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Olefins Production – Will Infant Technologies Change the
Geriatric Industry?
Agenda
1. The role of steam cracking as the backbone for many industrial sectors
2. Other conventional processes using conventional feedstocks
3. Impact of recent innovations to the conventional processes
4. Potential impact of game-changing technologies in the next decade
Steven Kantorowicz
Director – Hexabase Strategic Advisory E: [email protected]
M: +65 8321 1213
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1. The role of steam cracking as the backbone for many industrial sectors
2. Other conventional processes using conventional feedstocks
3. Impact of recent innovations to the conventional processes
4. Potential impact of game-changing technologies in the next decade
Agenda
Olefins Production – Will Infant Technologies Change the
Geriatric Industry?
© 2016 Hexabase Pte Ltd CONFIDENTIAL INFORMATION- Not to be Disclosed Outside Recipient Company 3
• Ethylene and propylene are mainly produced via thermal cracking of gas or liquid
feeds in cracker complexes with feedstocks ranging from ethane through crude oil
o The prices are set by global energy prices, regardless of the process used
Commercial Processes
Available for License
Products Comments
Ethylene Propylene
Steam Cracking (Thermal) √ √ C3- / C2- ratio can be varied in a range
No Butadiene produced from C2O feed
Methanol to Olefins √ √ MeOH is cracked; H2O recycled
Methanol to Propylene √ Used when there is no C2- market
FCC Offgas Recovery √ √ High severity FCC – with ZSM5 etc
Propane Dehydrogenation √ Licensed by Lummus, UOP & TKIS
Metathesis √ Ethylene + n-butenes Propylene
Catalytic Olefin Cracking √ √ Example: K-COTTM licensed by KBR
Ethanol Dehydration √ Bio-based raw materials
1. The Role of Steam Cracking
Backbone for Many Industrial Sectors
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• Worldwide, there are 270 of these cracker complexes in operation
o Total ethylene capacity is in excess of 150 Million tons per annum
• Four grassroots world-scale crackers are required per year just to keep up with the
expected global ethylene demand growth of ~4%
US Gas Crackers Under Construction Capacity, mta Location Planned Startup
ExxonMobil 1,500,000 Texas 2017
Chevron Phillips 1,500,000 Texas 2017
Dow Chemical 1,500,000 Texas 2017
Formosa Plastics 1,200,000 Texas 2018
Oxychem/Mexichem 544,000 Texas 2018
Shintech (Shin-Etsu) 500,000 Louisiana 2019
Sasol 1,500,000 Louisiana 2019
Axiall/Lotte 1,000,000 Louisiana 2020
TOTAL US Grassroots Capacity Addition 9,244,000
1. The Role of Steam Cracking
Backbone for Many Industrial Sectors
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• The second wave of US Ethylene expansion based on shale gas is in planning
1. The Role of Steam Cracking
Backbone for Many Industrial Sectors
US Gas Crackers Under Evaluation Capacity, mta Location Planned Startup
Total SA 1,000,000 Texas 2021
Shell 1,500,000 Pennsylvania 2022
ExxonMobil/Sabic 1,800,000 Gulf Coast 2022
Formosa Plastics 1,200,000 Louisiana 2022
Braskem/Odebrecht 1,100,000 West Virginia 2022
PTT/Marubeni 1,000,000 Ohio 2022
Williams 1,500,000 Louisiana 2023
Badlands NGL/Vinmar 1,500,000 North Dakota N/A
Aither Chemicals 272,000 West Virginia N/A
Appalachian Resins 275,000 Ohio N/A
TOTAL US Grassroots Capacity Addition 11,147,000
BUT … these US plants will produce only ethylene
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1. The Role of Steam Cracking
Backbone for Many Industrial Sectors
Percentage of Ethylene from US is set to spike
after many years of declining
Ethylene
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1. The Role of Steam Cracking
Backbone for Many Industrial Sectors
Large Crackers Have Large Upstream Infrastructure
• Roads
• Ports
• Refineries
• Power / Utilities
Skilled labor pools are required!
