9e Lustrum VKRT Oils, A surprising impact on rubber 12 November 2010,Vaals Rogier van Hoof General Manager Benelux 1
Agenda Nynas company profile Oils for rubber vs. rubber for oil Global refining trends impact on oils for the future Main drivers Impact on the refinning industry Impact on the rubber industry 2
Nynas company profile 3
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Nynas the different oil company Two business units: Nynas Naphthenics and Nynas Bitumen Nynas is a world leader in the global market for naphthenic specialty oils and one of the largest European suppliers of bitumen Founded: Turnover: Employees: 5 1928 3.0 Billion USD Around 900 in more than 30 countries all over the world
We re all around you 6
Our specialised oil applications Bitumen applications Paving grades Performance asphalt Surface treatment Cold paving technology Industrial applications 7
Our specialised oil applications Specialty oils Tyre oils Base oils Process oils Transformer oils Insulating Oil Management 8
A global business We concentrate on specialised oil applications. We are over 900 employees with specialist knowledge. 9
Our vision Shoes illustration "Through the world-class dedication of our people, Nynas will be the best longterm partner in specialised oil applications, doubling the business every five years. 10
Oils for Rubber vs Rubber for Oil 11
Rubber formulation SBR 12 Carbon Black Process oil Additives
Perspective on tyre oils for the average fuel refiner Fuel Gas Coke Asphalt Chemical Feedstock Lubricants 13 Other Lubricants Tyres Non Tyres Tyre oils
Tyre oils: what about DAE? DAE 14
Tire Labeling for Consumers 15
Tire Labeling: Key Performance Parameters Rolling Resistance (Fuel Economy) Wet Grip (Road Safety) Noise Emissions Tread Wear 16
Global refining trends Impact on oils for the future 17
The main drivers for most oil refineries No 1 : FUELS No X : LUBRICANTS 18 ( MOTOR OILS )
Speciality orientation Typical oil company 17% Specialty oils 12% Fuel 96% Fuel 71% Bitumen 4% Bitumen, specialty oils 19
Main drivers Production of fuels is favored, regarding production schemes and crude selection (98 % of all crude's are used for fuel production) Motor oils evolution will expel extracted oils (or Group I ), due to low performance Instead, motor oils will be produced based on modern hydrotreatment processes ( Group II and Group III ) Extraction is neither flexible, nor economic Many extraction refineries have already or will close The gap created is presently fulfilled by opening new technology units 20
Trends in fuel refineries Investments in hydrocracking units Production of high quality fuels, as required by legislations Production of high quality motor oils (Group II and III), due to new motor oil specifications Low production costs / High quality products Investments in vis-breaking units Conversion of heavy petroleum fractions into fuels Closure of solvent extraction units Oils have too low quality oils (Group I), which do not meet new motor oils specification High production costs / Low quality products 21
Extraction (Group I technology) Aromatic compounds are removed from the oil by using a polar solvent (e.g. sulphur dioxide, furfural) ca(%) D = distillate R = raffinate E = extract 22 20-25 5-12 > 40
Hydrotreatment (Group II/III technology) To decrease content of heteroatoms (S, O, N) To decrease content of polycyclic aromatics To convert these molecules into desired molecules + hydrogen 23
Volumes (Mt) Global base oil outlook 45 40 35 30 25 20 15 10 5 0 2007 Group III Group II Group I 2008 2009 Decline of Solvent Extraction 2010 2011 2012 Ref: SBA Consulting LLC 2008 24
Different types of oils Group I Group II Group III Group IV Synthetic oils Paraffinic oils Naphthenic oils Aromatic oils Group V 25
Base oil categories (or API groups ) Group I Group II Group III Group IV Conventional (Solvent Extraction) Processing Severe Hydrogen Processing Severe Hydrogen Processing / Wax Isomerization Oligomerization of Decene Improved quality for motor oils! Group II and III required for EURO IV and V 26
Group I 27 Group II Group III Group IV
API Classification of Paraffinic Base Oils Group I Group II Group III <90% >90% >90% Sulfur >0,03% <0,03% <0,03% Viscosity index (VI) 80-119 80-119 120 Refining degree Solvent refined and/or Hydrotreated mildly hydrotreated Saturates and/or and and Hydrotreated Difference between Group I and Group II based on degree of refining Difference between Group II and Group III based on VI 28
Paraffinic Group I refining Solvent extraction Crude P ro c es s o ils MES SN150 SN500 Base oil (Group I) Dewaxing Fuel Kerosine Atm. distillation Wax DAE Solvent extraction TDAE Deasphalting Solvent extraction Dewaxing Pitch RAE TRAE Wax Vacuum distillation 29 Brightstocks
(Future) refining Currently used in Rubber Solvent extraction Crude Dewaxing Fuel BUT!!! NOT NEEDED IN MODERN MOTOR OILS Kerosine Atm. distillation Deasphalting Solvent extraction Dewaxing Obsolete in future Units! Vacuum distillation Hydrotreating Unit 30 Group II oils NEEDED IN MODERN MOTOR OILS
Refinery viscosity grades Typical yields Typical tyre oil and rubber oil 31 API group Light neutral Medium neutral Heavy Neutral Bright stock Group 1 38% 13% 33% 16% Group 2 55% 25 % 20% No Group 3 80% 20% No No GTL 80% 20% No No
Impact on rubber industry: Conclusions Group I 1:1 replacement is diffecult Replacement in EPDM by Group II hydrotreated, Group II oils are a perfect fit for EPDM compounds Group II, Less solvency power and lower viscosity Currently used high visocity solvent extracted grades will become specialties What will the future bring? Choose carefull what you will test, some plasticizers will not be available on midlong term Group I shutdowns will reduce availability of products 32
Dank u / Thank you 33
Crude oil: a speciality on its own 34