Producing premium biofuels in Europe eni’s perspective
Giacomo RispoliExecutive Vice President
European Biofuels SeminarGeneva, April 15, 2015
Highlights
• Scenario
• Eni strategy
• Eni/Honeywell UOP EcofiningTM technology
• Eni Green Refinery
• Looking to the future
• Conclusion
Refining Scenario
European refining industry is living a major economic crisis
refining overcapacity and
low operating margins
old and small size refining
system
environmental constraints
high energy cost
decrease of demand and unbalanced
offer
European Legislation Scenario
• EU's Climate Change Package with EU targets by 2020:
20% reduction in greenhouse gas emissions,
20% improvement in energy efficiency,
20% share for renewable in the EU energy mix.
• EU Directives on biofuels :
Renewable Energy Directive
RED 2009/28/CE
Fuel Quality Directive
FQD 2009/30/CE
10% of renewable energy inthe transportation sector.
Second generation biofuelscounted twice.
Biofuels Scenario
BIODIESEL CONVENTIONAL PROCESS FAME (Fatty Acid Methyl Esters)
Poor Heating Value
Blending wallBlending limit of FAME at 7% max
High content of Oxygen
This constraint can be overcome by using new generation renewable Hydrotreated Vegetable Oil (HVO).
Hygroscopic Properties
BiorefineryEU biofuels
scenario
Eni vision
Refining industry crisis
ECOFININGTM
Technology
Reducing refining overcapacity?
Reinventing petroleum refinery!
Eni's strategy for biofuels
• Since the second half of 2005 eni and UOP decided to launch aR&D joint project to identify a new technology to produce highquality biofuels can overcome all the negative characteristics oftraditional biofuels (FAME).
• This project was a success, and in 2007 a new technology, calledEcofiningTM, was invented by eni and UOP.
• In subsequent years the realization of a new plant with Ecofiningtechnology was held back by the high cost of construction.
• At the mean time the crisis of refining industry required toshutdown weaker refineries.
• In 2011 the Venice refinery, due to its simple process scheme andlow capacity, was shut down to be converted in an oil depot.
Eni strategy for biofuels
• Eni was able to turn a critical situation into a greatopportunity by investing in the innovative Green Refineryproject for the conversion of a petroleum refinery into a“Biorefinery”.
• The Green Refinery idea is focused on the application ofEni/Honeywell UOP EcofiningTM technology and results fromthe long term “Eni Green Strategy”.
• That’s the “make option”: eni entered the biofuels market,producing a new generation of very high quality biofuelsstarting from renewable feedstocks.
Eni Green Strategy results
2007Eni/Honeywell UOPEcofiningTM patent
2012
“Refinery conversion to a biorefinery”
Eni patent
2013
First Green Refinery Project starts
May 2014
Green fuels production starts from
Venice Green Refinery
2017-2018
Green fuels production increase in Venice and starts
from new Gela Green Refinery
2nd half 2005 Eni and Honeywell UOP started a joint
R&D project on innovative Biofuels
eni/Honeywell UOP goal on biofuels
Produce real “drop-in” biofuels, totally hydrocarbon, instead of fuel bio-additives.
Focus on path toward new generation feedstocks.
“Other” Oils: Camelina, Jatropha
Lignocellulosic biomass,algae oils
AdvancedGeneration
Conventional Oxygenated Biofuels
BiodieselEthanol
Hydrocarbon Biofuels
JetDiesel Gasoline
FirstGeneration
Natural oils(vegetables,
greases)
Biofuels process: conventional vs new generation
Green Diesel: high quality product obtained by means of hydrotreating (HVO) withparaffinic composition (oxygen free).
Feed Process Product
Biodiesel FAME
(Fatty Acid Methyl Esters)
Glycerine
BiodieselMethanol
Transesterification
Green Diesel (HVO)Green Jet (HEFA-SPK)Green NaphthaGreen GPLBiological
feedstocks
H2
HYDROTREATMENT
CO2/H2O
Biological feedstocks
Feed Process Product
BIODIESEL CONVENTIONAL PROCESS:
ECOFININGTM PROCESS :
LOW QUALITY LOW CAPEX
HIGH QUALITY HIGH CAPEX
ECOFININGTM technology
Jointly developed by Eni and Honeywell’s UOP toproduce excellent biofuels, with high qualityindependent from the renewable feedstocks used,that can be of:
• 1st generation: edible vegetable oils;
• 2nd generation: tallow, used cooking oils;
• 3rd generation: oils from algae and waste.