Large Crackers Have Large Downstream Infrastructure
• Polyolefins (PE, PP, etc)
• Propylene Oxide
• Glycols
• Aromatics (Benzene; Toluene; Xylenes)
• Cumene / Phenol / BPA /
• Polystyrene
• Polyesters
• Poly Vinyl Chloride
• Butadiene
• Isoprene
• Pyrolysis Gasoline
• Fuel Oil
• Others
Economies of Scale Problems Must be Addressed
Rubbers
Logistics / Storage
Feasibility
Study
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Yields, wt% Ethane Propane FR Naphtha Light AGO
Hydrogen 3.93 1.56 0.91 0.63
Methane 3.82 25.30 15.70 11.20
Acetylene 0.43 0.64 0.78 0.47
Ethylene 53.00 39.04 30.80 26.50
Ethane 35.00 3.94 3.30 26.50
MAPD 0.06 0.53 1.00 0.80
Propylene 0.89 11.34 14.00 13.40
Propane 0.17 5.00 0.28 0.25
C4s 1.59 5.39 8.70 8.80
C5+ Complicated Structures
1.11 7.62 24.53 34.55
Cracker feeds are:
• Ethane, LPG, or “dry gas”
• Liquids – NGLs, Naphtha, Raffinate
• Heavy Liquids – Heavy Naphtha, Diesel, Gas Oil, Condensate
Many Crackers routinely use 10 or more different feeds
Depending on seasonal pricing and availability
C4 and C5 yields vary significantly based on feed and cracking severity
• Butadiene 40-50% of C4’s
• Isoprene 14-18% of C5’s
The trend is huge multi-billion$ Grassroots and Expansion Petrochemical Complexes
Take advantage of refinery integration and the individual processing units
• PETRONAS Project RAPID in Malaysia
• Dow/ Saudi Aramco Sadara in Saudi Arabia
• ExxonMobil Parallel Train Expansion in Singapore
Change in feed and operating severity impacts
supply volumes to the downstream units
Once Through
7 March 2014 8
1. The Role of Steam Cracking
Backbone for Many Industrial Sectors
Cracker Feedstock Optimization
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Olefins Chains
1. Ethylene
2. Propylene
3. Butadiene
Aromatics Chains
4. Benzene
5. Toluene
6. Xylenes
Paraxylene
Orthoxylene
Metaxylene Toluene Bedding, Boats, Fabric, Food
Casing, Furniture, Nylon, Textiles,
Clothing, Upholstery, Varnish
Benzene Car Headlamps, Cutlery, Insulation,
Computer Cases, Nylons, Tents,
Sunglasses, Dishes, Rope
Xylenes Beverage Bottles, Automotive
Applications, Carpets, Fabrics,
Electronics, Lumber, Solvents
Ethylene IV Blood Bag, Detergent bottles,
Engine Coolant, Milk Jug, Signs,
Credit Cards, Pipes, Polyester
Propylene Adhesives, Appliances, Paints,
Diapers, Battery Case, Carpets,
Housewares, Coatings, Furniture
Butadiene Tires, Hoses & Belts, Automotive
Trim, Toys, Luggage, Latex
Paints, Kitchen Appliances,
Rubber
Petrochemical
Derivatives Are
All Around Us;
We Use Them
Every Day
Images: ClickArt 400,000
1
2
3
4
5
6
1. The Role of Steam Cracking
Backbone for Many Industrial Sectors
Petrochemical Derivatives – How we Use Them
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1. The Role of Steam Cracking
Backbone for Many Industrial Sectors
© 2016 Hexabase Pte Ltd CONFIDENTIAL INFORMATION- Not to be Disclosed Outside Recipient Company 11
1. The role of steam cracking as the backbone for many industrial sectors
2. Other conventional processes using conventional feedstocks
3. Impact of recent innovations to the conventional processes
4. Potential impact of game-changing technologies in the next decade
Agenda
Olefins Production – Will Infant Technologies Change the
Geriatric Industry?
