AM-01-08 LEVERAGE YOUR ASSETS: HYDROPROCESSING AND FCC SOLUTIONS FOR LOWERING THE COSTS OF CLEAN FUELS

Description:

The time has come to plan for very low sulfur motor gasoline and diesel. Reducing gasoline sulfur will require changes in hardware and operating strategy in most refineries. Technology choices and timing may greatly affect refinery economics. Reducing diesel sulfur presents unique challenges to the refiner and, again, will require new hardware and unit operating strategies. Most of the sulfur in the gasoline pool comes from the FCCU gasoline. FCC feed hydroprocessing (CFH) is a key component in the management of gasoline pool sulfur. For refiners with an existing CFH unit (CFHU), the cost of reducing FCC gasoline sulfur by increased operating severity or better catalysts is low in comparison to other sulfur reduction approaches. The LCO stream from the FCCU is the problem stream in the production of Tier 2 diesel. Again,FCC feed hydroprocessing units will become a key to the management of the diesel pool sulfur content. FCC catalytic technologies for reducing FCC gasoline sulfur such as “RESOLVE” can lower FCC naphtha sulfur. Lowering annual average gasoline pool sulfur by more than 10% below baseline qualifies a refiner to earn sulfur credits in 2000 through 2003. Sulfur credits are a tradable commodity which can be used to reduce sulfur requirements in 2004 and 2005 or sold to others for similar use. The optimum course of action appears to be one of educated early investment in the low cost steps in order to delay investment in the high cost steps. The improved operating margin and increased feed flexibility associated with FCC feed hydroprocessing encourages refiners to either build a CFH or upgrade their existing CFH to handle all their FCC feed.