maximizing fcc profitability in a challenging market€¦ · • feed: vgo + ar (2 qualities) fccu...

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Maximizing FCC Profitability in a challenging Market Matthias Scherer Marketing and Business Development Director 1 st MERTC | Manama, Bahrain 22 – 24 January 2017

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Page 1: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

1 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Maximizing FCC Profitability in a challenging Market

Matthias Scherer Marketing and Business

Development Director

1st MERTC | Manama, Bahrain 22 – 24 January 2017

Page 2: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

2 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Profit Drivers in the FCC Operation

Increase Capacity • processing and equipment capabilities

Lower-cost Heavier Feed • crude selection

Changing Product Yields • local market product values

Improving Unit Reliability • ability to produce good results time after time

Presenter
Presentation Notes
Each refinery has unique economics that depend on, processing and equipment capabilities, and local market product values. As the economic drivers for the refinery evolve over time, opportunities to improve profitability will appear. In the FCC unit, these opportunities usually include such items as increased capacity, processing lower-cost heavier feeds, changing product yields, and improving unit reliability.
Page 3: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

3 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

How does Grace support refiners?

Planning Operation Blending/Pump

Profitability Reliability Right product mix

*2016: early switch from summer to winter „brew“

Extensive technology screening

tailored solution

Manufacturing and technology focus with strong technical sales and service component

Six Sigma, Laboratory support, optimum

product mix

C4=

(Alky, ETBE)

Propylene Gasoline/L

CO Min.

Bottoms Octane*

Presenter
Presentation Notes
Unit Health Check; Troubleshoot; Specialty Tech Service; Technology
Page 4: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

4 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Selecting the Right FCC Catalyst

Catalyst selection is key to improving FCC profitability

• No sacrificial surface area

• Best in class physical properties

• Synthetic –

not natural pores

• Maximum

formulation flexibility

Surface area

RE

Attrition resistance

Best-in-class strippability

High efficiency,

active surface area

Unit retention

Page 5: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

5 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

More Demanding Targets for the FCC…

• Increase distillate • Optimize LPG/gasoline ratio • Drive conversion • Reduce dry gas • Maximize resid barrels • Boost octane and LPG olefins

… require more and improved functionalities to be incorporated into the catalysts

Catalyst formulation

Optimum porosity

Reaction sites

Poisons resistance

Improved stabilization

Passivation technologies

Matrix passivation

Improved V-Trap

Premier manufacturing

Improved FCC profitability

Page 6: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

6 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Heavy Feeds Processing

0

20

40

60

Past 2003 2007 2015

Nr.o

f Uni

tsFCCU Feed Trends(Europe / Middle east / Africa)

HT VGO SR VGO RESID

SR VGO processing is declining. In contrast, resid processing is increasing

Page 7: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

7 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Heavy Feeds Processing

Grace catalysts are best-in-class for nickel tolerance (EMEA Ecat benchmarking)

1000080006000400020000

0.6

0.5

0.4

0.3

0.2

0.1

0.0

Ni Equivalents (Ni+V/4+0.4/0.33*Sb) [mg/kg]

Ecat

ACE

Hyd

roge

n Yi

eld

[wt.%

FF]

AB

NEKTOROther Grace

Catalyst family

Average Ecat Data per Customer EMEA - Q1 2016

N = 74

Page 8: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

8 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Heavy Feeds Processing

Grace supplies 63% of the resid segment with NEKTOR technology

HT/VGO27%

Grace63%

Competitors37%

RESID73%

EMEA Market Segmentation 2016

Page 9: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

9 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Deliver value to FCC Operation

Case Studies

Presenter
Presentation Notes
Each refinery has unique economics that depend on crude selection, processing and equipment capabilities, and local market product values. As the economic drivers for the refinery evolve over time, opportunities to improve profitability will appear. In the FCC unit, these opportunities usually include such items as increased capacity, processing lower-cost heavier feeds, changing product yields, and improving unit reliability.
Page 10: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

10 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Case Study refinery in FSU

Commercial FCCU • 240kbd refinery in FSU • UOP MSCC FCC 6,000 MT/day • Ecat Ni + V ca. 5,500 ppm • Feed: VGO + AR (2 qualities)

