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August 6, 2020
MSAR® - a clean solution to a global problem
PRESENTATION TO SPE ECUADOR
2
A UNIQUE
SOLUTION
Quadrise supply MSAR® technology & fuel for
upstream and downstream applications.
Proven blending technology is deployed for viscosity control and can be applied to produce a lower cost fuel oil for steam
and power and/or for mobilising stranded assets .
Stable water-based fuel oil or synthetic crude can be
shipped & used in the conventional systems with
only minor changes.
3
PRESENTING
Matthew Bridgeman MEng CEng MIChemEProject EngineerMatthew works as a Project Engineer for Quadrise Fuels, responsible
for projects including process optimization, operational support &
RDI, as well as business development. Matthew has previously worked
for Amec Foster Wheeler on refinery FEED projects and for Tata Steel
working on blast furnace process improvement projects. Matthew is a
Chartered Chemical Engineer with a First Class Master’s degree in
Chemical Engineering from the University of Birmingham.
August 6, 2020
Overview of MSAR® Emulsion Fuel Technology
PRESENTATION TO SPE ECUADOR
5
A UNIQUE
SOLUTION
MSAR® technology eliminates the need for oil diluents
✓ Reducing HFO oversupply by ~30% using water
✓ Saving distillates, providing cheaper energy
✓ Cleaner to use, burns very efficiently with no soot
… through the innovative use of proven emulsion
systems and surface chemistry, building on over a
decade of commercial experience (Orimulsion®)
6
QUADRISE
OVERVIEW
▪ Quadrise team were responsible for commercialising
PDVSA Orimulsion® fuel.
▪ Quadrise developed MSAR® alongside major companies
such as Maersk, Cepsa, GE Alstom, Wärtsilä & MAN.
▪ IP and additives are supplied exclusively by Quadrise and
(formerly AkzoNobel Specialty Chemicals).
Global Alliance
QFI plc is listed
on the London
Stock Exchange
under AIM
companies
>60,000,000
tons of
Orimulsion has
been consumed
worldwide
Al KhafrahHolding Group
Experienced Quadrise Team
7
TECHNOLOGY
6
FUEL
EMULSIONS
ECONOMIC
DRIVERS
Traditional Heavy Oil
MSAR® technology reduces hydrocarbon
viscosity using water and additives,
removing the need to use expensive,
and often imported, distillate fuel.
HFO
Expensive distillate fuels are used to
dilute viscous hydrocarbons in the
production of conventional fuel oil or in
upstream applications to dilute crude to
meet pipeline or engine specifications.
20-40% high
value diluent
60-80%
bitumen
residue
70%
bitumen
residue
30% Water
&
<1% additives
Price of MSAR® < Heavy Oil on a per unit of energy basis
MSAR® Synthetic Fuel
9
PRODUCTION
✓ Viscous crude oils
✓ Refinery residue streams from
VR to SDA pitch
✓ Unstable residues✓ 1,000 – 100,000,000 cSt @ 100°C
Water ~29%Viscous Hydrocarbons ~70%
Additives <1%
✓ Can be derived from
several utility or
wastewater sources
The blending
hardware is based
on proven asphalt
emulsion systems.
100 units+
worldwide.
An MSAR®
Manufacturing
Unit (MMU) is
delivered inside
a 40’ container.✓ <250 cSt @ 50°C✓ A cheaper, cleaner
alternative to HFO.
10
CHEMISTRY
OIL–in–WATER
EMULSIONS (OIW)
OIL
WATER
WATER–in–OIL
EMULSIONS (WIO)
Hydrocarbon
phase
Hydrocarbon
phaseAqueous
Phase pH<5
▪ Primary surfactant –
good rapid placement
and key to interface
during emulsification
▪ Secondary surfactant –
large bulky molecule,
time provides high
dynamic stability, possible
time effects to
equilibrate at interface
▪ Interaction between
surfactant components
▪ Polymer acting to increase
density of aqueous phase,
interactions with other
surfactant components to
achieve complex ‘gel’ phase▪ Formation of
surfactant bi-layer
at interface (over
time)
▪ WIO emulsions regularly occur at oilfields. They can
cause several operational problems in wet-crude
handling facilities and gas/oil separating plants.
