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TECHNOLOGY TO ACHIEVE ‘NET ZERO’

The future of
carbon capture
for refineries

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Introduction

Achieving global net zero ambitions will require effort from every industry responsible for CO2
emissions, particularly hard-to-abate industries such as cement, steel, energy-from-waste and
refineries. Refineries comprise the third-largest stationary emitter 1 of greenhouse gases (GHGs) in
the world — so they have a pivotal role to play in the drive to net zero.

Carbon capture, utilisation and storage (CCUS) is a viable decarbonisation solution for hard-to-
abate industries. With this technology, large-scale emitters can capture CO2 before it is emitted into
the atmosphere, reducing emissions, helping refineries comply with regulations and providing the
opportunity to take part in the global circular carbon economy.

Refineries also face unique carbon capture challenges. These include: limited on-site space,
multiple point sources of emissions, remote locations and the need to continuously operate. Now,
with technology innovation, refineries seeking to implement carbon capture as part of their overall
emissions reduction initiatives have a solution that's both efficient and affordable.

1 https://www.cell.com/one-earth/fulltext/S2590-3322(21)00410-3

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North America, Europe and Asia Pacific are the refining hubs
of the world and account for 72% of global refining capacity,
according to research published by Wood Mackenzie 2. Two
thirds of all refining capacity is found in countries that are
most likely to implement carbon regulation policies.

Wood Mackenzie's research also indicated that a carbon

price of $40/tonne would lead to a $100 billion erosion in
value for the refinery industry. In many countries, the carbon
tax is, or will be, far higher than $40/tonne, so it is vital that
North America, Europe and Asia
refineries identify ways to decarbonise to stay competitive.
Pacific account for 72% of global
In addition, key stakeholders, from investors and shareholders
refining capacity
to partners and customers, are calling for decarbonisation.

Processing by refineries contributes around 5 to 10% of the

total emissions resulting from oil products. There is significant
A carbon price of $40/tonne
opportunity to reduce these emissions due to the nature
would lead to a
of the processes used and the large-scale fixed locations.
Reducing their carbon footprint will enable refineries to take
an active part in the transition to a low-carbon future as well as
$100 billion
the fast-growing global circular carbon economy. erosion in value for
the refinery industry

Source: Wood Mackenzie

2 https://www.woodmac.com/news/editorial/will-carbon-policy-push-refiners-to-the-brink/

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Carbon capture challenges & solutions

Carbon capture has long been a decarbonisation solution for the oil and gas industry. However, cost
and space requirements have deterred many from moving ahead with deployment. Refineries operate
within traditionally narrow margins in compact facilities, often in remote areas, where every metre of
space is optimised, safety is paramount, and limited downtime is critical. The industry needs a carbon
capture solution that can work within these parameters — something conventional technologies have
not been able to offer.

Refinery requirements
A viable carbon capture solution
for the refineries sector must
address the following challenges:
Limited physical space
Oil and gas refineries are tightly configured with limited space for new
equipment, thus requiring carbon capture equipment to fit within a facility’s
existing physical footprint.

Safety concerns
The safety of refinery crews remains paramount and refineries require
carbon capture equipment that minimises on-site construction to reduce any risk.

Affordability
Given the sector has not been highly profitable in recent years, cost-effectiveness
is a key consideration for the deployment of any carbon capture solution.

Multiple point sources

Refineries have numerous carbon emission point sources and the exact
sources may vary greatly from plant to plant. An effective solution must be
able to account for the configuration at every unique site.

Remote locations
Refineries need a modularised solution, transportable for ease of installation
and reliable operation.

Continuous operations
Refineries operate within Implementing a carbon capture solution should not decrease the availability
traditionally narrow margins of the host plant through reducing its reliability or imposing additional
in compact facilities, often in downtimes for installation or maintenance.

remote areas, where every

metre of space is optimised,
safety is paramount, and
limited downtime is critical.
Scalability
Investment in decarbonisation solutions is likely to be spread over time, so it is
beneficial to select a carbon capture solution that can be scaled in line with a
facility’s emissions reduction strategy.