FCCU Objectives

• Maximum conversion • Maximum gasoline yield • Maximum RON/MON • lncrease iC4/iC4= (alkylation)

FCCU Targets

• Retain profitability at lower OPEX

Price-driven decisions not always deliver value to the operation

72

74

76

78

80

5.0

6.0

7.0

8.0

9.0

10.0

11.0

Con

vers

ion,

wt.%

FF

Cat/Oil

Conversion vs. Cat/Oil

GRACE Competitor

Catalyst Performance Grace catalyst delivered significantly

higher conversion vs. competitor

Page 11: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

11 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Case Study refinery in FSU

Grace performance outstanding vs. competitor’s latest technology,

While using competitors catalyst the FCC

operation showed: Poorer coke and gas selectivity Increase in regenerator temperature Poorer bottoms conversion Poorer reliability Profitability losses

Refinery returned to Grace

0.05

0.10

0.15

0.20

72 73 74 75 76 77 78 79 80

Hyd

roge

n Yi

eld,

wt.%

FF

Conversion wt. % FF

Hydrogen vs. Conversion

GRACE Competitor

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

72 73 74 75 76 77 78 79 80

360+

, wt.%

FF

Conversion wt. % FF

Bottoms vs. Conversion

GRACE Competitor

Page 12: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

12 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Case Study refinery in Western Europe

Commercial FCCU • 300kbd refinery in Western Europe • UOP SBS FCC 11,000 MT/day • Ecat Ni + V = 14000 ppm • ConCarbon =1.8 wt.%

FCCU Objectives • Higher conversion

• Higher bottom upgrading

• Lower delta coke

• Superior gasoline yield

FCCU Targets • Similar fresh catalyst make up

requirement

FCC catalyst selection • The industrial trial approach was

preferred instead of Lab testing

• Side by side trials were performed with Grace and two other suppliers

• Extensive logistics and monitoring was required to perform the trials

Page 13: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

13 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Performing plant trials is expensive!

Competitor B Poorer coke and gas selectivity Increase in regenerator

temperature, lower resid intake, poorer yields

Competitor A Poorer coke and gas selectivity Increase in regenerator

temperature, lower resid intake, poorer yields

∆Grace Regen bed temp (°C) -5

Std Conversion (wt%) +1.5

Dry gas (wt%) +0.12

LPG (wt%) +0.32

Std. Gasoline (wt%) +1.12

Std. LCO (wt%) -0.56

Std. slurry (wt%) -0.97

Case Study refinery in Western Europe

∆Grace Regen bed temp (°C) -17

Std Conversion (wt%) +1.5

Dry gas (wt%) -0.54

LPG (wt%) +1.43

Std. Gasoline (wt%) +0.46

Std. LCO (wt%) -0.38

Std. slurry (wt%) -1.14 2

3

4

5

6

7

8

15/07/15 04/09/15 26/10/15 17/12/15 07/02/16 30/03/16

Dav

ison

Inde

x ()

Date

ECat Davison Index

GRACE A

Dramatic decline in catalyst attrition resistance dust emissions increased Trial terminated prematurely.

Competitor B

Page 14: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

14 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Using Grace FCC catalyst led to: • Lower delta coke and dry gas due to Superior metals tolerance

• Increased processing of heavier feed + improved yields • Better control of the afterburning with the superior CO promoter effect superior

metal tolerance when feed quality changed

• Better Ecat attrition properties to reduce Regenerator fines emission and ash content in slurry

• Grace delivered +$2.0-2.8/MT FF value versus competitors technology

• Grace now supplying refinery after >20 years with competition

Grace delivered +2.0 – 2.8 $/MT FF profitability

Case Study refinery in Western Europe

Page 15: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

15 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Competitors Applications review

Refinery Metals Competitor’s trial outcomes Refinery 1

Ni:3600 mg/kg, Sb Application of competitors catalyst coincided with increased catalyst losses and activity drop. Refinery returned to Grace, and activity retention significantly improved.