© 2016 Hexabase Pte Ltd CONFIDENTIAL INFORMATION- Not to be Disclosed Outside Recipient Company 12
Ethylene Plant Complex
Monomers Primary Derivatives Secondary Derivatives End Uses
1
2
3
“On-purpose
Propylene”
High Severity
FCC
2. Other Conventional Processes
Using Conventional Feedstocks
Chemical Value Chains
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Monomers Primary Derivatives Secondary Derivatives End Uses
BTX Recovery
4
5
6
Chemical Value
Chains
2. Other Conventional Processes
Using Conventional Feedstocks
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2. Other Conventional Processes
Using Conventional Feedstocks
Propylene Production via Conventional Feeds
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2. Other Conventional Processes
Using Conventional Feedstocks
Propylene Production via Conventional Feeds
• Not very long ago, all of these
technologies were considered to
be step-out and unproven!
• In many circumstances, they now
set the global price of propylene
• The price-setter changes
depending on feed prices
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Gasification
Technology
Refineries
Chemical
s
X To Liquids
Ammonia
Oxochemicals: Butanol, Ethylhexanol
Hydrogen; Fuel Cells
Steam
Power
Methanol
Formaldehyde
MTBE
Acetic acid
Amine
DME
Urea
Ammonia nitrate/sulfate
Syngas
(H2 + CO)
Power
(IGCC)
Greenfield
Polygen
Refueling
Site repowering
Transportation fuels
Methanation Substitute Natural Gas
Feedstocks • Natural Gas
• Coal
• Pet coke
• Asphalt
• Heavy Oil
• Vacuum Residue
• Pitch
Olefins
Example – Gasification to Chemicals/Fuels/Power
Reliability • Availability
• Contaminants
• Refractory
• Thermocouples
• Erosion
• Licensor Support
Configuration
Selection
Licensor
Selections
Basic
Engineering
EPC
Selection
Monitor
Construction
Startup/
Operation
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1. The role of steam cracking as the backbone for many industrial sectors
2. Other conventional processes using conventional feedstocks
3. Impact of recent innovations to the conventional processes
4. Potential impact of game-changing technologies in the next decade
Agenda
Olefins Production – Will Infant Technologies Change the
Geriatric Industry?
© 2016 Hexabase Pte Ltd CONFIDENTIAL INFORMATION- Not to be Disclosed Outside Recipient Company 18
“Colonel” Edwin Drake (right) in front of the well
Available from the United States Library of Congress Prints and Photographs Division. Under the digital ID cph.3a14109
Wooden Oil Collection Tank
Credit: Drake Well Museum Collection, Titusville PA
Different size barrels were used
Phillips Well
Woodford Well
• The Drake Well was “spud” in 1859
as the first on-purpose well to
produce commercial quantity of
Crude Oil
o It was 22.1 m deep
o Prior to the Drake well, oil-
producing wells in the US were
drilled for salt brine, and produced
oil and gas only as accidental
byproducts
• It produced 12-20 bbls (2-3 m3)/day
• After the price of oil plummeted from
the subsequent production boom, it
was never profitable
• The well stopped producing in 1861
• This is the Tarr Farm, Oil Creek Valley, PA
o The “Phillips Well” (on the right) produced 4,000
BPD in October, 1861 - - - far higher than the
Drake Well!
o The “Woodford Well” (on the left) came in at
1,500 BPD in July, 1862.
• The oil was collected via a simple run-down line
into the open wooden tank pictured in the
foreground
• There are many different-sized barrels in the
background, because barrel size had not yet been
standardized
o This made the statement "oil is selling at $5 per
barrel" very confusing compared to today (a
barrel is 159 liters).
