Page 11 - NorthAmOil Week 32 2021

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ExxonMobil, Chevron explore renewable fuels
US
SUPER-MAJORS ExxonMobil and Chevron are reported to be exploring ways to ramp up their renewable fuels production at their existing refineries, without the need for costly upgrades.
According to sources familiar with the mat- ter, who were cited by Reuters this week, the companies are looking into how to process bio-based feedstocks such as vegetable oils and partially processed biofuels with petroleum distillates. This process would be used to make renewable diesel, sustainable aviation fuel (SAF) and renewable gasoline, without meaningfully increasing capital spending.
According to the sources, a task force has been created at ExxonMobil’s request within interna- tional standards and testing organisation ASTM International. The task force will determine the capability of refiners to co-process up to 50% of certain types of bio-feedstocks to produce SAF.
ExxonMobil has not commented on the reports about its renewable fuel plans.
Chevron, for its part, confirmed to Reu- ters that it was looking into how to run those feedstocks through fluid catalytic crack- ers (FCC), which are generally the largest
component of refineries.
“Our goal is to co-process biofeedstocks in
the FCC by the end of 2021,” a Chevron spokes- person told Reuters, to supply renewable prod- ucts to consumers in Southern California.
A source said that, subject to the receipt of regulatory approvals, Chevron would be able to produce and generate credits for renewable gasoline. Such a product is not yet commer- cially available, but according to the California Energy Commission, it can reduce carbon diox- ide (CO2) emissions by 61-83%, depending on which feedstock is used.
Chevron said on its earnings call at the end of July that in the second phase of its process, it would become the first US refiner to use the cat- alytic cracker to produce renewable fuels.
Renewable fuels account for 5% of US fuel consumption, but are set to grow as the energy transition accelerates. The two super-majors are under pressure over the pace of their decarbon- isation efforts, but are trying to balance these efforts with financial discipline. They are there- fore exploring ways to avoid spending potentially billions of dollars on refining upgrades.™
ENERGY TRANSITION
TC Energy, Irving partner on Eastern Canadian decarbonisation
EASTERN CANADA
The partnership would initially consider a series of upgrade projects at Irving’s refinery in Saint John, New Brunswick.
CANADIAN pipeline operator TC Energy has signed a memorandum of understanding (MoU) with refiner Irving Oil on potential joint devel- opment of projects aimed at reducing green- house gas (GHG) emissions in Eastern Canada.
The two companies said they had identified a series of potential projects for exploration focused on decarbonising existing assets and deploying emerging technologies to reduce over- all emissions. The partnership would initially consider a series of upgrade projects at Irving’s refinery in Saint John, New Brunswick, with the goal of “significantly” reducing emissions through the production and use of low-carbon power generation.
The two companies will also explore options for helping to decarbonise local industry over the medium and long term via the production and distribution of low-emission hydrogen, cou- pled with a carbon capture and storage (CCS) network. Their collaboration has the potential to expand to Eastern Canadian provinces beyond New Brunswick.
“In combining and integrating the strengths of our companies – and with a deep history in the energy sector – we are uniquely positioned
to develop innovative solutions and adopt green technologies while continuing to provide a secure supply of energy in the regions where we operate,” Irving’s president, Ian Whitcomb, stated.
“Through collaboration with industry partners, and by leveraging our irreplaceable infrastructure, we can contribute meaningful advancements toward the energy future while providing the safe, reliable energy people need every day,” added TC Energy’s CEO, François Poirier.
News of the partnership comes in anticipa- tion of Canada’s Clean Fuel Standard regulation, which is set to take effect in 2022 and will require refiners to reduce carbon intensity levels in liq- uid transportation fuels.
Irving and TC Energy have already collabo- rated on other projects, including on the devel- opment and operation of the 90 MW Grandview Cogeneration low-carbon power plant, which is located inside the Saint John refinery. The plant was commissioned in 2005 and has already helped to reduce the carbon intensity of the refinery, cutting up to 750,000 tonnes of GHG emissions according to the companies. Now they aim to take the reductions further still.™
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