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CycloneCC — a perfect fit

Carbon Clean has developed a fully modular carbon capture solution — CycloneCC — that will
make carbon capture a viable option for the refining sector. It uses a breakthrough combination of
two proven process intensification technologies: Carbon Clean’s advanced, proprietary amine-
promoted buffer salt solvent (APBS-CDRMax®) and rotating packed beds (RPBs), which maximise
the contact area, and therefore the absorption of the solvent with flue gas. As a result, CycloneCC's
physical footprint is up to ten times smaller than conventional carbon capture technology.

CycloneCC provides a high-performance, cost-effective carbon capture solution for refineries.

Unlike conventional technology, it is designed to fit refineries’ operational and growth needs,
enabling them to quickly start reducing their emissions and benefit from the potential to produce
low-carbon and carbon-negative fuels.

Adaptable modular technology

CycloneCC is built on a pre-fabricated skid mount and is
delivered ready to install with the potential to be operational
in less than eight weeks, avoiding a lengthy and complex
design, build and engineering process. Set-up can be timed
to occur within planned outages to accomodate refineries’
schedules and prevent downtime. The permitting process
is simplified by the solution’s compact size and a quicker,
streamlined installation.

As a refinery’s decarbonisation ambitions increase,

CycloneCC can be scaled to expand capacity with
the installation of additional modular units.

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Proven, tested and established

CycloneCC is fully modular and designed for a minimal footprint but maximum absorption. At its heart,
an RPB contains a disk of packing material which rotates about its axis. This generates a centrifugal
force within the packing, which boosts mass transfer to enhance the CO2 absorption process.

The solvent is introduced into the RPB at its centre, where it is sprayed on to the packing via a liquid
distributor. When the solvent contacts the packing, the centrifugal force from the rotational motion
forces the solvent to travel radially towards the outer edge of the packing where it drains down to
a sump before being pumped to the next stage of the process.

The flue gas is introduced to the RPB from the outer edge of the packing and exits at the inner edge,
where the solvent enters. The gas and the liquid contact each other in a countercurrent fashion,
ensuring maximum contact and greater absorption.

Multiple point source solution

The solvent and RPB combination coupled with the modularity of the CycloneCC solution mean
that the versatile technology can be applied at multiple point sources throughout a refinery.

Refineries have several units that emit CO2, including: steam methane reformers that produce
hydrogen, catalytic crackers and Combined Heat and Power (CHP) units. It may also be a fit for
other applications depending on refinery configuration, feedstock and products.

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CycloneCC benefits
Cost-effective carbon capture
CapEx and OpEx are reduced by up to 50%.

Compact size
Mass transfer equipment is 10 times smaller and its overall physical
footprint up to 50% smaller than conventional carbon capture units.

Modular & scalable

Units can be added over time to increase carbon capture capacity in
line with a refinery’s decarbonisation strategy.

Simpler and safer installation

The pre-fabricated, skid-mounted unit is delivered ready to install and
can be operational in less than eight weeks, leading to minimal site
disruption and faster permitting.

= CO2 emission points

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Time to reduce emissions

For the oil and gas industry, carbon capture initiatives are increasingly important. As reported by
the World Resources Institute 3, decarbonisation efforts — including a fuel switch to clean hydrogen,
electrification and CCUS — could deliver marked climate benefits. As the report states: 'In the
long-term, refineries could shift to processing renewable feedstocks to produce low-carbon fuels
for aviation, shipping and trucking, ultimately reducing fuel carbon intensities by up to 80%. By
leveraging technologies and adapting to low-carbon demands, refineries could provide lower-carbon
products for our economy.'

Increasing regulation is now driving action on emissions reduction across industries. Here’s a snapshot
of some of the developments happening across North America and Europe:

Global news Europe

The IPCC’s Sixth Assessment Report, Climate Change 2022: Impacts,
Adaptation and Vulnerability urges fast action to radically reduce
emissions — its findings are setting the stage for a global wave of new
emission policies and regulations.
The EU’s newly updated Fit for 55 EU Climate Plan is a wide-ranging
set of regulations and incentives including: support for CCUS plans
across a broad range of industries, carbon border taxes and massive
promotion of clean technologies. Europe’s carbon price has steadily
increased over the past year, having reached a record close of
€96 4 in February 2022.

