1. http://www.highandwatt.com rhigh@highandwatt.com The Capacity Implications of 10ppm Sulfur in Gasoline & Diesel The Capacity Implications of 10ppm Sulfur in Gasoline & Diesel

2. http://www.highandwatt.com rhigh@highandwatt.com Benefits of 10ppm S May be essential for new technologies eg NOx traps in LD vehicles Gives better performance for HD vehicles & may be needed for Euro IV/V emissions Improves fuel economy on other vehicles Lower emissions on particulates in existing fleet But at an estimated 4.6 mtonnes of refinery emissions/year

3. http://www.highandwatt.com rhigh@highandwatt.com Possible Time Table Limited quantities by early 2005 Germany 10 ppm from 2003 Possibly all 10 ppm by 2008/9 EU Heating Oil goes to 1000 ppm in 2008

4. http://www.highandwatt.com rhigh@highandwatt.com Possible Problem Areas The Hydrogen Balance Lost of Octane Reduced Capacity when revamping Choice of Crude can be restricted to low sulfur The diesel/heating oil mix Type of sulfur in the crude

5. http://www.highandwatt.com rhigh@highandwatt.com Main Gasoline Desulfurisation Options Heavy FCC Naphtha –Divert to Light Cycle Oil –Desulfurise (choice of level) –Desulfurise (min octane loss) Light & Medium FCC Naphtha –Extractive merox –Hydrotreat

6. http://www.highandwatt.com rhigh@highandwatt.com Main Diesel Desulfurisation Options High Pressure AGO & LCO –Cobalt/Molybdenum catalyst based –around 70 bar Medium Pressure AGO & LCO –Nickel/Molybdenum based –around 50 bar

7. http://www.highandwatt.com rhigh@highandwatt.com Gasoline Desulfurisation Pretreatment of FCC Feed Post FCC treatment of FCC Naphtha Dilution

8. http://www.highandwatt.com rhigh@highandwatt.com FCC Naphtha Flow Scheme FCCFCC SplitSplit LtLt HvyHvy To Heating Oil Or Diesel Light Cycle Oil (LCO) Hy FCC Nap ex splt Lt. FCC nap ex splt C5-205 Desul Hy FCC Nap MOG BlendMOG Blend

9. http://www.highandwatt.com rhigh@highandwatt.com Diesel Units Hydrotreatment but at different pressures and with different aims New Plants usually ~ 70 bar Revamped Plants usually ~ 40-60 bar

10. http://www.highandwatt.com rhigh@highandwatt.com The Hydrogen Balance Sources –The Reformer Continuous Catalytic (CCR) Semi-Regeneration –Generation Partial Oxidation Steam Reforming –Byproduct of Cogeneration Pressure Swing Adsorption

11. http://www.highandwatt.com rhigh@highandwatt.com The Hydrogen Balance Uses -- Desulfurisation –Naphtha –Atmos. Gas Oils –FCC Naphtha –Light Cycle Oil Hydrocracking Dearomatisation

12. http://www.highandwatt.com rhigh@highandwatt.com Five Types of FCC Refinery Modeled Medium Pressure Dist. Desul. Units –Making 2000ppm Heating Oil –Making 1000ppm Heating Oil FCC Feed Pretreater No Heavy FCC Nap. Desulfurisation High Pressure Dist. Desul. units

13. http://www.highandwatt.com rhigh@highandwatt.com

14. http://www.highandwatt.com rhigh@highandwatt.com Main Assumptions Petroleum Argus Prices for 26th Nov 2001 H2 Import (where allowed) at $800/MT Free Choice of Brent and ARL At least 20% on crude of Diesel and 7.5% Kerosene Most Processes at European Average

15. http://www.highandwatt.com rhigh@highandwatt.com %ARL in Crude Slate (no H2 import)

16. http://www.highandwatt.com rhigh@highandwatt.com Margins Mogas $106/MT over BrentMogas $22/MT over Brent

17. http://www.highandwatt.com rhigh@highandwatt.com V/o Mogas Make Mogas $22/MT over BrentMogas $106/MT over Brent

18. http://www.highandwatt.com rhigh@highandwatt.com ARL in Crude Mix $22/MT over Brent $106/MT over Brent

19. http://www.highandwatt.com rhigh@highandwatt.com Effect of h2 Addition on ARL Use

20. http://www.highandwatt.com rhigh@highandwatt.com Increase in Margin with h2 @$800/MT

21. http://www.highandwatt.com rhigh@highandwatt.com Increase in Diesel with H2

22. http://www.highandwatt.com rhigh@highandwatt.com Main Points H2 Balance often important Decisions taken affect Crude Flexibility Capital Costs vary widely Crude and Product differentials assumed are very important Strategic Decisions required