Innovative Solutions to Tackle India Transportation Fuel Outlook Concerns: CDTame & CDAlky

Transcription

1 Innovative Solutions to Tackle India Transportation Fuel Outlook Concerns: CDTame & CDAlky Global Refining and Petrochemicals Congress May 25-26, 2017 Mumbai, India Puneet Puri A World of Solutions

2 Safe Harbor Statement This presentation contains forward-looking statements regarding CB&I and represents our expectations and beliefs concerning future events. These forward-looking statements are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of Forward-looking statements involve known and unknown risks and uncertainties. When considering any statements that are predictive in nature, depend upon or refer to future events or conditions, or use or contain words, terms, phrases, or expressions such as achieve, forecast, plan, propose, strategy, envision, hope, will, continue, potential, expect, believe, anticipate, project, estimate, predict, intend, should, could, may, might, or similar forwardlooking statements, we refer you to the cautionary statements concerning risk factors and Forward-Looking Statements described under Risk Factors in Item 1A of our Annual Report filed on Form 10-K filed with the SEC for the year ended December 31, 2016, and any updates to those risk factors or Forward-Looking Statements included in our subsequent Quarterly Reports on Form 10-Q filed with the SEC, which cautionary statements are incorporated herein by reference. A World of Solutions 1

3 Presentation Outline Pressing Needs to Improve Air Quality Indian Transportation Fuel Outlook & Gasoline Specification Options for Improving Octane Balance CB&I Innovative Value Proposition CDTame CDAlky Concluding Remarks A World of Solutions 2

4 Pressing Needs to Improve Air Quality COP 21 in Paris 2015 Worldwide Pressing Needs: Addressing SMOG Concerns Improving Air Quality Transportation Fuels: Diesel Gasoline Beijing at 2pm A World of Solutions 3

5 Ozone Yield ( gm Ozone / gm VOC ) Contribution to Ozone & Smog Formation Olefins are Photo-Chemically Reactive Olefins are also Known to Cause Carbon Deposit/Gum in Car Engines Light olefins & Heavy Aromatics = Biggest Ozone Yield Contributor = SMOG and Greenhouse Effect Ozone Reactivity and Boiling Temperatures of Gasoline Alternatives Paraffins 10 Olefins 5 Lt. FCC gasoline Hvy. Reformate Aromatics Oxygenates 2 Isomerate ETBE Ethanol Toluene Alkylate 1 N butane 0.5 High RVP increases Evaporative Emissions MTBE Ideal Boiling Temperatures Higher Temperatures increases Cold Cycle Exhaust HC's Mr. Bill Piel, Tier Associates, USA Boiling Temperature ( F ) CARB & CEC "created" a low cost, external supply of Lt. Alkylate to replace Oxygenates in RFG Boiling Point, o F A World of Solutions 4

6 Indian Fuel Demand Outlook: Personal Transportation Tremendous Increase in Personal Transportation Fuel by : 43Mtoe 2040: 132Mtoe 60% Shift in Transportation Types: Cars 1% 50% 40% 30% 20% 57% 55% 45% 42% Diesel Gasoline Hybrid 10% 0% PLDV Bus 2/3-Wheelers Mtoe Mtoe Resurgence of Gasoline for Transportation Fuel Indian Energy Outlook, IEA 2015 report AutoFacts 2016 Q1 Forecast Release *PLDV: Personal Light Duty Vehicle **Mtoe: Million tonnes oil equivalent A World of Solutions 5

7 Trends in Gasoline Specification: Octane Deficit High Octane Components Being Removed from Gasoline Pool Tighter Government Mandates Higher Performance Engines Requirements Environmental Impacts (including RVP Reduction) Overall Octane Deficit: Gasoline HDS Olefins Aromatics Bharat Stage IV Bharat Stage VI China IV Beijing V China V US Tier 3 California CaRFG3 Sulfur, ppm Olefins, % 21/18 21/ Aromatics, % O + A, % 60 Benzene, % RVP, kpa Winter/Summer Effective /68 85/65 85/ Jan. 1, 2014 June 1, 2012 Jan. 1, psi ~48 kpa Jan. 1, psi ~48 kpa Jan. 1, 2012 Euro 5 A World of Solutions 6 60 Jan. 1, 2009

