Technology And Cost Of Technology And Cost Of Overview Overview - - PDF document

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Technology And Cost Of Technology And Cost Of Sulfur Reduction In Sulfur Reduction In Transportation Fuels Transportation Fuels

Central America Regional Workshop Central America Regional Workshop Fuel Quality Fuel Quality Michael P. Walsh Michael P. Walsh

Overview Overview

• Why Low Sulfur Fuels
• How To Reduce Sulfur in Both Gasoline

and Diesel

• International Experience Regarding The

Benefits and Costs of Reducing Sulfur

500 1000 1500 2000 2500 3000 3500 4000 4500 5000 Sulfur in Fuel (PPM) 0.5 1 1.5 2 2.5 Tons Per Million Gallons

Tons of Directly Emitted PM From Tons of Directly Emitted PM From Diesel Fuels Sulfur Diesel Fuels Sulfur

Derived From US EPA Data

33% 67% 26% 74% 30% 70%

CO/10 HC NOx 0% 10% 20% 30% 40% 50% 60% Compared to 150 PPM Sulfur Percent Increase 500 ppm 800 ppm

Increase in In-Use Vehicle Emissions Increase in In-Use Vehicle Emissions in Bangkok Due To Sulfur in Fuel in Bangkok Due To Sulfur in Fuel (Gasoline) (Gasoline)

Impact on Vehicles Meeting EURO 3 Standards

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45% 94% 0% 5% 16% 33%

HC NOx PM

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

350 ppm 500 ppm

Increase in In-Use Vehicle Emissions Increase in In-Use Vehicle Emissions in Bangkok Due To Sulfur in Fuel in Bangkok Due To Sulfur in Fuel (Diesel) (Diesel)

Impact on Vehicles Meeting EURO 3 Standards

Other Benefits from Sulfur Control Other Benefits from Sulfur Control

• Sulfur reduction reduces SO2 emissions.

– Less sulfate formation in the atmosphere (about 1/3

• f SO2 reacts to sulfate)

– Reduced acid rain.

• Sulfur reduction reduces engine wear.

– Reduction from 2500 ppm to 500 ppm reduces engine wear 10 - 20%; about 33% if starting out at 5000 ppm. – Greater engine wear with infrequent oil change.

• Allows More Advanced Vehicle Technologies
• Retrofit Opportunities

What a refinery does: What a refinery does:

• Converts crude oil to usable products
• Adjusts yields to match product demand
• Adjusts qualities to meet product

specifications.

Typical Refinery Products Typical Refinery Products

• Liquefied Petroleum Gas (LPG)
• Naphtha (for petrochemical feed)
• Motor Gasoline
• Distillates (Jet, Diesel, Heating Oil)
• Lubricants, Waxes
• Fuel Oil
• Asphalt

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3 Crude Oil Characteristics Crude Oil Characteristics – –Sulfur Sulfur

Sweet vs Sour Crude Sweet vs Sour Crude 30000 6500 Fuel Oil 10000 2000 Distillate 4000 500 Jet/Kerosene 400 100 Naphtha Sour Crude (PPM Sulfur) Sweet Crude (PPM Sulfur) Product

Types of Refinery Processes Types of Refinery Processes

• Physical Separation Processes

– Distillation/Fractionation – Extraction

• Chemical Processes

– Cracking/Conversion – Combination/Reformulation – Hydrotreating

Refinery Configuration Refinery Configuration Overview Overview

• Topping – Simple crude separation, no

ability to change yield and quality

• Hydroskimming – Simple crude separation,

no ability to adjust yield. Can increase

• ctane, lower sulfur
• Conversion – Yield adjustment capability

and quality improvement

• Deep Conversion – Large yield/quality

flexibility, fuel oil minimization.

