TOWARDS A ZERO (NET) CARBON REFINERY Author: Michael Stockle Chief Engineer, Refining Technology Business Solutions Group Foster Wheeler The well-to-wheel emissions for petrol and diesel can be split into three main parts; oil production and transportation, oil processing and transportation, and emissions from the consuming engine. In order to reduce emissions and meet government targets for carbon reduction it is likely that all three parts of the chain will need to make some contribution. Whilst the processing of oil in the refinery only contributes around 5-10% of the total well-towheel emissions, the opportunities for reducing these are significant due both to the nature of the processes used, the fuels available and the fact that these are large-scale fixed location processes making applications such as carbon capture and storage (CCS) more practical than they would be on individual vehicles. This paper will look at the main sources of carbon emissions from a refinery and look at a range of options for reducing the carbon impact of the refinery, starting fuel substitution and energy efficiency then moving on to look at how technologies such as CCS and renewable power generation could be integrated into the refinery. The paper will look at the impacts on refinery economics of making these changes and show one possible solution that, at a sufficiently high carbon price, could see a net zero carbon refinery. Introduction Processing of crude oil in a refinery typically counts for about 5-10% of the well to wheel emissions associated with extracting crude, converting it into transport fuels and burning those fuels. To maximise the use of fossil fuels and get the most from each drop of oil we need not only to use oil efficiently in the vehicles we drive but also to process the oil as efficiently as possible. By making our refinery efficient and by looking for ways to decarbonise the fuels used in the refinery we can start to look at how we can move towards a zero net carbon refinery and make a significant contribution to reducing the well to wheel emissions of fossil fuel powered transport. Sources of Carbon Dioxide in the refinery The sources of carbon dioxide in the refinery can be grouped into four main groups; • • Fuel to process units Steam and power production • • Hydrogen production FCC Coke (where applicable) 1 The emissions of an individual refinery depend on a number of factors. The configuration of the refinery is a key factor, as complex upgrading refineries produce more CO2 than simple hydroskimming configurations, but they also produce more of the fuels society demands. The fuels used in the refinery also have an impact, as do the crudes processed, heavy sour crudes require more energy to process than light sweet crudes. In order to quantify the relative sizes of the emissions we can look at a typical refinery configuration and the carbon dioxide emitted from it. In this paper we have considered a European FCC-based refinery processing 150,000 BPSD of Ekofisk crude that generates all power and steam on site from refinery fuel gas and fuel oil. The diagram below shows the main configuration of this refinery. LPG LPG Merox LPG Naphtha H2 Lt Nap SFG H2 CDU Nap Naphtha Naphtha HDT CCR Ref Hvy Ref Hvy Nap Kero Gasoline Splitter SFG H2 Crude C4’s Reformate FG H2 Splitter Isom ISOM LPG Kero HDT Diesel Jet SFG H2 Diesel Diesel HDT H2 SFG LPG LCO H2 Atm Res VGO FCC VDU SFG FCC Nap HDT Naphtha Treated Gasoil LCO/DCO WN Visbreaker V Res Atm/Vac Res to Fuel Oil SFG HSFO Gas Oil Residue Kero to Fuel Oil Diesel to Fuel Oil SFG Amine Treatment FG Legend: SFG Sour Fuel Gas FG Fuel Gas H2S Fuel Gas System Sulphur SRU LPG Hydrogen Plant H2 Block Flow Diagram: FCC & Visbreaker Configuration 2 The emissions from this typical refinery are shown below. 6,000.00 5,000.00 4,000.00 Utilities TPD of CO2 HPU SRU Visbreaker 3,000.00 FCC DHT Naphtha Block CDU /VDU 2,000.00 1,000.00 Base Sources Options for reducing refinery carbon emissions There are a number of ways of reducing the carbon emissions of a refinery, ranging from relatively simple low-cost options to complex, capital-cost-intensive options. The options can be grouped into a number of areas and we will consider each area in turn. Energy efficiency As we look to reduce carbon emissions the first focus area is energy efficiency. The other options we pursue will tend to be more expensive than the current energy sources in the refinery (if they were cheaper they would already be being used) and so making the most of energy we do use will become even more important. Even refineries that consider themselves good performers in terms of energy efficiency can do more and this is illustrated by a