26th September 2018 IRPC - Houston

Transcription

1 26th September 2018 IRPC - Houston MSAR Technology - Emulsion Fuel for Power Generation, Marine Bunkers & Refinery Uses Agenda: Introduction to Quadrise s MSAR technology Economic and environmental benefits Projects update

2 Introduction to Quadrise Quadrise is the supplier of proprietary MSAR technology, proven at commercial scale. Industry participants: It produces a low viscosity synthetic HFO by blending heavy residue streams without adding cutter, improving refinery margins. MSAR emulsion fuels are used as direct substitutes for HFO in power, marine, refinery and industrial applications. Cheaper fuel with environmental benefits. IP is developed and protected jointly with Akzo Nobel and MSAR projects are being developed with major global companies. QFI plc is listed on the London Stock Exchange (AIM companies). = Multiphase Superfine Atomised Residue IRPC Houston 2

3 Technology Overview MSAR technology adds value to refineries and fuel oil consumers Quadrise licenses, operates & provides MSAR technology Stable, oil-in-water emulsion fuel produced using proprietary processes and additives Low CAPEX, short cycle upgrading solutions for refineries Key benefits: ü Improves refinery yield no cutter required ü Blend incompatible residue streams IRPC Houston Delivers HFO consumers cost savings & environmental benefits Key benefits: ü Lower cost HFO option ü Enhanced combustion ü Lower emissions (NOx, PM) 3

4 HFO/RMG Production in an oil refinery Refinery residues (60-80%) + Cutter Stock (20-40%) Cutter Stock Higher value refined low viscosity diluents e.g.: Diesel Marine gas oils Vacuum gas oils Cycle oils Cracked naphthas Kerosene Slurry oils Making RMG and RMK grades of fuel oil 180, 380, 500, 700 C IRPC Houston 4

5 MSAR Technology Additives Solid, viscous ~70% residues ü ü ü ü ü ü ü ü <1% Water ~29% ü Can be derived from utility, waste or stripped sour water sources 1, ,000, C Vacuum column Visbreaker Hydrocracker SDA Thermally cracked Petchem reaction residues Unstable/incompatible residues The blending hardware is based on proven asphalt emulsion systems. 100 units+ worldwide. IRPC Houston 5

6 MSAR Project Timeline 1-2 months 3-4 months 6-12 months Scoping Refinery residue stream identified. Conceptual design and feasibility study. Pilot Testing Pilot testing at QRF*, additive formulation optimized based on enduse application. FEED A design is prepared for implementation. Quadrise provide client training and experience. EPC Implementation of MSAR project in modular, scalable, containerised units. Operations Ongoing support from Quadrise to maintain optimum performance. *QRF = Quadrise Research Facility MSAR installation at Cepsa San Roque Refinery IRPC Houston 6

7 Example MSAR Installation 6 KBPD MSAR system installed at the CEPSA 240 KBPD Gibraltar San Roque Refinery for Marine & Power Quadrise responsible for MSAR system installation, commissioning, operations & quality control Installed in 9 months for <$5m Processing visbreaker residue from a wide range of sweet and sour opportunity crudes Proven, reliable, batch or 24/7 continuous operation Licensed, toll or BOO IRPC Houston 7

