‘ ‘ TECHNOLOGY TO ACHIEVE ‘NET ZERO’ The future of carbon capture for refineries carbonclean.com carbonclean.com 01 ‘‘ ‘‘ Introduction Achieving global net zero ambitions will require effort from every industry responsible for CO2 emissions, particularly hard-to-abate industries such as cement, steel, energy-from-waste and refineries. Refineries comprise the third-largest stationary emitter 1 of greenhouse gases (GHGs) in the world — so they have a pivotal role to play in the drive to net zero. Carbon capture, utilisation and storage (CCUS) is a viable decarbonisation solution for hard-toabate industries. With this technology, large-scale emitters can capture CO2 before it is emitted into the atmosphere, reducing emissions, helping refineries comply with regulations and providing the opportunity to take part in the global circular carbon economy. Refineries also face unique carbon capture challenges. These include: limited on-site space, multiple point sources of emissions, remote locations and the need to continuously operate. Now, with technology innovation, refineries seeking to implement carbon capture as part of their overall emissions reduction initiatives have a solution that's both efficient and affordable. 1 https://www.cell.com/one-earth/fulltext/S2590-3322(21)00410-3 carbonclean.com 02 ‘ ‘ North America, Europe and Asia Pacific are the refining hubs of the world and account for 72% of global refining capacity, according to research published by Wood Mackenzie 2. Two thirds of all refining capacity is found in countries that are most likely to implement carbon regulation policies. Wood Mackenzie's research also indicated that a carbon price of $40/tonne would lead to a $100 billion erosion in value for the refinery industry. In many countries, the carbon tax is, or will be, far higher than $40/tonne, so it is vital that refineries identify ways to decarbonise to stay competitive. In addition, key stakeholders, from investors and shareholders to partners and customers, are calling for decarbonisation. Processing by refineries contributes around 5 to 10% of the total emissions resulting from oil products. There is significant opportunity to reduce these emissions due to the nature of the processes used and the large-scale fixed locations. Reducing their carbon footprint will enable refineries to take an active part in the transition to a low-carbon future as well as the fast-growing global circular carbon economy. North America, Europe and Asia Pacific account for 72% of global refining capacity A carbon price of $40/tonne would lead to a $100 billion erosion in value for the refinery industry Source: Wood Mackenzie 2 https://www.woodmac.com/news/editorial/will-carbon-policy-push-refiners-to-the-brink/ carbonclean.com carbonclean.com 03 ‘ ‘ Carbon capture challenges & solutions Carbon capture has long been a decarbonisation solution for the oil and gas industry. However, cost and space requirements have deterred many from moving ahead with deployment. Refineries operate within traditionally narrow margins in compact facilities, often in remote areas, where every metre of space is optimised, safety is paramount, and limited downtime is critical. The industry needs a carbon capture solution that can work within these parameters — something conventional technologies have not been able to offer. Refinery requirements A viable carbon capture solution for the refineries sector must address the following challenges: Limited physical space Oil and gas refineries are tightly configured with limited space for new equipment, thus requiring carbon capture equipment to fit within a facility’s existing physical footprint. Safety concerns The safety of refinery crews remains paramount and refineries require carbon capture equipment that minimises on-site construction to reduce any risk. Affordability Given the sector has not been highly profitable in recent years, cost-effectiveness is a key consideration for the deployment of any carbon capture solution. Multiple point sources Refineries have numerous carbon emission point sources and the exact sources may vary greatly from plant to plant. An effective solution must be able to account for the configuration at every unique site. Remote locations Refineries need a modularised solution, transportable for ease of installation and reliable operation. Refineries operate within traditionally narrow margins in compact facilities, often in remote areas, where every metre of space is optimised, safety is paramount, and limited downtime is critical. carbonclean.com Continuous operations Implementing a carbon capture solution should not decrease the availability of the host plant through reducing its reliability or imposing additional downtimes for installation or maintenance. Scalability Investment in decarbonisation solutions is likely to be spread over time, so it is beneficial to select a carbon capture solution that can be scaled in line with a facility’s emissions reduction strategy. 