▪ OIW emulsions are deployed at the oil refinery for
viscosity control to reduce fuel production costs.
Customers get cheaper energy and lower emissions
(NOx, PM). MSAR® is an OIW emulsion.
11
TECHNOLOGY
12
PROJECT
CASE STUDY;
CEPSA RGSR
▪ A 6 KBPD MSAR® system was installed at CEPSA’s 240 KBPD Refinery Gibraltar San Roque
▪ Modular design based on ISO containers; process units, ancillary, additive storage, laboratory
▪ Quadrise responsible for MSAR® system installation, commissioning, operations & quality control
▪ MSAR® system designed to supply Marine or Power end users, installed in 9 months for <$5m
▪ Processing visbreaker residue from LS and HS opportunity crudes
▪ Proven, reliable, 24/7, continuous operation
Fast-Track, Projects; Cepsa RGSR.
13
PROJECT
EVOLUTION
ScopingHeavy oil stream
identified.
Conceptual design and feasibility
study.
Pilot Testing
Pilot testing at QRF*, additive
formulation optimized
based on end-use application
and product specs.
FEED
Scope developed and design
prepared for implementation.
Quadrise provide client training and experience.
EPC
Implementation/ integration of MSAR® project
in modular, scalable,
containerised units.
OperationsOngoing
support from Quadrise to
maintain optimum
performance.
1-2 months 3-4 months 6-12 months
*QRF = Quadrise Research Facility MSAR® installation at Cepsa Refinery Gibraltar San Roque
A 6KBPD MSAR®
refinery project
costs ~$5m and is
implemented
within 12
months.
Reducing Emissions with MSAR®
14
FUEL
EMULSIONS
COMBUSTION
15
COMBUSTION &
ENVIRONMENTAL
BENEFITS
MSAR® enables
affordable
compliance with
modern
environmental
standards
Reducing Emissions with MSAR®
▪ Lower NOx Emissions
30% less NOx emitted as water reduces the combustion temperature.
▪ Efficient Combustion
When fuel combusts the burn occurs on the droplet surface. MSAR®’s 5-10µm droplets
have ~17x the surface area per mass of hydrocarbon = Complete Carbon Burnout =
Lower dust emissions = less Black Carbon / Soot.
▪ Energy Savings
Minimal heating as MSAR® is stored & transported at ambient temperatures (>25°C).
▪ Lower CO2 Impact
6% CO₂ emission savings of using scrubbers/FGD vs. making <0.5%S fuel in the refinery.
80-100
micron
HFO
80-100
micron
droplet
August 6, 2020
Commercial Experience
PRESENTATION TO SPE ECUADOR
17
REFERENCES
&
EXPERIENCE
Global HFO Applications For MSAR®.Thermal plant references for oil-in-water emulsion fuel use:
Steam Boilers (Power & Utilities)
▪ Significant OIW emulsion fuel experience
with >60 million tons used: 50MWth to
770MWe.
▪ MSAR® proven with “scrubbers”/FGD.
Diesel Engines (Power & Transport)
▪ MSAR® is proven in Wärtsilä medium
speed (4-stroke) diesel engines, >150,000
hours of commercial use.
▪ 2-stroke MAN & Wärtsilä Proof of Concept
trials. Interim LONO on Wärtsilä Flex.
Industrial Applications
▪ MSAR® applications include; refining,
upstream, mining and cement.
▪ Clients; Total/Deer Creek, PetroCanada, Conoco-Phillips,
Paramount Resources.
▪ Portable 18 MM Btu/hr steam generator with equivalent Fuel
oil No.6 burner system; 100 bpd MSAR® for 6 months.
▪ 3,000bpd MSAR® Manufacturing Unit = 350MMBtu/hr steam.