3 Years
• The Permian Basin
(TX) is the world’s
second largest oil
field; estimated
over 70 Billion
Barrels of
recoverable
resources
• The Spraberry /
Wolfcamp … and
Bone Spring, Jo
Mill, Dean, Atoka,
Mississippian and
Cline Discovered
1949
Recent Innovations:
• Fracking
• Directional Drilling
3. Impact of Recent Innovations to the
Conventional Processes Oil Field Development
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• The plastics recycle industry has impacted demand somewhat
• Much more is coming
http://www.plasticsmarkets.org/
http://plasticsrecycling.org/
Recent Innovations:
• Forced Recycling
• Separating the Types
Marking
Systems
for Plastic
Products
• Innovations in plastic separation, sorting, washing and de-contamination equipment have made
it possible for mixed rigid packaging plastics to be efficiently collected and recycled
o Bottle to Bottle Recycling – PET and HDPE containers recycled into food grade materials
o Films – Typical products are refuge sacks, damp-proof membranes, garden fencing/furniture
o Waste Electronics – Rigid polymers recycled into new electronics goods
o End of Life Vehicles – Non-metallic parts of scrapped cars sorted with new machinery
3. Impact of Recent Innovations to the
Conventional Processes
Evolution of Plastics Recycling
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3. Impact of Recent Innovations to the
Conventional Processes
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Furnaces
• Very Large, High Efficiency Cracking Furnaces & Recovery
• Configured for feedstock and product flexibility; including ultra heavy feeds
• Can be easily expanded for debottleneck projects
• Maximum on-stream time (start-up, ease of operation, maintenance, training, etc.)
Energy Reduction
• Focus on Energy Reduction Opportunities
• Maximum heat recovery from the cracker hot fractionation section
• Minimum compression in the cryogenic section
• Process “pinch” during project engineering phase
Integration
• Process and Utility Integration Concepts • Cracker process and stream integration with adjacent refineries, aromatics plants, central utility
facilities and downstream derivative units lower operating costs
• Maximum value upgrade of every molecule leaving the complex
Environment
Investment
• Investment Issues
• Economy of scale – up to the limitations of furnaces and major rotating equipment
• Lower complexity – piece count reduced/ optimized versus energy consumption
• Integration with downstream derivative units; BASF’s “Verbund” concept
• Reduce Environmental Impacts
• Minimize solid, liquid, vapor emissions throughout the integrated Complex
• Decrease the carbon footprint – has monetary value in many locations
• Reduce NOx emissions from furnace/boiler burners and Gas Turbines Environment
3. Impact of Recent Innovations to the
Conventional Processes
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Standalone Refinery and Petrochemical Facilities
Fuel Products Chemical
Feedstocks
Refinery
Chemical Plant
Evolved To
Refinery Chemical Plant
Further Evolved To … Chem Project 1
Chem Project 2 Refinery Chemical Plant
Chemical Feedstocks
Idemitsu Chiba Refinery & Petrochemicals Complex
3. Impact of Recent Innovations to the
Conventional Processes
The Evolving Refinery/Petrochemical Interface –
Physical and Commercial Integration
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Maximize and Share Total Profits
C2 – C4 Monomers
Aromatics / Solvents
Crudes
Other Process
Inputs
Ethane/Natural Gas
(Methanol)
Alternate Feeds
(Methanol)
Wastes
R e c o v e r y & S e p a r a t i o n s
Fluid
Cat
Cracking
Olefins
Recovery/
Separation
Reforming Aromatics
Processing
Resid/Fuels
Conversion
Processes
H2
Recovery
H2
Generation
Other
Refining/
Chemicals
Steam
Cracking Cogen
Motor Gasoline (Mogas)
Diesel
Other Ref/Chem Prod
Syngas
Steam & Power
Gasification
Kerosene / Jet Fuel
LPG
Fuel Oil (Minimum)
Storage/ Logistics
Naphthas
Derivatives
Derivatives
Derivatives
C
r
u
d
e
U
n
i
t
s Support Services
Dehydro Derivatives
3. Impact of Recent Innovations to the
Conventional Processes
Interface Has Evolved to Full Integration
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• The concept of “direct cracking” of crude was patented by Esso in 1970
3. Impact of Recent Innovations to the
Conventional Processes
Evolution of Crude Cracking
US Patent # 3,617,493
2 November, 1971
Esso Research & Engineering Co
Naphtha
Cut
Gas Oil
Cut
Fuel Oil
o Limited commercialization has been demonstrated by
several operating companies and licensors
Licensor /
Operator
Crude Cracking
Status
KBR Design Available
Linde Design Available
Lummus Design Available
Technip Design Available
ExxonMobil Demonstrated
LyondellBasell Demonstrated
Sabic Patents
Shell Patents
o Licensors have some
commercial experience
with Condensate and other
heavy feeds but not crude
~40 years to Commercialize!