04 ‘‘ ‘‘ CycloneCC — a perfect fit Carbon Clean has developed a fully modular carbon capture solution — CycloneCC — that will make carbon capture a viable option for the refining sector. It uses a breakthrough combination of two proven process intensification technologies: Carbon Clean’s advanced, proprietary aminepromoted buffer salt solvent (APBS-CDRMax®) and rotating packed beds (RPBs), which maximise the contact area, and therefore the absorption of the solvent with flue gas. As a result, CycloneCC's physical footprint is up to ten times smaller than conventional carbon capture technology. CycloneCC provides a high-performance, cost-effective carbon capture solution for refineries. Unlike conventional technology, it is designed to fit refineries’ operational and growth needs, enabling them to quickly start reducing their emissions and benefit from the potential to produce low-carbon and carbon-negative fuels. Adaptable modular technology CycloneCC is built on a pre-fabricated skid mount and is delivered ready to install with the potential to be operational in less than eight weeks, avoiding a lengthy and complex design, build and engineering process. Set-up can be timed to occur within planned outages to accomodate refineries’ schedules and prevent downtime. The permitting process is simplified by the solution’s compact size and a quicker, streamlined installation. As a refinery’s decarbonisation ambitions increase, CycloneCC can be scaled to expand capacity with the installation of additional modular units. carbonclean.com 05 ‘ ‘ Proven, tested and established CycloneCC is fully modular and designed for a minimal footprint but maximum absorption. At its heart, an RPB contains a disk of packing material which rotates about its axis. This generates a centrifugal force within the packing, which boosts mass transfer to enhance the CO2 absorption process. The solvent is introduced into the RPB at its centre, where it is sprayed on to the packing via a liquid distributor. When the solvent contacts the packing, the centrifugal force from the rotational motion forces the solvent to travel radially towards the outer edge of the packing where it drains down to a sump before being pumped to the next stage of the process. The flue gas is introduced to the RPB from the outer edge of the packing and exits at the inner edge, where the solvent enters. The gas and the liquid contact each other in a countercurrent fashion, ensuring maximum contact and greater absorption. Multiple point source solution The solvent and RPB combination coupled with the modularity of the CycloneCC solution mean that the versatile technology can be applied at multiple point sources throughout a refinery. Refineries have several units that emit CO2, including: steam methane reformers that produce hydrogen, catalytic crackers and Combined Heat and Power (CHP) units. It may also be a fit for other applications depending on refinery configuration, feedstock and products. carbonclean.com 06 ‘ ‘ CycloneCC benefits Cost-effective carbon capture CapEx and OpEx are reduced by up to 50%. Compact size Mass transfer equipment is 10 times smaller and its overall physical footprint up to 50% smaller than conventional carbon capture units. Modular & scalable Units can be added over time to increase carbon capture capacity in line with a refinery’s decarbonisation strategy. Simpler and safer installation The pre-fabricated, skid-mounted unit is delivered ready to install and can be operational in less than eight weeks, leading to minimal site disruption and faster permitting. = CO2 emission points carbonclean.com carbonclean.com 07 ‘ ‘ Time to reduce emissions For the oil and gas industry, carbon capture initiatives are increasingly important. As reported by the World Resources Institute 3, decarbonisation efforts — including a fuel switch to clean hydrogen, electrification and CCUS — could deliver marked climate benefits. As the report states: 'In the long-term, refineries could shift to processing renewable feedstocks to produce low-carbon fuels for aviation, shipping and trucking, ultimately reducing fuel carbon intensities by up to 80%. By leveraging technologies and adapting to low-carbon demands, refineries could provide lower-carbon products for our economy.' Increasing regulation is now driving action on emissions reduction across industries. Here’s a snapshot of some of the developments happening across North America and Europe: Global news Europe The IPCC’s Sixth Assessment Report, Climate Change 2022: Impacts, The EU’s newly updated Fit for 55 EU Climate Plan is a wide-ranging Adaptation and Vulnerability urges fast action to radically reduce set of regulations and incentives including: support for CCUS plans emissions — its findings are setting the stage for a global wave of new across a broad range of industries, carbon border taxes and massive