Deep Conversion in Refining for IMO 2020
Deep Conversion in Refining for IMO 2020
[Link]
2
In This Issue
Volume 11 | Number 49
EDITOR
SPECIAL FEATURES Karl Kolmetz
PROCESS ENGINEERING
The View from Rock Bottom:
21 Look Past the Tariffs….Its About the
Shipping, Stupid…
CONTRIBUTING AUTHOR
Jayanthi Vijay Sarathy
26 Stages of Happiness
Karl Kolmetz
with high capital investment capacity to reach a processing heavy crude oils and maximize
highlighted competitive positioning in the the added value to the processed crude.
downstream market through adequate balance
of bottom barrel conversion capacity and petro- Flexible refining hardware in relation to the
chemicals maximization. processed crude slate is an important com-
petitive advantage in the downstream sector,
The war between Russia and Ukraine raised mainly the processing of heavy and extra-
the spread between the 0,5 % sulfur and 3,5 % heavy crudes due to its lower acquisition cost
sulfur marine fuel oil, as presented in Figure 2, when compared with the lighter crude oils.
becoming even more attractive the production The difference in the acquisition cost between
of VLSFO. these oils is based on in the yield of high add-
ed value streams which these oils present in
Even before the war the spread between the distillation process, since the lighter
VLSFO and HSFO justified investments by re- crudes normally show higher yields of distil-
finers to produce low sulfur fuel. Furthermore, lates than the heavier crudes, its market val-
it’s important to considering the increasingly ue tends to be higher. As an example, Figure
stricter regulations and the trend of reduction 4 presents the evolution of the discount of
of the HSFO market in the middle term (as pre- WCS (West Canadian Select) crude oil to
sented in Figure 3), this fact plus the trend of WTI (West Texas Intermediate) crude oil over
reduction in transportation fuels demand and the time.
growing demand of petrochemicals at global
level tends to favor refiners relying on most
6
The WCS is considered a heavy crude (API Despite these characteristics, refiners with
grade between 19 and 22) with a sulfur con- adequate refining hardware and easy access
tent around 3,0 % while the WTI is considered to heavier crudes can use the price gap be-
a reference crude with a medium API grade tween light and heavy crudes as opportunity
around 40 with very low sulfur content (around to improve the refining margins, mainly con-
0,3 %), Figure 1 shows a significant price gap sidering the IMO 2020 that reduced, even
between these crudes, leading to a relatively more, the acquisition cost of heavier and
advantage to refiners capable to add value to sourer crudes and due to their characteristics,
these crudes, especially considering the IMO the hydrocracking technologies broke signifi-
2020 that requires even more refining capacity cative restrictions of the refining hardware to
to add value to the bottom barrel streams. Nor- add value to these discounted crudes.
mally, the valuation of crudes is defined by the
quality, the available market in other words it’s Processing Extra Heavy Crudes – The Hy-
necessary to find refiners capable of pro- drocracking Alternative
cessing this crude oil, and the capacity to Refiners processing heavy and extra-heavy
transport the crude oil to the consumer market. (or high sulfur) crudes face a great challenge
Heavier crudes tend to present discounts relat- to meet the IMO 2020 once it is extremely
ed to lighter crude due to these three varia- difficult to comply with the new regulation
bles: through carbon rejection technologies, in this
· Quality – Heavier crudes present lower case, the hydrogen addition technologies are
yield of distillates and high added value fundamental.
derivatives like diesel, kerosene, and gaso- The hydroprocessing of residual streams pre-
line than lighter crudes. sents additional challenges when compared
with the treating of lighter streams, mainly
· Consumer market – The refiners able to due to the higher contaminated content and
process heavier crudes needs to rely on residual carbon (RCR) related with the high
adequate bottom barrel conversion capaci- concentration of resins and asphaltenes in
ty, in other words, more complex refineries, the bottom barrel streams. Figure 5 shows a
restricting the consumer market in compar- schematic diagram of the residue upgrading
ison with lighter crudes. technologies applied according to the metals
· Transportation – Heavier crudes present and asphaltenes content in the feed stream.
higher logistics costs due to higher energy
consumption.
