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Greenhouse Gas Reductions

By: Aivars E. Krumins, ABB Lummus Global

Presented at: 10th Ethylene Seminar


La Jolla, California
April 15 – 17, 2002

PUB-ETH-014
Presented by Greenhouse Gas
Aivars E. Krumins Reductions
ABB Lummus Global
© ABB Lummus Global - 1 -
Greenhouse Gas Reductions
10th Ethylene Seminar -

Confidential Information
This presentation contains confidential information.
No part may be duplicated nor disclosed to others without the
prior written consent of ABB Lummus Global.

PUB-ETH-014 Page 2 of 29
Greenhouse Gas (GHG) Reductions

„ Petrochemical Industry Setting Aggressive Targets for


GHG Reductions
„ Technology based GHG Reductions are possible
„ 10% with Gas Turbine/Heater Integration
„ 7% with Steam cracker/OCU Integration for Constant C3-
„ 12% by applying all new technology concepts introduced
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It is not unusual to see headlines like the one behind me about global warming.

The public, non-governmental organizations (NGOs) all react and put pressure
on governments on industry to take action.

Governments then initiate regulations which industry must meet.

The petrochemical industry is concerned with its neighbors and its shareholders
and wants to have balanced playing field.

Most are taking a proactive strategy that will minimize the costs for meeting any
new requirements.

PUB-ETH-014 Page 4 of 29
Agenda
Agenda

„ Greenhouse Gas (GHG) Overview


„ GHG reduction solutions
„ Gas turbine/cracking heaters integration
„ Steam cracker/OCU integration
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In this presentation, I will give an overview on GHG emissions complementing


what has already been presented by BP in their paper.

The presentation will discuss two options for GHG reduction.

The first is to revisit GT Integration with cracking heaters and how the current
environment may affect your decision.

The second option is to look at steam cracker/olefins conversion integration.


Earlier, it was noted that this option resulted in energy savings. We will discuss
this in more detail here.

PUB-ETH-014 Page 5 of 29
Overview
Kyoto Protocol

„ ‘97 Kyoto Protocol to reduce GHG emissions


„ to 1990 levels by 2000
„ to at least 5% below 1990 levels between 2008 & 2012
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Everyone is well familiar with or has at least heard about the Kyoto Protocol.

It requires that GHG emissions be reduced to 1990 levels by 2000 and to reduce
to at least 5% below 1990 levels between the commitment period of 2008 to
2012.

PUB-ETH-014 Page 6 of 29
Overview
Greenhouse Gases (GHGs)

„ Carbon Dioxide - CO2


„ Methane Gas - CH4 (21x CO2)
„ Nitrous Oxide - N2O (310x CO2)
„ Hydroflourocarbons - HFCs (140x - 11,700x CO2)
„ Perfluorcarbons - PFCs (6,500x - 9,200x CO2)
„ Sulfur hexafluoride - SF6 (23,900x CO2)
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What are green house gas (GHG) emissions?

GHG emissions refer to Global Warming Potential (GWP), which identifies a


compound’s effectiveness at trapping heat over a 100-year period relative to
CO2.

CO2, methane, and N2O are both natural and anthropogenic


(human-created) occurring. Fluorocarbons are strictly anthropogenic.

The five compounds contributing to GHG emissions, in addition to CO2, are:

• Methane - typically associated with gas flaring/venting in oil & gas exploration.

• Nitrous oxide - not necessarily the NOx that we in the ethylene industry think
of, but N2O that is associated with nitric acid plants for fertilizer production.

• Finally, there are the three fluorocarbons listed above.

As you can see, the CO2 equivalency increases dramatically with each
subsequent compound listed.

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Overview
Kyoto GHG country reductions

0%
-8%
-6%
-7%
-6%

+8%
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The reduction requested is a minimum of 5% below 1990 levels between the


commitment period 2008 to 2012 globally.

The ongoing debate regarding the Kyoto Protocol by countries and industry is
that the requirement severely impacts the developed countries and not
necessarily the developing countries.

