Production at Refineries in China The New UOP … Study Comparing SMR & Gasification 1. Basis Natural Gas Price: $13/MMBtu (HHV = 22,400 Btu/lb) - based on LNG imports Pt k PiPetcoke

Evaluation of H2 Production at Refineries in ChinaThe New UOP SeparALL™ Process

™

© 2013 UOP LLC. All rights reserved.

and UOP Polybed™ PSA

UOP Company ProfileServing the Gas Processing, Refining & Petrochemical Industries

Profile Significant Technology Position Sales: BreakdownProfile — Significant Technology Position

Business Units: Gas Processing and Hydrogen (GP&H) Process Technology & Equipment (PT&E)

Sales: Breakdown

Products

35%Equipmentgy q p ( )

Catalysts, Adsorbents & Specialties (CA&S) Renewable Energy and Chemicals (RE&C)

Offering: Technology, catalyst & services to the refining,

Equipment

45%Services

13%

35%Products

Services

Licensingpetrochemical and gas processing industries Supplier of molecular sieve adsorbents to process

and manufacturing industries

UOP Facilities — Global Footprint Sales: Geographic

Licensing

7%

13%Licensing

UOP Facilities Global Footprint Sa es Geog ap c

Asia Pacific19%

China12%

Middle East9%

Worldwide HeadquartersDes Plaines, Illinois (suburban Chicago)3,500+ Employees

North America

32%

19% 12%

SouthAmerica

9%

GlobalCustomers

2

32%E&A 9%

CIS 5%India5%

UOP OfficesUOP Manufacturing Sites

20 Offices 17 Countries 12 Manufacturing Facilities 5 Engineering Centers

UOP 6196-2

Benefits of a UOP Integrated Solution in a Refinery

O t h l i d d t d i d t d li i f

Acid Gas Removal PSA Sulfur Recovery

Our technologies and products are designed to deliver superior performance, safety and value when combined in an integrated system:

High availability and reliability of processes and products

Lower capital expenditure and operating costs resulting inlower cost of production of hydrogen

33UOP 6196-3

Hydrogen Dynamics in China

1. Critical feedstock for various industries

Refining industry Hydrocracking, hydrotreating and isomerization processes

2 Environmental regulation / improved refinery performance

Ammonia Production Approx. 0.18 – 0.20 kg hydrogen per kg of ammonia required

2. Environmental regulation / improved refinery performance

State Mandate – upgrade diesel and gasoline Process heavier and more sour crude Long on Heavy Fuel Oil (HFO) and Petroleum Coke

3. Demand for transportation fuels

Long on Heavy Fuel Oil (HFO) and Petroleum Coke Improve margins by maximizing high-value refined product output

Oil demand rising at >8% CAGR Refining capacity to double from 2012 to 2022 China’s footprint expanding as a global supplier of refined products and fuels

4Growth for hydrogen will mainly come from the oil refining industry 4UOP 6196-4

Growth Potential for Hydrogen

30 29

Hydrogen segment assessment in China (Million tons) CAGR2012-2022

4.5

5.4

20

25

s

MethanolRefineriesAmmonia

21

26 8%

4 9

7.6

10.0 11.2

1.1 1.1 1.6

2.0 2.6

2.8

15

20

Mill

ion

Tons

1816

151513

8%

9 3 9.9 9.6 9.8 10.2 10.9 12.0 12.6

2.9 3.6 4.0 4.3

4.9

5

10

2%9.3 9 6

0 2008 2009 2010 2011 2012 2015 2020 2022

Years

5

YearsSource: Chem1 Market Assessment Study for Hydrogen

Growth for hydrogen will mainly come from the oil refining industry 5UOP 6196-5

Five Year Plan Target … Control Sulfur Emissions

Fuel Standards State IICurrent

State III2013

State IV2015

State V Comments

GASOLINESulfur, ppm

Olefin, v%Manganese, g/LVapor pressure

500350.01874

150300.01672

50280.00840~68

10250.00240~65

China relies heavily on the ME for most of its oil supplies which is sour

Vapor pressure(Summer), kappa

74 72 40~68 40~65

DIESELSulfur ppm 500 350 50 10

ME Crude Oil Specs:CurrentAPI = 34

Sulfur, ppmCetane number

Density, 20 kg/cm3

Fatty acid esterHeavy Aromatics

50049820-860/,/

35049810-8500.5%v,11%m

5051820-845/, 11%m

10DIESEL

S (wt%) = 1.75

API = 33.9S (wt%) = 1.84

Improving energy efficiency combined with reducing greenhouse gas emissions are key in the five year plan

6Increasing sour crude processing and stricter sulfur

controls requires added capacity for hydrogen production

Source: Chem1 Market Assessment Study for Hydrogen; Hart Energy Consulting Analysis (2010)