▪ ~20,000 bbls of MSAR® produced and consumed over 6 months.
▪ Successful trial over 6 months. Didn’t proceed to commercial
phase due to low natural gas prices in Alberta.
18
UPSTREAM
EXPERIENCE
Joslyn Creek,
Canada
MSAR® SAGD
Trial 2005-6
MSAR® solution for lower cost energy
19
UPSTREAM
EXPERIENCE
BP Wolf Lake
Pipeline Tests
MSAR® pipeline solutions for viscosity reduction
Potential transport application for stranded
assets, main objective to save diluents or
remove requirement for heated pipeline.
Tested by BP in Wolf Lake (Transoil Project):
▪ Emulsion stability fine during Summer/Winter.
▪ Total of 1800m³ pumped.
▪ No problems with pipeline shut-ins.
▪ No problems seen with pigging.
▪ Interface behaviour established with DilBit.
▪ Water separated by conventional
heater/treater.
Since Transoil:
▪ Several projects assessed for heavy/paraffinic
crudes.
▪ Potential recovery of water/additives for
recycle to emulsion production.
▪ Tailored solution developed by QFI lab (at cost).
August 6, 2020
Potential Applications for Ecuador and Latin America
PRESENTATION TO SPE ECUADOR
▪ Client has licenses to extract sour crude oil (API
12-15°) from Block A and Block B.
▪ Crude oil from Block B is lighter and is used to
blend with Block A output to meet pipeline
specifications.
▪ 96% of the upstream production is associated water
and gas, and the high water cuts result in high
electrical demand from submersible pumps and
field facilities.
▪ A total of 150MWe of electricity generation is
installed at the two blocks, with 60% of demand in
Block A and 40% in Block B. Fuels used are
associated gas, diesel and diluted crude.
▪ Up to 2,000BPD of diesel is produced at a Topping
Unit, which is supplemented with further imports.
21
CASE STUDY 1
Consumption
for upstream
energy
generation.
Base Case
100BPD of diesel is
required for dilution
of 1,000BPD of crude
oil to meet the
700cSt@50°C Wärtsilä
V32LN diesel engine
specification.
Crude Oil Topping Unit
▪ MSAR® can reduce diesel use by
emulsifying the crude to meet the
Wärtsilä viscosity specification,
displacing the 100BPD of diesel
blended into the crude oil.
▪ Costs of importing diesel to the
facility are high, potentially with
an environmental impact.
▪ Treated river water or associated
production water can be utilised
to make MSAR®.
22
CASE STUDY 1
Consumption
for upstream
energy
generation.
Potential
MSAR® Option
1
The Wärtsilä
V32LN model of
engine has been
successfully operated
on both Orimulsion®
and MSAR® with
150,000 hours of
experience.
Crude Oil Topping Unit
23
CASE STUDY 1
Consumption
for upstream
energy
generation and
crude quality
uplift.
Potential
MSAR® Option
2
This application
ensures that the
lowest value energy
source is used for
on-site power
generation.
▪ Another, potentially more profitable option is to produce
MSAR® from the 8-9°API bottoms of the Topping Unit to
supply the energy requirements of both blocks.
▪ This reduces costs and enhances the exported crude oil
value, as the blended crude oil would contain less
bottoms and more diesel, resulting in better refinery
yields and product qualities, e.g. sulphur.
Crude Oil Topping
Unit
24
CASE STUDY 2
MSAR® as a
Pipeline
Transportation
Solution
Base Case – Conventional FDP
▪ The crude oil is over 3,000cSt at 50°C and a heated 200km pipeline or truck option is uneconomic
(high CAPEX) circa 15-20% of MGO/LCO diluent is needed (to meet 300cSt at 50°C).
▪ To produce 12KB/D of low sulphur crude oil, 30% of the extracted crude is required for the steam
flood (to reduce the viscosity sub-surface).
▪ ~2KB/D MGO/LCO needs to be imported, no local sources are available.