The map represents the only regions that have commitments within the Kyoto
Protocol.

Depending on a company’s overall GHG picture, this can become a very


challenging goal.

Let me discuss briefly what is taking place in the European Union and in the
United States.

PUB-ETH-014 Page 8 of 29
Overview
EU council directive 96/61/EC

„ Applicability
„ New Installations/major modifications from October 31, 1999
„ All existing facilities from October 2007
„ Activities Covered:
„ Emissions to Air
„ Emissions to Water
„ Solid Wastes Disposal
„ Efficient Use of Energy
„ Conservation of Feedstocks
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„ Noise Generation
Greenhouse Gas Reductions

Decommissioning and Return of Land to a “Satisfactory State”


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„ Accident Prevention
Confidential Information

Ref: “Facing Up to the Challenge of Zero Emissions”. R. W. Matthews (BP


Chemicals). Presented at Y2000 EPC Meeting in Atlanta, GA.

At the 2000 EPC meeting in Atlanta, Roger Matthews of BP gave a good


overview of the situation in Europe.

The EU has been very active in pushing GHG emissions reduction and has
already enacted legislation, the EU Council Directive 96/61/EC, which applies to
all new installations/major modifications from October, 1999 and must be
incorporated into all facilities by October, 2007.

The activities covered included not only emissions to air and water and solid
wastes disposal, but also efficient use of energy, conservation of feedstocks,
noise generation, decommissioning and return of land to a “Satisfactory State”
and accident prevention.

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Overview
U. S. Global Climate Change Policy

„ Reduce Greenhouse Gas Intensity of the


U. S. Economy by 18% in the Next 10 Years.
Reduce GHG Emission Intensity 18% Over the Next
Decade
190
no improvement (183 tons in 2002)
MT C equivalent/106 US$ GDP,

180
current efforts
(14%)
2001 dollars

170 national goal


(18% decline to
151 tons in 2012)
160

150
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Greenhouse Gas Reductions

140
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2000 2002 2004 2006 2008 2010 2012 2014


Yr

Confidential Information

Ref: U. S. Global Climate Change Policy Final Report. February 14, 2002

Everyone is well aware that the United States has not agreed to ratify the Kyoto
Protocol. However, the USA did not withdraw from the UN Framework
Convention on Climate Change (1992) which calls for action.

Very recently, the Bush administration announced the US Global Climate


Change Policy where it has committed to reduce GHG intensity of the US
Economy by 18% over the next 10 years, (that is by 2012).

The policy objective is to slow the growth of GHG emissions while sustaining the
economic growth needed to finance investment in new, clean energy
technologies.

PUB-ETH-014 Page 10 of 29
Overview
US olefins industry GHG contribution

„ US Study by Lawrence Berkeley National Laboratory


„ 80% of GHG emissions from CO2
„ 40% of GHG emissions due to fossil fuels from manufacturing
industry
„ 20% of manufacturing industry energy consumed by chemical
industry
„ 50% of chemical industry energy consumed by
„ ethylene producers
„ ammonia producers
„ chlorine producers
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CONCLUSION: Ethylene industry is small percentage


Greenhouse Gas Reductions

overall, however, it has high visibility


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Confidential Information

Ref: “Energy Use in the Chemical Process Industry.” E. Worrell, D. Phylipsen,


D. Einstein, N. Martin (Lawrence Berkeley National Laboratory). Workshop
Proceedings on Carbon Reduction Technology Opportunities for CPI. March,
1999.

If you assume that the ethylene producers are 1/3 of the chemical industry
energy consumers, the figures above work out that the olefins industry
contributes 1% of CO2 emissions due to fossil fuels.

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Overview
EU olefins industry contribution

„ European crackers typical energy efficiency


„ 3600 to 4800 kcal/kg of High Valued Chemicals
„ [Equivalent] 0.7 to 1.3 t CO2/t HV Chemicals
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Confidential Information

Ref: Lower Olefins Process BREF, Crackers Energy Consumption Survey.