7
Higher metals and asphaltenes content led to the hydrocracking reactors, these reactors act
a quick deactivation of the catalysts through like guard bed to protect the hydrocracking
high coke deposition rate, catalytic matrix deg- catalyst.
radation by metals like nickel and vanadium or
even by the plugging of catalyst pores pro- The principal contaminant of hydrocracking
duced by the adsorption of metals and high catalyst is nitrogen, which can be present in
molecular weight molecules in the catalyst sur- two forms: Ammonia and organic nitrogen.
face. By this reason, according to the content
of asphaltenes and metals in the feed stream Ammonia (NH3), produced during the hy-
are adopted more versatile technologies aim- drotreating step, have temporary effects re-
ing to ensure an adequate operational cam- ducing the activity of the acid sites, mainly
paign and an effective treatment. damaging the cracking reactions. In some
cases, the increase of ammonia concentra-
Catalysts applied in hydrocracking processes tion in the catalytic bed is used like an opera-
can be amorphous (alumina and silica- tional variable to control the hydrocracking
alumina) and crystalline (zeolites) and have catalyst activity. The organic nitrogen has
bifunctional characteristics, once the cracking permanent effect blocking the catalytic sites
reactions (in the acid sites) and hydrogenation and leading to coke deposits on the catalyst.
(in the metals sites) occur simultaneously. The
active metals used in this process are normally As exposed above, extra-heavy crude oils or
Ni, Co, Mo and W in combination with noble with high contaminants content can demand
metals like Pt and Pd. deep conversion technologies to meet the
new quality requirements to the bunker fuel
It’s necessary to have a synergic effect be- oil. Hydrocracking technologies are capable
tween the catalyst and the hydrogen because to achieve conversions higher than 90% and,
the cracking reactions are endothermic and despite the high operational costs and instal-
the hydrogenation reactions are exothermic, lation can be attractive alternatives.
so the reaction is conducted under high partial
hydrogen pressures and the temperature is The hydrocracking process is normally con-
controlled in the minimum necessary to con- ducted under severe reaction conditions with
vert the feed stream. Despite these character- temperatures that vary to 300 to 480 oC and
istics, the hydrocracking global process is pressures between 35 to 260 bar. Due to
highly exothermic, and the reaction tempera- process severity, hydrocracking units can
ture control is normally made through cold hy- process a large variety of feed streams,
drogen injections between the catalytic beds. which can vary from gas oils to residues that
According to the feed stream quality can be converted into light and medium deri-
(contaminants content), its necessary hy- vates, with high value added.
drotreating reactors installation upstream of
8
Figure 6 shows a typical process arrangement hydrocracking alternative is the most techni-
to hydrocracking units with two reaction stage cally adequate solution.
and intermediate gas separation, adequate to
According to data from Global Data Compa-
treat high streams with high contaminants con-
ny, the global installed hydrocracking capaci-
tent like nitrogen.
ty in 2022 was around 12,500 Mbd and will
The residue produced by hydrocracking units growth under an average annual growth rate
have low contaminants content, able to be di- of 5,0 % until 2027 and this growth will be
rected to the refinery fuel oil pool aiming to headed by USA, China, India, and Saudi Ara-
produce low sulfur bunkers, allowing the mar- bia.
ket supply and the competitiveness of the re-
finers.
Deep Hydrocracking Technologies – Re-
The process shown in Figure 6 presents a covering More Added Value from the
fixed bed hydrocracking unit, to heavier Crudes
crudes. This unit can be inadequate due to the
As aforementioned, despite the high perfor-
low operating life cycle, in this case the ebulat-
mance, the fixed bed hydrocracking technolo-
ed bed and slurry phase reactors can be more
gies can be not economically effective to treat
effective, despite the higher capital spending.
residue from heavy and extra-heavy due to
The capital requirement is one of the most im-
the short operating lifecycle. Technologies
portant restrictions to refiners to adopt the hy-
that use ebullated bed reactors and continu-
drocracking technologies both to capital and
um catalyst replacement allow higher cam-
operating capital due to the necessity of larger
paign period and higher conversion rates,
hydrogen generation units, catalysts costs, etc.
among these technologies the most known
Figure 7 presents a comparison between resi-
are the H-Oil and Hyvahl technologies de-
due upgrading alternatives related to the capi-
veloped by Axens Company, the LC-Fining
tal investment (CAPEX) and effectiveness in
Process by Chevron-Lummus, and the Hy-
the bottom barrel processing.
con process by Shell Global Solutions.
