Technologies For Conversion Of Unconventional and Renewable Feedstocks From BP Philip M J Hill, BP International
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Downstream Technology Programmes 3
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
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 1981 2000 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
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 1980 1985 1990 1995 2000 2005 2010 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
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 - 300 barrel a day scale plant - 16,000 hours on stream BP 2013 7
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
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:http://press.ihs.com/press-release/countryindustry-forecasting-media/trading-places-abundantethane-supplies-fuel-resurg Source: BP 2030 Outlook: 2012 9
Bio-ethylene demand is predicted to increase substantially 10
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 2013 2. ICIS news; 09 May 2013 ; APIC '13: Greencol Taiwan Corp to keep 67% ops at bio-eg units 11
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 20 300 Kte Integration for derivative production Ease of transportation of ethanol versus ethylene Speciality chemicals with niche demand 12
BP has developed a proprietary ethanol to ethylene (E2E) technology, now being demonstrated on a large, fully integrated pilot plant 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 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
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
The Hummingbird process benefits from ultra high selectivity at lower cost Carbon selectivity (%) 100 98 96 94 Hummingbird 200-270 o C, proprietary catalyst First generation technology 315-460 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
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 C2H4 0.4 0.3 0.2 0.1 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
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 +44 203 401 2177 Mobile +44 7825 273243 philip.hill@uk.bp.com www.bp.com 17