November, 2000.

The Lower Olefins Shadow Group was appointed by the EEPC to provide plant
data on energy consumption. The survey results were based on 42 out of 59
crackers in Western Europe.

This information was part of the BREF = BAT Reference Document, which is to
be issued by the European Commission.

Overall the typical energy efficiency in Europe was 15 to 20 GJ/t of HV chemicals


and 0.7 to 1.3 t CO2/t HV chemicals.

Many of you are participants in the annual surveys by Solomon Associates,


which defines HV chemicals as high purity hydrogen, ethylene, propylene,
butadiene, and benzene production.

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Overview
EU olefins industry contribution

Energy Consumption of Crackers


Overview
12 (MMkcal / t Ethylene)
10
Number of Plants

0
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<6 .0 6.0-6 .5 6.5 -6.9 6.9-7 .4 7.4 -7.9 7.9-8 .4 8.4 -8.8 8 .8 -9.6 >9.6
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Confidential Information

Ref: Lower Olefins Process BREF, Crackers Energy Consumption Survey.


November, 2000.

The survey indicated that referencing energy consumption to tons of ethylene


resulted in quite a wide range in energy consumption, as this does not distinguish
between gas crackers and liquid crackers.

PUB-ETH-014 Page 13 of 29
Overview
EU olefins industry contribution

Energy Consumption of Crackers


Overview
(MMkcal / t H.V. Chemicals)
10

8
Number of Plants

0
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<3.6 3.6-3.8 3.8-4.1 4.1-4.3 4.3-4.5 4.5-4.8 >4.8


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Confidential Information

Ref: Lower Olefins Process BREF, Crackers Energy Consumption Survey.


November, 2000.

Using HV chemicals limits this range.

PUB-ETH-014 Page 14 of 29
Overview
EU olefins industry contribution

Emission of Crackers
Overview
14 (t CO2 / t Ethylene)
12
Number of Plant s

10
8
6
4
2

0
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<1.5 1.5-1. 8 1.8-2. 1 2.1-2. 4 2.4-2.7 >2.7


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Confidential Information

Ref: Lower Olefins Process BREF, Crackers Energy Consumption Survey.


November, 2000.

A similar effect is seen with the emissions summaries as you have a skewed
distribution at the lower end.

PUB-ETH-014 Page 15 of 29
Overview
EU olefins industry contribution

Emission of Crackers
Overview
16 (t CO2 / t H.V. Chemicals)

14
12
Nu mn er of Pl an ts

10
8
6
4
2
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0
<0.7 0.7-0.85 0.85-1.0 1.0-1.15 1.15-1.3 >1.30
Greenhouse Gas Reductions
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Confidential Information

Ref: Lower Olefins Process BREF, Crackers Energy Consumption Survey.


November, 2000.

When you define them in terms of HV chemicals, you get a traditional bell shape
curve.

PUB-ETH-014 Page 16 of 29
Overview
Worldwide
petrochemical industry reaction

„ Look to exceed Kyoto requirements


„ Atofina - achieved 40% reduction in GHGs by 2000
„ BP - 10% below 1990 levels by 2010
„ ExxonMobil - 37% energy reduction between 1973 and 1998
and anticipate another 15% savings in the coming years
„ Shell - on target to achieve 11% below 1990 by 2002
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The petrochemical industry is not sitting idly by waiting to see what governments
are going to do.

References:

“Environmental Report - 2000”. Atofina - a large contribution has been in the


fluorocarbon area.

www.bp.com/climate change policy BP - was already discussed before

Remarks by Rene Dahan, Director/Exec VP for ExxonMobil Corp at Oil-Money


Conference, London, October 31, 2001.

