DECARBONAZING REFINING INDUSTRY rev2.pptx

Decarbonziation of Oil&gas sector. Technologies and trend.
IOX21 and MOBIWAT

1. Decarbonizing Refining Industry GRETECHECN Research Group

2. Refining Industry Overview: The Problem GRETECHECN Research Group

3. Industry Context Global oil and gas refining emissions were estimated at 988 million metric tons of carbon dioxide equivalent ( MtCO₂e ) in 2023 – a year-on-year increase of 1.9 percent. Emissions from this sector plummeted nine percent in 2020 as the COVID-19 pandemic hit global oil and gas demand. In total, oil and gas refining has emitted almost nine GtCO₂e between 2015 and 2023. Refinery sector Scopes 1 and 2 around 5-8% of global CO 2 emissions Refinery industry overview. Key messages Refinery industry overview

4. Simplified modern refinery. Scheme (I) Source: World resource institue

5. Stationary combustion, which involves burning fossil fuel for heat, is the largest source of refinery emissions, accounting for  63%  of the sector’s 2018 emissions. Process emissions take second place at 31% and are split between its two largest sources: the fluid catalytic cracker (FCC), which “upgrades” oil into usable fuel like motor gasoline; and the steam methane reformer (SMR), which uses steam and pressure to convert methane into hydrogen. These sources account for 22% and 9% of total sector emissions, respectively. The remaining 6% come from miscellaneous emissions from minor processes and other assorted sources. Large Refinery Emission sources. Source: World resource institue

6. Decarbonization Technologies

7. Refining. Decarbonization levers(I). Source : 2018 EPA Flight, 2018 EERE Manufacturing Energy and Carbon Footprints report , 2022 IEDO Report , DOE Natural Gas Supply Chain report , Energy Environ.Sci ., 2020,13, 331-344, 2020 USGS, IHSMarkit data, Chemical Emissions Model

8. Source: EIA, EPA, IEDO Industrial Decarbonization Roadmap, IEA, press search, company sustainability reports, expert interviews Refining. Decarbonization levers (III).

9. Refining. Decarbonization levers(IV). Source: EIA, EPA, IEDO Industrial Decarbonization Roadmap, IEA, press search, company sustainability reports, expert interviews

10. Green Hydrogen.

11. Hydrogen Production . Routes & Classification . Black hydrogen  is produced by coal gasification of black coal (bituminous). Brown hydrogen  is produced by coal gasification of brown coal (lignite) or biomass gasification. Grey hydrogen  is produced by steam methane reforming, partial oxidation, or autothermal reforming of natural gas and oil. Blue hydrogen  is produced as black, brown, or grey hydrogen with the added application of carbon capture, utilization, and storage (CCUS) methods or technologies. Turquoise hydrogen  is produced by methane pyrolysis. Yellow hydrogen  is produced by water electrolysis using electricity from the grid regardless of how this electricity has been produced. Pink hydrogen  is produced by water electrolysis using electricity from nuclear power. Purple hydrogen  is produced by thermochemical water splitting using energy from nuclear power.  Red hydrogen  is produced by high-temperature catalytic splitting of water using energy from nuclear power.  Green hydrogen  is produced by water electrolysis using renewable energy sources.  White hydrogen  is naturally occurring hydrogen found as a free gas in layers of continental crust, deep in the oceanic crust, or in volcanic gases, geysers, and hydrothermal systems. . . .

12. Green Hydrogen Technologies. The different technologies are distinguished based on the electrolyte and temperature of operation, which in turn will guide the selection of different materials and components.

13. Green hydrogen – Generic PFD Alkaline technology . Source: IRENA (2020)

14. Green hydrogen - GENERIC PFD. PEM technology . Source: IRENA (2020)

15. Green hydrogen - GENERIC PFD.SOEC technology . Source: IRENA (2020)

16. Industrial electrification

17. Industrial electrification . Refining industry   Process heating: - Furnaces -Steam boilers -Gas fired heaters -Steam cracking furnaces, there are on-going developments to scale-up electrical cracking furnaces which represent the largest CO 2  emitters   Steam operated equipment electrification Steam-operated equipment, such as steam ejectors used for vacuum operations and turbines used as compressors drivers, can be electrified Electric motors coupled with variable speed drives (VSD) are much more energy-efficient (around 90-95% energy efficient) than their steam turbine counterparts (as low as 25% energy efficient). 

