Dr. Mirabella WalterLyondellBasell Industries

Central and Eastern EuropeanRefining and Petrochemicals

13th Annual Meeting

Budapest, Hungary12th October 2010

Non-profit Technical Organisation

Founded in 1985

~ 2/3~ 2/3rdrd of Total EU Etherification Capacityof Total EU Etherification Capacity

. .

EEuropean uropean FFuel uel OOxygenates xygenates AAssociation ssociation

Overall EU GHGs Emission Reduction TargetsClimate and Energy Package2020 = 20% (if EU Unilaterally)2020 = 30% (if Global Agreement)

Biofuels & Bioliquids’ GHGs LC Emission Saving ThresholdsDirective 2009/28/EC “Renewable Energy”2011 ≥ 35 %2017 ≥ 50 %2018 ≥ 60 % (Plants ≥ 1/2/2017)

Fuels GHGs Emission Reduction Targets (per unit of energy)

Directive 2009/30/EC “Fuel Quality”2020 = 10 % (Indicative)2020 ≥ 6 % (Mandatory)

COCO22: High Profile in the : High Profile in the EUEU

GHGsGHGs Emissions Reduction & Refining:Emissions Reduction & Refining:-- 6% a big Challenge !6% a big Challenge !

100%

CrudeProduction

FuelRefining

DistributionRetail

EngineCombustion

1%4% 85%10%

15% 85%Oil Ind. Automotive Ind.

- 6%

Only Only Few OptionsFew Options Available to Refiners:Available to Refiners:BioBio--fuels keyfuels key !!

Operations Energy Efficiency

Carbon Capturing and Storage

Bio-Fuels

BioBio--componentcomponent to Addressto Address≠≠ SustainabilitySustainability ObjectivesObjectives

Bearable

Equitable

Viable

ECONOMICCapital Efficiency

Growth EnhancementInnovation

Margin ImprovementRisk Management

Shareholders Return

ENVIRONMENTALClean Air, Water & LandEmissions Reductions

No Waste, Releases & SpillsBiodiversity

SOCIALCommunity Outreach

DiversityHuman Rights

Indigenous CommunitiesLabour Relations

Business EthicsJob Creation

Local Economic ImpactsSecurity

Skills EnhancementSocial Investments

Life-Cycle ManagementProduct StewardshipProducts to ServicesResource Efficiency

Access to Potable WaterCrisis Management

Environmental JusticeEnvironmental Regulations

Global Climate ChangeSafety & Health

Bio-Mass

Bio-OilBio-Ethanol

Bio-Esters Bio-HCs

GasoilPetrol

Bio-Ethers

ORIGIN

PRIMARY

DERIVED

FUEL

BioBio--Ether (Ether (ETBEETBE) is for ) is for PetrolPetrolwhat Biowhat Bio--Ester (Ester (FAMEFAME) is for ) is for GasoilGasoil

BioBio--Petrol Supply Chain:Petrol Supply Chain:EthersEthers in in CentralCentral PositionPosition

FeedstockGrowing

BIOMASS

EthanolFermentation

PRIMARYBIOCOMPONENT

EtherSynthesis

DERIVATIVEBIOCOMPONENT

PetrolFormulation

FUEL

EnginePowering

VEHICLE

“UP-STREAM” “DOWN-STREAM”

BioBio--EthersEthers’’ ““UpUp--streamstream””::Embedding Ethanol Embedding Ethanol ““GoodnessGoodness””

ETBEEthanol

Sustainable, Certified, Audited, ..1st Generation, 2nd Gen., 3rd Gen...

Cellulosic, from Waste, …..

BioBio--EthersEthers’’ ““DownDown--streamstream””::Enabling Lesser COEnabling Lesser CO22--Intensive Petrol FormulationIntensive Petrol Formulation

ETBE High OctaneLow Volatility Petrol

BioBio--Ethers ReduceEthers ReduceRefinery OperationsRefinery Operations’’ COCO22 EmissionsEmissions

< Carbon Content

< Aromatics

< Refinery Fuel

Key Blending PropertiesKey Blending Properties Affecting Fuel Formulation Affecting Fuel Formulation

Vapour pressure

Distillation characteristics

Octane performance

< Blending Volatility< VOCs Emissions> Octane Barrel Delivery> CO2 Emissions Reduction> Crude-oil Replacement

No Commingling> Water Tolerance

No Azeotrope< Logistic Complexity> Blend-stocks Value

Butane Uptake/Upgrade> Refining Flexibility> Material Compatibility

ETBE: ETBE: FurtherFurther Enhancing ETOHEnhancing ETOH PPerformanceserformances

Ethanol/ETBE/Petrol Ethanol/ETBE/Petrol Blending PerformancesBlending Performances““NormalizedNormalized”” ComparisonComparison

ETBE Helping Ethanol on VolatilityETBE Helping Ethanol on Volatility

52

54

56

58

60

62

64

66

68

0 1 2 3 4 5 6 7 8 9 10

% of ETOH-equivalent in Petrol

Pet

rol R

VP

(kP

a)Direct Ethanol Blending

Ethanol as ETBE

10% Total ETOH-equivalentby a Mix of ETOH and ETBEStraight ETOH portion on “X Axis”Rest of ETOH-equivalent to 10% as ETBE

ButaneButane Uptake/Upgrade ValueUptake/Upgrade Value

222

6028

0

50

100

150

200

Blen

ding

RVP

(kP

a)at

5%

v/v

Con

cent

ratio

n

ETOH @ 5%v/v Petrol ETBE

Buta

ne B

lend

ing

Opp

ortu

nity

Buta

ne B

lend

ing

Opp

ortu

nity

CREDITCREDIT

DEBITDEBIT

ETBE Further Addresses ETBE Further Addresses GHGGHG’’ssby Greatlyby Greatly Reducing Reducing VOCsVOCs EmissionsEmissions