recent study Foster Wheeler and AspenTech jointly completed for a top quartile performing refinery in northern Europe. This study resulted in operational improvement and investments being identified that saved around 10% of the fuel used on the refinery and were expected to deliver a payback of less than 18 months. This clearly demonstrates that in a world where crude price are sustained above $100/bbl energy efficiency is something every refinery should be looking at again. In our example we will assume our base case refinery has already achieved a high level of efficiency and will focus on other options to reduce the emissions from the refinery. Fuel substitution Hydrocarbon fuels contain significantly different levels of carbon and result in significantly carbon emission for the same level of energy requirement. The table below compares the impact of different fuel sources on carbon emissions. 3 Table 1: CO2 emissions for typical fuels Fuel Calorific value (kJ/kg) 50,000 47,500 46,300 47,200 40,000 119,900 Methane Ethane Propane Ethylene Fuel Oil Hydrogen CO2 tonnes/ tonne 2.75 2.93 3.00 3.14 3.21 0 CO2 tonnes/ FOE tonne 2.20 2.47 2.59 2.67 3.21 0 The graph below shows the total refinery CO2 emissions from a 150,000 BPSD refinery assuming all heat and power is generated on site, compared to the level of emissions if natural gas was imported for power generation. 6,000.00 5,000.00 Utilities TPD CO2 4,000.00 HPU SRU Visbreaker 3,000.00 FCC DHT 2,000.00 Naphtha Block CDU /VDU 1,000.00 Base Nat Gas Firing Moving from fuel oil firing to natural gas firing reduces emissions from the refinery by about 13%. Of course, the economics of this option are very dependent on the relative prices of natural gas and fuel oil. In the US, where the differential between natural gas and crude price has widened considerably, then natural gas firing will be increasingly attractive. In Europe the incentive will be lower but will still generally favour natural gas firing where available. The graph below shows the natural gas price required to breakeven on energy cost versus fuel oil at varying carbon prices. 4 Break even natural gas price versus fuel oil price at varying carbon price 30.0 Natural Gas price $/MMBTU 25.0 20.0 15.0 10.0 5.0 0.0 50 60 70 80 90 100 110 120 Fuel oil Price $/bbl $/tonne CO2 0 25 50 Green heat and power In our example refinery we have assumed that all the refinery’s power requirements are generated on site. On e way to reduce the emissions associated with the refinery would be to generate this power from low carbon sources, either on site or by purchasing green power over the fence. If we replace all of the onsite power generation we can with imported low carbon power then emissions drop as shown in the graph below. 6,000.00 5,000.00 Utilities HPU TPD CO2 4,000.00 SRU Visbreaker 3,000.00 FCC DHT 2,000.00 Naphtha Block CDU /VDU 1,000.00 Base Elec Purchase 5 This option reduces on-site emissions by 28%, but is dependent on a reliable supply of green power. If power was required to be generated on-site, options such as wind and solar could be evaluated, but again the dependability of these sources may be an issue, and investment is likely to be required in backup systems (which won’t offer a carbon saving) or energy storage. If we combined natural gas firing and low carbon power purchase then we can reduce emissions by almost 40% from the original base case. To make further reductions in emissions, other, less conventional options, need to be investigated. These could include • • • Renewable sources of heat, such as heat from CSP or electrical heating from green power. Carbon capture Use of biomass derived or other low net carbon fuels There are several potential renewable sources of heat that could be used in a refinery, green power could be used in electrical heaters and CSP or geothermal power could be used as sources of heat to generate steam. These options have not been considered in detail in this paper, but could offer real benefits for refiners with easy access to abundant sources of these types of energy. Carbon Capture There are a number of ways that carbon capture can be integrated into the refinery. All three of the commonly proposed capture schemes can be used in the refinery with precombustion, post-combustion and oxyfuel capture schemes all viable in some areas of the refinery. Capture can typically recover up to 90% of the carbon in the fuel and can enable a refinery to get much closer to a zero carbon target. We will look at two options; the first is to change all of the fired heaters in the refinery to fire on hydrogen and capture the carbon dioxide produced in making the hydrogen, for the second, post-combustion