8 Trends in Gasoline Demand, Octane Blending Decoupling of Gas and Oil Prices Gas Yield from Reformer Hurts Reformer Cost of Octane Octane Value Increasing (Spread Regular vs. Premium): MTBE/ ETBE/ TAME/ TAEE Bio-ethanol Blending Iso-Octane / Iso-Octene Alkylate Large Demand for Octane in North America A World of Solutions 7

9 Sources of High Octane Blending Components Refinery Few options available to refiners Meeting fuel specifications has already reduced octane capacity Refineries depleted of Alkylate feed Steam Cracker Tightened availability of mixed C4s Conversion to propylene via metathesis New crackers use light feedstock Demand for butadiene Converting Butanes Excess butanes available at low costs Proven routes via butanes dehydro Different options available MTBE/ ETBE iso-octane/iso-octene Alkylate US Prices A World of Solutions 8

10 Options for Improving Octane Balance Bio-ethanol High octane value, but unfavorable vapor pressure Price generally higher than that of other octane enhancers Blending challenges, infrastructure required Food vs. fuel dilemma Iso-Octane / Iso-Octene Excellent octane blending components Low vapor pressure High octane value Olefinic iso-octene, may need to be saturated to iso-octane Double the required capacity of IB compared to Alkylate Source: refinery FCC / cracker A World of Solutions 9

11 Options for Improving Octane Balance, cont d MTBE / TAME Excellent octane blending components Low vapor pressure High octane value Upgrade methanol to higher value MTBE or TAME Source: refinery FCC, steam crackers, butane dehydro Alkylate Excellent octane blending component, well accepted Upgrade C4s to higher value alkylate Source: Traditionally - refinery FCC New route butanes to alkylate A World of Solutions 10

12 CB&I Innovative Value Proposition TAME & Alkylate : Excellent Octane Blending Component Accepted in the Marketplace (TAME) TAME Characteristics Alkylate Characteristics High Octane Value High Octane Value Low Vapor Pressure Low Vapor Pressure No Olefins No Olefins No Aromatics No Aromatics Low Sulfur Low Sulfur CB&I Innovative Pathway for Improving Octane Balance & Reducing RVP: CDTame + CDAlky A World of Solutions 11

13 CB&I Innovative Value Proposition Isobutane Haldor Topsoe* WSA Fresh Acid CDAlky Alkylate RON 92 RVP 2-12 psia Light Cat. Naphtha RON RVP psia Pre-Treatment: Depentanizer CDHydro Spent Acid Methanol CDTame & CDAlky: Octane Boost through olefin upgrading Upgrading C4s to Gasoline RVP Reduction CDTame C5 Raffinate TAME RON 112 RVP psia *Haldor Topsoe Partnership for Acid Regeneration Technology: WSA A World of Solutions 12

14 CB&I Innovative Value Proposition Octane Number Data for Base Gasoline and TAME-Gasoline Blends RON MON Alkylate Only with 10% TAME Light cut catalytic cracked gasoline with 5% TAME Unleaded Gasoline with 10% TAME with 20% TAME Alkylate with TAME yields a very significant octane boost in the gasoline blend! Handbook of MTBE and Other Gasoline Oxygenates A World of Solutions 13

15 World s Leading Etherification Licensor CDMtbe or CDTame CDEtbe or CDTaee Over 130 Ethers and Bio-Ethers Licenses! A World of Solutions 14

16 Conventional TAME Process Isoamylene conversion is limited by equilibrium Requires multiple reactors Shorter catalyst run length Pump Fixed Bed Reactor Pump Cooler Fixed Bed Reactor Fractionator A World of Solutions 15

17 CDTame KEY Process Features CDModules Isoamylenes Wire Mesh Ethanol Methanol Catalyst TAEE TAME Catalytic Distillation Column No Equilibrium Limitations! Avoids equilibrium limit as the reaction products are removed continuously Unique Catalytic Distillation Technology Reaction and distillation occur simultaneously Isothermal operation Low capital cost and utility requirements Long catalyst run length Self cleaning system Commercially well proven technology! Pump Fixed Bed Reactor A World of Solutions 16

18 CDModules KEY Features Superior robustness and mechanical sturdiness prevent catalyst abrasion and generation of dust or fines No mechanical damage to the catalyst during loading Pressure drop is very low and remains constant over the run length of the catalyst Long commercial run length is unmatched by competing technologies No loss of catalyst so that conversion is sustained over a period of time and product quality is not affected. A World of Solutions 17

