High quality biofuel production:
Eni perspective and bio-refineries case study
Massimo Trani, Vice President Licensing, Eni S.p.A. - Refining & Marketing
PERTAMINA ENERGY FORUM 2019 Jakarta, 26th - 27th November 2019
The oil downstream great challenges: sustainability, decarbonization and new regulations
21st century Challenge
combine the planet's growing energy needs
(+ 30% to 2040) and
progressively reduce GHG emissions
(32 Gton/y of CO2 from fossil fuels)
Transport Sector
GHG emissions due to the
MultiService stations (fossil
mobility of people and goods fuels, biofuels, CNG/LNG/LPG,
represent almost 25% of global hydrogen, electric, other)
Biofuels from renewable sources:
emissions (7.5 Gt/y) biomass, hydrogen, methanol CO2 capture and
EMISSION
storage on board
NEW REGULATIONS TRAFIC
Electricity from renewable sources,
in EU and MED electric ultra-fast refills Public transport, car
sharing and pooling
Better fuel for increasingly efficient
vehicles (weight, aerodynamics, ...) Smart working, home work, …
The solution is actually a mix of solutions on 3 areas: improve
the environment, reduce traffic and build innovative services Fuels with a low environmental impact, even
2 to mitigate the impact of ICE old vehicles
Eni’s approach to transport decarbonization
Renewables Fuels
▪ Hydrogen
✓ 1st filling station in 2019 in Milan
✓ CNG Compressed natural gas
▪ Over 700k members, with 400 (San Donato Milanese)
▪ 2 bio-refineries ✓ LNG Liquified natural gas
new subscriptions a day ✓ 2nd filling station in 2020 in Venice
✓ Venice (2014) ▪ Eni network 91 proprietary
▪ Cities: Rome, Milan, Turin, ✓ Agreement with Toyota (10 cars
✓ Gela (2019) Florence, Bologna POS delivering natural gas fuelled with hydrogen in 2019 in MI) to
• initiatives for the recovery of to develop hydrogen mobility
exhausted vegetable oils development
▪ Developing smart mobility
✓ Developing enjoy CARGO
✓ Agreements B2B
▪ Market penetration
▪ Market penetration ✓ Start-up abroad from 2020 ▪ Development plan of electric columns:
✓ 900k cars fuelled with
premium fuels Hi REN % NG around 1100 recharge points
▪ Small cars ✓ Agreement with SNAM ✓ Partnership with IONITY for 30 filling
▪ R&D on bio-advanced ▪ New/hi-efficiency engines for increase of filling stations (180 recharge points) in extra-
feedstock (biomasses, algae stations supplying NG urban high-traffic areas, with ultra-fast
▪ New customer mentality
and waste) recharge
✓ ~300 filling stations with fast recharge
▪ Developing new services electric columns up to ~900 recharge
points
▪ Plan 2018-2021
▪ ~50 new upgrades CNG ✓ Partnership with Eni gas e luce for
▪ ~8 new LNG plants 150 filling stations LED illuminated,
for energy savings of 65%
3
Refinery crisis in Europe and Eni strategy High Decrease
energy cost of
Refinery Margin demand
$/bl Low operating
10.0
9.0
8.6 8.5 8.3 margins
8.0 7.2
7.0 6.4 Environment Old
6.0 al constraints refining
5.0 4.1 4.2 system
4.0 3.1 3.1 3.2
3.0 2.4
SERM 1.8
2.0 Refining
1.0
0.0 overcapacity
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
RED II
▪ Since 2009 in Europe (OCSE) the demand has 16
@2030
been 650 Mton/y, while the production capacity 14 ▪ Feed-crop based biofuels
is 720 Mton/y 12 limited to 7%
▪ Refining overcapacity contributed to margins
10
10.5 ▪ Max Waste based 3,5%
% 8
reduction and losses for refining activities. 6 ▪ Min Adv. 3,5%
▪ 21 refineries closed in OCSE Europe(2 Mb/d, 110
4
2
7 ▪ High ILUC Risk crops phase
Mton, -15%) and 7 refineries in not OCSE Europe. 3.5 out from 2024 to 2030
0 0.5 1
2021 2025 2030
advanced std feed
4
Eni vision on Biofuels
Re-Design a traditional Refinery!
