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Clean Fuels Refinery and Product Development of MOL

Clean Fuels Refinery and Product Development of MOL. Dr. Márta Krámer Head of Marketing Refining and Marketing Division. Szentendre 27th of October, 2005. Harmful materials CO 2 : „greenhouse effect" NO x : health particle: destructive CH:.

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Clean Fuels Refinery and Product Development of MOL

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  1. Clean FuelsRefinery and Product Development of MOL Dr. Márta KrámerHead of MarketingRefining and Marketing Division Szentendre27th of October, 2005

  2. Harmful materials CO2: „greenhouse effect" NOx: health particle: destructive CH: Reduction of specific consumption: CO2 and particle-emission will decrease as well To reduce NOx-and particle emission „catch” and catalyst is necessary Sulphur highly worsens their efficiency In long term the biggest problem is CO2: the reduction of specific energy consumption is over-compensated by the extensive impact of economic growth Currently the Oil Industry’s Main Development Area is Correspondence to the EU 2005 Motor Fuel Quality Regulation Environmental regulations Goal: reduction of emission Tool: tightening of exhausts’ limit values Reduction of sulphur and aromatic content Lower density Developments of engine producers Motor fuels’ quality improvement Synergy effect * "lean burning", DI engines

  3. An Important Objective of EU Energy Policy is to Decrease Pollution of the Environment The effect of "Auto Oil 1" Program on the emission of harmful substances CO2emission continues to be a problem!

  4. CO2 Emissions by Sector in EU-25 *Including off-road Source: European energy and transport – Scenarios on key drivers (European Commission, 2004)

  5. 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)

  6. 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 ppmThe leading oil companies decreased the sulphur content below10 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

  7. Modern Engines Require „Sulphur Free” Motor Fuels THE EFFECT OF SULPHUR CONTENT ON EMISSION • 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

  8. 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

  9. 1000 HF Alkylation 900 CCR Reformation FCC Plant 800 700 FCC Intensification MTBE Plant 600 Lead emission, ton/year 500 400 KB Isomerization Plant 300 200 100 0 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 MOL’s Motor Fuel Quality Improvements as from 1990 I. Reduction and Annulment of Lead Content of Motor Gasoline

  10. MTBE Plant FCC Plant capacity increase 6 5 Reconstruction of the Isomerization Plant Gasoline Blending Plant 4 3 Benzene content, v/v% Reformer redistilling column 2 1 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Only in Hungary, in the EU the regulation allowed maximum 5% until 2000 MOL’s Motor Fuel Quality Improvements as from 1990 II. Reduction of Benzene Content of Motor Gasoline

  11. MOL’s Motor Fuel Quality Improvements as from 1990 III. Reduction of Sulphur Content VGO HDS HDW-GOK* 2 HDS intensification Hydrogen plant 2. GOK*-3 CLAUS-4 Gas oil blender Gasoline desulphuriser 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Gasolines Gasoils 0.5 0.2 Sulphur content (m/m) % 0.2 Sulphur content (m/m) % 10 ppm !! 10 ppm !! 0.05 0.035 01. 07. 2005. 0.015 01. 01. 1997. (01. 10. 1996.) 01. 01. 1993. EU (01. 10. 1994.) 01. 01. 2000. (01. 01. 2000.) 01. 07. 2005. 01. 01. 2000. 0.05 01. 01. 1993. * Gas oil desulphurizer

  12. 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 aboutUSD350 M

  13. 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 higherthan 10 ppm • Sulphur emission from motor fuels sold by MOL in Hungary decreases from 730 tons/year to less than 30 tons

  14. 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

  15. 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 intoETBE 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:correspondenceto the hydrocarbon industry’s standards and the assurance of continuous supply

  16. Oil Based Fuels Continue to Have a Dominant Role in the Long Run Trend in demand for fuels Main direction of development Source: EUCAR IG-Fuels, November 2001

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