▪ The extracted crude oil has a limited value for conventional refining (poor quality specs).
25
CASE STUDY 2
MSAR® as a
Pipeline
Transportation
Solution
Base Case &
Potential
MSAR® Option
1
▪ A client wishes to transport crude oil that is over
3,000cSt at 50°C in pipelines that have been designed
for light/medium crude.
▪ A 200km heated pipeline and truck options are
uneconomic (high CAPEX), so 15-20% of MGO/LCO
diluent is needed (to meet 300cSt @ 50°C).
▪ ~2KBPD MGO/LCO needs to be imported, no local
sources are available.
▪ The extracted crude oil has a limited value for
conventional refining (poor quality specs).
Base Case – Conventional FDP Potential MSAR® option 1
▪ Crude is emulsified using MSAR® technology to
reduce its viscosity so that it can be transported in
the existing pipeline without the need for
expensive diluents or heating.
▪ MSAR® would also provide a solution if pipelines
have been designed for higher flowrates than is
required and minimum velocity is a constraint.
▪ MSAR® is an alternative to flow improvement via
expensive viscosity reducers.
26
CASE STUDY 2
MSAR® as a
Pipeline
Transportation
Solution
Potential
MSAR® Option
2
MSAR® Option 2 – Splitter + MSAR® Opportunity
▪ Install a modular crude oil “splitter” at the production site to process a proportion of crude.
▪ Blend the bottoms product to MSAR® for use in existing steam boilers and local power generation.
▪ Burn the lowest cost energy source (Residue = >500cSt @ 150°C) for steam and power generation.
▪ Blend the light-ends from the splitter into the remaining crude to reduce the viscosity and
improve fuel specifications for export purposes (<0.3% ULSFO, 300cSt @ 50°C).
27
Upstream,
Midstream &
Downstream
Opportunities
QFI expertise & MSAR® technology have a good “fit” with…
Planta
Arizona in
Guatemala
ran on
Orimulsion®
over three
years.
28
CASE STUDY 3
MSAR®
Downstream
Application
Quadrise and EP PetroEcuador are discussing MSAR® for Esmeraldas Refinery.
MSAR® would reduce, and potentially remove, fuel oil cutter imports, whilst supplying the refinery
and potentially domestic and export fuel oil users with a cheaper and cleaner alternative.
MSAR® technology
reduces a refinery’s
fuel oil production
costs by removing the
need to cut viscous
streams with
expensive diluents.1 Viscous residue streams are taken from refinery rundown lines
and transferred to the MMU.
Water and additives are added to the MMU simultaneously.
After cooling MSAR® is transferred to refinery tanks via existing
rundown lines for internal consumption or export.
2
3
Modular units allow for phased expansion as demand grows.
29
CASE STUDY 3
MSAR®
Downstream
Application
Quadrise and EP PetroEcuador are discussing MSAR® for Esmeraldas Refinery.
▪ Esmeraldas Refinery produces fuel from refinery streams and imported cutters.
▪ One potential stream for emulsification at the refinery is a heavy vacuum residue cut from
Oriente crude, with a viscosity of 2,300cSt @ 135°C and ~6°API.
▪ Conventional viscosity blending would require 40-45% cutter in the blend.
MSAR® is sufficiently stable and compatible for use in and supply from the refinery using
existing HFO bulk storage and transportation.
Internal Refinery Fuel Oil Consumers
External Fuel Oil Consumers
30
QUADRISE
SUMMARY
Cheaper, Cleaner Energy :
▪ MSAR® technology makes oil burn efficiently
▪ Reduces costs for consumers and producers
▪ Reduces NOx and CO2, eliminates black soot
Applications in Ecuador :
▪ Lower cost fuel and energy generation
▪ Crude quality uplift & pipeline viscosity solution
▪ Downstream; EP PetroEcuador discussions
Proven Technology :
▪ Produces stable oil-in-water emulsions
▪ Using proven modular, low-capex technology
▪ Industry leading team, IP & global partners