Topping Refinery Topping Refinery

C D U P R O D U C T S Crude 100 MBPD LPG SR Naphta 400 F Kerosene 500 F Diesel 700 F

• Atm. Residue 700+ F

2 30 12 18 37 LPG Naphta Distillate Fuel Oil 1 31 30 37 FG

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4 Hydroskimming Hydroskimming Refinery Refinery

C D U P R O D U C T S Crude 100 MBPD Gas Naph Kerosene Diesel

• Atm. Residue

30 12 18 37 LPG Gasoline Distillate Fuel Oil 3 28 30 37 H D S REF LT Naph TR Diesel 5 18 H T ISOM HY Naph Reformate 25 22 Isomerate 5

Reformer Reformer

• SR Naphtha is hydrotreated and split.
• Heavy part (Heavy Naphtha) is

catalytically processed and reformed to a highly aromatic stream called Reformate.

Advantages: - High octane product

• Hydrogen also a product

Disadvantages: Aromatics are toxic and are limited in clean fuel specs.

C5C6 Isomerization C5C6 Isomerization

• Straight chain paraffins are catalytically

converted to their chain counterparts.

• Advantages: - 10 to 12 numbers octane gain
• Elimination of toxic benzene
• Disadvantage: Product has higher RVP

Diesel Hydrodesulfurization (HDS) Diesel Hydrodesulfurization (HDS)

• Standard Diesel HDS:

– Sulfur is catalytically removed in the presence of hydrogen

• Deep HDS

– Higher activity catalyst and catalyst volume – More hydrogen consumed – High severity, high pressure operation – Loss of diesel yield

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5 Conversion Refinery Conversion Refinery

Catalytic Cracking (FCC) Catalytic Cracking (FCC)

C D U P R O D U C T S Crude 100 MBPD Naph Kerosene Diesel 30 12 18 LPG Gasoline Distillate Fuel Oil 4 44 32 17 H D S V D U TR Diesel Naph Complex ALKY Gas F C C VGO 25 LPG FCC Naph FCC LCO Slurry

Fluid Catalytic Cracking (FCC) Fluid Catalytic Cracking (FCC)

• Vacuum and coker gasoil feeds
• Makes gasoline out of vacuum gasoil (a stream

heavier than diesel).

• Using intense heat (about 1,000 deg F), low

pressure and a powdered catalyst, the cat cracker converts heavy fractions into smaller gasoline molecules

• Product streams typically have high sulfur

content

Alkylation Alkylation

• Combines FCC gas (propylenes/butylenes) with

isobutane to produce a high octane stream called alkylate.

• Catalyst is sulfuric or hydrofluoric acid
• Alkylate is an excellent diluent for other gasoline

blending components.

Diesel HDS and Aromatic Diesel HDS and Aromatic Saturation Saturation

• Necessary for FCC LCO treatment
• 1st stage - requires Diesel HDS
• 2nd stage – aromatic saturation with noble

catalysts

– Process consumes hydrogen – Gains of 17 to 23 cetane numbers are possible

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Hydrocracking Hydrocracking

• Similar and preferably lighter feeds than

cat cracking

• More flexible. Can optionally maximize

gasoline, jet or diesel

• Uses a different catalyst, much greater

pressure than FCC and a lot of hydrogen

• Products have minimal sulfur

Deep Conversion Refinery Deep Conversion Refinery

Catalytic Cracking, Coking & Hydrocracking Catalytic Cracking, Coking & Hydrocracking

C D U P R O D U C T S Crude 100 MBPD Gas Naphta Kerosene Diesel 30 12 18 LPG Gasoline Distillate Fuel Oil 5 47 42 2 HDS V D U TR Diesel Naph Complex ALKY F C C VGO 25 LPG FCC Naphta FCC LCO Slurry C O K E R H K R Naphta Kerosene Diesel Coke Distillate Naph

Visbreaking Visbreaking

• Also vacuum residue feed
• Mild form of thermal cracking. Reduces

viscosity of residue

• Produces small quantity of diesel.

Coking Coking

• Vacuum residue feed
• Thermal cracking process. No catalyst

involved.

• Use heat and moderate pressure to turn

heavy residues to lighter products and coke (a hard coal-like substance used as an industrial fuel).

