© 2013 UOP LLC. All rights reserved. UOP 6054A-1

Rick Kempf UOP LLC, A Honeywell Company

Advanced MTO: Breakthrough Technology for the Profitable Production of Light Olefins

2013 Middle East Downstream Week May 12-15, 2013 Abu Dhabi, United Arab Emirates

World Light Olefin Supply & Demand

0

50

100

150

200

250

300

350

400

2000 2005 2010 2015 2020 2025

Millio

n M

TA

Light Olefin Demand*

Propylene

EthyleneWorld demand for ethylene and

propylene growing (about 4%/yr)

More than 100M MTA of additional capacity will be needed by 2025

Consumption being driven by growing middle class in developing regions

Growing demand – supply gap developing for propylene

Propylene is mainly supplied as a by-product from stream cracking and FCC

Propylene gap developing

– Increased use of lighter feedstocks for steam crackers

– Slow gasoline growth

Several options for on-purpose propylene production

* Source: IHS Chemical

UOP 6054A-2

UOP Light Olefin Solutions

Oleflex™

Unit

Propane Dehydrogenation

Propane Propylene

Hydrogen

Methanol to Olefins

Advanced

MTO

Methanol (From coal or gas)

Propylene

Ethylene

Multiple solutions to meet the increased demand for light olefins

MaxEne™

MaxEne™ Naphtha

Naphtha

Cracker

Catalytic

Reformer

Normal Paraffins

Non-Normals VGO

Heavy Products

UOP PetroFCC™ Process

Ethylene

Propylene

PetroFCC

Unit

Gasoline

UOP 6054A-3

Ethylene

Propylene

n-Butenes (optional)

Regen Gas

Air

Methanol

Water

DME Recovery

C4+

By-products

MTO Process Integrated with Olefin Cracking Process (OCP)

Sep Section

OCP

MTO Light Olefin

Recovery

Advanced MTO Technology

UOP 6054A-4

3.8 Ă 5.5 Ă

Discovery of a New Material

Scientists at Union

Carbide (UCC) discovered

a new molecular sieve

family, silicoalumino-

phosphates (SAPO)

during early 1980’s

SAPO-34 has a more

narrow product

distribution but faster

coke formation compared

to ZSM-5

MTO development

transferred from UCC to

UOP in 1988

UOP 6054A-5

Yield Benefits from OCP Integration

2.6 tons of Methanol consumed per ton of light olefin produced

A little more ethylene, a lot more propylene,

and a lot less C4+ by-product

OCP integration increases light olefin yields by >15% UOP 6054A-6

Benefits of Higher Light Olefin Yields

Greater value created from raw materials

Lower operating costs

– Less methanol/coal consumption

– Less energy consumed upstream of MTO

Smaller upstream process units for syngas/methanol production

– Most of the capital required for coal-to-olefins is attributable to units upstream of MTO

Less impact on the environment

– Most of the CO2 emissions for coal-to-olefins are attributable to units upstream of MTO

– Water consumption is minimized

UOP 6054A-7

8

Olefin Cost of Production Comparisons

0

1,000

2,000

$/M

T L

t. O

lefi

ns

Capital Charges (Depreciation + Return)

Cash Cost of Production

Technology:

Feedstock:

Location:

Propylene:

Ethylene:

Feed Price:

Cracker

Ethane

Middle East

---

1000 KMTA

$62/MT

MTO

Methanol

Middle East

600 KMTA

400 KMTA

$350/MT

GTO

Natural Gas

Middle East

600 KMTA

400 KMTA

$1.25/MMBtu

Cracker

Naphtha

China

345 KMTA

655 KMTA

$956/MT

PDH

Propane

USGC

750 KMTA

---

$600/MT

PDH

Propane

China

750 KMTA

---

$800/MT

PDH

Propane

Middle East

750 KMTA

---

$600/MT

On-Purpose Light Olefin Technologies Are Competitive

MTO costs include the production of synthesis gas, methanol, and conversion to polymer-grade ethylene & propylene Cracker yields, utilities, and CAPEX from various sources

Cracker Feeds

Ethane ↑↑

E/P Mix ↑

LPG ↑

Light Naphtha

FBR Naphtha ↓↓

Gas Oil

Cracker Products

Ethylene ↑↑

Propylene ↓

C4 By-products ↓↓

Pygas ↓↓

Shift to low cost ethane puts pressure on

CCOP position of naphtha crackers

Steam Cracker

Cracker Feed Slate Changes

UOP 6054A-9

Total Petrochemicals Process

Demonstration Unit

~10,000 kg/day (10t/d) of MeOH feed

Fully integrated Advanced MTO Process Configuration

2009

INEOS Demo Unit (at the time Hydro)

1995

~1,000 kg/day (maximum) of MeOH feed

Multiple grades/sources of feed

Reactor and regenerator configuration

Development History of UOP Advanced MTO Process

~1 kg/day of MeOH feed

Multiple grades/sources of feed

Reactor and regenerator configuration

UOP Pilot Plant – Operation

1988

UOP 6054A-10

Commercialization Status

Owner Location Scope

LO Capacity

MTA

Expected

On-Stream

Wison (Nanjing) Clean

Energy Company, Ltd.

Nanjing, Jiangsu

MTO / OCP 295,000 2013

Jiutai Energy (Zhungeer)

Company, Ltd.

Ordos, Inner Mongolia

MTO 600,000 2014

Shandong Yangmei

Hengtong Chemicals

Company, Ltd.

Linyi, Shandong

MTO / OCP 295,000 2014

Jiangsu-Sailboat Lianyungang,

Jiangsu MTO / OCP 833,000 2015

The following projects in China have disclosed the selection of the UOP / HYDRO MTOTM Process:

Strong global interest – additional licenses expected in 2013

UOP 6054A-11

Wison Engineering Ltd.

MTO Plant Construction as of Q1 2013

UOP 6054A-12

Top Ten Reserves, Coal and Gas

Location Gas Reserves

Russian Federation 21.4%

Iran 15.9%

Qatar 12.0%

Turkmenistan 11.7%

US 4.1%

Saudi Arabia 3.9%

United Arab Emirates 2.9%

Venezuela 2.7%

Nigeria 2.5%

Algeria 2.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Gas Reserves

Location Coal Reserves

US 27.6%

Russian Federation 18.2%

China 13.3%

Australia 8.9%

India 7.0%

Germany 4.7%

Ukraine 3.9%

Kazakhstan 3.9%

South Africa 3.5%

Other Europe & Eurasia 2.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Coal Reserves

UOP 6054A-13

MTO Summary

Strong demand growth for ethylene and propylene

MTO opens a new path to ethylene and propylene starting from cost advantaged gas and coal

– Lower cost of production compared to oil derived feed

– High yield of ethylene and propylene (> 89%)

– Flexible product ratio (P/E range 1.25 to 1.8)

– Byproduct C4 olefins available for B1, B2, and BD production

Single train capacity up to 1.8 million MTA of light olefin

Fully commercialized in 2013 by Wison Clean Energy – Nanjing, China

Three additional units operating by the end of 2015

UOP 6054A-14

UOP 6054A-15