Center for Innovation and Technology Cooperation (CITC)

Energy Technologies Department 24 November 2015

The Global Catalyst IndustryUnderstanding the Complex Interaction between

Process Technologies, Catalysts & Markets. Petroleum Refining Catalysts

Analysis of Structure of Global Catalysts Industry Globalization Global catalyst Consumption Global Refining Capacity North America Alliances & Joint Ventures System Houses Summary

Table of Contents

Process catalyst product types

Petroleum Refining Catalysts

Chemical Processing Catalysts

By market served

Structure of the Process Catalyst Industry

Catalyst User

Metal Reclaimer

Catalyst Regeneration

Process Licensor and Catalyst Manufacturer

Process Licensor

Catalyst Manufacturer

Catalyst Manufacturer

Process Licensor

Process Licensor and Catalyst Manufacturer

Catalyst User

Metal ReclaimerCatalyst

Regeneration

Process License & catalyst

Process License & Catalyst

Process License Catalyst Production Contract

Catalyst

Non proprietary Catalyst (unlicensed, house brand, open market,general and custom)

Proprietary (Licensed) Catalyst

Spent Catalyst for Recovery of Precious Metal

Spent Catalyst for Regeneration

Regenerated Catalyst

Spent Catalyst

Globalization

196019802000

Road Map for Developing Oil & Gas Industry of the World

IRAN

Middle East

More than 90% of chemical manufacturing processes and more than 20% of all industrial products employ underlying catalytic steps

Process catalysts, a $16 billion-per-year business worldwide, play a vital role in the economy.

آمریکای شمالیمیلیون دالر 4،466

اروپای غربیمیلیون دالر 2،448

ژاپنمیلیون دالر 817

چینمیلیون دالر 2،763

خاومیانهمیلیارد دالر1

North Amer-ica

Western Europe

China Japan Middle East0

1000

2000

3000

4000

5000

6000

4466

24482763

8171000

4961

2433

4243

727

1354

2012 2017

Global catalyst ConsumptionUnit: Millions Dollars

Process catalyst product types

Petroleum Refining Catalysts

Chemical Processing Catalysts

Petroleum refining catalysts

Catalytic Cracking (FCC)

Catalytic Hydro Processing

Catalytic Hydrocracking

Catalytic Reforming

Isomerization

By market served

Global Refining Capacity (2014) Unit: Thousand Barrel per Daily

4% 9% 33%6.5%

19% 6%22.5%

94,929 Thousand Barrel per day

Global Refining Capacity (2014) Unit: Thousand Barrel per Daily

1970 1980 1990 2000 2014

2.33.4

4.9

6.5

8.8

Middle East

1970 1980 1990 2000 2014

6.811.0

13.1

21.5

31.3

Asia Pacific

1970 1980 1990 2000 2014

14.1

22.419.6 19.9 21.4

North America

1970 1980 1990 2000 2014

14.8

20.8

14.315.8 17.2

Western Europe

North America

North America

Catalyst Manufacturer

Process Licensor

Process Licensor and Catalyst Manufacturer

Catalyst User

Metal ReclaimerCatalyst

Regeneration

Process License & catalyst

Process License & Catalyst

Process License Catalyst Production Contract

Catalyst

Non proprietary Catalyst (unlicensed, house brand, open market,general and custom)

Proprietary (Licensed) Catalyst

Spent Catalyst for Recovery of Precious Metal

Spent Catalyst for Regeneration

Regenerated Catalyst

Spent Catalyst Catalyst Producers

Catalytic Cracking (FCC) FCC Additives Hydro

TreatingHydro

CrackingCatalytic

Reforming Isomerization Plants Location Company

+++ ++ ++ ++   + Bayport, TX (Pasadena, TX) Albemarle Corporation    +       Calvert City, KY

Axens North America, Inc        ++ + Willow Island, WV+++ ++         Attapulgus, GA

BASF Catalysts LLC+++ ++         Savannah, GA

    +     + Louisville, KYClariant Corporation

(Süd-Chemie)    +++       Medicine Hat, Alberta Criterion Catalysts and

TechnologiesL.P.