8 MSAR vs. HFO (RMG) Water MSAR is ~30% water, so has a lower calorific value than HFO (factored into economics). Enhances the combustion process (secondary atomisation). Density MSAR density is higher as residue based. Viscosity MSAR Viscosity is lower as it is a function of the water in the bulk phase. Sulphur Like HFO, MSAR contains sulphur as a function of the residue. Comparison of ISO8217:2010 marine residual fuel (RMG) versus Power & Marine MSAR Characteristic Limit Category ISO-F- ISO Test Method RMG 380 Reference Power Grade Marine Grade Density at 15 c, kg/m³ max. 991,0 ISO 3675 / ISO ,0 1050,0 Kinematic Vicosity at 50 c, mm² max. 380,0 ISO ,0* 180,0* Flash Point c min. 60 ISO Pour Point (upper) Winter Quality c max. 30 ISO Summer Quality c max. 30 ISO Carbon Residue, % (m/m) max. 18 ISO Ash, % (m/m) max. 0,15 ISO ,3 0,15 Water, % (v/v) max. 0,5 ISO ,0 33,0 Sulfur, % (m/m) max. 3,5 ISO / ,5 2,5 Acid number, mg KOH/g max. 2,5 2,5 2,5 Hydrogen Sulfide, mg/kg max. 2,0 IP 570 Part A 2,0 2,0 Vanadium, mg/kg max. 350 ISO / IP Sodium, mg/kg max. 100 ISO / IP Total Sediment Potential, % (m/m) max. 0,10 ISO N/A N/A Aluminium plus Silicon, mg/kg max. 80 ISO Used lubricating oil (ULO) max** Zinc, mg/kg 15 IP 501/IP 470 N/A N/A Phosphorus, mg/kg 15 IP 501/IP 470 N/A N/A Calcium, mg/kg 30 IP 501/IP 470 N/A N/A ** The fuel shall be considered free of ULO if one or more elements Zn, P and Ca are below or at the specified limits. All three elements shall exceed the same limits before a fuel shall be deemed to contain ULO. * = at 100s -1 N/A = Not relevant for emulsion fuel * = at 100s -1 N/A = Not relevant for emulsion fuel IRPC Houston 8

9 Economic drivers for MSAR Value is created via a significant refinery yield shift due to upgrading cutter from the fuel oil pool to the distillate pool. Traditional refinery process An MSAR refinery 50% Refinery output HFO High value premium fuel used to create HFO is lost margin to the refinery 30% 70% 30% 20% 60% residue 40% diluent Refinery output Price of MSAR < HFO on a per unit of energy basis 70% residue 30% water & chemicals An additional 20% of higher value fuel can be sold by the refinery at the market rate vs HFO value High value transport fuels High value fuels used to dilute HFO Residual fuels Water & <1% chemicals IRPC Houston 9

10 Economics; HFO/RMG vs MSAR 2020 Refinery Example: Values based on Mitsui Futures, FOB Singapore HFO blending of refinery residue with LCO: ~60% Vacuum Residue 250, o C $171/t of VR (Netback value basis) is blended with ~40% LCO diluents o C $567/t of LCO (85% GO)* 2020, as of 09/13/18* To make HFO/RMG o C $331/t HFO* MSAR blending solution: ~70% Vacuum Residue 250, o C $171/t of VR (as above) is blended with ~30% Water + additives (<1%) $35/t MSAR To make < o C (171x70% + 35) = $155/t MSAR (= $233/t HFO eq, see below) Due to MSAR s 30% water content, ~1.5 times the mass is required to provide the same energy delivery as HFO; like-for-like cost is therefore: $155/t MSAR x 1.5 = $233/t HFO eq, which is ~70% of HFO price. In this example, margin creation is $331/t $233/t = $98/t, which is shared between the parties, improving refinery profitability and enabling supply of a cheaper fuel oil alternative. IRPC Houston 10

11 Impact of MEPC %S on MSAR Economics Values based on Mitsui Futures, FOB Singapore 2020, as of 09/13/18* MEPC 2020 sulphur regulations are positive for the MSAR fuel solution: Wider distillate fuel oil spreads create even stronger economics. Higher margins combined with low CAPEX (<$5million for 6KBPD MSAR ) and quick implementation (<12mths) result in <2 year payback from decision to proceed. MSAR is compatible with ECGS ( scrubber ), enabling affordable compliance with environmental standards. MSAR can be both a permanent or interim solution based on other upgrading projects. IRPC Houston 11

12 Our Focus on HFO Applications Steam Boilers (Power & Utilities) Significant worldwide emulsion fuel boiler experience. >60 million tons emulsion fuel fired: 50MWth to 770MWe Experience applied to MSAR improvements. Diesel Engines (Marine & Power) MSAR is proven in Wärtsilä 4-stroke diesel engines. JDA with Maersk commenced in 2008 to demonstrate MSAR use in large 2-stoke diesel propulsion engines. Successful laboratory and land-based tests ( ) leading to sea-borne 2014 Proof of Concept vessel tests. Interim LONO received from Wärtsilä for Flex Engine Types as result of Operational LONO Trial with Cepsa & Maersk 2016/17. Industrial Applications MSAR emulsion fuel is an option as a cheaper alternative in any fuel oil application; kilns, boilers, fired heaters. Including refining, mining and cement industries. IRPC Houston 12

