LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Technical Presentation (November 2015)
23 slides from LyondellBasell Industries NV's technical presentation, November 2015
Slide 1: Advanced Gasoline Components for Latin America: Production and Blending Properties of MTBE and ETBE
Advanced Gasoline Components for Latin America: Production and Blending Properties of MTBE and ETBE Daniel B. Pourreau, Ph.D. LyondellBasell Industries
Slide 2: Mexico Energy Reform Driving Change
Mexico Energy Reform Driving Change • Gasoline market opens to competition in 2017 • Competitive pressure to reduce costs • 2008 Biofuels Law mandate renewable fuels • Lower sulfur specification (NOM-086) • Continued need to improve air quality, especially in MZs • Growing need for cleaner-burning o
Slide 3: Outline
Outline • MTBE – Air quality benefits – The norm in most countries around the world • Ethanol – 10 years of experience in the US with corn Ethanol • ETBE – Introduced ETBE in the US in 1992 – Supplying Japan with ETBE since 2009 – A superior alternative to ethanol to meet renewable mandates – PEMEX
Slide 4: MTBE in Mexico: A 23-year Success Story
MTBE in Mexico: A 23-year Success Story CO O3 PM 32% 53% 86% Source: RAMA database: http://www.aire.df.gob.mx/default.php?opc='aKBh‘ • Major reduction in key air pollutants since 1992 • No reported groundwater contamination • Domestic supply by PEMEX and imports have met demand MTBE helped to clean
Slide 5: Mexico City Air Quality Still Poor
Mexico City Air Quality Still Poor Further Improvement Needed Very Poor Very Poor Poor Poor O3 and PM10 IMECA NOMs reduced to 95 ppb and 75 μg/m3 Mexico City Air Exceeded IMECA Standards for Ozone and PM10 >163 days in 2014 Source: RAMA database, REFORMA, December 27, 2014; COFEPRIS. 5
Slide 6: Globally, Ether Blending is the Norm
Globally, Ether Blending is the Norm Exceptions are the US, Brazil & Australia Ethers Ethanol MTBE is commonly used around the world to improve gasoline specifications 6
Slide 7: The US Ethanol Experience
The US Ethanol Experience 10 years of Renewable Fuel Standard (RFS) • Massive tax subsidies ($66 Billion since 1982) have caused overcapacity and numerous bankruptcies • Ethanol has substantially increased food prices in the US • Ethanol has delayed development of advanced biofuels • Ethanol increas
Slide 8: EPA: Ethanol Increases Fugitive Emissions
EPA: Ethanol Increases Fugitive Emissions Mexico DF vehicular fleet estimated from Journal of Transport Geography 43 (2015) 171–180 VOC emissions and atmospheric reactivity from CRC E-65 final report (2004) for CARB • Swelling of gasket materials increases fugitive VOC emissions • VOC emissions cont
Slide 9: Ethers Improve Cold-Start Combustion
Ethers Improve Cold-Start Combustion Which Reduces PM Emissions • 80% of particulates are formed during the cold start cycle • High boiling gasoline components (e.g. aromatics) do not completely vaporize and form PM precursors (SOAs) • Ethers vaporize easily and deliver more heat than alcohols Ether
Slide 10: MTBE Reduces PM Emissions from GDI Engines
MTBE Reduces PM Emissions from GDI Engines While Boosting Fuel Efficiency Sources: International Journal of Automotive Technology, Vol. 14, No. 6, pp. 829-836 (2013); SAE Int. J. Fuels. Lubr. 5(2):2012 MTBE improves overall fuel combustion, reducing PM and improving fuel efficiency 10
Slide 11: Lower Sulfur, Newer Engines to Boost Octane Demand
Lower Sulfur, Newer Engines to Boost Octane Demand • Hydrotreating results in 1-2 unit drop in octane – New sulfur specs will increase demand for clean-burning octane • Auto industry moving to smaller engines with higher compression ratios (CR) – Engines are smaller and more fuel efficient but requi
