Global drivers and process innovation for ‘unconventional’ conversions Mark Howard, VP Conversion Technology Centre September 25th 2014

Hull Research & Technology Centre - a history of new process development Acetic acid /anhydride CATIVATM Acetic acid SaaBreTM acetic acid Fixed bed VAM enhancement LEAPTM fluid bed VAM HummingbirdTM ethylene FT pilot work AVADATM ethyl acetate Biobutanol demonstration (with Dupont) Specialty processes 1990s 2000s 2010s 2

Global drivers for ‘inter-value’ chain conversion opportunities Globally high crude oil and product prices ..strong diesel growth ..fuel oil in steep decline

Global drivers for ‘inter-value’ chain conversion opportunities Low cost natural gas Globally high crude oil and product prices ..strong diesel growth ..fuel oil in steep decline

Global drivers for ‘inter-value’ chain conversion opportunities Low cost natural gas Indigenous coal Globally high crude oil and product prices ..strong diesel growth ..fuel oil in steep decline

Global drivers for ‘inter-value’ chain conversion opportunities Residue upgrading incentives Low cost natural gas Indigenous coal Globally high crude oil and product prices ..strong diesel growth ..fuel oil in steep decline

Global drivers for ‘inter-value’ chain conversion opportunities Low cost natural gas Biofuels mandates Indigenous coal Globally high crude oil and product prices ..strong diesel growth ..fuel oil in steep decline

Global drivers for ‘inter-value’ chain conversion opportunities Low cost natural gas Biofuels mandates Indigenous coal Low cost biomass Globally high crude oil and product prices ..strong diesel growth ..fuel oil in steep decline

Global drivers for ‘inter-value’ chain conversion opportunities Low cost natural gas Biofuels mandates Indigenous coal Waste incentives Low cost biomass Globally high crude oil and product prices ..strong diesel growth ..fuel oil in steep decline

Veba Combi-Cracking (VCCTM) Hydrogen Additive < 5% Residue Hydrogen recycle Disposal Slurry Phase Hydrocracker Hot Separator Trickle Bed Hydrotreater / cracker Distillation Naphtha (S<1ppm) Diesel (S<10ppm, cetane >45) Vacuum Gas Oil (S<100ppm, <1ppm metals) Resid/Pet Coke Heavy Oil High overall conversion of >95% (+525oC material). Asphaltenes conversion is typically >90% Simple flow sheet with conventional refinery equipment. Technology uses a low cost additive rather than a catalyst; BP estimates that VCCTM Technology will outperform delayed cokers when benchmark crude prices exceed $50 per barrel

Yulin VCCTM plant Shaanxi Yanchan Petroleum Group (YCPC)

CHEMICALS ALTERNATIVES Fischer Tropsch STANDARD FUEL CHEMICALS ALTERNATIVES Natural Gas Coal Biomass Resid / Pet Coke Syngas Generation Fischer-Tropsch Syngas Conversion UPGRADING Hydrotreater / cracker Offsites & Utilities (including air separation unit) Hydrogen Tails Gas Recycle 20% Naphtha 80% Diesel Provides a low risk, competitive technology Reforming, Gasification and ASU are all widely deployed and practised BP’s FT conversion is performed using a standard fixed bed multitubular reactor. Proven catalyst with more than 16,000 hrs operational experience BP Product Upgrading uses commercially-available catalyst, leveraging BP’s significant operational know-how in hydrocracking

Nikiski FT 300bbl per day demonstration plant

HummingbirdTM Ethanol dehydration technology Widely available BP proprietary technology Recycle Reactor Ethanol Separator Purification Polymer grade ethylene (bio/chemical/ hydrous/ anhydrous) Aqueous waste Organic waste The HummingbirdTM process has the following advantages over existing technologies: Lower temperature and high selectivity catalyst gives ultra-selective carbon conversion and overall yields No catalyst regeneration Lower CAPEX and OPEX than competing technologies

HummingbirdTM pilot plant

…so what about Europe? Basic chemicals increasingly challenged by feedstock costs…. ..but look out for ‘unconventional’ and ‘renewable’ opportunities Providing technology solutions across the world, with ongoing support…. ..but we will need to compete through innovation Not just ‘brand new’ ideas, sometimes ‘old’ ideas in a changed environment