact potential ◾ In cases where data access was not possible, litera- ture support or the database within the LCA software was utilised • Environmental impacts associated with the collected data for each sub-process were calculated in the LCA software, utilising the internationally recognised ‘ReCipe’ impact assessment method with a ‘mid-point’ approach In addition to the existing processes, the refineries aim to

Efforts are underway at the refineries to manage the

environmental impacts of operations and planned investments through an integrated approach using LCA

Taxonomy Regulation can benefit from various funds under the Green Deal. 7 Petroleum refineries are responsible for obtaining various petroleum products (such as gasoline, diesel, kerosene, jet fuel, and asphalt) from crude oil. Different components in crude oil are separated, refined, and processed to transform them into final products. Refineries play a critical role in the energy sector. 8 The environmental impact of refineries is significant due to their operations. They can have various environmental effects, including air pollution, water pollu- tion, and soil pollution. 9 This analysis enables a detailed evaluation of energy con- sumption, greenhouse gas emissions, water usage, waste generation, and other environmental factors involved in the process of obtaining petroleum products. LCA also contrib- utes to decision-making processes in addition to economic indicators during feasibility studies of an investment. When working on new projects or process changes in refineries, more sustainable options can be evaluated based on the results of LCA, which have been conducted at several refineries in Turkey, revealing the refiner’s perspective and efforts regarding LCT and LCA. Those refineries where LCA studies were carried out in Turkey have a total crude oil pro- cessing capacity of 30 million tons at four different locations. In line with the refineries’ Strategic Transformation Plan, a journey towards transforming into a carbon-neutral energy company with a balanced and diversified clean energy

PTQ Q4 2023