As presented in Figure 7, the hydrocracking These reactors operate at temperatures
technologies present the higher level of re- above 450 oC and pressures to 250 bars. Fig-
quired capital spending, on the other hand of- ure 8 presents a typical process flow diagram
fer the higher conversion to bottom barrel for a LC-Fining process unit, developed by
streams, a necessity to refiners processing Chevron Lummus Company while the H-Oil
heavy and extra-heavy crudes. According to process by Axens Company is presented in
Figure 3, the other alternatives are not effec- Figure 9.
tive to treat residue streams with high carbon
residue and metals, common characteristics of
extra-heavy crude oils. In this case, the
9
Aiming to meet the new bunker quality require- vacuum gasoil to high quality naphtha, kero-
ments, noblest streams, normally directed to sene, and diesel the synergy between hy-
produce middle distillates can be applied to drocracking and steam cracking units, for ex-
produce low sulfur fuel oil, this can lead to a ample, can improve the yield of petrochemi-
shortage of intermediate streams to produce cal intermediates in the refining hardware, an
these derivatives, raising their prices. The mar- example of highly integrated refining configu-
ket for high sulfur content fuel oil should ration relying on hydrocracking is presented
strongly be reduced, due to the higher prices in Figure 13.
gap when compared with diesel, its production
tends to be economically unattractive. Considering the recent trend of reduction in
transportation fuels demand followed by the
Deep Conversion Refining Hardware – Pet- growth of petrochemicals market makes the
rochemicals from Bottom Barrel Streams presence of hydrocracking units in the refin-
ing hardware raise the availability of high-
As aforementioned, the residue upgrading quality intermediate streams capable of being
units are capable to improve the quality of bot- converted into petrochemicals, an attractive
tom barrel streams, the main advantage of the way to maximize the value addition to pro-
integration between residue upgrading and cessed crude oil in the refining hardware. As
petrochemical units like steam cracking is the presented in Figure 13, the synergy between
higher availability of feeds with better cracka- carbon rejection and hydrogen addition tech-
bility characteristics. nologies like FCC and hydrocracking units
Bottom barrel streams tend to concentrate aro- can offer an attractive alternative, sometimes
matics and polyaromatics compounds that pre- the hydrocracking and FCC technologies are
sent uneconomically performance in steam faced by competitors technologies in the re-
cracking units due to the high yield of fuel oil fining hardware due to the similarities of feed
that presents low added value, furthermore, streams that are processed in these units. In
the aromatics tends to suffer condensation re- some refining schemes, the mild hydrocrack-
action in the steam cracking furnaces, leading ing units can be applied as pretreatment step
to high rates of coke deposition that reduces to FCC units, especially to bottom barrel
the operation lifecycle and raises the operating streams with high metals content that are se-
costs. In this case deep conversion units like vere poison to FCC catalysts, furthermore the
hydrocracking can offer higher operational mild hydrocracking process can reduce the
flexibility. residual carbon to FCC feed, raising the per-
formance of FCC unit and improving the yield
Once cracking potential is better to paraffinic of light products like naphtha, LPG, and ole-
molecules, and the hydrocracking technologies fins.
can improve the H/C in the molecules convert-
ing low added value bottom streams like
12
The Heavy Coker Gasoil (HCGO) is an inter- like basic nitrogen. These characteristics lead
esting case study as a feed to hycrocracking the refiners processing cracked feeds in hy-
unit. Refiners with high complexity refining drocracking units to invest more capital in
hardware can rely on the synergy between de- feed treating systems like filtering and guard-
layed coking and hydrocracking technologies ing beds. Despite this apparent disadvantage,
to ensure added value to bottom barrel refiners able to add value to bottom barrel
streams. streams can enjoy highly competitive ad-
vantage considering the downstream market
The quality of the HCGO relies on the quality post IMO 2020. For refiners processing extra-
of the feed to the delayed coking unit as well heavy bottom barrel streams, the deep hy-
as the operating mode of the unit, mainly the drocracking technologies like slurry phase
recycling ratio. Higher recycling ratios produc- hydrocracking can be an interesting option,
es better quality HCGO once reduces Conrad- despite the high capital and operating costs.
