Oiltanking Connections-Magazine No-32-1 2020-April En
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THE WORLD OF OILTANKING VOL. 32/1 APRIL 2020 connections FUTURE Pulling a rabbit out of the hat EDITORIAL CONTENTS Contents AMERICAS 04 Securing OTTC’s Status as a Premier Ethanol Export Hub 06 Open Dialog with an Important Message FOCUSING ON for the Future THE FUTURE APAC A Gift of Health and Good Cheer! 23 08 “In every life there are moments in which the EMEA 08 Future Prospects: Power to Methanol POWER TO METHANOL present seems more powerful than the past 10 Curtain Up for ‘Green Spots’ and the future. Karoline von Günderrode* ” 14 Being Prepared for Potential Future incidents Since time immemorial, humankind has been fascinated with operates safely everywhere, and employs talented and Driving Into the Future predicting the future. Especially in view of the actual dedicated people. 17 coronavirus pandemic among the increasing global demand 18 Setting the course for FAME for energy, international calls for sustainable energy, and the A company’s success depends among other things on the urgent necessity of addressing climate change, one might ability to monitor trends, to identify opportunities, and want to know what the future holds in store for oneself, the oil capitalize on the dynamic by weighing its implications for all PEOPLE 20 We can, we care ... Let’s Take Care and gas industry in general, and for Oiltanking in particular? stakeholders including employees, clients, and the 20 & PLACES of Each Other environment. LET'S TAKE CARE Oiltanking’s markets are experiencing a period of structural 32 In a nutshell changes due to a slowdown in global GDP growth, decreasing At times like these we need to look after each other. These energy intensity, and the energy transition. In addition, the can be frightening times and not everyone will speak out if 34 Cultural Experiences | Planning structure of global hydrocarbon trade flows is changing due they have worries. But while we cannot foretell the future, we the future to shifting regional supply-demand balances. As a result of do we wish you some distraction and diversion with some of Strategy 2025: The Oiltanking market changes, customers and competitors are the future-related topics covered in this latest edition of 42 repositioning their strategies. For example, oil traders are connections! Management Team optimizing their storage exposure, while NOCs and chemicals players are gaining significance. Oiltanking’s Take care of yourselves and your families and stay safe. traditional customers, the oil majors, are pushing LEISURE & 13 Lexicon | SEND-OUT decarbonisation agendas in line with their corporate ENTERTAINMENT Hearing colors priorities. Our Strategy 2025 is a response to these 24 24 Matti Lievonen changing market conditions. It will ensure sustainable CEO | Oiltanking GmbH 26 Goo-Goos CYBORG ARTIST success for Oiltanking as it paves the way for a new * Karoline von Günderrode (1780-1806), was a German I do's organization that is customer-centric and financially strong, ‘Romantic’ poet, born in Karlsruhe. 28 30 Number | 600:1 Cover: More about the 37 What will be, will be "Bugs Bunny" project Publishing Credits connections Vol. 32/1/2020 Published by Oiltanking GmbH, Corporate Center, Koreastrasse 7, by Carolin Schulze and a 20457 Hamburg, Germany, www.oiltanking.com, Telephone +49-40-37099-7485, Fax +49-40-37099-7499 43 Reader's Corner borderline culinary Email [email protected] Coordinator Gabi Wuestenberg, Manager Communications Editor Renate Eijkholt experience on page 39. Last but not least | Crystal Ball Design raz design, Hamburg Print Beisner Druck GmbH & Co. KG, Buchholz Published Two times a year 44 Copy Deadline vol. 32/2 week 36, 2020 (of Science) ID-No. 2090465 2 CONNECTIONS CONNECTIONS 3 AMERICAS AMERICAS RENEWABLE Green Plains uses OTTC has handled ethanol exports for over a decade, These renewable products are manufactured by Green corn as the primary feedstock garnering much acclaim in the marketplace as a trusted Plains at a series of plants, primarily located in the U.S. in ethanol production service provider and expert on the subject. With these two Midwest, with corn as the primary feedstock. Both grades projects officially commissioned in January, 2020, the new of ethanol held under these contracts are exclusively ethanol contracts are expected to generate a meaningful exported across the globe. increase to the entire North American portfolio’s bottom line. With the addition of the long-term agreements with Green Plains, OTTC further secures its position as the premier Securing Industrial-grade ethanol is found in items such as ethanol export hub on the U.S. Gulf Coast, and is expected cosmetics, perfumes, medical wipes, antiseptic gels, etc. to handle the biggest volume of ethanol exports in the U.S. OTTC’s Status Fuel-grade ethanol is widely used as an oxygenate to blend in 2020 and beyond. This commercial development satisfies with gasoline as a finished fuel for vehicle engines. Fuel- several key criteria for Oiltanking’s 