Clean Fuels
Refinery and Product Development of MOL
Szentendre27th of October, 2005
Dr. Márta KrámerHead of MarketingRefining and Marketing Division
Currently the Oil Industry’s Main Development Area is Correspondence to the EU 2005 Motor Fuel
Quality Regulation
Environmental regulationsGoal: reduction of emissionTool: tightening of exhausts’ limit values
Reduction of sulphur and aromatic content
Lower density
Mot
or fue
ls’ qu
ality
impr
ovem
ent
Synergy effect
In long term the biggest problem is CO2: the reduction of specific energy consumption is over-compensated by the extensive impact of economic growth
Harmful materialsCO2: „greenhouse effect"
NOx: healthparticle: destructiveCH:
Develop
men
ts of engin
e prod
ucers
* "lean burning", DI engines
Reduction of specific consumption: CO2 andparticle-emission willdecrease as well
To reduce NOx-and particle emission „catch” and catalyst is necessary
Sulphur highly worsens their efficiency
An Important Objective of EU Energy Policy is to Decrease Pollution of the Environment
CO2 emission continuesto be a problem!
CO2 emission continuesto be a problem!
0
20
40
60
80
100
120
1995 2000 2005 2010 2015 2020
%
CO Benzene NOx Diesel particle VOC CO2 SO2
The effect of "Auto Oil 1" Program on the emission of harmful substances
CO2 Emissions by Sector in EU-25
*Including off-road
Source: European energy and transport – Scenarios on key drivers (European Commission, 2004)
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
1990 2000 2010 2020 2030
Mt
CO
2
Electricity-steam production Transports* Industry Households Tertiary
One of the main problems of EU energy sector is the growing dependency on
imported crude oil
Mt
*
* Includes Norway, Switzerland, Romania, Bulgaria and Turkey
Source: Green Paper: Towards a European strategy for the security of energy supply (European Commission, 2001)
2005 is the Year of Motor Fuel Quality Change in Europe
The main direction of quality improvement: reduction of sulphur content
- motor gasoline: from 150 ppm to 50 ppm- diesel: from 350 ppm to 50 ppm
The leading oil companies decreased the sulphur content below 10 ppm
(according to the EU directive it will be a compulsory requirement as from 2009)
European refineries completed USD 10 billion worth investments in order to reach the above objective
In present years refineries worldwide spend cca. USD 100 billion on technological developments principally with environmental purposes
Modern Engines Require „Sulphur Free” Motor Fuels
0
10
20
30
40
50
60
70
80
Time/ kilometre performance
NO
x-co
nve
rsio
n,
%
350 ppm 50 ppm 0 ppm
• The effect of its decrease is: - to raise the operational lifespan of the vehicles’ catalysts - to decrease the pollution of the environment (in case of diesel engines it also moderates particle emission)
• Solution in the refinery industry: desulphurisation catalytic process
Source: "The future of the Diesel engine in passenger cars" Volkswagen AG, 2001
THE EFFECT OF SULPHUR CONTENT ON EMISSION
Regional Oil Companies’ Correspondence to EU Requirements Concerning Motor Fuel Quality
-max. 10 ppm sulphur content
max. 50 ppm sulphur content
Quality inadequate to EU regulations
MOL’s Motor Fuel Quality Improvements as from 1990 I.
Reduction and Annulment of Lead Content of Motor Gasoline
FCC Plant
HF Alkylati
onCCR
Reformation
MTBE Plant
FCC Intensificati
on
KB Isomerization
Plant
0
100
200
300
400
500
600
700
800
900
1000
1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Lead e
mis
sion,
ton/y
ear
MOL’s Motor Fuel Quality Improvements as from 1990 II.
Reduction of Benzene Content of Motor Gasoline
Benze
ne c
onte
nt,
v/v
%
0
1
2
3
4
5
6
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Gasoline Blending
Plant
Reformer redistilling
column
MTBE Plant
FCC Plant capacity increase
Reconstruction of the
Isomerization Plant
Only in Hungary, in the EU the regulation allowed maximum 5% until 2000
Gasolines Gasoils
Su
lph
ur
con
ten
t (m
/m)
%
Su
lph
ur
con
ten
t (m
/m)
%
0.2
0.5
0.05
01. 01. 1993.
0.2
01. 01. 1993.EU (01. 10. 1994.)
0.05
01. 01. 1997.(01. 10. 1996.)
0.015
01. 01. 2000.
0.035
01. 01. 2000.(01. 01. 2000.)
10 ppm !!
01. 07. 2005.
10 ppm !!
01. 07. 2005.
MOL’s Motor Fuel Quality Improvements as from 1990 III.
Reduction of Sulphur Content
VGO HDS
CLAUS-4
HDW-GOK* 2
Gas oil blender
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
HDS intensificationHDS intensification
GOK*-3Gasolinedesulphuriser
Hydrogenplant 2.
* Gas oil desulphurizer
MOL’s Preparation to Production of EU 2005 Motor Fuel Quality
In Százhalombatta during 2004 the following installations were
realised:
- new 2.2 Mt/year capacity gasoil desulphurising plant
- new 40 th m3/h capacity hydrogen plant
- converting gasoil blending plant
- auxiliary facilities
At Bratislava during 2004 the following installation was realised:
- new 1.7 Mt/year capacity gasoil desulphuriser
At Százhalombatta
- new gasoline desulphuriser
The total value of the above investments is about USD 350 M
The Result of Developments
Significant reduction of motor fuels’ sulphur content down
to 10 ppm
MOL’ s motor fuel quality is better than prescribed in the
EU Directive
Improving environmental conditions in Hungary
- from 1st of July 2005, a higher excise tax is due on motor fuels
with sulphur content higher than 10 ppm
Sulphur emission from motor fuels sold by MOL in Hungary
decreases from 730 tons/year to less than 30 tons
Further Directions of Motor Fuel Quality Improvements
Reduction of aromatics content by 2008-2009
Assurance of a certain proportion of biofuels in the
total motor fuel consumption
Goal: holding back CO2 emission causing „greenhouse effect”
Directive 2003/30/EC of the European Parliament and of the
Council:
Member states must ensure that the amount of biofuels used
will reach a minimum proportion:
- EU Directive 2% until 31st December 2005
5.75% until 31st December 2010
Use of Biofuels in MOL Group
Gasoline: the product’s MTBE component is replaced by bio-ETBE
made from alcohol of agricultural origin
Investments
- transforming the MTBE units at Százhalombatta and Bratislava into ETBE units - establishing a new ETBE unit at Tiszaújváros (greenfield investment) - raw material: dehydrated alcohol product of agricultural origin (bioalcohol)
Gasoil: blending of guaranteed quality biodiesel of agricultural origin
Requirement for raw materials: correspondence to the hydrocarbon industry’s standards and the assurance of continuous supply
Source: EUCAR IG-Fuels, November 2001
Oil Based Fuels Continue to Have a Dominant Role in the Long Run
Trend in demand for fuels Main direction of development