son Carbon Residue (CCR), reducing the con-
taminants content like metals, sulfur, and nitro- The Lubricating Market – Short Lifetime to
gen. Solvent Route
Despite this advantage, the delayed coking According to recent forecasts, the global mar-
operators normally minimize the recycle ratio ket of automotive lubricants will grow under
to minimum as possible aiming to raise the annual rates around 6,3 % between 2022 and
fresh feed processing capacity and the quality 2030 reaching a total market size of USD 120
of HCGO is not an optimization focus of the billion in 2030. Figure 14 presents the grow-
refinery. For this reason, normally HCGO is a ing trend for the automotive lubricants mar-
hard feed to hydrocracking units due to the ket. The high added value of lubricants in
high content of refractory sulfur components, comparison with the transportation fuels ac-
high CCR, high nitrogen content, and aromat- companied by the trend of reduction in trans-
ics concentration. portation fuels demand indicates an attractive
alternative to refiners with adequate refining
The sulfur and nitrogen content raises the heat hardware to improve their revenues and com-
release in the first bed (Higher exothermal pro- petitiveness in the downstream market.
file) that can produce damage to the catalysts,
the nitrogen tends to inhibit the cracking reac- Like others crude oil derivatives, economic
tion leading to lower conversion in the unit. Hy- and technology development have been re-
drocracker’s processing feeds with high nitro- quired the production of lubricating oils with
gen content tend to apply processing configu- higher quality and performance, moreover
ration with intermediate gas separation to con- with lower contaminants content.
trol the catalyst activity. The higher production
of H2S and NH3 due to the higher concentra- The main quality requirements for lubricating
tion of sulfur and nitrogen reduces the hydro- oils are viscosity, flash point, viscosity index
gen partial pressure, raises the necessity of (viscosity change with temperature), fluidity
washing water to the units, and can raise the point, chemical stability, and volatility.
corrosion rate in the processing unit.
According to the American Petroleum Insti-
Aromatics compounds tend to raise the hydro- tute (API), the lubricating base oils can be
gen consumption, the heat release in the cata- classified as described in Table 1.
lyst bed, and are precursors of coking deposi-
The lube oils from groups II, III and IV have
tion that deactivate the catalyst. Other side ef-
higher quality than base oils from group I, the
fects of the cracked feeds to hydrocracking
content of contaminants like sulfur and un-
units are the impact over the quality of the final
saturated compounds are significantly re-
products like lower cetane number of diesels,
duced, moreover, the viscosity index are su-
higher smoke point of kerosene, lower viscosi-
perior for groups II, III, and IV.
ty index in the lubricating oils and higher sulfur
content. The main disadvantage of the solvent route,
when compared with the hydrorefining route,
As described above, processing cracked
is that the solvent route can produce only
feeds in hydrocracking units present some ad-
Group I lubricating oil, this can limit its appli-
ditional challenges to refiners related to hydro-
cation to restricted consumer markets, which
gen consumption, better quench design of the
can reflect in the economic viability. Figure 15
catalyst bed due to the higher exothermic pro-
presents a forecast for the market share evo-
file of the reactions, and lower global activity of
lution of different kinds of base oils in the
the catalyst due to the higher poison content,
market.
14
15
According to the data from Figure 15, a signifi- saturate polyaromatic compounds and re-
cant reduction in the demand for Group I base move contaminants like sulfur and mainly ni-
oil is expected, leading to a great competitive trogen which is a strong deactivation agent for
loss for refiners relying on base oil production the hydrocracking catalyst.
exclusively through solvent routes.
In the hydrocracking step, the feed stream is
Another solvent route disadvantage is the sol- cracked under control conditions and chemi-
vents applying which can cause environmental cal reactions like dehydrocyclization, and aro-
damage and needs specials security require- matics saturation occurs which give to the
ments during the processing, production of process stream the adequate characteristics
low value-added streams like aromatic extract to the application as lubricants.
is another disadvantage. In this sense, refin-
ers relying on solvent routes tend to lose mar- The following step, hydroisomerization, seeks
ket in the next years and face difficulties find- to promote the isomerization of linear paraf-
ing markets for their products, reducing in a fins (which can reduce de viscosity index) pro-
significant manner their competitiveness in the ducing branched paraffins.
downstream market.
