EXPANSION POWER INC. Expansion Power Cryostripping: LOW-COST FRACTIONS RECOVERY FROM REFINERY FUEL-GAS SYSTEMS 1
WHO WE ARE Expansion Power Inc. (EPI) Edmonton, Alberta-based company formed in 2006 to develop and commercialize proprietary technologies to improve economic and environmental performance in the oil & gas sector Developer and owner of patents and patent-registered technologies Principals: Mac Millar, Chairman & CEO (also CEO of Millar Western Industries) Jose Lourenço, President www.expansionpower.com 2
EPI TECHNOLOGIES EPI has developed patented technologies including processes to produce extremely low-cost LNG at straddle plants, and to use LNG to recover olefins, LPGs and hydrogen from fuel-gas streams at oil refineries. STRADDLE PLANT EPI LNG LOOP LNG REFINERY EPI STRIPPING LOOP LPGs 3
EPI CRYOSTRIPPING PROCESS 4
OVERVIEW Gaseous hydrocarbon fractions generated in refinery operations are normally routed to a fuel-gas header and combusted, to support refinery energy needs. EPI process recovers high-value C 2 + fractions and H 2, if desired from the refinery fuel-gas header, for use as feedstocks in other processes. In place of gas expanders, external refrigeration and/or absorption solvents, EPI process uses LNG to recover fractions. LNG is injected directly into the fuel-gas stream to mix, cool and condense desired liquids. EPI process uses basic thermodynamics and proven, off-the-shelf equipment. Simple, bolt-on system: easy to operate, flexible, adapts to variable flows and plant conditions. Low capital cost, low operating cost. 5
BASIC PROCESS CONCEPT L N G Rich Fuel Gas In-line mixer Mixture Fractionator Lean Fuel Gas L P G CONFIDENTIAL 6
EPI OLEFINS, LPG & H 2 RECOVERY Refinery Fuel Gas Header Hydrogen H/E H/E Rich Fuel Gas Lean Fuel Gas LNG In-line Mixer Reflux Stripper C 2 + PATENT REGISTRATION # PCT/CA 2013/050363 CONFIDENTIAL 7
Using LNG to recover olefins, liquid petroleum gases (LPGs/NGLs) and H 2 from refinery fuel-gas headers, EPI process improves refinery operations and economics while reducing GHG emissions. In recovering C 2 + fractions-recovery, EPI cryostripping offers: Lower capital and operating costs Major GHG reductions Great operational flexibility adaptable to variable header operating pressures, temperatures and flow-rates. But... ADVANTAGES WHAT ABOUT THE COST AND AVAILABILITY OF LNG? 8
LNG PRODUCTION PROCESS 9
OVERVIEW EPI technology provides a way to produce LNG at straddle plants, with no external energy input. EPI LNG process reduces operating costs and improves efficiency of host straddle plants. Process enables production of LNG at essentially no cost: capital cost is recovered in 12 months, then plant produces LNG at negative cost ie, process results in reduced plant operating costs. 10
LNG PROCESS AT STRADDLE PLANT Existing straddle plants are an ideal location for EPI LNG technology: Straddle plants have existing high-pressure gas streams that have been pre-treated and pre-cooled EPI process splits that flow into two streams: Existing feed is sent to the stripping column for NGL recovery New slipstream is further cooled in heat exchanger by overhead stripper column stream and expanded to produce LNG Fraction of produced LNG can be used as stripper column reflux to optimize straddle plant operations and increase NGL recoveries EPI process can liquefy about 20% of the plant s total flow US PATENT REGISTRATION #: 13/722,910; CANADIAN #: 2,763,081 CONFIDENTIAL 11
LNG PROCESS AT STRADDLE PLANT Straddle Plant HP Rich Gas Straddle Plant LP Lean Gas K H/E EXP LNG US PATENT REGISTRATION #: 13/722,910; CANADIAN #: 2,763,081 CONFIDENTIAL 12
COMBINED EPI PROCESSES: A BREAKTHROUGH IN FRACTIONS RECOVERY 13
BENEFITS Reduced environmental impact significantly lower CO 2 emissions Rapid capital cost recovery: 6 months at refinery, 12 months at straddle plant Deeper cut, improved operations, lower cost, higher revenue at straddle plant Increased efficiency, higher revenue at refinery At a typical refinery, EPI process would save 250 KTPY in GHG emissions, allow for $128 million in increased revenue 14
BUSINESS CASE EPI technologies produce extremely low-cost LNG at straddle plants and use the LNG to recover valuable fractions from the oil refinery fuel-gas stream. At a typical straddle plant and typical refinery: STRADDLE PLANT EPI LNG LOOP $2M/yr op. savings $15M cap. cost Straddle plant net: $16M/yr LNG REFINERY $14M/yr revenue $15M cap. cost, $77M/yr op. cost EPI STRIPPING Refinery net: $51M/yr $128M/yr revenue LPGs EST. COMBINED VALUE: $67 MM/YEAR ON $30 MM INVESTMENT 15
SUMMARY EPI technology allows for recovery of hydrocarbon fractions normally combusted in refinery process operations, using LNG as both fuel replacement and refrigerant. EPI technology means LNG can be produced at virtually no cost, meaning refiners can use LNG to recover high-value olefins, LPGs and hydrogen at extremely low cost. Process advantages: substantially lower capital and operating costs; reduced GHG emissions; design simplicity; operational flexibility. Good for business, good for the environment: Straddle plant operators lower their costs, increase revenues Refiners lower their costs, increase revenues Alberta makes progress toward stronger, lower-carbon, more diversified energy economy. 16
EXPANSION POWER INC. Questions? JOSE LOURENCO jlourenco@expansionpower.com 780-486-8245 17