United States Canada

Having set a goal of net zero emissions through the entire
economy by 2050, the U.S. government enacted the Infrastructure
Investment and Jobs Act (2021), which allocates funding for carbon
capture and industrial emissions reduction. The White House is
now gearing up to spend more than $12 billion on CCUS⁵ and
related projects and guidance, including regulation and permitting.
In 2018, the U.S. government expanded the 45Q Tax Credit for
CO2 sequestration.
In Canada, the $8 billion Strategic Innovation Fund’s Net-Zero Accelerator (NZA)
is dedicated to supporting projects to reduce Canada’s domestic GHG emissions.
Canada is increasing its carbon tax rates over time from $55/tonne in late 2021
to $170/tonne by 2030. In April 2022 the government announced it is introducing
a 50% tax credit aimed at spurring investment in CCUS. There is also a 37.5%
credit for equipment for transportation, storage and use of CO2 emissions. The
refundable investment tax credit for businesses will cover 50% of the cost of CO2
capture equipment for projects beginning in 2022.

The fast-changing regulatory landscape is having a particularly significant impact on the oil and
gas industry. Refineries that set decarbonisation initiatives in motion and adopt clean technology
will be able to leverage incentives and benefits as well as reduce the risk of incurring future taxes
and penalties.

3 https://www.wri.org/research/technological-pathways-decarbonizing-petroleum-refining
4 https://www.reuters.com/business/energy/europes-carbon-price-nears-100-euro-_2022_02_0
5 https://www.whitehouse.gov/briefing-room/statements-releases/2022/02/15/fact-sheet-biden-harris-administration-advances-cleaner-industrial-sector-to-reduce-
emissions-and-reinvigorate-american-manufacturing/

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An industry responds

As heavy industry reduces emissions, many oil and gas companies are taking action. Emissions
reduction targets by the world’s top oil and gas companies are on the rise, with major firms
playing a key role as first movers.

Companies including Chevron, Equinor and Saudi Aramco are seeking to tackle emissions
and focus on commitments to deploy CCUS. Chevron is targeting 25 million tonnes of CO2 per
year in equity storage by the end of this decade, with a focus on developing regional hubs that
leverage its existing and emerging partnerships with customers, governments and industry.
Equinor is looking at the potential for hydrogen and CCUS technology in several U.S. states.

Emissions reduction targets by the world’s top oil and gas companies are on the
rise, with major firms playing a key role as first movers.

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Conclusion: Early mover advantage

When it comes to CCUS, being a first mover in the oil and gas sector offers distinct advantages.
Companies that start earlier will have tremendous partnering potential with investors who gravitate
towards opportunities with staying power in the near and long term. Refineries can move towards
their decarbonisation goals more effectively by combining CCUS with other strategies — including
increasing energy efficiency, opting for low-carbon oil and tapping into renewable power generation.
In the long term, refineries could switch from processing crude oil for conventional fuel to renewable
feedstocks for synthetic fuels, primarily for aviation, shipping and trucking, which could reduce fuel
carbon intensities by up to 80%.

These are all practical approaches that, when used together, give refineries a competitive edge as
their consumers have greater incentives to use low-carbon fuel.

Early movers can claim incentives and avoid penalties. New revenue streams made possible by
joining the circular carbon economy are already being established long before competitors make
their move. Moreover, there are tangible benefits when it comes to brand reputation and shareholder
appeal — particularly given the significant impact the oil and gas industry has on carbon emissions.

Refineries have traditionally lacked an affordable, modular and scalable carbon capture solution.
Carbon Clean's fully modular CycloneCC technology is set to change this, as it provides a
comprehensive solution that fits the needs and concerns of the industry — from safety to viability.

While renewable energy is growing exponentially, decarbonising heavy industry will

be equally or more challenging. That is exactly where our innovative and modularised
technology will play a fundamental role.”

Aniruddha Sharma
Chair and CEO, Carbon Clean

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TECHNOLOGY TO ACHIEVE ‘NET ZERO’

Contact us to discuss how your refinery

can benefit from carbon capture

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