“People, Planet & Profits - The Shell Report”. 2000

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Overview
Petrochemical industry objective

„ To identify technologies and practices that can positively


affect energy efficiency and GHG emissions
„ Examples
„ Repair leaking valves, flare gas recovery systems
„ Reduce flaring & venting in oil & gas exploration
„ Energy savings studies
„ New catalysts for N2O reduction
„ Emissions trading
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PUB-ETH-014 Page 18 of 29
Agenda
Agenda

„ Greenhouse Gas (GHG) Overview


„ GHG reduction solutions
„ Gas turbine/cracking heaters integration
„ Steam cracker/OCU integration
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PUB-ETH-014 Page 19 of 29
GHG GHG reduction
Solutions
opportunities in olefins units

„ Gas turbine/cracking heaters integration


„ Steam cracker/OCU integration
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PUB-ETH-014 Page 20 of 29
GHG Gas turbine/cracking heaters
Solutions
integration
Super High Pressure Steam

CRACKING
HEATERS

Fuel Supply

Combustion Air 500°C


Compressor Distribution Header

Electrical
Generator
Turbine
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Ambient
Air
Fuel
Greenhouse Gas Reductions

GAS TURBINE SYSTEM


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Confidential Information

PUB-ETH-014 Page 21 of 29
GHG Gas turbine/cracking heaters
Solutions
integration
Gas Turbine
Case No Gas Turbine Integration

Gas Turbine Power, MW 0 46

Fuel Fired, MM kcal/h


Heaters 670 645
Gas Turbine 0 113
Total 670 759

SHP Steam Production, t/h 460 534

Specific Energy Consumption


kcal/kg C2- 5060 4400

Annual Operation Cost Savings Base 11.9


@ $20 / MM kcal
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Investment MM$ Base 42


Greenhouse Gas Reductions

Simple Payout years Base 3.5


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Confidential Information

This slide summarizes gas turbine/cracking heater integration for a large cracker.
As has historically been the case, gas turbine integration typically has a good
payout.

PUB-ETH-014 Page 22 of 29
GHG Gas turbine/cracking heaters
Solutions
integration
CO2 emissions comparison

Gas Turbine
Case No Gas Turbine Integration

Cracker, t/h CO2 Base +19.5

Power plant, t/h CO2 Base -24.7

Boiler SHP Steam, t/h CO2 Base -13.0

Net, t/h CO2 Base -18.2

CO2 Credits, million$/yr


@$20/t CO2 Base 2.9
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Revised Payout, years Base 2.8


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The net affect of considering the potential value of reduced CO2 emissions is a
reduction in the payout time by 0.7 years based on a $20/t value for CO2.

The basis for the CO2 valuation is taken from Shell’s 2000 Report “People,
Planet & Profits”. In this report Shell indicates that they are using CO2 valuation
as part of their investment decisions - $5/t for projects prior to 2010 and $20/t for
post 2010 projects.

PUB-ETH-014 Page 23 of 29
GHG Gas turbine/cracking heaters
Solutions
integration

„ Highest overall plant efficiency


„ Lowest Overall GHG Emissions
„ Valuation of CO2 can impact project economics
„ Lummus GT/Heater Integration is characterized by
„ Experience since early seventies
„ In operation in 11 Lummus plants
„ Flexible to operate with/without GT exhaust
„ Control philosophy to handle operation any upset conditions
„ Reliability with high on-stream operating factor, 99+%
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The growing issue of GHG emissions is already forcing companies to view


energy savings projects differently. Historically, the plants built in the 1980s were
driven by high, or rather, anticipated high energy costs.

In the 1990s, the cost of energy didn’t justify energy savings features, so a little
energy was sacrificed in the interest of reducing costs.

What we are seeing currently is that energy savings is coming back into vogue.
This is partially due by the recent rise in energy costs, but is driven even more by
new Climate Change Policies and related regulations.

What has been shown in the previous slides is that the Gas Turbine/Cracking
Heater Integration will yield the highest overall plant efficiency resulting in the
lowest overall GHG emissions. In other studies, not shown here, integrating the
gas turbine with a cracking heater improves the specific energy by 550 kcal/kg
C2- relative to a gas turbine integrated with a boiler.

