Delivering Marginal Gains How the 1% really matters. Boris van Thiel CEO Middle East thyssenkrupp Industrial Solutions

Transcription

1 Delivering Marginal Gains How the 1% really matters Boris van Thiel CEO Middle East thyssenkrupp Industrial Solutions

2

3 Agenda a glance Ongoing trends in Middle East Marginal Gains by - Innovative technologies - Process improvements - Asset Management Summary

4 a glance >2,200 production sites, offices and service locations all over the world Present in nearly 80 countries 2,000 industrial property rights in reporting period ~155,000 employees ~17,000 patents in total $785mn R&D spending $45,5bn Sales

5 thyssenkrupp Industrial a glance >17,600 machines and systems in use worldwide More than 200 years of engineering excellence Over 2,500 chemical installations constructed worldwide Almost 70% of our employees are engineers and technicians

6 thyssenkrupp Industrial Solutions pedigree founded in 1859 founded in 1992 Resource Technologies Industrial Solutions founded in Process Technologies

7 Ongoing trends in Middle East region Consolidation Phase Expansion of Value Chain Resource Efficiency Petrochemicals & Refinery Integration Need of Innovative Technology Long term Strategic Partnerships Low Oil Price

8 Ongoing trends in Middle East region Feedstock drives the Middle East petrochemical industry evolution - not the market C1/C2 based feedstock projects Mixed feedstock C1/C2/C3/C4/Light Naphtha based projects Refinery/Petchem Integrated Projects Naphtha Based (non-discounted) projects? Projects with Specialty/ Differentiated Products Downstream Industry Development? Monetizing gas, Diversifying local economies and downstream industry as well as job creation Source: IHS

9 Million Metric Tons % of World Total Ongoing trends in Middle East region Middle East Capacity Additions Ethylene Propylene Paraxylene Benzene Methanol Chlorine 100% 80% 60% 40% 20% 0% Capacity builds largely driven by gas allocations Source: IHS

10 Delivering Marginal Gains Innovative Urea Technology Process Improvement EPC-S Innovative Dehydrogenation Technology Asset Management

11 Marginal Gains by Process Improvements

12 Key Drivers for Process Improvement Economic Motivation Profit Maximization Competitive Edge Public Requirements Regulatory Social Responsibility

13 Implementing Process Improvements The Evolution Path The Revolution Path

14 Evolutionary Process Improvement Power consumption in kwh/ t NaOH 1) 2,170 v3 2,130 v4 2,070 v5 2,055 v5plus 2,020 v6 Electrolysis: Chlorine and caustic soda production from salt Power makes up 70-85% of costs in chlorine process Approx. 7% power saving achieved Improvement via mechanical design and process control improvements Widely deployed in Middle East

15 Revolutionary Process Improvement Production of Propylene Oxide (PO) Co-product free - traditional routes have co-products and additional market dependency Environmental friendly hydrogenperoxide based production Competitive production costs Licensed to SKC (Korea) and Shenhua (China)

16 Marginal gains by Innovative Technology Uhde Fertilizer Technology & Shell Thiogro Technology

17 Creating Value in the Fertilizer Market Farmer: Sulphur to improve yield and quality Nitrogen, Sulphur applied separately = high cost Oil & Gas producer: Abundant Sulphur available: How to create value out of it? Granular Urea + elemental Sulphur (ES) Nitrogen Fertilizer producer: Low urea prices Changing markets (US independency) How to preserve margins? Granular Urea with Elemental Sulphur (ES) brings added value to ALL players

18 Granular Urea + ES: Market Situation 12.5 MMt S/ year world wide deficit by 2015 Urea Granulation Middle East Africa Annual Production [MMt/a] No of plants No of producers 10 8 Elemental Sulphur Annual Production [MMt/a] ~ 10 MMt/a of sulphur needs addition to soil ~ 2 MMt/a covered by other sulphur applications Urea is used as carrier for sulphur No of plants No of producers Source: IHS Chemical Economics Handbook Sulphur

19 Granular Urea + ES: Product Higher nutrient density Urea (N) Urea+ES High agronomic efficiency Balanced nutrients within a single granule N N N N N N N N N S N N N S N S N N 46% Nitrogen 40% Nitrogen + 13% Sulphur Majority of sulphur particles < 30 µm Uniform distribution of sulphur particles Higher nutrient content, higher agronomic efficiency

20 Granular Urea + ES: Technology Fluid bed urea granulation plant adapted Micronized dispersion of elemental sulphur in urea solution (Shell Thiogro) 1 plant 2 products Process Condensate Granulator Scrubber Bleed S-Acid ThioAdd Liq. Sulphur Urea solution from evaporat. Gran. Additive Recycle Vacuum Evaporation Stack Sulphur Dispersion Unit Scrubber Tank Granulator C Cooler Scrubber S Process condensate Make up Startup Bin Safety Screen First Cooler Bucket elevator Crusher Final Cooler Screen Air To Storage Atomising air Fluidisation air Air

21 Granular Urea + ES: The Value Proposition Fertilizer required (tons/acre): Urea AS Urea ES Farmer needs 5 tons/acre less for same nutrient content Additional value for urea producer Cost for application (US-Middle East comparison) by adding 6 $USD for sulphur producer gains 92,00 $USD per ton higher revenues!

22 Marginal Gains: Dehydrogenation Technology

23 STAR process On-purpose production of propylene growing Demand Mainly driven by growing demand for Polypropylene Other products are Propylene Oxide, Cumene, Acrylonitrile, Acrylic Acid, Oxo Alcohols Supply Conclusion Demand for propylene outpaces supply from conventional sources (Steam Cracking, Fluid Catalytic Cracking) Refinery economics & improved fuel efficiency affecting supply from refineries On-purpose production of propylene required Share of on-purpose technologies growing from 7% in 2000 and >30% in 2022 Source: IHS

24 STAR process - Dehydrogenation Technology Hydrocarbon partial pressure decrease Constant and mild reaction conditions Flexible and safe operation Advantage in CAPEX & OPEX of raw gas compressor Less by-products product directly meets the polymer-grade propylene spec. Lowest catalyst inventory: No moving catalyst or hot switching valves Simple and robust operation less maintenance Coke directly re-converted into CO/CO 2 longer operational cycle between regenerations (usually 7h / 1h ), with high flexibility Steam also used as purge medium simple stop gas flow in case of any disturbance Shorter re-start from hot stand-by Proven annual plant availability of 99%

25 Marginal Gains by Asset Management

26 Concerns in a running plant Product Quality HSE Plant Availability Synergistic Partnerships Statutory Compliances Optimized Lifecycle Costs Reliability

27 Integration of Asset Management Long lasting partnerships basically create value/ Marginal Gains

28 Key characteristics of Integrated Asset Management Holistic approach for the whole plant People Process Solution provider for all disciplines: HSE Operations Mechanical Electrical & Instrumentation Embedded into client s organization and same levels of ownership for physical assets Technology

29 Eliminating the hidden costs Visible Services Personnel Materials Energy Invisible Safety/ environment risk Reputation damages Poor quality Lost production Reduced asset life Delivery issues

30 f Delivering Marginal Gains Marginal Gains Success

31 Your contacts Malcolm Cook Ayman El Moghly Harald Kuttner Vice President Business Development, thyssenkrupp Industrial Solutions, Regionalcluster Gulf States QATAR UAE OMAN + OTHERS Head of Sales & Process thyssenkrupp Industrial Solutions, Egypt EGYPT JORDAN LEBANON TUNISIA Head of Business Development thyssenkrupp Industrial Solutions, KSA KSA KUWAIT BAHRAIN

32