6UOP 6196-6

Breakdown of Feedstock for Hydrogen Production

6

Hydrogen market assessment in China (Million tons) CAGR2012-2022

0 6

0.8

5

otherscoalNGROG 4.4

5.0

18%

1.9 2.1 0.6

0.6

3

4

llion

Ton

s

2 5

3.4

9%

1 9 2.1

0.6 0.7 0.8

0.8 0.9

1.1

0.1 0.1

0.1 0.1 0.1

1

2

Mil

1.82.0

2.22.4

2.5

4%1.1 1.2 1.3 1.4 1.5 1.7

1.9

0

1

2008 2009 2010 2011 2012 2015 2020 2022Year

7Coal gaining prominence as an alternative cheaper feedstock

YearSource: Chem1 Market Assessment Study for Hydrogen

7UOP 6196-7

Case Study Comparing SMR & Gasification

1. Basis

Natural Gas Price: $13/MMBtu (HHV = 22,400 Btu/lb) - based on LNG imports

P t k P i $1/MMBt (HHV 15 000 Bt /lb) Petcoke Price: $1/MMBtu (HHV = 15,000 Btu/lb)

Coal Price: $3.50/MMBtu (HHV = 12,000 Btu/lb)

Hydrogen required for refinery: 100,000 Nm3/h

2. Configurations

ASU

H2

CO2

Petcoke

Coal

O2

Pure H2 To

Refinery

SyngasGasification Polybed PSACO Shift

UOPSeparALLProcess

H2S

H2

8

Desulfurization

8

Natural

Gas/ROG

Pure H2 To

RefineryPolybed PSASMR

H2

CO Shift

UOP 6196-8

Hydrogen Production Cost

Hydrogen production cost in China, $/Nm3SENSITIVITY ANALYSIS FORPETCOKE FEED

1 01 1 67

0.10 0.11 0.12 0.13 0.14

Capex $ MM

Feedstock $/MMBTU

0.212

0.153 0.110

1.01 1.67Feedstock $/MMBTU

Natural gas Coal Petcoke0.18 0.19 0.20 0.21 0.22 0.23 0.24

SENSITIVITY ANALYSIS FOR NATURAL GAS FEED

Cheaper feedstock cost directly influences the cost of hydrogen production

11.89 14.11Feedstock, $/MMBTU

Capex $MM

9UOP processes drive value in hydrogen production 9UOP 6196-9

What is the UOP SeparALL Process?

Absorption / regeneration process for selective removal of H2S, COS, & CO2 Uses a “next generation” physical solvent (SELEXOL™ MAX Solvent) Uses a typical solvent-extraction flow-scheme Loading directly proportional to partial pressure

Physical vs ChemicalTypical Gasification ApplicationAcid GasTreated Gas

t Loa

ding

FeedGas

Sol

vent

Physical SolventChemical Solvent

Partial Pressure

10

High Pressure is advantageous

Partial Pressure

UOP 6196-10

SELEXOL MAX Solvent Characteristics

SELEXOL MAX Solvent: A physical solvent Chemically similar and completely compatible with SELEXOL Solvent Clear fluid that looks like tinted water

Regenerated by changing pressure, temperature or applying a stripping gas

U i l ti it h t i ti d i bl f ifi ti t ti Unique selectivity characteristics desirable for gasification syngas treatingRelative Solubility Data

H2 ~ 1 CO ~ 2.2CO 2.2 CO2 ~ 76 COS ~ 175 H2S ~ 680

SELEXOL MAX Solvent = Selective

1111UOP 6196-11

Two Basic Flow-schemes

Sulfur removal only Typically for power applications Can reduce treated gas any desired sulfur level Can reduce treated gas any desired sulfur level One solvent absorber with solvent regeneration

Sulfur removal with separate CO removal (CCS or chemicals production)Sulfur removal with separate CO2 removal (CCS or chemicals production) Typically for chemicals, SNG or coal to liquids applications Typically involves more stringent product specifications Integrated solvent absorbers and solvent regenerationIntegrated solvent absorbers and solvent regeneration

1212UOP 6196-12

UOP SeparALL Process Advantages

Mild chilling

Simple flow schemes with few pieces of equipment

Lower solvent losses

Absorbs NH3, HCN and other trace contaminants,without the need for additional equipmentwithout the need for additional equipment

Removes metal carbonyls Metal carbonyls in treated syngas decompose at gas turbine burners and

potentially plate-out on the gas turbine blades Metal carbonyl can also act as catalyst poisons for chemical applications

Through its improved efficiency and next generationThrough its improved efficiency and next generation technology, the SeparALL process can reduce capital

expenditures by up to 10 percent and operating expenditures by more than 20 percent.

