Case  study:    HFO  0.1%    Light  Sulfur  Marine  Fuels  (LSMF)  Plant  

Project  Proposal  

1.  Concept  

2.  Technology  3.  Products  

4.  Material  Balance  5.  Appendixes  

Developed by: Kari Veromaa, Director, Partner Alexander Mazur, CSO, Dipl. Eng., Ph.D.

Appendixes Mat. Balance Products Technology Concept

A  key  requirement  is  a  reducBon  of  fuel  sulfur  content  in  the  BalBc,  North  Sea  and  English  Channel.  Now  marine  fuel  sulfur  content  limit  is  1.5%  (1.0  %  in  Scandinavia).  At  the  beginning  of  2015    it  will  be  0.1%.  Global  current    limit  is  4.5%  but  it  will  3.5%  in  2012  and  0.5%  in  2025.  If  IMO's  decision  will  be  implemented  then  marine  fuel  price  will  increase  ~  60-­‐70%,  sea  freight  prices  will  rise  ~  30-­‐50%.    

Finnish  logisBcs  costs  are  higher  as  in  compeBng  countries  due  to  long-­‐distance  sea  crossing.  Finland's  foreign  trade  is  80  %  dependent  of  sea  transport.  

This  constant  trend  could  lead  to  shiD  of  EU-­‐freight  flows  respect  the  road  and  rail  transport,  as  rising  of  price  reduces  the  compeLLveness  of  the  mariLme  transportaLon.    

There  situaLon  ahead  of  rising  prices  for  low-­‐sulfur  marine  fuels  in  comparison  with  the  prices  for  crude  oil  and  high-­‐sulfur  mazut  causes  a  progressive  imbalance  in  the  profitability  of  mariLme  transport.  This  is  a  major  factor  of  reducing  the  compeLLveness  of  mariLme  transport.  

Key points Facts

Facts

Raw  0.5  Bll  2.0  wt.  %  Sulfur  mazut  costs  460  –  512  €/t,  it  is  not  deficient  and  did  not  have  a  trend  to  a  similar  rapid  rise  in  price  as  low  sulfur  marine  bunker.  Bilge  water  amount  is  1.5%  from  total  shipment  oil  and  it  contains    15  -­‐  20%  of  crude  or  waste  oil.  It  is  FREE  

DESIUS  Plant  capacity  360  Kt/yr,  total  ca.  214  M€.  ConstrucBon  Bme  24-­‐26  months.    

Concept Technology Products Mat. Balance Appendixes Key points Facts

Bitumen  for  road  construcBon  and  yellow  sulfur  are  associated  market  quality  products,  raw  material  processing.  It  will  provide  a  posiBve  financial  balance  of  the  plant.  

ApplicaBon  of  10-­‐20%  of  “Biodiesel"  in  the  Marine  Fuels  will  reduce  total  producBon  cost  due  to  the  low  producBon  cost  of  Biodiesel.    

LSMF-PLANT PLAN TO KOTKA, FINLAND

Capasity: 350.000 tons/a Raw material: Mazut 2-3,5%

or other raw Final products: HFO 0,1%

and others

Municipal development Company Cursor Ltd is looking for investors ! www.cursor.fi

Pre-feasibility Study and Business Plan Model done by Logiwin Ltd, Pori, Finland. www.logiwin.fi

KOTKA

The  potenBal  land  Sites  and  Pier  сonnecBon  sheme.  

The  site  №2  was  chosen  as  the  optimum  for  the  plant  placement.  The  soil  is  normal,  it  has  suf7icient  bearing  capacity.  Inexpensive  excavation  is  possible  for  the  fundaments’  and  sewerage  systems’  works.  This  site  provides  inexpensive  opportunities  to  join  road  transport  and  railway.    

The  dimensions  of  site  260  x  290  meters  approx.  

Concept Appendixes Mat. Balance Products Technology

1. Warehousing and preliminary processing of raw (first tech. stage):

High  sulfur  mazut    3.5  .  .  .  0.5  wt.  %  S  

Bilge  water  

1st  tech.  stage  Heavy-­‐structure  

hydrodynamic  destroyer  

Rented Raw Storage for one month of thechnolgy

3 x 10Kt

Oil  quay  and  overpass  pier  

Operational raw storage 2 x 15000t and 4 x 1000t

Lab  

2nd  technological  stage  

Tech.  vegetable  oil  and  

methanol  

Concept Appendixes Mat. Balance Products Technology

Second technology stage:

Lab  Desulfurization of semi materials for market fuels (≤0.1 wt.% S)

