Global drivers and process innovation for ‘unconventional’ conversions

Mark Howard, VP Conversion Technology Centre

September 25th 2014

Hull Research & Technology Centre- a history of new process development

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1990s 2000s

Acetic acid/anhydride

CATIVATM

Acetic acid

Specialtyprocesses

LEAPTM

fluid bed VAMFixed bed VAMenhancement

AVADATM

ethyl acetateFT

pilot work

SaaBreTM

acetic acid

HummingbirdTM

ethylene

Biobutanoldemonstration(with Dupont)

2010s

Global drivers for ‘inter-value’ chain conversion opportunities

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Globally high crude oiland product prices..strong diesel growth..fuel oil in steep decline

Global drivers for ‘inter-value’ chain conversion opportunities

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Globally high crude oiland product prices..strong diesel growth..fuel oil in steep decline

Low cost natural gas

Global drivers for ‘inter-value’ chain conversion opportunities

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Globally high crude oiland product prices..strong diesel growth..fuel oil in steep decline

Low cost natural gas

Indigenous coal

Global drivers for ‘inter-value’ chain conversion opportunities

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Globally high crude oiland product prices..strong diesel growth..fuel oil in steep decline

Low cost natural gas

Indigenous coal

Residue upgrading incentives

Global drivers for ‘inter-value’ chain conversion opportunities

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Globally high crude oiland product prices..strong diesel growth..fuel oil in steep decline

Low cost natural gas

Indigenous coal

Biofuels mandates

Global drivers for ‘inter-value’ chain conversion opportunities

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Globally high crude oiland product prices..strong diesel growth..fuel oil in steep decline

Low cost natural gas

Indigenous coal

Biofuels mandates

Low cost biomass

Global drivers for ‘inter-value’ chain conversion opportunities

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Globally high crude oiland product prices..strong diesel growth..fuel oil in steep decline

Low cost natural gas

Indigenous coal

Biofuels mandates

Waste incentives

Low cost biomass

Veba Combi-Cracking (VCCTM)

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Resid/Pet Coke

Hydrogen Additive

< 5% Residue

Hydrogen recycle

Disposal

Slurry Phase Hydrocracker Hot Separator

Trickle Bed Hydrotreater /

cracker Distillation

Heavy Oil

Naphtha (S<1ppm)

Diesel (S<10ppm, cetane >45)

Vacuum Gas Oil (S<100ppm, <1ppm metals)

Naphtha (S<1ppm)

Diesel (S<10ppm, cetane >45)

Vacuum Gas Oil (S<100ppm, <1ppm metals)

• High overall conversion of >95% (+525oC material). Asphaltenes conversion is typically >90%

• Simple flow sheet with conventional refinery equipment.• Technology uses a low cost additive rather than a catalyst;• BP estimates that VCCTM Technology will outperform delayed

cokers when benchmark crude prices exceed $50 per barrel

Yulin VCCTM plantShaanxi Yanchan Petroleum Group (YCPC)

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Fischer Tropsch

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CHEMICALS ALTERNATIVES

STANDARD FUEL

Natural Gas

Coal

Biomass

Resid / Pet Coke

Syngas Generation

Fischer-Tropsch Syngas

Conversion

UPGRADING Hydrotreater /

cracker

HydrogenTails Gas Recycle 20%

Naphtha

80%Diesel

Provides a low risk, competitive technology

•Reforming, Gasification and ASU are all widely deployed and practised

•BP’s FT conversion is performed using a standard fixed bed multitubular reactor. Proven catalyst with more than 16,000 hrs operational experience

•BP Product Upgrading uses commercially-available catalyst, leveraging BP’s significant operational know-how in hydrocracking

Nikiski FT 300bbl per day demonstration plant

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HummingbirdTM

Ethanol dehydration technology

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(bio/chemical/ hydrous/

anhydrous)

Reactor Separator Purification

Recycle

Polymer grade

ethylene

Organic wasteAqueous waste

Widely available

BP proprietary technology

Ethanol

The HummingbirdTM process has the following advantages over existing technologies:

•Lower temperature and high selectivity catalyst gives ultra-selective carbon conversion and overall yields

•No catalyst regeneration

•Lower CAPEX and OPEX than competing technologies

HummingbirdTM pilot plant

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…so what about Europe?

• Basic chemicals increasingly challenged by feedstock costs….

• ..but look out for ‘unconventional’ and ‘renewable’ opportunities

• Providing technology solutions across the world, with ongoing support….

• ..but we will need to compete through innovation

• Not just ‘brand new’ ideas, sometimes ‘old’ ideas in a changed environment

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