1313UOP 6196-13

Reliability / Availability / Maintainability

The UOP SeparALL process provides> 99% availability> 99% availability

Availability exceeds typical gasifier availability (typically 80 - 90%)

UOP training and services teams work with operators to help optimize and maintain thesystem at peak efficiencysystem at peak efficiency

1414UOP 6196-14

Commercial Experience in Hydrogen Production

ITALY

Sarlux IGCCCLICK TO LEARN MORE

ITALY

U.S.Coffeyville

APIEnergia IGCC CLICK TO LEARN MORE

Coffeyville ResourcesCLICK TO LEARN MORE

15UOP 6196-15

Commercial Experience in Gasification

Sarlux IGCC Complex Planttp

Start-Up 2000

Application Power H2 Production

Production 550 MW net / 40000 Nm³/h

AGRU Duty Sulfur

Syngas Flow 404 MMSCFD @420 psia

Feedstock Visbreaker Residue Sarroch, Sardinia, Italy

Sarlux IGCC Complex Plant

16UOP 6196-16

Block Flow Diagram | Sarlux IGCC

Electric Power High Purityto Hydrocracker

H2

Raw

Steam for ExportPolybedTM

PSA

H2

Air

PolysepTM

MembraneCombined

Cycle Power Plant

Air Separation

UnitO2

SELEXOLGas CoolingGasifier w/

Purified Syngas

ElementalSulfur

Claus PlantSELEXOL& COSHydrolysis

Quench& Scrubbing

Feed

Tail Gas

17UOP 6196-17


API Energia IGCC Complex Plantg p

Start-Up 1999

Application Power

Production 250 MW net

AGRU Duty Sulfur


Feedstock Visbreaker Residue Falconara, Italy

API Energia IGCC Complex Plant

18UOP 6196-18

Block Flow Diagram | API Energia Asphalt

CombinedCycle Power

Electric Power

Steam for Export

Ai

Air

N2

PlantSteam for Export

SyngasExpander

Air Separation

UnitO2

ElementalSulfur

SELEXOLGas Cooling

& COSHydrolysis

Gasifier w/ Quench

& ScrubbingFeed Claus Plant

Tail Gas

19

Tail GasTreatment &Incinerator

UOP 6196-19


Coffeyville Resources Planty

Start-Up 2000

Application Ammonia Urea

Production 21 T/h | 62 T/h

AGRU Duty Sulfur & CO2


Feedstock Petcoke Coffeyville, Kansas

Coffeyville Resources Plant

20UOP 6196-20

Block Flow Diagram | Coffeyville Resources

Air

NNH3 Product

AmmoniaSynthesis

N2

UAN Plant UAN ProductAir

Separation Unit

Purified CO2High Purity H

CO2 VentCO2Purification

Purified CO2

PolybedPSA

High Purity H2

Raw H2

O2

SyngasScrubbing

QuenchGasification

CO Shift &Gas Cooling

Raw CO2

SELEXOL2-Stage

Tail Gas

Acid Gas

Claus Plant

ScrubbingGasification

Petroleum Coke

Gas Cooling

2121UOP 6196-21


Coffeyville ResourcesGasification Ammonia Complex

SELEXOL Unit POLYBED PSA Unit

2222UOP 6196-22

H2 Purification – Polybed PSA Systems

PRODUCT

H2 @ High PurityHigh Pressure

H2 @ High PurityHigh PressureH2 + Impurities

High PressureH2 + Impurities

High Pressure

FEED GASFEED GAS

TAIL GASImpurities (+H2)

Low PressureImpurities (+H2)

Low PressureH2 Purity 99.9 – 99.9999%H2 Recovery 60 – 90%H2 Feed pressure 6 - 40 bar gH2 Product pressure 5 - 39 bar g

23

H2 Product pressure 5 39 bar g

UOP 6196-23

Components of a PSA Unit

Control System1 Control System

Valve Skid

Vessels & Adsorbents

1

2

3

UOP Service & Support4

3

1 4

2

24

2

24UOP 6196-24

PSA with Maximum On-Stream Reliability

For a customer in China that needs a reliable source of high purity hydrogen, UOP Polybed™ PSA provides greater than 99 8% on-stream availability that results in $500 000/daythan 99.8% on-stream availability that results in $500,000/day of additional value due to downtime avoided versus local PSA suppliers. We do this by providing proven designs, proprietary adsorbents, and equipment. p p y , q p

Assumptions: • 100,000 Nm3/hour product PSA unit • H2 value = 15000 RMB/MT = $0.21/Nm3

$• Calculation: 100,000 x 24 x 0.21 = $504,000/day • The cost from the loss of production from the

downstream hydroprocessing units, if known, would be added to the cost of the loss of H2

2525UOP 6196-25

26UOP 6196-26

Documents

Production at Refineries in China The New UOP … Study Comparing SMR & Gasification 1. Basis Natural Gas Price: $13/MMBtu (HHV = 22,400 Btu/lb) - based on LNG imports Pt k PiPetcoke