2025 strategy, including as a Premier grade ethanol’s high octane value, its competitive cost maximizing the value of current assets, unlocking profitable Ethanol versus gasoline and other blending components, and growth, and driving sustainability, as well as further renewable feedstock all contribute to the global demand supporting the growth narrative unfolding in North America. Export Hub for this product. Grain Receiving and Milling Cooking Liquefaction Fermentation Storage Thanks to a well- coordinated effort Dryer Bottling, between Commercial and Dried Distillers Grains Dry Ice and Other Uses Assets & Operations, Oiltanking Texas Distillers Grains to City terminal (OTTC) welcomed Green Livestock Syrup of hard work began for the Assets & Operations team. Two and Poultry Tank Evaporator Liquids Plains Trading Group, a subsidiary of separate capital projects totalling nearly four million Green Plains, Inc., as a new long-term dollars were approved to enable this substantial new business. OTTC’s leadership rose to the occasion to ensure Distillers Corn Distillers Oil Centrifuge customer on January 1, 2020. timely execution without sacrificing Oiltanking’s safety Grains to Market Distillation and operational standards. Process safety and project Feed In July 2019, Oiltanking North America contacted management were paramount while driving the two Green Plains, one of the largest grade producers in the projects to completion. The seamless coordination and Biodiesel world, about moving both their industrial-grade ethanol excellent communication by the OTTC Engineering, and fuel-grade ethanol export operations from their Operations, Maintenance, and Logistics teams resulted in current service providers on the U.S. Gulf Coast to the project launching both on time and on-budget. Wet Distillers Solids Grains Denaturant Oiltanking Texas City (OTTC). Green Plains indicated that winning the industrial-grade ethanol contract would be a Molecular Ethanol- Ethanol to Market Ethanol Storage Sieve necessary first step to securing the fuel-grade ethanol Blended business, as having both ethanol grades at OTTC would Gasoline to Consumer support Green Plains' strategy to realize synergies in their export-focused ethanol portfolio through savings on rail and marine freight. Successful commercial negotiations for the industrial-grade ethanol were used as a springboard to secure the higher-volume fuel-grade ethanol contract, DRY MILL ETHANOL PRODUCTION PROCESS In dry milling, the entire grain kernel is first ground into “meal,” then slurried initiating a whirlwind finale to 2019. with water to form a “mash”. Enzymes are added to the mash to convert starch to sugar. The mash is cooked, then cooled and transferred to fermenters. Yeast is added and the conversion of sugar to alcohol begins. After fermentation, the Once the commercial team finalized the contracts in the resulting “beer” is separated from the remaining “stillage.” The ethanol is then distilled and dehydrated, then blended with fall of 2019 (with a starting date of January 2020), a lot about 2% denaturant (such as gasoline) to render it undrinkable. It is then ready for shipment. Source: RFA 4 CONNECTIONS CONNECTIONS 5 AMERICAS AMERICAS responsibility, but take the time for safety. In addition You both are familiar with the to the STAC, we also have maintenance personnel and company’s Safety Culture Ladder. third-party contractors fill out a Job Safety Analysis Open Dialog sheet prior to being issued a work permit. Where would you rank Oiltanking 1,000 Texas City on it? with an Important Can you give some examples of Axel Jiménez: We are somewhere between proactive DAYS where Oiltanking Texas City WITHOUT ANY Message for the Future and generative. ‘LOST TIME DUE employees have shut down work TO INJURY’ because of unsafe conditions? Cole Parrish: I’d say between calculative and At the beginning of 2020 Oiltanking Texas City proactive. reached a significant milestone: 1,000 days without Axel Jiménez: We had a bad freeze at Oiltanking What message would you want any ‘Lost Time due to Injury’ (as defined by the United States Texas City last year (Here in Texas, a bad freeze means freezing rain and ice). This caused a build-up of ice on all Oiltankers to hear regarding Occupational Safety and Health Administration). Given there are, on average, the railcars and made climbing the ladder and working improving safety in the future? 85 full-time employees at the terminal, that is 85,000 workdays without an on top of the railcar dangerous. We had a unit-train of ethanol arrive, but we halted work until the conditions Axel Jiménez: Be open-minded, give it a chance. injury leading to lost time! Adding in the contractors at the terminal brings improved and we could safely climb the railcars and the total number of people working at OTTC to 100, so 100,000 workdays perform the job. This was a big deal because normally a Cole Parrish: Keep driving the message. Management, unit-train is given just 24 hours to unload before without a Lost Time Injury! show your commitment to Safety.