(Royal Dutch/Shell Group)

    +++ ++     Pittsburg, CA

    +++       Port Allen, LA

    ++ ++     Chicago, ILW. R. Grace & Co.fGrace Davison (*)

+++ +++ ++ ++     Curtis Bay, MD+++ +++ ++ ++     Lake Charles, LA+++ +++         Valleyfield, Québec

    +++ +     Houston, TX Haldor Topsøe, Inc

  +++         Savannah, GAIntercat, Inc

(Johnson Matthey)      +++   +++ Chickasaw, AL

UOP, LLCi          +++ McCook, IL    + +++ +++ +++ Shreveport, AL

    + ++     Kansas City, KS Zeolyst International(**)

*Hydroprocessing catalysts are marketed by Advanced Refining Technologies (ART), a joint venture of Chevron Products Company and W. R. Grace & Co.’s Grace Davison Catalyst business unit.**A joint venture of The PQ Corporation and CRI International, Inc., a member of the Royal Dutch/Shell Group.

Major North American Producers of Petroleum Refining Catalysts

The Hydroprocessing Alliance—a joint effort of Albemarle and UOP—supports the refiningindustry with Albemarle’s hydrotreating catalysts and UOP’s hydrocracking catalysts andhydrotreating and hydrocracking process technologies.

Advanced Refining Technologies LLC, W. R. Grace’s joint venture with Chevron, markets GraceDavison’s hydroprocessing catalysts.

Zeolyst International, a joint venture of PQ and CRI International, produces a wide range ofspecialty zeolites for hydrocracking catalysts (which are manufactured and marketed by CriterionCatalysts).

Johnson Matthey Catalysts and Sinopec have joined forces to promote hydroprocessing catalysts.As part of the companies’ 2007 commercial agreement, Johnson Matthey agreed to marketSinopec’s hydroprocessing catalysts to petroleum refineries outside China.

Alliances and joint ventures play an important role in the refining catalyst industry. For example:

Alliances & Joint Ventures

Demand growth for refinery catalysts will be strongest outside North America,

Demand growth for refinery catalysts

Middle East.

China

Southeast AsiaSouth America,

1) Expanded their North American capacities to meet this demand;in addition,

2) They are building or acquiring regional manufacturing facilities to be closer to overseas customers.

For example:

• Albemarle plans to build a world-scale hydroprocessing catalyst production plant in Brazil withPetrobras. The facility, which will be adjacent to the partners’ existing FCC catalyst plant in SantaCruz, Rio de Janeiro, is expected to commence operations in 2016.

• W. R. Grace acquired Noblestar Catalysts Co., Ltd., a Chinese producer of FCC catalysts and catalyst intermediates, in November 2012. In addition, the company plans to build and operate an FCC catalysts and additives plant in Abu Dhabi, United Arab Emirates. Its partner in the joint venture is Al Dahra Agricultural Company. The plant is expected to start up in 2016.

• Advanced Refining Technologies (ART) expanded its global manufacturing network to includeKuwait Catalyst Company (KCC)’s catalyst production capacity in Shuaibi, Kuwait. As part of anAugust 2011 agreement, ART secured exclusive access to KCC’s state-of-the-art catalyst plant inexchange for providing KCC with increased access to ART’s hydroprocessing catalyst technologyand commercial resources. ART is KCC’s largest shareholder.

- Axens has partnered with General Technology & Systems Company Ltd. (GENTAS), a memberof the Shoaibi Group, to build a world-scale hydroprocessing catalyst production plant in SaudiArabia.

Catalyst producers

Major Producers have “System Houses” all over the World

System houses develop:- Specific formulations for- Specific applications for- Specific customers by

Summary

Analysis of Structure of Global Catalysts Industry

Product Integration (Forward & Backward)

Alliances & Joint Ventures

System Houses

Globalization!

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