Global drivers and process innovation for ‘unconventional’ conversions Mark Howard, VP Conversion Technology Centre September 25th 2014 Hull Research & Technology Centre - a history of new process development Acetic acid /anhydride CATIVATM Acetic acid SaaBreTM acetic acid Fixed bed VAM enhancement LEAPTM fluid bed VAM HummingbirdTM ethylene FT pilot work AVADATM ethyl acetate Biobutanol demonstration (with Dupont) Specialty processes 1990s 2000s 2010s 2 2 Global drivers for ‘inter-value’ chain conversion opportunities Globally high crude oil and product prices ..strong diesel growth ..fuel oil in steep decline 3 Global drivers for ‘inter-value’ chain conversion opportunities Low cost natural gas Globally high crude oil and product prices ..strong diesel growth ..fuel oil in steep decline 4 Global drivers for ‘inter-value’ chain conversion opportunities Low cost natural gas Indigenous coal Globally high crude oil and product prices ..strong diesel growth ..fuel oil in steep decline 5 Global drivers for ‘inter-value’ chain conversion opportunities Low cost natural gas Residue upgrading incentives Indigenous coal Globally high crude oil and product prices ..strong diesel growth ..fuel oil in steep decline 6 Global drivers for ‘inter-value’ chain conversion opportunities Low cost natural gas Biofuels mandates Indigenous coal Globally high crude oil and product prices ..strong diesel growth ..fuel oil in steep decline 7 Global drivers for ‘inter-value’ chain conversion opportunities Low cost natural gas Biofuels mandates Indigenous coal Low cost biomass Globally high crude oil and product prices ..strong diesel growth ..fuel oil in steep decline 8 Global drivers for ‘inter-value’ chain conversion opportunities Low cost natural gas Biofuels mandates Indigenous coal Waste incentives Low cost biomass Globally high crude oil and product prices ..strong diesel growth ..fuel oil in steep decline 9 Veba Combi-Cracking (VCCTM) Hydrogen Additive Naphtha (S<1ppm) Hydrogen recycle Resid/Pet Coke Slurry Phase Hydrocracker Hot Separator < 5% Residue Heavy Oil Trickle Bed Hydrotreater / cracker Distillation Diesel (S<10ppm, cetane >45) Vacuum Gas Oil (S<100ppm, <1ppm metals) Disposal • • • • High overall conversion of >95% (+525oC material). Asphaltenes conversion is typically >90% Simple flow sheet with conventional refinery equipment. Technology uses a low cost additive rather than a catalyst; BP estimates that VCCTM Technology will outperform delayed cokers when benchmark crude prices exceed $50 per barrel 10 Yulin VCCTM plant Shaanxi Yanchan Petroleum Group (YCPC) 11 Fischer Tropsch STANDARD FUEL Natural Gas Coal Tails Gas Recycle Syngas Generation Hydrogen Fischer-Tropsch Syngas Conversion UPGRADING Hydrotreater / cracker CHEMICALS ALTERNATIVES 20% Naphtha 80% Diesel Resid / Pet Coke Offsites & Utilities (including air separation unit) Biomass Provides a low risk, competitive technology • Reforming, Gasification and ASU are all widely deployed and practised • BP’s FT conversion is performed using a standard fixed bed multitubular reactor. Proven catalyst with more than 16,000 hrs operational experience • BP Product Upgrading uses commercially-available catalyst, leveraging BP’s significant operational know-how in hydrocracking 12 Nikiski FT 300bbl per day demonstration plant 13 HummingbirdTM Ethanol dehydration technology Widely available BP proprietary technology Recycle Ethanol Reactor (bio/chemical/ hydrous/ anhydrous) Separator Aqueous waste Purification Polymer grade ethylene Organic waste The HummingbirdTM process has the following advantages over existing technologies: • Lower temperature and high selectivity catalyst gives ultra-selective carbon conversion and overall yields • No catalyst regeneration • Lower CAPEX and OPEX than competing technologies 14 HummingbirdTM pilot plant 15 …so what about Europe? • Basic chemicals increasingly challenged by feedstock costs…. • ..but look out for ‘unconventional’ and ‘renewable’ opportunities • Providing technology solutions across the world, with ongoing support…. • ..but we will need to compete through innovation • Not just ‘brand new’ ideas, sometimes ‘old’ ideas in a changed environment 16