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Blending Blending

• Blending is the physical mixture of a number
• f refinery streams to a finished product.
• Options include:

– Batch blending via manifolds into a tank – In-line blending via injection of proportionate components into a main stream

• Additives/Improvers such as octane

enhancers, detergents etc. are added before

• r after blending

Gasoline Blending Component Qualities Gasoline Blending Component Qualities

8 7 7.4 5 14 12 RVP, psi 26 65 0.2 2 Aromatics, vol% .5 5.5 0.2 1.2 Benzene, vol% 118 96 93 92 - 98 82 72 Research Octane 2 5 1200 200 Sulfur, PPM MTBE C4 Alkyalte FCC Gasoline Reformate Isomerate Light Naphtha

Clean Gasoline Quality Clean Gasoline Quality Changes Changes

Moderate sulfur reduction Moderate sulfur reduction

• Run crudes with lower sulfur content

– Pricier. Not always possible

• Distillation tailoring/undercutting

– Loss of gasoline volume

• Dilute sulfur with alcohol blending

– Pricy. Availability issues

Clean Gasoline Quality Clean Gasoline Quality Changes Changes

Severe sulfur reduction Severe sulfur reduction

• Hydrotreat naphthas and FCC gasoline

– Higher capital expenditure. Some octane loss.

• Desulfurize FCC feed

– Higher capital cost.

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Gasoline Sulfur Reduction Gasoline Sulfur Reduction Example Example

81 4 Isomerate 87.5 46 48 87.5 215 48 Total 93 10 5 93 10 5 Other 81 50 14 Trt FCC Gasoline 86.5 600 2 86.5 600 16 FCC Gasoline 94 21 93 21 Reformate 66 120 2 66 120 6 Lt Naphtha

Octan e PPM S Vol Low S Octane PPM S Vol Base Blend Stream

Distillate Blending Component Qualities Distillate Blending Component Qualities

Quality

SR Diesel HKR Diesel Thermal Diesel FCC LCO

Sulfur, wppm:

1,000 - 5,000 30 – 50 10,000,-20,000 1,000 -20,000

Gravity, API: 34 44 29

16

Aromatics, vol%

20 10 45 78 PNAs, wt% 10 2 25 53

Distillation, 95% F: 690 690

660 670

Diesel Sulfur Reduction Example Diesel Sulfur Reduction Example

Base, Low Sulfur, Fractionate Base, Low Sulfur, Fractionate

3860 29 1680 33 5000 33 Total Trt Dist. (Severe) Trt Dist. 13000 1 6000 3 17500 3 FCC LCO 5300 13 2000 15 5500 15 Distillate 2000 15 500 15 2000 15 Kerosene

PPM S Vol

Frac.

PPM S Vol

LS Crude

PPM S Vol Base Blend Stream

Diesel Sulfur Reduction Example Diesel Sulfur Reduction Example

HDS, Full HDS, Severe HDS HDS, Full HDS, Severe HDS

20 31 500 32 2360 33 Total 20 31 Trt Dist. (Severe) 500 500 32 870 11 Trt Dist. 17500 17500 17500 FCC LCO 5500 5500 5500 7 Distillate 2000 2000 2000 15 Kerosene

PPM S Vol PPM S Vol PPM S Vol Blend Stream

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9 The Costs and Benefits of Shifting The Costs and Benefits of Shifting To Lower Sulfur Fuels To Lower Sulfur Fuels International Experience International Experience

• US
• Canada
• European Union
• Asia Countries
• China

Estimates of benefits Estimates of benefits

(Source: US EPA RIA, 2000) (Source: US EPA RIA, 2000)

8,300 5,600 2,100 361,400 9.5 million 386,000 17,600 5,500

Emergency Room Visits Restricted activity days Acute respiratory symptoms e.g.: new cases of croup, pneumonia Acute asthma attacks New cases of bronchitis in children

New cases of chronic bronchitis

Number of Annual Cases for All of US 2030

Mortality Hospital Admissions

Assessing Health Benefits of Assessing Health Benefits of US Diesel Fuel and Technology Rules US Diesel Fuel and Technology Rules

• New US EPA rules to reduce diesel fuel sulfur

and engine emissions

– Fuel sulfur from 500 ppm to 15 ppm in 2006 – Reduced PM and NOx emissions in 2007, 2010