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Category Pros of Crude Oil Cracking Cons of Crude Oil Cracking
Investment Cost
Total cost of the Project is not fully
known by Licensors or EPC
Contractors
Lower than a conventional
configuration of: Refinery + Cracker +
Derivative Units + OSBL
Cracker cost is higher due to the increased size and complexity of the
following sections relative to a conventional design
o Pyrolysis Furnaces
o Recovery Section
o Fuel Oil handling
o OSBL
Product Yield
Total Crude Oil feed to a conventional
Steam Cracker will be lower than an
integrated Refinery / Steam Cracker
Complex for production of a set
amount of ethylene
Higher feed consumption per ton of ethylene produced
Yields of ethylene and by-products will vary significantly depending
on which Crude Oil is cracked; requires investment for flexibility
Yields of by-products from Crude Oil cracking are uncertain due to
limited data from commercial units; requires even more flexibility
Crude Oil cracking results in a low overall production of Aromatics
compared to integration with a Refinery
Crude Oil cracking will produce a significant amount of “tail” plus
heavy fuel oil; viable economic utilization is necessary
A Refinery / Cracker complex can be configured to be in Fuel
balance; it is not known whether the Crude Oil Cracking Complex can
be configured to be in Fuel balance
Must have a viable/economic use for the crude tail produced
Technology
Available from all Cracker licensors
Also developed in-house by several
sophisticated operating companies
such as ExxonMobil, LyondellBasell
and Shell
The level of feed pre-treatment required to enable Crude Oil cracking
must be determined for each potential feed compared to the well-
known requirements for conventional feeds to a cracker
o Desalter
o Contaminants Removal
Energy Consumed
per ton of ethylene
The total energy consumed will be
lower since Refinery units that require
high energy inputs are not required
The “Specific Energy Consumption” of the Crude Cracking Complex
will be higher than a Conventional Cracker due to:
o Differences in design of the Cracking Furnace effluent system
o Lower ethylene yield per ton of fresh furnace feed
Run-length
Between Plant
Turnarounds
If fully understood and managed
properly, plant run- length may not be
reduced
Run-length of a Conventional Cracker is five years between
turnarounds while that of a Crude Oil Cracking Complex has a risk of
being measurably shorter
3. Impact of Recent Innovations to the
Conventional Processes Crude Cracking
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• Conventional Metathesis
o On-purpose propylene production
• 1-Hexene via C4- “self metathesis”
o Comonomer Production Technology (CPT) 1. Butene Isomerization and Distillation
2. Butene Autometathesis and Autometathesis Recovery
3. 3-Hexene Isomerization and Distillation
o Commercially demonstrated at Tianjin Petrochemical
Company
3. Impact of Recent Innovations to the
Conventional Processes
+
2
Ethylene 2-Butenes Propylene
Metathesis
Licensed by
Lummus
© 2016 Hexabase Pte Ltd CONFIDENTIAL INFORMATION- Not to be Disclosed Outside Recipient Company 27
1. The role of steam cracking as the backbone for many industrial sectors
2. Other conventional processes using conventional feedstocks
3. Impact of recent innovations to the conventional processes
4. Potential impact of game-changing technologies in the next decade
Agenda
Olefins Production – Will Infant Technologies Change the
Geriatric Industry?