19 Iso-olefin Conversion - Comparison IB= + MeOH MTBE Equilibrium Conversion ~96%* CD Conversion ~98 to 99.x% IB= + EtOH ETBE ~90%* IA= + MeOH TAME ~75%* ~97 to 99.x% ~95% IA= + EtOH TAEE ~50%* ~90% *At typical fixed bed reactor outlet conditions A World of Solutions 18

20 Alkylation Options HF alkylation High quality alkylate, low acid consumption, more feedstock flexibility Extremely hazardous; not preferred anymore Refiners are considering shutting down existing units Solid acid alkylation Essentially eliminates the safety and hazard issues of liquid acid alkylation Optimized for low to average alkylate capacities CB&I and Albemarle have commercialized solid acid alkylation technology in a 2,700 BPD unit, using AlkyClean technology* Sulfuric acid (SA) alkylation Alkylation technology of choice for refiners Currently the best choice in balancing the safety/operability issues with benefits of high quality alkylate (Particularly Low Temperature) CDAlky has become technology of choice for sulfuric acid alkylation** *Awarded the Presidential Green Chemistry Award from the U.S. EPA for the Providing Greener Synthetic Pathways **Top 5 Finalist of 2015 Kirkpatrick Chemical Engineering Achievement Award A World of Solutions 19

21 Sulfuric Acid Alkylation Known Challenges Conventional SA Alkylation Technologies Known Challenges Non-Optimum Operating Conditions: A Low Temperature Barrier Treating/Washing of Reactor Effluent Equipment Corrosion Poor Equipment Reliability Inherent Consequences of these Challenges: Reduced Alkylate Quality High Acid Consumption Significant Waste Water and Spent Caustic Effluents High Maintenance Cost Low On-Stream Time High Safety Risks CDAlky Innovative Design Tackles All these Challenges A World of Solutions 20

22 CDAlky Commercial Experience List CDAlky Has Become the Alkylation Technology of Choice: ~115 kbpd Alkylate Capacity by 2020 Only Technology Awarded On Purpose C5 Alkylation Licensee BPD Capacity KTA Start-up Awarded Feedstock Sincier, PRC (1) 5, C4 Raffinate Haiyue, PRC (1) 15, C4 Raffinate Tianheng, PRC (1) 5, C4 Raffinate YuTianHua, PRC 6, C4 Raffinate S-Oil, Korea (2) 16, C4s Pertamina, Indonesia (2) 7, FCC C4s Undisclosed, USA (2) 23, FCC C5s Undisclosed (ZPC), PRC 14, C4 Raffinate Yanchang, PRC 5, C4 Raffinate Undisclosed Location 1, PRC 12, C4 Raffinate Undisclosed Location 2, PRC 5, C4 Raffinate Undisclosed Location 3, PRC 6, C4 Raffinate Footnotes: (1) Exceeded all performance guarantees (2) Operate conventional sulfuric acid alkylation unit One of the top 5 finalists for the 2015 Kirkpatrick Chemical Engineering Achievement Award A World of Solutions 21

23 Conventional Sulfuric Acid Alkylation Approach Refrigeration Propane Olefin Feed ic4 Recycle Isobutane Make-up Alkylation Contactors M Acid-HC Settlers Acid Caustic Effluent Post Treatment Water Fractionation n-butane Spent Acid Fresh Acid Waste Water Alkylate A World of Solutions 22

24 Conventional Sulfuric Acid Alkylation Approach Olefin Feed Isobutane Make-up Alkylation Contactors M Acid-HC Settlers Lower Operating Temperature Improves Alkylate Quality but Refrigeration Increases the Acid Emulsion Viscosity and Propane thus Limits Conventional Contactor Operation due to: Increase Mass Transfer Limitation Increase Heat ic4 Transfer Limitation through Internal Bundles Recycle Increase Tremendously Power Requirement for mixers Acid Caust Increase Water the Number of Contactors due to icsize, Power & Heat Transfer Requirements Hence Higher Operating Temperature is Required for Conventional Effluent Contactors which Results in: n-butane Higher Post Acid Consumption Lower Treatment Octane Value Fractionation Spent Acid Fresh Acid Conventional Contactors Waste have Moving Parts = Greater Maintenance Waterand Downtime Exposure Alkylate A World of Solutions 23

