CATIVA BP

Mr. Jon Horler

Acetyls Project & Engineering Manager

BP

 A Chartered Chemical Engineer, Mr. Jon Horler has worked for BP for 25

years and leads a team responsible for the delivery of technology and

engineering in support of BP’s proprietary package for the manufacture

of Acetic Acid.

 Part of his role is also to provide project management during concept

selection and early stage development for licensing opportunities

worldwide.

 Mr. Jon has previously worked on major projects in the UK, China,

Taiwan, Malaysia, Korea and India.

Overview of Acetic acid Production

Through Petcoke Gasification

IOCL Petrochemicals Conclave

18th _{March 2013}

Jon Horler, Projects and Engineering Manager Acetyls and Aromatics Technology

Outline

•

Overview:

−

What is Acetic Acid

−

Key Uses of Acetic Acid

−

Chemistry

•

Feedstock Choices

•

Acetic Acid Technology

•

Sources of Project Value

3

What is Acetic Acid?

• A very important chemical

• A key raw material for the production of a wide

number of products we use in our everyday lives

• Do you know that acetic acid in its very dilute

form is vinegar that is consumed or used in the manufacture of food products?

• Acetic acid is involved in the manufacture of

other items you'll find in your shopping basket, such as washing powder, drink bottles and food packaging

With just 1 tonne of acetic acid our customers can make 38,000 jars of pickles*

*BP Internal Data

4

Key uses of Acetic Acid

• Vinyl Acetate Monomer (VAM)

− Paint, adhesives in furniture or floor covering, manufacture

of clothes, shoe soles, juice cartons and cheese packaging, manufacture of safety glass for car windscreens

• Purified Terephthalic Acid (PTA)

− Plastic containers for beverages, food and electronics,

apparel, home textiles, carpets and industrial fibre products, audio and video recording tapes, photographic films and labels

• Acetate Esters (Ethyl Acetate, Butyl Acetate…)

− Solvent in printing inks, laminating adhesive in flexible

packaging and plastic films. Also used as solvent in paint, varnishes, resin coatings and nail polish remover

• Acetic Anhydride

− More than 75% made into cellulose acetate found in filter

tow, textiles, photographic and x-ray films

− Also used in pharmaceuticals such as aspirin and

paracetamol

Acetic Acid Technology Evolution

CATIVA® gives advantages across all key project criteria:

• Capital - simplification of flowsheet results in lower project costs for new

build plants

• Variable Cost - patented catalyst technology and subsequent reduced

energy requirements result in lower operating costs

• Cash Cost / Reliability - less equipment items to maintain mean

lower annual maintenance spends and less downtime

• Scale - potential to build at scale to suit market demands improves

capital efficiency

• Fully Built-up Cost - all of the above have a positive impact on overall project economics and long term

sustainable operations Feedstock changes Process changes Time Methanol carbonylation Hydrocarbon oxidations

Cost estimates are based on generic models

0 20 40 60 80 100 120

Ethylene Naphtha Rhodium Rhodium / lithium Iridium

P ro d u ctio n co st [in d ex ed to eth y len e p ro ce ss to tal co st = 1 0 0 ]

Cash cost = variable + fixed Capital-related costs=depreciation + return on investment

Methanol Carbonylation:

A C

₁

route to Acetic Acid

Natural Gas Coal Pet Coke Naphtha Light HC’s Heavy HC’s Biomass ………. Syngas (CO + H₂) Purify CO Compress CO Pure CO

Methanol Distribution Methanol _(CH

3OH)

Acetic Acid (CH₃COOH)

CO must be generated locally

MeOH purchased as a globally traded commodity

6

Feedstock Selection In India

• Main issues associated with accessing attractive CO economics are:

− High energy costs. Investment in lower capital Nat Gas/Fuel Oil based

Syngas plants (eg SMR/POX) have higher variable costs

− Investment in Coal/Petcoke based Syngas plants (Gasification) delivers

much lower energy / variable cost but carries a much higher capital cost burden and is dependent on scale and integration opportunity

• For a methanol carbonylation

production, feedstock access for competitive CO

production cost is key to the Acetic Acid value chain

R

ela

tiv

e

Ener

gy

Cost

Feedstock Options

8

Ulsan, South Korea

SSBP: AA , 51% Nanjing, China Byaco: AA , 50% Shanghai Head office Kertih, Malaysia BPPA: AA, 70% Chongqing, China Yaraco: AA & Esters , 51% Kuala Lumpur Commercial office, Rest of Asia Taiwan FBPC: AA, 50% Naperville/Cantera

Commercial Office USA

Hull, UK

Europe Commercial Office and Production AA and Anhydrides Texas City AA Acetyls sites Commercial/Sales offices % BP share of JVs

BP Acetyls – Global Experience

CATIVA

®

_{Process Flow Diagram}

Column _{Heavy Ends Column}

Cativa®

SCHEMATIC PROCESS FLOW DIAGRAM

Off-gas Recovery Area

Reactor (Mixed acid For disposal) CO and methanol 9

Internal Infrastructure

Keys to Project Value

• Build at scale

• Locate near market

• Locate close to petcoke feedstock • Integrate common infrastructure • Lever the strengths of both parties

Value Levers: Project Integration

ASU

Purification

AA

Petcoke

Gasification

External Infrastructure

• Acetic Acid is a petrochemical building block for products associated with a sophisticate growing modern economy

• BP has developed world leading technology for the manufacture of

acetic acid.

• Feedstock choice is critical

• Integration opportunities help to lever value

Thank You

Summary