18. Alternative energy sources

19. Hydrogenation production routes .

20. Hydrogenation generic PFD(I).

21. Hydrogenation generic PFD(I).

22. Heat integration Historically, the chemical industry has wasted large amounts of residual energy in the form of “off heat”—heat that is actively cooled down for disposal. This was primarily driven by the low cost of steam generation and the lack of technologies, such as heat pumps, to recycle low-energy residual heat. However, the chemical parks we studied determined that they could connect heat sinks and sources, leveraging digital twins and heat pumps to efficiently use residual heat. Amplified by the gas shortage demand, several heat integration solutions have only recently become available. Among these technological solutions are high-temperature heat pumps, steam mechanical vapor recompression, and heat separation Source: Decarbonizing the German chemical industry | McKinsey

23. Flaring reduction and utilization of APG

24. Flaring reduction and utilization of APG Steps for flaring reduction Comprehensive Flare System Assessment: Process Optimization: Gas Recovery and Recycling: Flare Gas Monitoring: Safety Measures:. Regulatory Compliance: Energy Recovery: Education and Training: Continuous Improvement: Source:The future of refining. BP

25. Carbon capture

26. Carbon capture(I ) Source: IEA .2012a. Energy technology perspectives

27. Key players . Post combustión.

28. Multiple sources (20 or more stacks ) CO2 concentration variable with source and feedstock Capture operation of the same type tan usual refinery operation Plot plan avialbility is a concern Additional safety issues mainly related to use of pure oxigen Alreday includes process units using the same technique that capture units Refineries HPU (SMR) • Flue gas with medium CO 2 concentration • Capture needed in pre and post combustion • Difficult integration in the existing facility HPU (ATR) • Capture during pre combustion (high pressure) FCC • Flue gas with medium CO 2 concentration • Intensive flue gas precleaning needed Refining CCUS. Different issues and concerns

29. Refinery carbon sources . Characteristics . CCS will mostly be retrofit , with plot space issues . Multiple capture technologies likely needed . Some easy CO 2 but not a lot , since pure CO 2 vents from Hydrogen plants are disappearing as new PSA based SMR are built . Emerging resource have larger footprint and will increase emmissions . Typical distribution of emissions 10-15% of emissions are caused by fuel combustión for power generation . 35-45% of emissions are caused by fuel combustión in processheaters ( furnaces ) and steam boilers . 30-50% of emissions are single source from chemical units . Source: SAIPEM

30. In those refineries that operate fluidised catalytic cracking (FCC) units, such units can account for 20% to 50% of the total CO 2 emissions from the refinery. Unlike most of the other emissions from a refinery, the emissions from FCCs are process-related rather than combustion-related. During processing, carbon is deposited on the surface of a catalyst powder. The catalyst is regenerated by the oxidation of coke with air. Depending on the process, the concentration of CO 2 in the flue gas typically ranges from 10% to 20%. Two technology options exist for the capture of CO 2 from the FCC: Post-combustion capture, the most mature, and oxy-fuel combustion of the regeneration process, still in development. The potential of both has been compared, and despite the relatively high capital cost of oxy-fuel, the potential of lower operating costs makes it attractive option too CO2 capture in FCC unit Source: SAIPEM

31. CO2 capture in FCC unit . Amine based post combustión.

32. CO2 capture in FCC unit . Comparison between options . Energy consumption is higher for the post- combustión case typically 2.5 -3.5 GJ/ton vs 1.5-2.5 GJ/ton Captial cost is higher for oxi- firing mainly due to the cryogenic separation . CO 2 avoidance is potentially lower for oxi- firing Post-combustión requires plot plan close to FCC unit ( order of 50x50 m) oxy-firing does not . If 96% CO 2 purity is accceptable . Oxi- firing requires safe location for air separation unit and safety measures for purr oxigen piping .

