Technologies For Conversion Of Unconventional and Renewable Feedstocks From BP. Philip M J Hill, BP International

Transcription

1 Technologies For Conversion Of Unconventional and Renewable Feedstocks From BP Philip M J Hill, BP International

2 Disclaimer Copyright 2013, 2014 BP plc. All rights reserved. Contents of this presentation do not necessarily reflect the Company s views. This presentation and its contents have been provided to you for informational purposes only. This information is not advice on or a recommendation of any of the matters described herein or any related commercial transactions. BP is not responsible for any inaccuracies in the information contained herein. BP makes no representations or warranties, express or implied, regarding the accuracy, adequacy, reasonableness or completeness of the information, assumptions or analysis contained herein or in any supplemental materials, and BP accepts no liability in connection therewith. BP deals and trades in energy related products and may have positions consistent with or different from those implied or suggested by this presentation. This presentation also contains forward-looking statements. Any statements that are not historical facts, including statements about BP's beliefs or expectations, are forward-looking statements. These statements are based mostly on publicly available information, estimates and projections and you should not place undue reliance on them. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast, suggested or implied in any forward-looking statements in this presentation due to a variety of factors. Factors which could cause actual results to differ from these forward-looking statements may include, without limitation, general economic conditions; conditions in the markets; behaviour of customers, suppliers, and competitors; technological developments; the implementation and execution of new processes; and changes to legal, tax, and regulatory rules. The foregoing list of factors should not be construed as exhaustive. BP disclaims any intention or obligation to publicly or privately update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Participants should seek their own advice and guidance from appropriate legal, tax, financial and trading professionals when making decisions as to positions to take in the market. 2

3 Downstream Technology Programmes 3

4 The CTC s strategic purpose is to develop proprietary technologies aimed at business renewal for BP Strategic themes Access to growth regions and markets Participation options in renewable fuels and materials Enabling value from challenging feedstocks, intermediates and by-products in BP s portfolio Leveraging in-house technology positions and capability in process development and catalysis 4

5 CTC is licensing four technologies with its collaboration partners Veba Combi-Cracking (VCC TM ) A slurry phase hydrocracking/hydrogen ation process for converting petroleum residues and coal into directly marketable lighter products Our VCC TM technology was operated at commercial scale from in 3.5k bpd unit in Bottrop, Germany 4 licenses sold, first commercial plant start up 2014 Compact Reformer & Fischer-Tropsch Conversion from biomass, natural gas, coal and or petcoke via syngas to diesel and naphtha at a split of 80% and 20% Demonstration plant at 300 barrels/ day scale Compact reformer, has innovative mechanical design reducing size and weight. Hummingbird Ultra-selective second generation ethanol dehydration technology Fully recycling pilot plant Identification of a collaboration licensor 5

6 BP and JM Davy Process Technology (Davy) Fischer-Tropsch (FT) History BP has been actively developing FT technology since 1981 and has invested over $500 million to date Initiated R&D programme Discovered cobalt based FT catalyst Commissioned Hull Pilot Plant Established Completed technology cooperation with at Nikiski first FT run Davy Sanctioned Nikiski demonstration plant ($86m) Nikiski plant met all technical targets Technology Commercialisation 6

7 BP-Davy GTL Demonstration Unit Nikiski, Alaska - Demonstration plant met all performance targets - No negative impact to catalyst performance from (externally caused) unplanned shut downs - The catalyst was contained in thousands of commercial scale tubes - FT converter demonstrated 100% availability barrel a day scale plant - 16,000 hours on stream BP

8 Introduction BP FT Technology Natural Gas Tails Gas Recycle Hydrogen Widely available BP Davy proprietary technology Coal Syngas Generation Fischer- Tropsch Syngas Conversion UPGRADING Hydrotreater / cracker UPGRADING Fractionation Products Resid / Pet Coke Biomass Offsites & Utilities (including air separation unit) Export Steam / Power BP FT Provides a low risk, competitive FT and upgrading technology. Syngas generation technologies are all widely deployed and practised. Robust fixed bed technology uses standard industry multi-tubular reactors. 8