© 2016 Hexabase Pte Ltd CONFIDENTIAL INFORMATION- Not to be Disclosed Outside Recipient Company 28
• The interaction between chemical engineering and biology has a long tradition in:
o Brewing
o Wine making
o Baking
o Lactic acid fermented milks
Well known processes based on microorganisms and enzyme extracts
• The use of bio-based raw materials has created a new relationship between the Chemical
Industry and agriculture, including forestry
o Accurate “Carbon Accounting” for all the agriculture inputs must be included when
evaluating bio-based products
4. Potential Impact of Game-changing Technologies
in the Next Decade Bio Production of Everything
Bio Ethylene
Bio Butadiene
Bio Propylene
Bio Propylene Glycol Bio 1,3 Propanediol
Bio Isoprene
Bio Butanol
Bio Fuels
Public Domain,
https://commons.wikimedia.org/w/index.php?curid=2109652
Since 10,000 BC!
© 2016 Hexabase Pte Ltd CONFIDENTIAL INFORMATION- Not to be Disclosed Outside Recipient Company 29
• The two main routes to bio ethylene and bio propylene are
o Biochemical – typically fermentation
Typical bio-based feedstocks are corn, sugarcane, and beets
o Thermochemical – involving gasification of natural feeds
Feedstocks including grass, agricultural wastes and corn, which are carbon rich and can be
gasified to produce syngas
• In either case, access to suitable feedstocks is critical to keep production costs in-line
• The capital cost for fermentation is significantly lower compared to the gasification route
• Bio based ethylene/ PE production from Ethanol
o Ethanol dehydration to ethylene has been available commercially for decades
o The PE process does not change if the ethylene is bio-based
Reaction Quench Distillation 95% Bio-ethanol Ethylene
Heavies Caustic Fuel
Steam Waste Water
Acid Catalyst
4. Potential Impact of Game-changing Technologies
in the Next Decade
Bio Ethylene
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• Propylene glycol is the second largest propylene oxide consumer after polyol production.
• Compared to propylene oxide-based propylene glycol, the bio-propylene glycol has a
lower carbon footprint and utilizes by-products from other processes as feedstocks
making it an attractive alternative thereby reducing the demand for propylene oxide
• Glycerine by-product from bio-diesel production is also used to produce propylene glycol,
which is known as bio-propylene glycol; three of the bio-propylene glycol plants in
operation are:
o Global BioChem in China, which came online in 2007 with a capacity of 200 kta, uses
corn as its feedstock
o Archer Daniels Midland (ADM) started up a 100 kta bio-propylene glycol plant in
Illinois, USA in 2010
Glycerine, a by-product from biodiesel production, is used as feedstock
o Oleon’s (Avril Group) 200 kta plant located in Ertvelde, Belgium started up in 2012.
The raw material used is glycerine from fats and oils which are by-products from
oleochemical production. The process, which is licensed by BASF, requires fewer
steps than the conventional propylene oxide-based process
Recent Bio-based Developments
4. Potential Impact of Game-changing Technologies
in the Next Decade
Bio Propylene Glycol
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Bio Butadiene
Announced the
successful production
of Butadiene Rubber
on 16/02/2016
Bio Isoprene
Bio Butanol
o Produces and sells n-butanol
o Anaerobic fermentation of biomass
o Current biomass includes corn
• Facility in Jilin Province
of Northeast China
• Facility in Luverne MN
produces isobutanol
o Uses a modified strain of E.Coli
o Biomass of corn, sugar and beets
o Funding from Cargill and Total SA
Bio 1,3 Propanediol
Susterra® Propanediol o A bio-based, petroleum-free diol
o The process uses corn glucose
Recent Bio-based Developments
4. Potential Impact of Game-changing Technologies
in the Next Decade
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• CO2 conversion to liquids using sunlight + non-potable water + catalyst
o Joule’s engineered bacteria as living catalysts convert CO2 to a specific molecule of interest, including
ethanol and hydrocarbons that comprise diesel, jet fuel and gasoline