EU Refinery
Industry Bio Quality
Crisis Improvement
Biorefinery
Patent Eni n° MI2012A001465 – Sept. 2012
EU
biofuels ECOFINING TM
needs Eni-Uop
Technology
▪ Produce real “drop-in” fuels instead of fuel additives.
▪ Leverage existing refining/ transportation infrastructure:
▪ Lowers capital costs, minimizes value chain
disruptions, and reduces investment risk.
Oxygenated Biofuels ▪ Focus on path toward advanced generation feedstocks.
Ethanol Biodiesel
“Other” Oils: Jatropha, Castor, ..
First Advanced
Generation Generation
Hydrocarbon Biofuels Lignocellulosic
Natural oils
Diesel Jet Gasoline (vegetables, greases) biomass,
algal oils
5
ECOFININGTM process
Hydrogen
14-16% @ 80% purity
Light fuels
RENEWABLE FEEDS (Green LPG, Green Naphtha)
High Vegetable oils GREEN JET
Bio Naptha 6-13 %, depending on CP
Feed Tallow
Flexibility Used cooking oils HVO DIESEL
GREEN 68-75 %, depending on CP
Oils from algae, waste FG 7-8 %
C3 5-7 %
1st reaction 2nd reaction Products H2O 9-11 %
stage stage separation CO2 2-3 %
1st stage of reaction: Hydrodeoxygenation 2nd stage of reaction: Hydroisomerization
Reactions: Reactions:
• Triglycerides structure cracking; HVO isomerization;
• Paraffins
• Deoxygenation;
• Double bond saturation. • Paraffins cracking.
Products:
Products: -Green Diesel (excellent cold flow properties).
- Mix of linear paraffins (high cetane number, pour cold
-Green Jet (quality superior than Jet A1).
flow properties: Cloud Point>20°C).
By-product : Green Naphtha.
By-product: Green LPG (propane).
6
The quality of HVO
The HVO, due to its chemical composition made of pure paraffines, is a perfect blending
component for diesel fuel Euro 5 (EN:590).
Fossil Diesel Conventional ECOFININGTM
Properties
ULSD Biodiesel (FAME) HVO
BIO content 0 100 100
Oxygen, % 0 11 0
Specific gravity 0.820 0.880 0.780
Sulphur, ppm <10 <1 <1
Heating Value, MJ/kg 43 38 44
Cloud Point, °C -5 From -5 to +15 Up to-20
Distillation range, °C 200 - 350 340 - 355 200 - 320
Polyaromatics, %w 11 0 0
Nox emissions Standard + 10% -10%
Cetane 51 50-65 70-90
Oxydation stability Standard Pour Excellent
7
BioRefineries and Premium Fuels evolution
Jan 2016
A new Premium Diesel with
15% HVO is lauched on the
market and available in 3500
Eni station
May 2014
2013 HVO Hydrogen Plant
Project start production Under Evaluation
2012
Gela Refinery
Venice
Permitting conversion
Advanced VOs 720 kt/y
Other Low ILUC VOs
2007
EcofiningTM patent
600kt/y
350 kt/y
Used Cooking Oil
20%
10 %
PFAD
Others
PRE-TREATMENT ECOFININGTM
80%
90 %
2BSvs/ISCC Certified Crude Palm Oil
Eni initiatives: real examples of circular economy
• Agreement with Waste
recovery Associations Restaurants & Local Public
Catering chains Domestic Administrations
• Agreement with
Restaurants collection Local Public
Associations UCO Transport
• Agreement with Collection
Municipalities
Collection & Collection &
Circular
Regenaration Regeneration Economy
Consortium companies
Framework Contracts
agreement High quality
HVO
UCO collection at Eni’s Sites Biorefineries
Eni
9
Bio and Circular economy: Eni’s vision
Our strategy aims at an increasing role in bio and circular economy
▪ Promote the use of Eni proprietary premium diesel high % Renewables, in co-operation with
Municipalities, to contribute to the reduction of GHG global emissions.