33. CO2 capture in Hydrogen production ( SMR). Hydrogen is most commonly produced through SMR. Traditionally, hydrogen produced in SMR plants was purified using chemical absorbents such as amines MDEA , resulting in high purity CO 2 However, in the past three decades has emerged a trend towards separation using PSA . In the current refining market, PSA offers two advantages over amine chemical absorption: 1) PSA produces very high purity hydrogen, and 2) the overall energy efficiency of the hydrogen production process is increased compared with chemical absorption. The change to PSA has been driven by the market need of high purity hydrogen. But PSA results in much lower concentration CO 2 in streams which contain 20-30% impurities. The impurities include H2, CO 10 and methane (CH4) making the gas suitable for reuse as fuel in the SMR furnace, but reducing the feasibility of CO 2 capture and increasing the cost.

34. CO2 capture in Hydrogen production (ATR). For large volumes , autothermal reforming ( ATR) is generally lower cos tan SMR. For a CO 2 constrained environment ATR is always lower cost when capture is required . CO 2 avoidance cost 50% lower for ATR/MDES vs SMR/PSA SMR/MDEA avoidance cost os 30% lower thanATR /MDEA , but only process side CO 2 is captured Source: Chevron

35. Overall apporach to carbon capture in the refinery . Hydrogen fired refinery . Current limitations to an hydrogen fired refinery . Gas turbines may only burn fuels containing up to 50% of hydrogen . Advanced burners for 70-85% concentration are under development and shoud be available commercially According to vendors single line ATRs may be built up to about 500000 Nm3/h of hydrogen . That would be enough for several refnieries Two paralll lines might be alternatively used . Hydrogen burning in boilers and heaters is technically feasible . But needs to be demonstrated at the tens of MW scale before comercial implementation . Source: SAIPEM

36. Overall apporach to carbon capture in the refinery . Oxigen fired refinery . Current limitations to an oxigen fired refinery . Oxigen fired refinery would only mitigate FCC, heaters and boiler emissions . Hydrogen production and power generation would need separate capture 2-4 paralllel air separation trains may be neeed FCC regenerator oxi- firing still needs to be proved . Source: SAIPEM

37. Acctions by key companies . Shell Source: Shell

38. Acctions by key companies . Exxon 2030 plans are expected to result in a 20% 30% reduction in corporate-wide greenhouse gas intensity, including reductions of 40%-50% in upstream intensity, 70%-80% in corporate-wide methane intensity and 60%-70% in corporate wide flaring intensity. These plans apply to Scope 1 and 2 greenhouse gas emissions from our operated assets versus 2016 levels. With advancements in technology and the support of clear and consistent government policies,Exxon aim to achieve net-zero Scope 1 and 2 greenhouse gas emissions in our operated assets by 2050. Source: Exxon

39. Acctions by key companies . Repsol Source: Repsol Leading the energy transition in line with the objective of climate neutrality in 2050

40. Acctions by key companies . Petronash Source: Petronash

41. Glossary BAU Business-as-usual CaCO 3 Calcium carbonate CaO Calcium oxide CapEx Capital expenditure(s) CBAM Carbon Border Adjustment Mechanism CCUS Carbon capture, utilization, and storage CO Carbon monoxide CO 2 Carbon dioxide CO 2 e CO 2 equivalent, using global warming potential as conversion factor EBITDA Earnings before interest, taxes, depreciation, and amortization ETS Emissions Trading System EPD Environmental Product Declarations EU European Union FMC Federal Materials Council GCCA Global Cement and Concrete Association GPP Green Public Procurement GSA General Services Administration Gt Gigatonne (billion metric tonnes) GWP Global warming potential H 2 Hydrogen H 2 O Water IDDI Industrial Deep Decarbonization Initiative IEA International Energy Agency IRA Inflation Reduction Act LCA Life Cycle Assessment Mt Megatonne (million metric tonnes) MTPA Million tonnes per Annum NZE Net-zero emissions O 2 Oxygen OpEx Operational expenditure(s) PCA Portland Cement Association RMC Ready-mix concrete SCM Supplementary cementitious materials US United States

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