After the hydroisomerization the process
Producing High Quality Lubricating Oils – stream is pumped to hydrofinishing units to
The Hydroprocessing Route saturate remaining polyaromatic compounds
and to remove heteroatoms, in the hydrofin-
In the lubricating oil production by hydrorefin- inshing step the water content in the lube oil is
ing, the physical processes of the solvent controlled to avoid turbidity in the final prod-
route are substituted by catalytic processes, uct.
basically hydrotreating processes. Figure 16
shows a block diagram of the processing se- In hydrotreating units dedicated to producing
quence to produce base lube oils through hy- lubricants, one of the focuses of the hy-
drorefining route. drotreating process is to reduce the concen-
tration of long chain paraffin, to achieve this
In this case the fractionating in the vacuum goal is applied a specific catalyst bed contain-
distillation step has more flexibility than in the ing dewaxing catalysts (ZSM-5). One of the
solvent route, once that the streams will be most known hydrodewaxing technology in the
cracked in the hydrocracking unit, so another market is the MSDW process, commercial-
distillation step is necessary. ized by ExxonMobil Company. A basic pro-
cess flow diagram for MSDW process is
After the vacuum distillation and propane shown in Figure 17.
deasphalting steps, the process streams are
sent to a hydrotreating unit. This step seeks to
16
Despite the high capital spending involved in capacity for the next years. As expected, this
the hydroprocessing route, it’s possible to growth will be headed by the Asian refiners
achieve better quality, higher added value, and as presented in Figure 20.
products with growing demand against the pro-
duction of Group I lube that presents contrac- The headed by Asian players is expected
tion demands. In this scenario, it is expected once these players present high integration
which refiners, relying on exclusively solvent level between refining and petrochemical
routes, lose market share forcing revamps of assets, requiring high bottom barrel conver-
the existing lubricating production units or the sion capacity to maximize the yield of petro-
exit from the market. chemicals, again this shows the competitive
advantage for the Asian players due to the
As discussed above is expected a significant highest flexibility and profitability of their re-
growth of the global hydrocracking installed fining hardware.
18
Welcome back to the March edition of TVFRB! Whether are not you are a supporter of such
I am traveling this month and into April as well, frustrating trade tactics (causing multi-trillion-
including a trip from my home in temperate dollar losses in stock market equity, currently
Mexico, to Houston and then on to the UK. I too), we business folk must now deal with,
am looking forward to the UK’s still-cooler and navigate our businesses through, yet one
weather next week, since in Houston, air con- more significant liability for profitability. While
ditioning compressors are already whirring oil/gas products surcharges are most likely to
away at homes and businesses all around apply as well, we may more specifically study
town. Humidity has already condensed on my those early commodities which have already
iced tea glass at this moment! Such is typical been affected.
of life most of the year in Houston though.
Among a long list of isolationist trade controls
Since our last thought exchange back in De- meant to return manufacturing to the USA,
cember, the US federal government has the administration has proposed US port fees
changed reigns, with the beginning of the sec- on ships made in China. Surcharges on
ond Trump administration. As he promised these ships are already hitting agricultural,
during his campaign, the president instantly metals, and coal exports, as examples.
introduced frustrating trade tariffs causing
mass uncertainly in most all commodity mar- Reuters’ reported Wednesday that “President
kets; associated stock market upsets have al- Donald Trump’s plan to revive U.S. shipbuild-
ready taken place commensurately, as well. ing using massive fees on China-linked ship
22
visits to American ports is causing U.S. inven- effectively shut out from our global export
tories to swell and is already stoking uncertain- markets," Mike Koehne, an Indiana soybean
ty in embattled agriculture and coal markets, farmer and director of the American Soybean
as exporters struggle to find ships to send Association, said in a document submitted to
goods abroad.” the USTR Office before the Monday hearing.