capture can be added on all sources of carbon from the refinery. Base Case Emissions Compared to Capture Cases 3,000,000 2,500,000 TPA CO2 2,000,000 1,500,000 Captured Emitted 1,000,000 500,000 Base Full Post capture Precomb Capture (except FCC) 6 Carbon capture can deliver a large reduction in emissions but it still cannot achieve 100% carbon-free processing in the refinery. Even combining capture with the other options considered, using natural gas as fuel, importing power and implementing CCS, around 8% of the carbon emitted in the base case is still emitted. To achieve a net emission of no fossil-derived carbon we need alternative fuel sources that are not derived from fossil fuels. The obvious choice is biomass-based fuels. The carbon from these sources has been captured from the atmosphere and will be captured again as plants grow absorbing the emissions. An alternative option could be using hydrogen produced from electrolysis using green electricity, but the costs of this are high and significant levels of power are required. A number of biomass-based fuels could potentially be used in the refinery with everything from wood chips to algae being potential fuels for the utilities boilers. For the process units converting to solid fuels would be more challenging so in order to keep the assumptions simple we will look at an example where some the purchased natural gas is replaced by bioderived methane. This could be produced from anaerobic digestion or by methanation of bioderived syngas. The production of the biogas uses energy and because this is not all carbon-free there are still some emissions associated with using this gas. In our example where we combine power import, natural gas import and full post combustion capture our refinery still emits around 140,000 TPA of CO2. To get to a net zero carbon refinery this amount would need to be equivalent to the bio-derived content of the biogas. The graph below shows the emissions on the net zero refinery CO2 From The Net Zero Carbon Refinery 1,600,000 1,400,000 1,200,000 TPA CO2 1,000,000 Bio derived 800,000 Captured 600,000 400,000 200,000 0 Carbon Emmisions The table below shows the level of biogas-firing required at different levels of carbon reduction achieved by the biogas. 7 Net Emissions when using Biogas Biogas emissions as % of Nat Gas % of Natural Gas from Biomass 20% 50% 70% 10% 100% 0% 68,830 886 - 202,944 - 338,830 - 542,660 20% 82,418 28,064 - 135,000 - 243,710 - 406,774 50% 102,801 68,830 - 33,085 - 101,029 - 202,944 80% 123,184 109,595 68,830 41,652 886 From the table we can see that at high rates of replacement of natural gas with biogas it is possible to actually achieve negative overall emissions from the refinery and in effect decarbonise some of the product, although the impact on products is small with even the most optimistic case only reducing emissions from the products by about 2.5%. Conclusions and Summary We have seen that a number of options exist for refiners to reduce the carbon emissions from their refineries. The technologies already exist to develop a refinery that has net zero emissions. The challenging in achieving this not technical, but commercial, with refiners requiring sufficient incentive to invest and sufficient protection against the impacts lower carbon emissions could have on their competitive position. The current high oil prices mean that the returns on energy efficiency are good and most refineries are likely to find some attractive investments in this area. Where natural gas is available, changing from fuel oil firing to natural gas firing is also likely to be attractive. Steps beyond these options are generally less attractive financially unless there is sufficiently high carbon price or appropriate level of government subsidy. Previous Foster Wheeler studies have shown a carbon price of around $60/tonne CO2 is required to justify the investment in carbon capture. The higher cost of biomass-derived fuels means that similar or higher levels of subsidy / carbon tax are required to make this option economically attractive. This results in hierarchy of actions for any refiner looking to reduce carbon emissions. 1. Maximise design efficiency and operate efficiently 2. Minimise the carbon in the fossils fuels you use 3. Capture the carbon you cannot avoid and/or move to low carbon fuels and power The right solution will of course depend upon the specific circumstances and business objectives of a particular refinery, and the full range of options need to be studied in order to develop a robust technical solution and optimised investment plan. © 2012 Foster Wheeler. All rights reserved. 8
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