13 MSAR Global Applications Summary Complementary Solutions Refinery heaters and boilers. National Oil Company synergies to provide MSAR for Marine & Power. Upstream & petrochemical residue opportunities. Marine Term supply options with bunker buyers to further improve scrubber economics. OEM (MAN & Wärtsilä) approvals for MSAR use alongside scrubbers. Power Opportunities for KSA PowerGen supply KBPD HFO, as well as elsewhere in ME, Asia. MoA signed with JGC Corporation to develop MSAR projects in Japan and elsewhere. MoU signed with Freepoint Commodities to jointly pursue projects in the Americas, Asia and worldwide. Potential funding of emissions control equipment. IRPC Houston 13

14 MSAR End-User Incentives Values based on Mitsui Futures, FOB Singapore 2020, as of 09/13/18* Example: Marine, VLCC Assumptions 30,000 kw installed engine power 50% engine load 185g/kWh SFOC Example: Power, Boiler MSAR fuel system on vessel $0.4m CAPEX on ship MSAR cost saving vs HFO $0.8m per year ($2,100 per day) Assumptions 400 MWe (Net) 75% load 37.5% efficiency MSAR fuel system at power plant $2.5m CAPEX at Power Plant MSAR cost saving vs HFO $39m per year ($15/MWh) IRPC Houston 14

15 Environmental Benefits BURNING HFO: 1. Energy Savings ümsar is stored & transported at ambient temperatures (>25 o C) With MSAR : Tiny droplets of residue are dispersed in water MSAR : 5-10 micron droplets 2. Efficient Combustion ücomplete Carbon burnout = lower dust emissions = less Black Carbon 3. Lower NOx Emissions üwater reduces the combustion temperature = >20% lower NOx emitted 4. Lower CO 2 Impact üconsiderable CO₂ emission savings of 6% CO₂ using EGCS vs. <0.5%S fuel. Source: Concawe Report 1/13R (EU Refineries) 2013 IRPC Houston 15

16 Summary MSAR project benefits: Industry participants: Improve refinery distillate yields. Low CAPEX + Short lead time, Quick pay-back Cheaper fuel with environmental benefits. Commercially proven technology. MSAR project options: Standalone projects for semi-complex refineries. Solution for future heavier residue streams that result from 2020 upgrading projects (e.g. SDA pitch, UCO). An interim solution to take advantage of 2020 spreads (between LS/GO and HSFO). IRPC Houston 16

17 26th September 2018 IRPC - Houston MSAR Technology - Emulsion Fuel for Power Generation, Marine Bunkers & Refinery Uses Thank you- questions welcome! Further info available: or info@quadrisefuels.com

18 Plug & Play Refinery Technology 1 Oil residues are taken direct from refinery rundown lines and cooled to achieve the required viscosity o C typically) for the colloid mill. Semi-complex Refinery Crude Premium fuels 2 Water, together with proprietary additives, is added to the residue in a high-speed colloid mill under pressure. Water & Additives 2 Residues Bitumen 1 Fuel Oil MSAR Unit 3 3 The mixture is processed in the mill and cooled to provide a highly stable oil-in-water fuel oil equivalent (~200cSt at 50 o C) that can be run down to existing fuel oil tanks. Fuel Oil Market IRPC Houston 18

19 Refinery economics (2020 example) MSAR vs HFO = [ HFO value distillate savings + additive costs ] x Net Calorific Value Adjustment Values based on Mitsui Futures, FOB Singapore 2020, as of 09/13/18* Step 1 Derive the value of the residue per ton, based on value of HFO less the cost of distillates (LCO) Step 2 Calculate the cost of MSAR (residue + water + additives) Step 3 Adjust for lower calorific value and compare savings like for like vs HFO. Step 4 MSAR value to be shared, (assumed 50% to refinery) IRPC Houston 19