Lummus has the most experience of any contractor in gas turbine integration.
This results in a very reliable, flexible and safe operation.

PUB-ETH-014 Page 24 of 29
GHG
Solutions Olefins conversion technology

Ethylene
Pretreatment
Pretreatment Preheat
Preheat OCT
OCT

Butylene

Product
Product
Fractionation
Fractionation
Ethylene/Butylene Gasoline
Recycle

Propylene Product
Purges
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Confidential Information

We will now examine the energy efficiency improvement as it pertains to steam


cracker/olefins conversion integration.

PUB-ETH-014 Page 25 of 29
GHG
Solutions Steam cracker/OCU Integration
Constant propylene production
Steam Cracker Steam Cracker
Alone with OCU

Propylene to Ethylene Ratio 0.67 0.67

Material Balance Impact, kTA


Naphtha Feed Consumption 2104 2072 98%
Ethylene Production 680 680
Propylene Production 460 460
Benzene Production 141 212 150%
Remaining Pygas Production 445 270 60%

Energy Consumption, kcal/kg C2- 6015 5549 92%

Operating Margin Impact MM$/yr


Gross Margin 383 394
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Energy Cost 78 72
Greenhouse Gas Reductions

Net Margin 305 322 106%


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Confidential Information

The theme of this conference has been to introduce you to our new technology
developments. A lot has already been discussed with regards to improvements
in gross and net margins and reductions in investment costs.

As has been mentioned before, the energy saving benefit is not intuitively
obvious when you initially compare the steam cracker/OCU integration with a
standalone steam cracker for a maximum propylene operation.

PUB-ETH-014 Page 26 of 29
GHG
Solutions Steam cracker/OCU Integration
Constant propylene production
„ Higher severity cracking reduces energy consumption
while maintaining propylene production
„ less plant throughput
„ lower compressor horsepower
„ Lower fresh feed consumption
„ 30% of propylene is produced by metathesis not thermal
cracking
„ Fuel fired reduced by 8%
„ Heater feed drops by 12%
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PUB-ETH-014 Page 27 of 29
GHG
Solutions Steam cracker/OCU Integration
Constant propylene production
CO2 emissions impact
Steam Cracker Steam Cracker
Alone with OCU

Ethylene Plant & OCU Only

Energy Consumption,
kcal/kg HVCs 3285 2928

CO2 Emissions, t CO2/t HVCs 0.72 0.64

Petrochemical Complex (ISBL Units)

CO2 Emissions, kTA 1026 951


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CO2 Value, MM$/yr


Greenhouse Gas Reductions

@ $ 5/t CO2 Base 0.38


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@$ 20/t CO2 Base 1.50

Confidential Information

The slide references the energy consumption in terms of high valued chemicals
(HVCs) as is used in the Solomon Associates surveys for ethylene plants.

The CO2 emissions calculated above considers not only the ethylene plant, but
the olefins conversion unit, pygas hydrogenation unit and the aromatics
extraction unit.

If you only consider the ethylene plant and OCU unit energy consumption, the
specific energy is 2928 kcal/kg HVCs which is within 7% of an Energy Efficiency
Index (EEI) of 100.

PUB-ETH-014 Page 28 of 29
GHG
Solutions Conclusions

„ GT/cracking heater integration is the most efficient


approach for a PC complex
„ Global CO2 reduction of 146 kTA (10%)
„ Potential CO2 credits of $2.9 million/yr
„ OCU - not just about propylene
„ Most efficient olefins cracker possible - 2928 kcal/kg HVCs
„ CO2 reduction of 75 kTA (7%) for a 680 kTA cracker ISBL Units
„ Potential CO2 credits of $1.5 million/yr
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Gas turbine integration with a cracking heater should be considered as part of


any petrochemical complex overall energy balance.

The OCU/steam cracker integration for constant ethylene production will yield
one of the most energy efficient ethylene plants in the world.

If companies intend to act proactively to climate change issues, then CO2


valuation needs to be part of any economic analysis.

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