9 Population growth and GDP growth will drive increasing ethylene demand. In the next 10 years, IHS estimates global ethylene demand will grow at approximately 4 percent a year, reaching nearly 196 MMT by 2023 Source: Source: BP 2030 Outlook:

10 Bio-ethylene demand is predicted to increase substantially 10

11 What is driving bio-ethylene demand? Energy demand and Global warming According to the Intergovernmental Panel on Climate Change (IPCC), warming of the climate system is happening. Over the next 20 years, it s predicted that global energy demand will increase by nearly 40%. Bio-ethylene product creates substantial environmental benefits Referencing the International Renewable Energy Agency s (IRENA) paper; bio-ethylene can reduce GHG emissions by up to 40% and save fossil energy by up to 60% compared to petrochemical ethylene 1. Change in consumer attitudes Awareness of sustainability and global warming has affected consumer preferences creating a market for green products where premiums of up to 30% for bio-meg 2 have been publically stated. 1. IEA-ETSAP and IRENA Technology Brief I13 January ICIS news; 09 May 2013 ; APIC '13: Greencol Taiwan Corp to keep 67% ops at bio-eg units 11

12 Non-bio factors are also shaping demand for bio-ethylene Ethylene cracker E2E Plant Ethylene Polyethylene Ethylene Oxide (MEG) Vinyl acetate monomer (VAM) Ethyl benzene (Styrene) Ethylene Di- Chloride LAOs / det. alcohols Shanghai Ethylene Cracker Complex Economies of scale Capacity of a typical single-train steam cracker >1 million tpa Situated on / near a chemicals or refinery complex Kte Integration for derivative production Ease of transportation of ethanol versus ethylene Speciality chemicals with niche demand 12

13 BP has developed a proprietary ethanol to ethylene (E2E) technology, now being demonstrated on a large, fully integrated pilot plant Initial test completed on alcohol dehydration High throughput catalyst screening Pilot plant sanctioned (~$10m) Commissioned Hull pilot plant First bioethanol tests completed on pilot plant First polyethylene successfully produced Pilot plant optimised demonstration run 13

14 The ultra selective BP Ethanol to Ethylene Process: Hummingbird technology CH 3 CH 2 OH Ethanol (bio / chemical/ hydrous/ anhydrous) Liquid Recycle Reactor Separator Purification BP proprietary technology Ethylene Hummingbird is a next generation dehydration technology Facilitated by proprietary catalyst technology, the Hummingbird technology s milder operating regime gives superior conversion efficiency to existing technologies. 14

15 The Hummingbird process benefits from ultra high selectivity at lower cost Carbon selectivity (%) Hummingbird o C, proprietary catalyst First generation technology o C Pressure The Hummingbird process has the following advantages: Ultra selective catalyst gives >99.0% overall carbon conversion to polymer grade ethylene Simplified product separation and purification Results in 5% lower opex and 25% lower capex when compared to first generation technologies 15

16 With a more energy efficient process Hummingbird is leading the way in GHG savings for ethanol dehydration technology 0.5 GWP from Process Energy Demands Kg CO2e / Kg C2H Gas Electricity Steam 0.0 Hummingbird 1 st Gen GWP Global Warming Potential Bio ethylene production from sugar cane ethanol saves ~3.65 kgco 2 e per kg bioethylene if compared with conventional fossil ethylene Carbon capture for Hummingbird technology assessed as 2.2 kg/kg ( credits minus debits ) Independent of scope. Location: Brazil Process energy Hummingbird technology does not require gas combustion 16

17 Philip M J Hill Project Manager Conversion Technology Centre MEng CEng MIChemE BP International Ltd Chertsey Road Sunbury-on-Thames Middlesex TW16 7LN United Kingdom Direct Mobile philip.hill@uk.bp.com 17