The United States Trade Representative is Koehne noted that the US does not have the
holding a public hearing regarding proposed domestic flag capacity to handle its export
Section 301 port call fees, which could range market at the rate proposed by the USTR.
from $500,000 to $1.5 million per port call for "Our industry is reliant upon ocean-going ves-
vessels with Chinese-built connections. sels to export our crop to customers around
the world in a cost-effective and efficient
“Trump is drafting an executive order that manner."
would rely on funding from a U.S. Trade Rep-
resentative proposal to levy fines on China- "The USTR's proposed remedies targeting
made ships or vessels from fleets port fees China's maritime, logistics and shipbuilding
have limited the availability of ships needed to sectors could have severe unintended conse-
move agriculture, energy, chemicals, mining, quences for the US mining industry, which
construction and manufactured goods to inter- relies heavily on global shipping networks,"
national buyers, according to major U.S. ex- Veronika Shime, vice president of Internation-
porters and transportation providers in inter- al Policy and Sustainability at the National
views with Reuters, letters to U.S. officials, and Mining Association, said in a statement sub-
comments ahead of USTR hearings late mitted to the USTR.
month.”
Increased costs, supply chain disruptions,
Troutman Pepper Locke reported that the
and even the outright inability to import or ex-
Trump administration’s proposal includes “a
port critical materials could bring the industry
service fee (that) will be imposed on vessel
to a standstill - threatening US manufacturing,
operators from China, requiring payment of up
energy production and national security. "We
to $1 million per entry into a U.S. port or up to
are already hearing reports of company trans-
$1,000 per net ton of the vessel’s capacity. In
portation contracts being canceled, signaling
practice, most ships are expected to incur the
immediate and serious disruptions," said
maximum $1 million fee per port call. If a ves-
Shime.
sel makes multiple stops at U.S. ports, the op-
erator will be required to pay this fee for each
"We urge the USTR to consider the ripple ef-
entry.”
fects beyond shipbuilding and engage with
In addition, “a service fee of up to $1.5 million stakeholders to develop targeted solutions
per port call will apply to any operator with a that do not inadvertently weaken American
vessel constructed in China or a fleet that in- mining, manufacturing, and energy security,"
cludes such vessels, regardless of their flag or said Shime.
operator nationality,” Troutman Pepper Locke
reported. “Even if a specific ship was not built "This action will slam the brakes on oil and
in China, its operator may still be subject to the gas production as the fees are onerous and
fee based on the overall composition of their make the US immediately uncompetitive,"
fleet.” Enterprise Products Partners, a Houston-
based energy infrastructure company, stated
Gao Lingyun, an expert at the Chinese Acade- in a document submitted to the USTR.
my of Social Sciences in Beijing, said that the
strong backlash from US industries shows that The company stated that "every time our peo-
the US government's policy will ultimately re- ple travel internationally to promote US ener-
sult in American businesses and consumers gy exports, they get the same question - can
paying higher prices. "The US is essentially we depend on the US. This action tells the
lifting a rock only to drop it on its own foot," world that they cannot."
Gao told the Global Times. Apart from the
shipbuilding and shipping industries, other US The company also quoted Lars Jensen, CEO
industries, especially exporters, also raised of Vespucci Maritime, a shipping expert, as
concerns and objections. saying "if the intention is to drastically in-
crease costs for US importers and make US
"We are extremely concerned that if this pro- exports uncompetitive, this proposal is likely
posal goes into effect, US soybeans will be to do the job."
23
Global Time “Vessel owners have already re- Major Logistics News Going Underreport-
fused to provide offers for future U.S. coal ed
shipments due to the proposed USTR fees,
Xcoal Energy & Resources CEO Ernie Thrash- If implemented, this measure could reshape
er said in a letter to U.S. Department of Com- global shipping dynamics and have far-
merce Secretary Howard Lutnick dated March reaching consequences for international trade
12 and seen by Reuters,” Baertlein, Plume and with the United States. While the maritime
Gardner reported. “…The letter from Pennsyl- industry and logistics news sources are pay-
vania-based coal marketer Xcoal (a MetCoal ing close attention to this issue, metal buyers
Exporter) and comments from agriculture rep- and energy traders are understandably fo-
resentatives showing tangible impacts from the cused on product tariffs. As such, the upcom-
proposed fees have not previously been re- ing fees aren’t getting the attention they de-
ported.” serve in the media. If you’re worried about
how the latest logistics news might affect your
How the Proposed Fees Could Impact U.S. bottom line, pay close attention to these still-
Agriculture unfolding moves.
