The next big challenge

Unlock Value From Unconventionals
By David Sherwood, Senior Principal Scientist, Criterion Catalysts & Technologies

Unconventional heavy resources such as tar sands, shale oil and heavy crude oil have yet to see extensive use in the marketplace because of the processing challenges that they introduce. Meanwhile, the reserves of conventional, easy-to-process crude oils continue to decline. One of the next big challenges for the catalyst industry is to enable these ultra-heavy oils to be processed with equivalent ease to conventional crudes.

The issue with these unconventional resources is not only that they are heavy, viscous and often acidic, but that they also contain elevated amounts of contaminants such as nickel, vanadium and nitrogen.

Although the industry is used to handling these elements, unconventional resources typically have them at unprecedented high levels. They also contain contaminants, such as arsenic, that have not historically been an issue in refineries.

In addition, unconventional heavy crudes contain fewer valuable distillates and their processing leaves more less-valuable residue, which means that a greater conversion ability is required to transform the residues into the desired product slate.

This ties in with a second challenge faced by the catalyst industry: how to increase the overall conversion of the residues of all crudes into more valuable distillates. Worldwide, the demand for fuel oil is projected to decrease, whereas the demand for clean transportation fuels is projected to increase. We need to get much more out of the bottom of the barrel for both conventional and unconventional crudes.

Major focuses for Criterion’s residue upgrading teams are the development of catalysts that can handle the extremely high levels of contaminants from the residues of unconventional crudes and increasing the production of valuable distillates from all crudes.

The role of catalysis in residue upgrading cannot be overstated. At Criterion, we have had a very strong focus on this for almost 30 years, secured several patents and become a world-leading supplier of ebullated-bed catalysts. We will continue to target our research at developing catalysts that can facilitate the processing of heavier feeds and help to raise residue conversion levels without sacrificing cycle length.

Enhance Product Slate Flexibility
By Raul Adarme, General Manager, Hydrocracking, Criterion Catalysts & Technologies

Our mandate in hydrocracking is to help refiners make money safely and reliably. Hydrocrackers need to be optimised in response to shifting market trends and new business objectives by taking advantage of their flexibility. We can help refiners to maximise their bottom line through next-generation catalysts and tailored catalyst systems, and by working with them to remove the constraints on their hydrocrackers.

One example of a strategy for optimisation is our research and development work on new shapes of hydrocracking catalyst, which led to the introduction of Advanced Trilobe Xtreme technology. Reactants move shorter distances through Advanced-Trilobe- Xtreme-based catalysts, so the effective reaction residence time is reduced. Consequently, overcracking to produce gas is restricted, which can lead to a 1.5% increase in hydrocracker diesel yield. Additionally, in response to market needs, we are paying attention in our research and development programmes to zeolite technologies that can effectively process heavier feeds.

Much of our recent development work has focused on highly flexible, tailored catalyst systems that help refiners to swing between distillate and gasoline production. This takes into account seasonal product demand shifts and, thereby, helps to increase margins. These catalyst systems can help a refinery to increase conversion when naphtha is king. And, when diesel is king, they can either turn off their second-stage hydrocrackers or reduce the conversion to maximise diesel.

We also work with refiners to remove constraints. For instance, if their cold flow properties are limited, we can work with them to install a system to enhance cold flow properties such as cloud and pour points, thereby enabling the production of high-value winter diesel.

We also work with refiners to remove constraints. For instance, if their cold flow properties are limited, we can work with them to install a system to enhance cold flow properties such as cloud and pour points, thereby enabling the production of high-value winter diesel.

Another example is provided by a Canadian refinery with which we explored the potential value of switching from a noble-metal to a base-metal hydrocracking catalyst. Following a thorough investigation, they opted to install a base-metal cracking catalyst system that we tailored for their hydrocracker. After five years on stream, the hydrocracker had maintained the targeted product yields and achieved the desired cycle length.

Moreover, it had processed more barrels of a more difficult feed. As a result, the new catalyst system unlocked benefits of more than $20 million. This is our challenge – to continue finding ways to support refiners’ endeavours to maximise profitability.

Look Beyond Ultra-Low-Sulphur Diesel (ULSD)
By Lawrence Kraus, Hydroprocessing Product Manager, Criterion Catalysts & Technologies

Now that most refiners are already making clean fuels, the focus of our hydroprocessing teams is on helping them to find ways to enhance the performance and utilisation of ULSD units. As a result, we are seeing a lot of interest in our “Beyond ULSD” concept.

This asserts that the experience gained in ULSD operations, along with new catalyst technology and advanced process technology, enables ULSD units to be more fully utilised and profitable. Through some highly customised solutions, we can help the unit to have the flexibility to upgrade heavier feeds to make more diesel; maximise light cycle oil use in the on-road diesel pool; and process more difficult feedstocks. As a result, refiners can capture opportunities as margins fluctuate.

Working closely with Shell Global Solutions, we have implemented a range of these technology solutions for refiners in revamp or grassroots applications. Essentially, we are creating a distillate operation that leverages the high activities of current-generation hydrotreating catalysts and the ULSD environment to enable ring opening, aromatic saturation, cracking and isomerisation reactions through the use of specific process and catalyst technologies. As a result, we can help refiners to improve cetane, reduce aromatics, upgrade cold flow properties, improve density, reduce heavy diesel end point, process biodiesel components and/or shift conversion between naphtha, kerosene and diesel in their existing ULSD units.

These solutions do not come off the shelf. They are customised to meet a refiner’s specific needs and objectives, and require a special dynamic between the catalyst expert (Criterion), the supplier of the reactor internals and process technology (Shell Global Solutions) and the refiner. All three parties need to work closely together to make sure the refiner’s specific needs and objectives are met.

Many ULSD units have substantial processing capabilities. In these challenging times, refiners must expect more from this asset; it can deliver much more if advanced process technology is employed with customised catalyst systems.

Establish Close Relationships
By Kevin Carlson, Business Development Manager, Criterion Catalysts & Technologies

Predicting the future is, at best, difficult, but I do not see any more broad sweeping environmental mandates on the horizon that will dramatically change the industry.

Although bunker fuel regulations are possible, people are talking about bunker fuel cleaning, but this is more likely to be done by the end-users rather than by the producers. Now that the clean fuels mandate has all but run its course in many global markets and the ability to produce ULSD is less of a differentiator, a very close, site specific relationship with a catalyst vendor may also provide a competitive edge while product technology advances continue.

Now is the time for refiners to take a step back and review their asset portfolio and business drivers and objectives, and consider the steps that they can take to maximise their performance beyond clean fuels compliance. Along with consultants and technologists from Shell Global Solutions, we regularly sit with customers and go through their refinery configuration asking how they can get the most out of it. Changing the operating regime, optimising the product mix, installing different catalyst systems, using different crudes – all of these can help to enhance profitability.

The trick is to combine in-depth knowledge and perspectives to look at the assets in a different way. Experience and teamwork really matter here, not just in identifying opportunities, but also because it can help to guard against unforeseen consequences.

For instance, if a refiner is considering introducing a new crude or even an unconventional feedstock then they would be well advised to team up with people that understand the feed and how it behaves. Is this a good fit for the site? What needs to be done for it to handle it? Criterion and Shell Global Solutions would be able to advise on these kinds of issues.

Effective technical collaboration enables projects to benefit from each party’s perspective. Staff from the refinery bring a crucial understanding of their own site and operations, while Shell Global Solutions brings global operating experience, and Criterion an innate understanding of the process and the capabilities of its catalysts. Working together can really make a difference in terms of making well-informed, robust decisions.