▪ Waste to biofuels: transforming non-recyclable wastes, in particular the organic fraction of
municipal waste and non-recyclable plastics into feedstocks for biofuels (bio-methane, hydrogen,
methanol).
▪ Fight against desertification: promoting initiatives in North Africa for the cultivation of biofuel
sustainable feedstocks and contributing to local economy
▪ Develop Advanced Feedstocks for biorefineries (Algae, Microbial Oils, other R&D Projects, etc)
Bio and circular economy are not the result of improvisation, but are well rooted in research and
development
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CASE 1: GRASSROOT
Existing Refinery (Complex or Hydroskimming) Case 1
Crude Oil Traditional cycle operational capacity as
Description
Gasoline is
New Plant Sized for 20,000 BBLD HVO
Diesel production
Synergies with existing utilities (yes/not)
Biomass Pretreatment Unit
LBO
Ecofining Deoxygenation Unit
New Units
Ecofining Isomerization Unit
Steam Reforming
Tank Farm
Coke
New BioRefinery (Partial HVO production to existing RFCCU).
Upside
Biomass HVO To be potentially considered in a further
stage
Existing Units
New Units
Upgraded Units
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CASE 2: PARTIAL CONVERSION (HCU)
Existing Refinery (normally Complex) Case 2
Crude Oil Gasoline Traditional cycle in operation with slight
impact on traditional fuel production
Description
New Plant Sized for 20,000 BBLD HVO
Diesel production
1 train of HCU converted into Ecofining
LBO deoxygenation (1st stage)
HVO Partial synergies with existing utilities
Ex HCU 1 train assumed
New Units
Biomass Pretreatment Unit
New Ecofining Isomerization Unit
Tank Farm
Coke
Highlight
Need of new SR to be evaluated
Refinery Upgrading
Biomass
Existing Units
New Units
12 Revamped Units
Summary CAPEX estimates (+/- 40%) – USD millions
Partial Conversion “Add on” grassroots “Add on” grassroots
Capex (+/- 40% ; USD Millions) ex HCU (minor synergies) (medium synergies)
20 kbbl/d 20 kbbl/d 20 kbbl/d
ISBL ISBL 120 210 210
Steam
0 65 65
Reformer
OSBL If existing tank
farm has higher
Technical COST
POT 40 50 50
spare
Synergies with Tank Farm 35 110 55
existing refinery
Other OSBL(1) 95 150 100
Productivity Factor 1 Total OSBL 170 375 270
Technical COST Mln USD Mln USD 290 585 480
(1) OtherOSBL: Utilities, Ancillaries, General Infrastructure &
Buildings The overall economics must take in the proper
consideration the loss of fossil production
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Conclusions
The BioRefinery Project is the result of the
LONG TERM ENI R&D RENEWABLE STRATEGY
made by continuous investment on R&D activities closely linked to the business aimed at developing
innovative biofuel technology in advance of the regulations
PROCESS
INNOVATION
▪ EcofiningTM Eni-UOP HVO process can process a huge variability of traditional and advanced
feedstock, obtaining a very HQ HVO-Diesel 1st conversion in the world of a conventional petroleum
refinery into a Biorefinery
▪ Eni strategy includes projects to identify new biorefineries feedstock alternatives to palm oil and
other first generation feedstocks
▪ Case Study Analysis: the conversion of existing units, such as DHDT or HCU, leads to a further
investment reduction
▪ In addition to EcofiningTM Technology Licensing, Eni is also open to evaluate possible JV or business
cooperation in the field of HVO production and marketing.
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Thank –you
[email protected]