Vacuum-­‐  fracBon  unit  

Expendables tech. materials

300 t / year

Pre-treated R

aw M

azut

Bitumen  unit  

Diesel  

Light  Gasoil  

Dark  Gasoil  Tar (sulfur-reach heavy residual)

Hydroproof Pitches

Oxidized Bitumen

Desulfuri-­‐zaBon  unit  

Hydrogen  generator  

Deionised water

H2

Diesel    

LFO  

HFO  

Market Goods Storage

Sulfur    Reactor  

Free  Yellow  Sufur  or  or  Sulfur  Concrete  

storage  

H2 S + SO3

Bio-­‐fuel  Unit  

Bio-fuels additives

Glyceroil storage

The  Light  Sulfur  Marine  Fuels  (LSMF)  Plant  visualizaBon  

1 – pier; 2 – raw storage 2*15Kt; product storage 2*15Kt; diesel fraction storage 4*1000t and chemical additives storage 4*1000t; 3 – fresh water volume; 4 – the main komprassors unit; 5 – hydrogen generator; 6 – tech. Gases (N and CO2) unit; 7 – Main tech. unit: athmospheric-vacuum refinery, hydro-desulfurization unit, sulfur reactor and bitumen unit; 8 – chemical furnace; 9 – ”biofuel” unit and storage; 10 – hard products storage with Laboratory; 11 – railways cysterns loader and trucks-railwaycars apparel; 12 – TEU site.

1

2 3

45

6

7

8 9 10

11

12

The  underground  waste  water  piialls    

For sewage and water alarm on the industrial and warehouse areas of the plant provided local trapping oil pitfalls. Capacity of the pitfall is equivalent to 4-hour flow rate of wastewater. Two sections in each oil pitfall.

The technical data of pitfall: • Capacity – 10 - 36 m3 / h; • Mode of operation - 24 hours a day; • The number of working days per year - 365; • The maximum amount of recyclable waste a year - 87 600 – 315 350 m3

Environmental emissions and waste cycle Emissions and pollutions

Substance  Value,    g/sec,  min  

Value,    g/sec,  max  

Total,    t/yr,  min  

Total,    t/yr,  max  

NO2   0,3152   1,7528   6,8800   38,2600  

SO2   0,8875   1,8915   5,3000   11,2960  

H2S   0,0105   0,0338   0,1900   0,6120  

Vapor  C12  –  C19   -­‐   4,1223   -­‐   75,2630  CO   2,0843   2,2909   34,1500   37,5350  V2O5   -­‐   0,0083   -­‐   0,2030  

CO2   from   fuel  combusLons  

19000   27000  

Particulate pollution from cleaning equipment for repairs (once in two years)

Substance   Total,  t/yr  

Mazut  ash   220  

Hard  asphalLc  residues   160  

The contents of sewage

Substance   Value   Total    /yr  

water   2  m3/h   17856  m3/yr  

dissolved  hydrocarbons   up  to  25  mg/l   up  to  0.446  t/yr  

suspended  solids   80  –  140  mg/l   1.428  –  2.499  t/yr  

Concept Technology Products Mat. Balance Appendixes

Stage Country Costs, K€ Quantity Costs, K€ Technical Project France, Ukraine 1600 1 1600 Pilot Plant (Desulfurization and Bio-Fuel Units) Finland, Ukraine 1520 1 1520 Legals and sertification works Finland 50 10 500 Management, administration and businnes-trips Finland 450 1 450

Total,€ 4070

Costs for the design and certification works

The total cost of building the plant can be estimated about 186 M€. The operations cost can be estimated about 15,3 M€ for raw mazut and 13 M€ for vegetable oil and methanol;

Evaluation of altogether costs for the LSMF Plant Project : 214.3 M€

Concept Technology Products Mat. Balance Appendixes

Costs for the purchase of equipment

Finance Location Technology Concept Appendixes

Timetables for the LSMF Plant and it’s construction (approx. 26 months), M€

Stage              /                          Month   1   2   3   4   5   6   7   8   9   10   11   12   13   14   15   16   17   18   19   20   21  

22   23   24   25   26  

Sum,  M€   160.7  53.6  

Development  of  pre-­‐

proposals   0.035  Management  admin.  and  

business  trips  

0.450  

Technical  Project  and  

Environ.  Part     1.6  

Pilot  Plant   1.52  Legals  and  serLficaLons    0.5  Rent,and  R&D   +?  Manufacture  of  equipment     118.6      22.9    7.7  ConstrucLon  and  

InstallaLon  work    32.0  

Salary  fund   1.98  

TesLng  run  

+?  