-16

-14

-12

-10

-8

-6

-4

-2

0

2

Tota

l VO

C E

mis

sion

s R

educ

tion

(KT/

Y)

ETOH vs. BLETBE vs. BL

Source: Emissions and Health Unit - Institute of Environment and Sustainability - EC-JRC Ispra“An assessment of the impact of ethanol-blended petrol on the total NMVOC emissions from road transport in selected countries”

EU-5, ΔVOC(ETBE-ETOH) = 26593 T/Y

25.T

Source: CONCAWE’s “RUFIT” report N° 6/78 (Dec. 1978)

Refinery Octane Refinery Octane ProductionProduction::Energy &Energy & COCO22 IntensiveIntensive

ETBE Delivers ETBE Delivers Superior MONSuperior MON Contribution:Contribution:Most EU Refineries Most EU Refineries ““MONMON--LimitedLimited””

6065707580859095

100105110

bMON

Petrol EuroGradeETBEETOH

MO

N=

%v/

vE

quiv

. 2,2

,4-tr

imet

hylp

enta

ne in

i-C

8/n-

C7

0

50

100

150

200

250

Petrol EuroGradeETOHETBE

ETBE Delivers ETBE Delivers > > TTwice wice ““Octane BarrelOctane Barrel””@ same Ethanol@ same Ethanol--equivalentequivalent

Oct

ane

“Bar

rell”

= (M

ON

+RO

N)/2

“Vol

ume”

@ s

ame

ETO

H-E

quiv

alen

t

0

5

10

15

20

25

30

35

EU 95 Toluene ETBE Ethanol

(RO

N -

MO

N)

ETBE Helping RefinersETBE Helping Refinersvs. vs. Octane Sensitivity BalanceOctane Sensitivity Balance

Octa

ne N

umbe

rs=

%v/v

Equiv

. 2,2,

4-trim

ethylp

entan

e in i

-C8/n

-C7

ETBEETBE Reduces COReduces CO22 EmissionsEmissionsHART July 2007 CE-Delft October 2007 IFEU August 2008

“Best results by far are obtained when ethanol is converted to bio-

ETBE.The use of ETBE can allow the saving of 4 times the primary energy required to produce its

fossil alternative.IFEU recommends to exploit the

whole potential of bio-ETBE”

“The use of bio-ETBE reduces refining crude-oil need and

processing intensity, requires less fuel and, implying relevant petrol composition changes, allows the reduction of carbon factor and

lesser CO2 emissions”

“This study indicated that, when bio-ETBE is used, the resulting

modification of refinery operations determine a significant reduction of greenhouse gases emissions”

ETBE COETBE CO22 PerformancePerformance Studies:Studies: ReferencesReferences

Ethyl Tertiary Butyl Ether - A Review of the Technical LiteratureSAEJune 2009http://papers.sae.org/2009-01-1951The impact of ethanol and ETBE blending on refinery operationsand GHG-emissionsELSEVIER - Energy Policy2009http://www.ce.nl/art/uploads/file/Artikelen%20(medewerkers)/EnergyPolicy_TheImpactofEthanolandETBEblending_HCBKa.pdf?PHPSESSID=4d91cd6d759b670b5c0f4d0c98735687

ETBE and Ethanol: A Comparison of CO2 SavingsCE-DelftOctober 2007http://www.ce.nl/publicatie/etbe_and_ethanol%3A_a_comparison_of_co2_savings/715?PHPSESSID=37ad2bd9915bcf5711aed6292578b595

Bioenergy from grain and sugar beet: Energy and greenhouse gas balancesIFEU - Institute for Energy and Environmental Research HeidelbergAugust 2008http://papers.sae.org/2009-01-1951

Study on Relative CO2 Savings Comparing Ethanol and ETBE as a Gasoline ComponentHart Energy ConsultingJuly 2007

GHGsGHGs Emissions Calculation Emissions Calculation Formula:Formula:A Deeper LookA Deeper Look

E = eec + el + ep + etd + eu – esca – eccs – eccr – eee

E = eec + el + ep + etd + eu – esca – eccs – eccr – eee

+ consumed “upstream”ep = process energy

– saved “downstream”

BioBio--Ethers allow Energy Processing SavingEthers allow Energy Processing Savingduring Refinery Fuel Formulation !during Refinery Fuel Formulation !

Emissions from Emissions from ProcessingProcessing

E = eec + el + ep + etd + eu – esca – eccs – eccr – eee

Converting ETOH intoConverting ETOH into EthanolEthanol--EthersEthersAvoids Avoids VehicleVehicle Permeation EmissionsPermeation Emissions

& & SecondarySecondary COCO22 FormationFormation

Emissions from the Emissions from the Fuel in UseFuel in Use

ExhaustExhaust

Fugitive/PermeationFugitive/Permeation

ETBE: The MTBE ETBE: The MTBE ““SubstitutionSubstitution”” EffectEffect

LUC = Land Use Change

E = eec + el + ep + etd + eu – esca – eccs – eccr – eee

Emissions from Emissions from …… land land use changeuse change

PUC = Plant Use Change

GOOD BAD

ARID LANDS ENERGY CROPS RAINFOREST

FOSSIL-ORIGIN MTBE BIO-ORIGIN ETBE

GOOD

ConclusionConclusionEthanol-Ethers, via their Multiple Valuable Technical and Environmental Features, Contribute to Enhance Fuel-ETOH Sustainability Pathway, including very Relevant CO2 Emissions Reduction Improvement