Joule Sunflow®-E, solar-derived ethanol
Joule Sunflow®-D, diesel fuel
Joule Unlimited Inc, Bedford MA
4. Potential Impact of Game-changing Technologies
In the Next Decade
CO2 Conversion to Liquids
Claims to be profitable at $50/Bbl Crude Oil
© 2016 Hexabase Pte Ltd CONFIDENTIAL INFORMATION- Not to be Disclosed Outside Recipient Company 33
Source: IEA Bioenergy Task 42 Biorefinery
4. Potential Impact of Game-changing Technologies
in the Next Decade The Bio Roadmap
© 2016 Hexabase Pte Ltd CONFIDENTIAL INFORMATION- Not to be Disclosed Outside Recipient Company 34
• Methanol
• DME
• Ethanol
• Mixed Alcohols
• Fischer Tropsch
Liquids
• C1 – C7 Gases
• Benzene
• Toluene
• Xylenes
• Cyclohexane
• Styrene
• Biophenyls
• Phenol
• Substituted
Phenol
• Catechols
• Cresols
• Resorcinols
• Eugenol
• Syringols
• Coniferols
• Guaiacols
• Vanilin
• Vanilic Acid
• DMSO
• Aromatic Acids
• Aliphatic Acids
• Syringaldyde
• Aldehydes
• Quinones
• Cyclohexanol
• β-keto adipate
• Carbon Fiber
Fillers
• Polymer
Extenders
• Substituted
Lignins
• Thermoset
Resins
• Composites
• Adhesives
• Binders
• Preservatives
• Pharmaceuticals
• Polyols
Potential Products from
Lignin
Syngas
Products Hydrocarbons Phenols
Oxidized
Products Macromolecules
• It is an extremely abundant raw material contributing as much as 30% of the weight and 40% of
the energy content of lingo-cellulosic biomass
o Currently the main use of lignin is for energy in pulp mills since lignin is unwanted in the pulp
The Lignin Chain
4. Potential Impact of Game-changing Technologies
in the Next Decade
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• Oxidative Coupling of Methane to Ethylene
2 CH4 + O2 → C2H4 + 2 H2O + Heat
o The benefits of OCM have been known since the early 1980s
o Methane’s abundance and price (about half the price of ethane) is spurring efforts to use it directly as
a feedstock for ethylene and other chemicals, rather than burning it as fuel
o Past efforts did not result in a viable catalyst with performance needed for commercialization
• Standard Acetylene Absorption
• Unique Liquid Phase Acetylene Hydrogenation
• Demonstration Plant – Braskem in La Porte TX
o 350+ tons per year ethylene
• O2 sources – air, enriched air, or pure oxygen
Drives other plant operations
• Separations
• Recovery
Two Examples of
Technology Offerings
4. Potential Impact of Game-changing Technologies
in the Next Decade
© 2016 Hexabase Pte Ltd CONFIDENTIAL INFORMATION- Not to be Disclosed Outside Recipient Company 36
1. The role of steam cracking as the backbone for many industrial sectors
2. Other conventional processes using conventional feedstocks
3. Impact of recent innovations to the conventional processes
4. Potential impact of game-changing technologies in the next decade
Agenda
Conclusions & Recommendations
Olefins Production – Will Infant Technologies Change the
Geriatric Industry?
© 2016 Hexabase Pte Ltd CONFIDENTIAL INFORMATION- Not to be Disclosed Outside Recipient Company 37
How will you select the optimum configuration
that will make money during downturn cycles?
Conclusions & Recommendations
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How will you select the optimum configuration
that will make money during downturn cycles?
Are there potential threats from disruptive new
technologies that you must consider?
Conclusions & Recommendations
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Should you constantly review your options?
Are there potential threats from disruptive new
technologies that you must consider?
How will you select the optimum configuration
that will make money during downturn cycles?
Conclusions & Recommendations
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Business Performance Throughout the
Project Lifecycle – Feasibility Study
• Market Analysis
• Business Strategy
• Price Forecasting
• Supply & Demand
Forecasting
• Insights on
Economics
• Investor Master
Plans and
Decisions
• Crude Oil, Gas &
Feedstock
Selections
• Planning - Linear
Programming &
Modelling
• Corporate Social
Responsibility
Recommendation
• New Technology
Development
(Disruptive?)