emission policies and regulations. promotion of clean technologies. Europe’s carbon price has steadily increased over the past year, having reached a record close of €96 4 in February 2022. United States Canada Having set a goal of net zero emissions through the entire In Canada, the $8 billion Strategic Innovation Fund’s Net-Zero Accelerator (NZA) economy by 2050, the U.S. government enacted the Infrastructure is dedicated to supporting projects to reduce Canada’s domestic GHG emissions. Investment and Jobs Act (2021), which allocates funding for carbon Canada is increasing its carbon tax rates over time from $55/tonne in late 2021 capture and industrial emissions reduction. The White House is to $170/tonne by 2030. In April 2022 the government announced it is introducing now gearing up to spend more than $12 billion on CCUSâ” and a 50% tax credit aimed at spurring investment in CCUS. There is also a 37.5% related projects and guidance, including regulation and permitting. credit for equipment for transportation, storage and use of CO2 emissions. The In 2018, the U.S. government expanded the 45Q Tax Credit for refundable investment tax credit for businesses will cover 50% of the cost of CO2 CO2 sequestration. capture equipment for projects beginning in 2022. The fast-changing regulatory landscape is having a particularly significant impact on the oil and gas industry. Refineries that set decarbonisation initiatives in motion and adopt clean technology will be able to leverage incentives and benefits as well as reduce the risk of incurring future taxes and penalties. 3 https://www.wri.org/research/technological-pathways-decarbonizing-petroleum-refining 4 https://www.reuters.com/business/energy/europes-carbon-price-nears-100-euro-_2022_02_0 5 https://www.whitehouse.gov/briefing-room/statements-releases/2022/02/15/fact-sheet-biden-harris-administration-advances-cleaner-industrial-sector-to-reduceemissions-and-reinvigorate-american-manufacturing/ carbonclean.com 08 ‘ ‘ An industry responds As heavy industry reduces emissions, many oil and gas companies are taking action. Emissions reduction targets by the world’s top oil and gas companies are on the rise, with major firms playing a key role as first movers. Companies including Chevron, Equinor and Saudi Aramco are seeking to tackle emissions and focus on commitments to deploy CCUS. Chevron is targeting 25 million tonnes of CO2 per year in equity storage by the end of this decade, with a focus on developing regional hubs that leverage its existing and emerging partnerships with customers, governments and industry. Equinor is looking at the potential for hydrogen and CCUS technology in several U.S. states. Emissions reduction targets by the world’s top oil and gas companies are on the rise, with major firms playing a key role as first movers. carbonclean.com 09 ‘‘ ‘‘ Conclusion: Early mover advantage When it comes to CCUS, being a first mover in the oil and gas sector offers distinct advantages. Companies that start earlier will have tremendous partnering potential with investors who gravitate towards opportunities with staying power in the near and long term. Refineries can move towards their decarbonisation goals more effectively by combining CCUS with other strategies — including increasing energy efficiency, opting for low-carbon oil and tapping into renewable power generation. In the long term, refineries could switch from processing crude oil for conventional fuel to renewable feedstocks for synthetic fuels, primarily for aviation, shipping and trucking, which could reduce fuel carbon intensities by up to 80%. These are all practical approaches that, when used together, give refineries a competitive edge as their consumers have greater incentives to use low-carbon fuel. Early movers can claim incentives and avoid penalties. New revenue streams made possible by joining the circular carbon economy are already being established long before competitors make their move. Moreover, there are tangible benefits when it comes to brand reputation and shareholder appeal — particularly given the significant impact the oil and gas industry has on carbon emissions. Refineries have traditionally lacked an affordable, modular and scalable carbon capture solution. Carbon Clean's fully modular CycloneCC technology is set to change this, as it provides a comprehensive solution that fits the needs and concerns of the industry — from safety to viability. While renewable energy is growing exponentially, decarbonising heavy industry will be equally or more challenging. That is exactly where our innovative and modularised technology will play a fundamental role.” Aniruddha Sharma Chair and CEO, Carbon Clean carbonclean.com 10 ‘ ‘ TECHNOLOGY TO ACHIEVE ‘NET ZERO’ Contact us to discuss how your refinery can benefit from carbon capture SPEAK WITH A SPECIALIST carbonclean.com Copyright @ Carbon Clean Limited All Rights Reserved carbonclean.com 11