• EPA conducted extensive Regulatory Impact

Analyses (2000)

• Accepted by US Office of Management and

Budget

$4 $70 $66 Annual Costs Annual Benefits Net Annual Benefits $0 $10 $20 $30 $40 $50 $60 $70 $80 Billions

Costs and Benefits of Low Sulfur Diesel Fuel (<15 PPM) and Very Stringent Heavy Duty Engine Standards in the US

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Benefits Costs Net Benefits $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 Billions Tier 2 Standards & Low Sulfur Gasoline HD Diesel Standards & ULSD Off Road Diesel Standards & ULSD

Results of Three Major US Rules Results of Three Major US Rules

6/4/2005 6/4/2005 38 38

Health Effects Consensus Findings

(Independent Expert Panel)

Reducing sulphur to 30 ppm improves the health of Canadians

2,100 2,400 6,800 3.3 million 1.6 million 11 million 93,000 7,600

Emergency Room Visits Restricted activity days Acute respiratory symptoms e.g.: new cases of croup, pneumonia Asthma symptom days New cases of bronchitis in children

New cases of chronic bronchitis

Number of Cases Extrapolated for All of Canada 2001 to 2020

Health Effects

• f Pollution

Mixture May Be Much Greater than Particles Alone

Mortality Hospital Admissions Canadian Study of Health Impacts of Low Sulfur Gasoline

1 2 3 4 5 6 7

costs or benefits (in billions of $CDN)

30 ppm

sulphur level

Costs and benefits of reduced-sulphur gasoline1

(in terms of net present value ; 1994$) Costs Benefits Net benefits

1 costs and benefits

calculated for the years 2001 - 2020. Costs calculated country wide; benefits for seven cities including TORONTO, MONTREAL, VANCOUVER, HALIFAX, WINNIPEG,

• ST. JOHN, AND

EDMONTON

$0.11 $0.29 $0.29 $0.61

Gasoline Diesel $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 Cents per Liter Low Estimate High Estimate

EU Estimate of Costs to Reduce EU Estimate of Costs to Reduce Sulfur From 50 ppm to 10 ppm Sulfur From 50 ppm to 10 ppm

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Singapore Malaysia Thailand Philippines Indonesia Myanmar Brunei India Pakistan Bangladesh Sri Lanka China

0.5 1 1.5 2 2.5 3 US Cents per Liter 10 50 250 350 500 1,000 3,000

Cost of Reducing Sulfur in Diesel Fuel in Asia

(High Sulfur Crude)

Source: Enstrat International

Gasoline and Diesel Reformulation Costs Gasoline and Diesel Reformulation Costs in China by Scenario in China by Scenario

• 0.5

1.0 1.5 2.0 2.5 3.0 3.5 4.0 5

• 2

E u r

• 2

5

• 3

E u r

• 2

& 3 5

• 4

E u r

• 3

5

• 5

E u r

• 2

& 4 8

• 6

E u r

• 3

& 4 1

• 7

E u r

• 3

1

• 8

E u r

• 3

& 4 1

• 9

E u r

• 3

& 4 1

• 1

E u r

• 3

& 5 1

• 1

1 E u r

• 4

1

• 1

2 E u r

• 5

US Cents/gallon

• 1.0

2.0 3.0 4.0 5.0 6.0 US Cents/Gallon total

• App. Cost cents/gal gasoline
• App. Cost cents/gal diesel

Total cost, cents/gal

Costs for China Costs for China

• Costs ranged from 2.8 to 3.2 c/g inclusive in

2005, 4.04 c/g in 2008, 4.7 c/g in 2010 except for EURO5 5.2 c/g.

• Diesel costs were roughly twice gasoline costs.
• Costs are well within acceptable parameters by

US and European standards.

• Benefits may include emissions, fleet

maintenance, fuel harmonization, ability to export

Conclusions Conclusions

• Low Sulfur Fuel Reduces Emissions
• Refinery Processes For Reducing Sulfur

From Both Gasoline and Diesel Are Well Known and Improving

• Costs Are Quite Reasonable
• Benefits Far Outweigh The Costs