25 Conventional Sulfuric Acid Alkylation Approach Olefin Feed Difficult Separation of the hydrocarbon-acid Refrigeration Propane emulsion Fine emulsion Longer settling period Large settlers required ic4 Recycle Isobutan e Makeup Alkylation Contactors M Acid-HC Settlers Acid Caust ic Effluent Post Treatment Water Fractionation n-butane Spent Acid Fresh Acid Waste Water Alkylate A World of Solutions 24

26 Conventional Sulfuric Acid Alkylation Approach Elaborate effluent treatment required Refrigeration Olefin Acid wash required on Hydrocarbon phase Feed Caustic wash required to neutralize residual acid Water wash needed to remove residual caustic ic4 Recycle Propane Isobutane Make-up Alkylation Contactors Acid Caustic Water M Acid-HC Settlers Effluent Post Treatment Fractionation n-butane Spent Acid Fresh Acid Waste Water Alkylate A World of Solutions 25

27 Conventional Sulfuric Acid Alkylation Approach Olefin Feed Water carry over from wash water leads to corrosion Refrigeration issues in the Fractionation Propane Section ic4 Recycle Isobutane Make-up Alkylation Contactors Acid Caustic Water M Acid-HC Settlers Effluent Post Treatment Fractionation n-butane Spent Acid Fresh Acid Waste Water Alkylate A World of Solutions 26

28 CDAlky Features The Basics Alkylation Contactor Novel contactor: vertical down-flow reaction system Proprietary reactor internals Boiling point operation (direct cooling) Operation at < 0 o C (< 32 o F) Acid-HC Coalescers More effective phase separation no rotating mixers in the reactor Operate reaction zone at lower temperature. Promote alkylation reactions, suppress side reactions and effectively separate the acid and hydrocarbon product phases. A World of Solutions 27

29 CB&I Client Value Proposition CDAlky * CDAlky Technical Advantages CDAlky produces the highest quality alkylate, particularly with respect to octane number. (at Least +1.0 RON) CDAlky has the lowest acid consumption rate among competing sulfuric acid alkylation technologies. (30-50% Saving) CDAlky has the most effective Acid/HC Separation System, without any posttreatment required. CDAlky has Feed Flexibility Advantages. nc4=, ic4=, C5= & C3= (up to 100%) CDAlky Economic Advantages CDAlky has the lowest capital investment, and lowest operating cost, among competing options. CDAlky requires the smallest plot space. CDAlky Operation Advantages CDAlky has key advantages in terms of reliability and operability. CDAlky = Innovative & Technology Proven * Top 5 Finalist of 2015 Kirkpatrick Chemical Engineering Achievement Award A World of Solutions 28

30 Comparison of CDAlky and Conventional Technologies Conventional Operates at +7 o C, or higher Baseline acid consumption Baseline octane Difficult separation of acid droplets from HC Uses large settlers Requires caustic and water wash steps Corrosion common in fractionator Uses Mixers, Drivers, Mechanical Seals High Intensity & Frequent maintenance Lower reliability Exposure to downtime and safety risks Multiple horizontal reactors (large plot) CDAlky Process Operates below 0 o C Reduced acid consumption Improved octane (+ 1 RON minimum) Significantly improved separation of acid - HC Uses Coalescers No alkylate effluent treatment required Fractionator corrosion eliminated No moving parts in reaction System Conventional maintenance High reliability High on-stream factor - reduced safety risks Single vertical reactor (small plot) A World of Solutions 29

31 Concluding Remarks Expecting Increase in High-Octane Gasoline Demand: Environmental Pressure Government Mandates Higher Performance Engines Requirements CB&I Innovative Value Proposition: CDTame + CDAlky Commercialized & Recognized Technologies: Recent Awards Speaks for Itself! Numerous etherification licenses Repeat clients Key advantages brought to end-users by CDTame: Simple, stable and highly flexible operation Long catalyst run length Superior TAME product quality Lower operating costs (high conversion/ yield, low energy consumption) Low investment cost (small plot requirement and all Carbon Steel equipment) A World of Solutions 30

32 Concluding Remarks Key advantages brought to end-users by CDAlky: Lower operating costs (high yield and lower acid consumption) Easier to operate and maintain (no rotating contactor, no water induced corrosion) Better product quality (higher octane) Low Investment Cost ( lower piece count and foot-print) A World of Solutions 31

33 Copyright 2016, CB&I Inc. All rights reserved A World of Solutions 32