PNNL-22432 Prepared for the U.S. Department of Energy under Contract DE-AC05-76RL01830 Initial Assessment of U.S. Refineries for Purposes of Potential Bio-Based Oil Insertions CJ Freeman SB Jones AB Padmaperuma M Santosa C Valkenburg J Shinn (retired Chevron) April 2013 DISCLAIMER This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor Battelle Memorial Institute, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. 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Box 62, Oak Ridge, TN 37831-0062; ph: (865) 576-8401 fax: (865) 576-5728 email: [email protected] Available to the public from the National Technical Information Service, U.S. Department of Commerce, 5285 Port Royal Rd., Springfield, VA 22161 ph: (800) 553-6847 fax: (703) 605-6900 email: [email protected] online ordering: http://www.ntis.gov/ordering.htm This document was printed on recycled paper. (9/2003) PNNL-22432 Initial Assessment of U.S. Refineries for Purposes of Potential Bio-Based Oil Insertions CJ Freeman SB Jones AB Padmaperuma M Santosa C Valkenburg J Shinn (independent contractor, retired Chevron) April 2013 Prepared for the U.S. Department of Energy under Contract DE-AC05-76RL01830 Pacific Northwest National Laboratory Richland, Washington 99352 Page 1 SUMMARY In order to meet U.S. biofuel objectives over the coming decade the conversion of a broad range of biomass feedstocks, using diverse processing options, will be required. Further, the production of both gasoline and diesel biofuels will employ biomass conversion methods that produce wide boiling range intermediate oils requiring treatment similar to conventional refining processes (i.e. fluid catalytic cracking, hydrocracking, and hydrotreating). As such, it is widely recognized that leveraging existing U.S. petroleum refining infrastructure is key to reducing overall capital demands. This study examines how existing U.S. refining location, capacities and conversion capabilities match in geography and processing capabilities with the needs projected from anticipated biofuels production. At a national level, there appears to be adequate conversion and hydrotreating facilities in existing refineries to process anticipated bio-derived oils into transportation fuels. However, numerous concerns are apparent, including: a potential shortfall in both overall hydrotreating capacity and hydrogen production capacity in refineries to manage the conversion of certain biomass derived intermediates having high oxygen content; a regional concentration of anticipated biofuel resources, placing added stress in particular refining regions (e.g. the Gulf Coast); uncertainties surrounding the impact of biomass derived intermediates on the refiner’s ability to meet product performance and product quantity demands, and the need for better and more comprehensive chemical composition information; the need for considerably more data and experience on the behavior of projected biofuels intermediates in refining processes (e.g. impacts on process performance and reliability); and the need to examine the optimum capital investment locations for additional processing equipment. For example, whether it is better to produce finished biofuels at the new production sites, or whether existing refining facilities should be expanded to better handle a more 'raw' bio-oil intermediate. Responding to these concerns may be best accomplished by creating a strong collaboration between the refining industry and the national programs that are working in the field of biomass research. The intent is to identify priorities and opportunities for filling critical knowledge and experience gaps and directing investments in a manner that best supports biofuels objectives. Page 2 Contents 1.0 INTRODUCTION ........................................................................................................................4 2.0 ASSESSMENT OF U.S. BIOMASS AVAILABILITY VERSUS REFINERY LOCATION .........................5 2.1 Total U.S. Biomass Production Potential ...................................................................................... 5 2.2 U.S. Refinery Locations and Types ................................................................................................ 6 2.3 Biomass Availability in Proximity to Existing U.S. Refineries ........................................................ 8 3.0 IMPACT OF BIO-BASED INTERMEDIATES ON REFINERY OPERATIONS ...................................12 3.1 Bio-oil Intermediates .................................................................................................................. 12 3.2 Estimates of Natural Gas for Hydrotreating Bio-oils .................................................................. 13 3.3 Co-processing of Bio-oil Intermediates in Refinery Units ........................................................... 14 3.4 The Refiner’s Perspective on New Feedstocks - General ........................................................... 15 3.5 The Refiner’s Perspective on Biomass-based Feedstocks .......................................................... 16 4.0 CONCLUSIONS AND RECOMMENDATIONS ............................................................................20 5.0 REFERENCES ...........................................................................................................................22 6.0 APPENDICES ...........................................................................................................................24 Page 3 1.0 INTRODUCTION The U.S. DOE EERE Bioenergy Technologies Office (BETO) is tasked with enabling the production of biofuels through research, development, demonstration, and deployment. In order to meet U.S. biofuel objectives over the coming decade the conversion of a broad range of biomass feedstocks, using diverse processing options, will be required. Further, the production of both gasoline and diesel biofuels will employ biomass conversion methods that produce wide boiling range intermediates requiring treatment similar to conventional refining processes (i.e. fluid catalytic cracking, hydrocracking, and hydrotreating). As such, it is widely recognized that leveraging existing U.S. petroleum refining infrastructure is key to reducing overall capital demands. The National Advanced Biofuels Consortium, for example, is researching specific biomass conversion pathways and how they might integrate into a refinery [1] The purpose of this study is to support the DOE BETO goals through a high-level assessment of the impact on current U.S. refining capacity to accommodate partially converted biomass to biofuel intermediates, rather than rely on stand-alone biorefineries to produce finished fuels. This study examines how existing U.S. refining locations, capacities and conversion capabilities match in geography and processing capability with the needs projected from anticipated biofuels production. It is meant to serve as an initial guide for determining subsequent steps in technology development, testing and commercial deployment for U.S. refiners. The basis for this study is: the Energy Independence and Security Act (EISA) of 2007 volumetric targets for 2022, the Billion Ton Study as stored in the Knowledge Discovery Framework (KDF) database of biomass resources, the Energy Information Agency (EIA) database of U.S. refining locations, capacities and conversion capabilities, publically available quality data for bio-oil intermediates, and review by a long-time member of the petroleum refining community. The existing U.S. national Renewable Fuel Standard (RFS) Program was developed to increase the volume of renewable fuel that is blended into transportation fuels. The Energy Independence and Security Act (EISA) of 2007 increased and expanded the standard such that, by 2022, 36 billion gallons of renewable fuel must be used per year [2] This volume target also requires 21 billion gallons of the renewable fuel to be “advanced biofuel” in origin, which not only means renewables other than corn derived ethanol, but biofuels that achieve greenhouse gas reductions of at least 50% over the 2005 baseline petroleum-derived fuels. Within the constraints of these volumetric targets, the first step is to evaluate all U.S. biomass sources in proximity to the current U.S. refineries. After that, the impact of those sources on each refinery can be assessed, based on their current conversion infrastructure, estimated loading limits, and basic impact to products produced. These steps, and corresponding results and