Hydrogen
Light Fuels
Green Jet
(HEFA SPK )
Green Diesel
CO2
Water
Deoxygenation IsomerizationProduct
Separation
Renewable FeedstocksVegetable OilsUsed cooking oil Animal FatsOils from algae and waste
ECOFININGTM technology
1st stage 2nd stage
ECOFININGTM: typical yields
Feedstock %wt
Renewable oils 100
Hydrogen 1,5 – 3,8
Product %wt %v
Propane 4-5 7-9
Naphtha 1 - 8 1 - 10
Diesel 75 - 85 88 - 98
CO2 and H2O are also produced by the deoxygenation reaction
Green Diesel quality
Properties Fossil Diesel ULSDConventional
Biodiesel (FAME)
ECOFININGTM
Green Diesel
BIO content 0 100 100
Oxygen, % 0 11 0
Specific gravity 0.840 0.880 0.780
Sulphur, ppm <10 <1 <1
Heating Value, MJ/kg 43 38 44
Cloud Point, °C -5 From -5 to +15 Up to-20
Distillation range, °C 200 - 350 340 - 355 200 - 320
Polyaromatics, %w 11 0 0
Nox emissions Standard + 10% -10%
Cetane 51 50-65 70-90
Oxydation stability Standard Pour Excellent
eni and the Italian Navy defined an agreement, within the frame of the Navy GreenFleet Project, to formulate and produce a new military ship fuel, containing at least50% of Green Diesel produced by means of the EcofiningTM Technology.
The new fuel has been successfully tested for the very first time in Europe on theItalian Military Ship Comandante Foscari on January 2014. In the mid of 2015 thetest will be extended to other ships, including an aircraft carrier and a submarine.
The eni-Italian Navy Green Fleet Project
Eni Green Refinery
• The Green Refinery is the result of the first conversion ofa petroleum refinery into a biorefinery by mean of theapplication of EcofiningTM technology.
• This innovative idea has been patent filed by Eni onSeptember 2012 (n° MI2012A001465).
• Revamping the existing units in Venice significantlyreduces the required investment cost, estimated in 1/4to 1/5 of a new EcofiningTM grass root unit of the samecapacity and intensively sped up project timing.
Sept. 2012
Aug. 2013
Sep. 2013
May 2014
Overcapacity: use existing facilities for doing new business
The Eni Green Refinery project in Venice
The use of existing facilities allows a significant
reduction of capital costs
Substitute FAME with in-house produced HVO
Livorno
Porto Marghera
Milazzo
Gela
Taranto
Wholly ownedIn partnership
Sannazzaro
From Refinery to Biorefinery
Green Refinery Project: two steps
•Today, STEP 1: the EcofiningTM is operating in balance with the hydrogen from the refinery hydroskimming section.
•Tomorrow, STEP 2, on 2017: H2 production from a new steam reformer will allow to maximize the EcofiningTM capacity.
ECOFININGTM
H2
FormerHydroskimming
(H2 from catalyticreforming))
Steam Reformer & feedstock
pretreatment
Max throughput400 kt/y
(H2 balance limiting)
Max throughput560 kt/y
(Existing equipmentlimiting)
A technology challenge
• New feedstock material: different handling due to the poor cold flow properties and organic acidity.
• Conversion of two existing diesel HDS units into the two reaction stages of the EcofiningTM process.
• Integrating the EcofiningTM unit into the previous refinery scheme (utilities, ancillaries, etc.).
• Separating for the 1st step of operation, the derived biological material from the fossil material still running in part of the hydroskimming section of the former petroleum refinery (different blow down, sewers, slop tanks, etc).
The start up: a successful experience
• The Eni Green Refinery start up in the new configuration was very smooth without any issues;
• The ECOFININGTM unit successfully started up in May 2014, producing high quality Green Diesel.
• The unit performance, its operation stability and its response to changes are overcoming expectations.
• The integration with the hydroskimming section and with the utilities, facilities and offsite of the previous refinery is successful.
• Eni is looking for feeding the Green Refinery withadditional advanced biofuel feedstocks:
– Tallow;
– Used cooking oils.
in compliance with the Annex 9 of the Proposal for adirective of the European Parliament and Council,amending the Directive 38/70/EC and 2009/28/EC.
• Focus on short supply chain: advanced feedstock fromthe region surroundings for improving the local economy.
Next improvement…
• Conversion of the refineryon the Venice model.
• Consumption of vegetableoils: 710 kton / year
• Expected production: 530kton / year
Next improvement…
Gela Green Refinery
Looking to the future (eni R&D)…
• New biofuels: a new innovative process is under developmentfor producing new 2nd generation biofuels.
• Bio-oils from microalgae: eni has a pilot plant operating since2010 in the Gela refinery, Sicily, constituted by algae farm andoil recovery plant.
The Green Refinery Project is the result of the
LONG TERM ENI R&D GREEN STRATEGYmade by continuous investment on R&D activities closely linked to the business aimed at developing innovative biofuel technology in advance of the regulations
1st conversion in theworld of a conventionalpetroleum refinery intoa Biorefinery, by meansof the EcofiningTM
proprietary technology,which allowed to renewthe obsolete VeniceRefinery into a highinnovative industrialprocess scheme.
PROCESS INNOVATION
By this strategy we canreduce traditionalrefining capacity withoutlosing technical andscientific know-how andlargely keeping thenational refining industrystructure.
INDUSTRY KEEPING
Conclusions
Launch on the market ofnew high qualitybiofuels: Green Diesel,Green jet, Green LPGand Green Naphtha.
Green diesel, inparticular, will bedistinctive of eni Dieselfuel, assuring premiumquality for strongercompetition.
PRODUCT INNOVATION
Thank you