Slide 12: Ethers are Superior Blending Components
Ethers are Superior Blending Components Blending Oxygen Vapor Fuel Octane content Pressure Sensitivity Water Additive Index BP °C wt% (kPa) RON - MON Tolerance Gasoline 85 35-220 0.0 60 10 Excellent MTBE 110 55 18.2 55 17 Excellent ETBE 111 67 15.7 28 16 Excellent TAME 105 86 15.7 10 14 Excellent Et
Slide 13: ETBE vs. Ethanol – The Japanese Experience
ETBE vs. Ethanol – The Japanese Experience Japan Enacted Renewable Fuels Mandate in 2009 • Japan evaluated 3, 5, and 10% ethanol (E3 & E10) vs. 8% ETBE • Stated concerns about ethanol blending included – Change in fuel properties (distillation, RVP) – Phase separation from water contamination – Comp
Slide 14: PEMEX Refineries & Ethers Production
PEMEX Refineries & Ethers Production Mexicali MTBE/ETBE Ethanol Sonora imports producing States Hermosillo Chihuahua Cadereyta (MTBE/ETBE?) Chihuahua Coahuila Sinaloa Durango Saltillo Monterrey Ciudad Madero Culiacan Nuevo Leon (MTBE/TAME/ETBE?) Tamaulipas La Paz Zacatecas Durango San Luis Ciudad Mi
Slide 15: MTBE & ETBE Production & Use: The Lyondell Experience
MTBE & ETBE Production & Use The Lyondell Experience • Lyondell produces MTBE and ETBE from HPIB and Raffinate 1 in Houston, France, and the Netherlands • Lyondell has announced construction of a new world-scale PO/TBA plant in the Gulf Coast (2020 startup) • HPIB are plants designed to produce MTBE
Slide 16: Summary/Conclusions
Summary/Conclusions • Mexico has been using MTBE for >20 years with great success • Energy reforms creating opportunities to lower costs • Biofuels law can create pressure to use local bio-ethanol – However, direct ethanol blending has several drawbacks • Ethers are the best way to add alcohols and
Slide 17: Disclaimer
Disclaimer All information (“Information”) contained herein is provided without compensation and is intended to be general in nature. You should not rely on it in making any decision. LyondellBasell accepts no responsibility for results obtained by the application of this Information, and disclaims
Slide 18: Back Up
Back Up Villahermosa, Tabasco 26 y 27 de Noviembre del 2015 Hotel Quinta Real »s PEMEXs
Slide 19: ETBE vs. Ethanol Blending
ETBE vs. Ethanol Blending • Ethanol increases gasoline RVP by ~7kPA; ETBE does not • Ethanol-blended gasoline had to be reformulated to 65 kPa – Volatile components (e.g. butanes) must be removed with ethanol • 65kPA gasolines compared with 3% ethanol vs. 8% ETBE – Ethanol gasoline more sensitive to
Slide 20: Ethers Provide Clean-Burning Octane
Ethers Provide Clean-Burning Octane.. with minimal reformulation of gasoline 20
Slide 21: MTBE and ETBE Production
MTBE and ETBE Production Nat Gas Petroleum Biomass Methane Ethane Butane Methanol Raffinate* HPIB** Ethanol MTBE ETBE MTBE and ETBE produced from Raffinate or HPIB in the same equipment * Mixed butenes from olefin cracker ** High Purity Isobutylene from PO/TBA process 21
Slide 22: MTBE & ETBE Process Diagram
MTBE & ETBE Process Diagram Raffinate 2 Recycle alcohol Recovery Alcohol Make-up alcohol Water wash Dryer Dryer Debutanizer Reactor Reactor C5 Raffinate C5 column Raffinate 1 or BB Stream ETBE or MTBE 22
Slide 23: MTBE vs. ETBE Production & Use
MTBE vs. ETBE Production & Use The Lyondell Experience • Changes to MTBE equipment for ETBE production: – Larger pumps for ethanol and ETBE – Larger reboiler for ethers product (C5) tower – Change metallurgy due to higher corrosivity of ethanol – Possibly increase trays in product tower – Dryer for
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