Baertlein, Plume and Gardner reported that The proposed new fees would require signifi-
“U.S. farmers, who are already getting pum- cant operational changes for shipping compa-
meled by retaliatory tariffs from China, Mexico nies, who would likely avoid smaller ports
and Canada, also are caught in the crossfire of where they would need to spread the pro-
the Chinese ship fee fight, the American Farm posed fees across fewer containers. Instead,
Bureau Federation said.” they would favor high-volume ports like Los
Angeles, Long Beach, New York and Savan-
“The inability to secure ocean freight transpor- nah.
tation from May and beyond has restricted
their ability to sell bulk U.S. agricultural prod- Meanwhile, lower-volume ports like Oakland,
ucts like corn, soybeans and wheat because Tacoma and Seattle could suffer sharp de-
exporters are unsure what the final cost would clines in traffic. For consumers, the impact
be, three U.S. grain export traders told Reu- wouldn’t just come from the 301 fees, either.
ters,” Baertlein, Plume and Gardner reported. Longer inland transportation routes could
“…Bulk agricultural exporters could face an drive up costs by more than $1,000 per 20-
additional $372 million to $930 million in annu- foot container.
al transportation costs from the fees, the Farm
Bureau said. That would represent substantial The proposed fees range from $500,000 to
margin loss in global markets where competi- $1.5 million per port call for vessels with Chi-
tiveness is often determined by mere pennies nese-built connections. Most analysts expect
per bushel.” the new fees to significantly increase shipping
costs and reduce services for fleets that in-
These proposed fees are expected to signifi- clude Chinese-built ships.
cantly increase shipping costs, potentially di-
verting traffic to non-US ports and leading to Benefits of the Policy Could Be Years Away
longer inland transportation routes, which Another major concern involves traffic diver-
could further accelerate costs for consumers. sion. For instance, shipping companies may
While the proposal aims to strengthen the US choose to reroute cargo through non-U.S.
maritime sector by encouraging the use of US- ports, such as those in Mexico or Canada, to
flagged and US-built vessels, the immediate avoid the fees.
benefits are expected to go to South Korean
and Japanese shipyards, with long-term revi- Although this strategy would sidestep the 301
talization of the domestic industry taking years charges, it could lead to delays, higher do-
to materialize. mestic delivery costs and potential product
shortages. Even when vessels continue to
Importers and consumers of products contain- use major U.S. ports, the added costs will
ing imported components should stay alert re- likely pass on to consumers, just as tariff
garding the latest logistics news, as the United costs have in the past.
States Trade Representative (USTR) plans to
hold a public hearing on March 24, 2025, re- One of the primary goals behind the proposal
garding proposed Section 301 port call fees. is to strengthen the U.S. maritime sector by
24
Stages of Happiness
Karl Kolmetz
Draft
Hamidreza Seyedjafari, Professor Ana Luisa Fernando
29
Problem Statement The steam released with per litre of air is,
A deaerator operates at 0.2 barg with feed wa-
ter supplied at 800C from condensate tank in a
process facility. The non-condensables is tak-
en to be only air. It is assumed that the deaer-
ator is insulated well with no heat losses and
the air is assumed to be completely carried by The density of air is calculated using Ideal
the steam to the vent. The Air % in total vol- gas equation. Considering the operating pres-
ume of air-steam mixture a.k.a., volume of air sures are low at 0.2 barg, the compressibility
to steam in mixture at 0.2 barg is taken to be factor [Z] is taken to be 1.0.
16.408% from figure 2. Alternatively, the online
calculator from Ref [6], can be used to deter-
mine the Air% in total volume of air-steam mix-
ture. The boiler supplying steam operates at 5
barg with a supply flow of 5 tonnes/hr.
Where,
[Link] Author
vap_eau.htm
“Control Valve Handbook”, Emerson’s Fisher’s
Handbook, 5th Edition
[Link]