• Configuration
Study
• Site/ Plot Area
Requirements
• Local Talent
Assessments
• Infrastructure
Requirements
• Scenario Analysis
Selection
Validation
• Maintenance
Assessment
(Maintainability)
• Operational
Readiness
• Pre-commission &
Commissioning
Start-up Support /
Quality Assurance
• Workforce
Development
• Quality Assurance
• Environmental
Compliance
Strategies
• Contracting
Strategy
• Licensor Technical
Assessment
• Front End
Engineering
Design (FEED)
• Value Engineering
(assets, process,
energy, etc.)
• 2nd O&M
Assessment
• Environmental
Impact
Assessment
• Organizational
Design
• Risk Assessment
and Mitigation
• Engineering,
Procurement &
Construction
(EPC) Support
• Owner’s
Representative
• FEED Quality
Assurance
Review
• Procedures and
Work Process
Development
• Workforce
Development;
Create Job
Performance
Profiles/ Plans
• Regulatory and
Permitting
Liaison
• Risk Assessment
and Mitigation
• Profit Improvement
• Simulation &
Optimization
• Operations and
Maintenance
(O&M) Support
• Reliability,
Availability,
Maintenance
• Business
Transformation
• Training &
Development
• Continuous
Improvement and
Sustainability
Support
• Environmental
Compliance
Support
• Energy Efficiency
• Linear Programming
Audit & Vector
Generation
OPERATE PLAN DEFINE DESIGN BUILD COMMISSION
Risks Market Cost Overruns Organisational Technical
Feasibility Study
Feasibility Study Scope
Configuration Study/Selection
Project Development Production
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Keys to Successful Project Development
Basis - Identify viable integration options and technologies based on project-specific details
Fundamentals - Utilize Capital Project Excellence and Operational Excellence throughout the project lifecycle
Methodology - Keep up with the latest licensor and vendor offerings
Tools – Undertake rigorous simulations of the configurations being studied
Experience – Familiarity based on diverse industry experience
Project Evaluation & Execution
Process Technology and Technology Licensor Comparisons
Ranking Based on Detailed Methodology – Technical and Commercial Considerations
Implementation Issues – Planning; FEED; PMC Services; Construction; Sustained Operation
Conduct Preliminary Economic Screening
Current
Market Size
Raw Material
Costs
Product
Prices
SWOT &
Barriers
Opportunity
Ranking
Step
1
Step
2
Configuration Study / Licensor Selection
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Facilitate interfaces between
organization stakeholders
Strengthen Operating
Team cohesiveness
Sourcing, Orientation and
Team formation-
aligned with Project timeline
Set Team goals and practices to ensure
sustainable high performance
Develop employee support programs. Build the Team’s
Relationship Skills
Optimize Team Leaders’ contributions, capability and performance Talent
Management & Succession Planning
A Frequently Ignored Aspect Organization Development & Effectiveness
Change Management
Ensure all processes in place to achieve…
• Clarity of roles
• Consistency in application of policies, rules & procedures
• Greater resourcefulness and resilience for meeting
challenges of supervision
• Alignment to the values and transition activities
• Integration & co-operation across business units
Operational Excellence
Compelling Reason for Change?
Operational Excellence • Zero Lost Time Accidents
• 100% On-steam Factor
• Minimum Energy Consumption
• Maximum Profitability
Ongoing
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• The key to success is effective enterprise integration, achieved through
project development that includes rigorous evaluation and optimization of:
o Feedstocks – processing a wide variety of feedstocks, and selecting the
feed slate and technologies that generate the highest value for the entire
complex. …“Manage the Molecules”
o Products – choosing the highest-value combination of fuels, lubes and
chemical commodity and specialty products for the integrated complex,
with each produced at competitive-scale facilities
o Costs – capturing economies of scale through common systems and
services in areas where there are similar needs
o Capital – means capturing the benefits of joint facilities planning,
engineering, construction and shared infrastructure
o Human Resources – using a unified approach to recruiting and
subsequent personnel development via rotational assignments
The best consider all of these and mitigate the risks
Project Risks to Consider and Avoid
Risks Market Cost Overruns Organisational Technical
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Does anyone have a question?
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Thank You