EST technology: an advanced way to upgrade the bottom of the barrel G. Rispoli

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EST technology: an advanced way to upgrade the bottom of the barrel G. Rispoli OMC 2015 WORKSHOP: ADVANCED PROVEN TECHNOLOGIES INCREASE PRODUCTIVITY QUALITY, SAFETY AND SECURITY Ravenna, 26th March 2015

1 2 EST: the answer to market needs First EST Commercial Unit at eni s Sannazzaro Refinery 3 EST results and operation experience 4 Conclusions

Bottom of the Barrel conversion Current C-rejection technologies (i.e. Coking) do not provide complete bottom of the barrel conversion H/C 1.3 H/C 1.9 + 4% wt. Hydrogen - 24% wt. Carbon Over 100 million tons of petroleum coke produced annually world-wide

What is EST? EST (Eni Slurry Technology) is a proprietary new process for heavy feedstock conversion & upgrading Petroleum Residues Heavy Oils EST Tar Sands Bitumen Bottomless Syncrude D API > 20

Slurry Reactor Fractionation System What is EST? EST is a hydrocracking process based on two unique features: 1. Nanodispersed (slurry) non ageing catalyst 2. Homogeneous & isothermal slurry bubble column reactor H 2 Rec. Gas Reaction Products The recycle of unconverted heavy ends Refined products H 2 Cat prec Catalyst & Residue (SCO) Purge allows the total conversion of the bottom of the barrel to good quality middle distillates (feedstock conversion >97%) Feed Recycle EST can easily handle very heavy feedstock

EST Meets Fundamental Needs of Refining Industry Eni Slurry Technology (EST) is a new technology for the full conversion of the bottom of the barrel to distillates The availability at industrial level of EST enables the oil industry to solve crucial needs: Meet the declining demand of Fuel Oil converting surplus of Refinery Residues into Distillates (Zero Fuel Oil - zero coke Refinery) Meet the increasing demand of cleaner distillates without increase of the CDU capacity Increase the refinery flexibility to supply of heavier crudes In this context, EST allows a better use of the conventional oil resources and promotes the use of non-conventional oil resources such as heavy and extra-heavy oils and oil-sands bitumen

Sulphur in Marine Fuels: towards new specifications New maritime regulations coming into effect starting in 2015 significant reduction of residue demand Marine fuels Sulphur standards : key steps March 2014: the SECAs established to limit SOx and particulate matter emissions are: 1. Baltic Sea area as defined in Annex I of MARPOL 2. North Sea area (including the English Channel) as defined in Annex V of MARPOL 3. North American area (entered into force on 1st August 2012); and 4. United States Caribbean Sea (entered into force on 1st January 2014) (Source: MARPOL 73/78, Annex VI Regulations for the Prevention of Air Pollution from Ships)

EST Sannazzaro: the industrial project T o p p i n g TIP VACUUM 1/2 EST HDS1/2 Reformer2/3 HDC1/2 VSB ROSE MTBE FCC HDS3 IGAS ALK LPG Gasoline Kero Diesel Syngas O.C. Bitumen Pitch O I L M o v 8 e m e n t

Integration of EST Complex in the Sannazzaro Refinery: Total refining capacity 11Mt/y

EST Complex Lay-out Auxiliaries units: -H2 unit 100 knm3/h -(running since Jan 2013) -SRU 160 t/d Slurry reaction unit 23000 bbl/d Upgrading process unit Bunkerized control room (in operation since Jan 2013) PTU

EST Sannazzaro today

EST start-up and first year of operation The EST hydrocracker unit has successfully and safety begun operations and is producing high quality distillates (oil-in: 2013, October 14 th ) Syncronized start up / operation of all the auxiliary facilities associated with the Unit First results confirm the proper design of the plant: major equipments provided the expected performance (as per design) some minor adjustments in order to improve the global EST plant performance

EST first results Slurry reactors: perfectly isothermal and homogeneous (axial DT <2 C and radial DT <0.1 C) Gas/liquid separation: High efficiency of gas-liquid separation (no foaming occurrence) Conversion: EST plant has run at nearly 70-80% of design capacity (there are market constraints related to the reduction of purge volume accepted by cement factories compared to the their planned absorption capacity). Feed conversion up to 95-96% without coke formation Product slate and quality: Results are in good agreement with the expected product distribution as calculated by process simulation (based on EST Demonstration plant data). Euro V diesel yields is higher than 40 wt.%

Temperature [ C] EST results: Slurry reactors temperature profile 435 430 425 DT=2 C 420 415 410 18/10/2014 20/10/2014 22/10/2014 24/10/2014 26/10/2014 28/10/2014 30/10/2014 01/11/2014 03/11/2014 05/11/2014 07/11/2014 09/11/2014 11/11/2014 13/11/2014 T int. Liv. A [TXI-468] T int. Liv. B [TXI-467] T int. Liv. D [TXI-465] T int. Liv. E [TXI-464] T int. Liv. G [TXI-462] T int. Liv. H [TXI-461]

EST results: product yields wt. % 45 40 35 30 25 20 15 10 5 d 15 C : 1026 g/cm3 Typical EST Feed C5-Asph: 15.4 wt.% S: 2.9 wt.% Ni: 88 ppm N: 0.6 wt.% V: 199 ppm CCR: 20.1 wt.% Fe: 41 ppm Euro V diesel Desulphurized naphtha Cat feed 0.1% S (or marine fuel 0.1% S) Pitch 0 Expected EST Unit Data C1-C2 LPG Naphtha Diesel VGO Purge

EST second run A power failure occurred in Sannazzaro refinery (about 3 months after start-up), causing the upset of Steam Reformer plant Following this event, the decision of EST shutdown was taken, also supported by the following reasons: the adverse scenario for cement industry that limited EST maximum production (due to reduction of purge volume accepted by cement industry whose capacity in Italy dropped by 40% in the last few years) the opportunity to take advantage of maintenance activities to improve plant reliability, efficiency and operating procedures New start up of EST unit: June 2014 Unit operating in a very stable mode Still present constrains in cement market Part of the pitch is sent to Sannazzaro existing gasification unit

Conclusion The first EST hydrocracker Commercial unit is in operation at eni s Sannazzaro refinery Key success factors: Demonstrated reliability High conversion to valuable products No coke formation/production Option to convert the Bottom of the Barrel overcoming conversion limitations Environment-friendly technology High energy efficiency Excellent option for natural gas valorisation Further improvements of the technology are in the pipeline as a result of first year of operation Now, since the successful start up of the Unit, eni has started to license EST technology

Thank you for your attention 18