Finance Location Technology Concept Appendixes

Contents of products in different types of raw

2%  

23%  

26%  

44%  

4%  2%  

Heavy  Mazut,  Russian  origin,  2.0  -­‐  3.5    wt.  %  S    

Light  diesel  fracLon  (MDO,  10  ppm  S)    Middle  vacuum  gasoil  (LFO,  0.1  %S)    Heavy  vacuum  gasoil  (HFO,  0.1  %S)    Tar  (Bitumen  and  Pithces)    

Yellow  Sulfur    

Degassing  (as  gas  fuel  for  furnaces)    

10%  

20%  

48%  

20%  

1%   2%  

Light  Mazut    Venezuela  origin  0.5wt.  %  S    

Light  diesel  fracLon  (MDO,  10  ppm  S)    Middle  vacuum  gasoil  (LFO,  0.1  %S)    Heavy  vacuum  gasoil  (HFO,  0.1  %S)    Tar  (Bitumen  and  Pithces)    

Yellow  Sulfur    

Degassing  (as  gas  fuel  for  furnaces)    

Concept Technology Location Finance Appendixes The predicted prices for 180 and 380 Marine fuels 0.1% S with 10% Bio (in 2015, Baltic Finnish port)

in comp. with present bunker prices, Rotterdam

584

609.5

632

1012

753 (*in 2015, Finnish port)

714 (*in 2015, Finnish port)

500

600

700

800

900

1000

26/11/2012 27/11/2012 28/11/2012 29/11/2012 30/11/2012

$/tn

IFO 380

IFO 180

LS 380

LS 180

MDO

ULS 180

ULS 380

Finance Location Technology Concept Appendixes

The Bill of Materials and Material Balance of LSMF Plant (per annum)

Raw  material  type  →  

Heavy  Mazut,  Russian  origin,    2.0  -­‐  3.5  wt.  %  S.  

%/tn/average  price  at  30.11.12,  K€  

Light  Mazut,  Venezuela  origin  0.5  wt.  %  S.  

%/tn/average  price  at  30.11.12,  K€  

FracLons  consLtuencies    

(Products  basement)  ↓  

Light  diesel  fracBon  (MDO,  10  ppm  S)   2,4  /  8400  /  6539   10,0  /  35000  /  27248  

Middle  vacuum  gasoil  (ULS  180,  0.1  %S)   23,0  /  80500  /  46626   20,0  /  70000  /  40544  

Heavy  vacuum  gasoil  (ULS  380,  0.1  %S)   25,5  /  89250  /  49016   48,0/  168000  /  92266  

Tar  (Bitumen  and  Pitches  *in  Finland)   43,6  /  152600  /  78742   20,0  /  70000  /  36120  

Yellow  Sulfur   3,5  /  12250  /  4410   0,5  /  1750  /  630  

Degassing  (as  gas  fuel  for  furnaces)   2,0  /  7000  /  0   1,5  /  5250  /  0  

Total   100,00  /  350000  /  185333   100,00  /  350000  /  196808  

The additional raw can be used as a raw material for the LSMF Plant: • Oil waste, bilge water, the polluted mixtures of industrial oil waste. • The fulfilled motor and industrial oils of all types without their prior separation or classification.

Concept Technology Location Finance Appendixes

The Bill of Materials and Material Balance of Bio-Fuel Unit (per annum)

Products  basement    ↓  /    Raw  material  type  →  

Tech.  Vegetables  oil  (Asia  or  Africa  origin)  0  %  S,  Methanol  (Russian  origin)  0  %  S;  

t/a  /  K€/a;    from  that  in:  MDO;  ULS  180;  ULS  380  

Bio-­‐Fuel  (EN  14214;  B-­‐100),  0%  Sulfur 64  000  t/  44312:  3500t/2725  ;  8100t/4692;  17000t/9336

Glycerol  (95  -­‐  99.5  %)   7  400t  /  4810

Total   71  400  t  /  49122  K€/a

Total sales of the LSMF Plant could reach 234 – 246 M€/a, depending on the origin and properties of raw materials.

*It is provided that the portion of Bio-fuel, which has remained unclaimed as additives to MDO, ULS 180 and ULS 380, will be sold as B100 (35400 t/27559 K€).

Technology Concept Appendixes Mat. Balance Finance

Description  Annual  amount  of,  K€  

Annual  income   234500  /  246000  Expenses  for  processing    (  39  €  /  t  )   13650  Personnel  expenses   1983  Raw  mazut    expenses  (303  Rus.  or  415  Ven.,  €  /  t)    106050    Rus.  or  145250  Ven.  Vegetable  Oil  and  Methanol  expences     31315  Annual  7inancial  results   53802  -­  81502  K€  

The  annual  7inancial  balance  (as  estimation)  

* Taxation, capital costs, ammortization etc. expences are not included.