Refinery 2

Ni:4900 mg/kg, Sb Observed substantially higher carbon on regen catalyst (CRC) 1.0+ wt% and preferential loss of separate metals trap particle. Upon return to Grace, CRC returned to historic levels 0.4wt% in partial burn

Refinery 3

Ni: 4000 mg/kg Trial underway, unit observing 4x’s higher CRC

Refinery 4 Ni: 4300 mg/kg Trial interrupted due to insufficient activity retention and stability requiring higher catalyst additions. Customer has since returned to normal operations with Grace

Refinery 5

Ni: 1000 mg/kg

Fluctuations in Ecat Ni loading resulting in disproportionate increases in H2. Unable to maximize resid percentage in the feed and maintain conversion when using competitor’s catalyst.

Refinery 6 Ni: 3000 mg/kg,Sb Latest competitive technology did not achieve claims of improved H2 selectivity and bottoms upgrading. Trial aborted.

Page 16: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

16 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Improving Unit Reliability

Major issues for the FCC operation (results from 2016 internal survey)

• The typical problems encountered in the regular operation of FCC units are varied

• Operation strategy will depend on the feedstock quality and desired products as well as hardware design

• The selection of the right catalyst might help to mitigate the most common troubles

0% 25% 50%

NOx emissions

High Delta Coke

Low Delta Coke

High Unit Erosion

Expander Deposition / Vibration

High CRC

Maintain gasoline sulfur compliance

Circulation Problems

ESP Problems

Fe Contamination Issues

Poor Cyclone Operations

Main Fractionator Fouling

High Afterburn

Reactor / Transfer Line Coking

Improve gasoline octane

Slurry Circuit Fouling

SOx emissions

Grace: One stop shop for technology service, and support

Grace: One-stop shop for technology, service, and support

Presenter
Presentation Notes
The problems encountered in the operation of FCC units are as varied as their hardware and catalysts, their feedstocks and desired products, and their operating strategy. However, given broad enough description of the type of operating problems, general yet useful categories of troubles can be examined and solutions can be discussed. The five most common troubles encountered in the operation of an FCC unit include catalyst fluidization and flow instability in the Reactor, poor stripping, poor regeneration, catalyst losses through cyclones, and poor reaction and maintenance of catalyst properties. In this paper, we will discuss these and suggest systematic approaches for understanding and resolving them.
Page 17: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

17 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Grace Provides Industry-Leading Technical Service

simulation models

unit operations

health check

advanced troubleshooting

global expert teams

catalyst optimization

training courses

Presenter
Presentation Notes
Large team of experienced professionals with varied backgrounds and expertise Engineering houses/process licensors Refiners Catalyst companies Standard Technical Service Unit operating reviews and reports, modeling, statistical analysis Ecat interpretation, catalyst optimization Advanced Technical Service Start-up assistance TAR inspection Advanced troubleshooting Multi-loader installation, operator training, maintenance, and other technical support Training seminars (professional staff and operators)
Page 18: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

18 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

The Value of an Efficient Supply Chain

Grace provides a safe way to handle and manage a large amount of FCC catalyst • Silo facilities allow fresh catalyst to be delivered by silo truck

• Avoids dust emissions associated with the use of super sacks

• Emergency catalyst storage available on request

Grace provides a safe way to handle and manage a large amount of spent FCC catalyst • Grace’s authorized and REACH-certified life cycle

management allows for safe spent catalyst management

Grace supports customers by delivering from regional manufacturing sites

Delivery: safe, fast, dust-free

Regional Infrastructure

Page 19: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

19 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Grace’s Commitment to Innovation Continues

We support customers with world-class technical service,

experienced research and development, and unsurpassed analytical tools

Page 20: Maximizing FCC Profitability in a challenging Market€¦ · • Feed: VGO + AR (2 qualities) FCCU Objectives • Maximum conversion • Maximum gasoline yield • Maximum RON/MON

20 © 2016 W. R. Grace & Co. | Confidential Extracting More Value Out of FCC Operations | November 2016

Matthias Scherer | Marketing and Business Development Director EMEA W. R. Grace & Co. – FCC Catalysts [email protected] www.grace.com