propylene production via metathesis

Propylene via Metathesis

Copyrights © 2013 by Intratec Solutions LLC. All rights reserved. Printed in the United States of America.

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Technology Economics

Propylene via Metathesis

2013

Abstract

Propylene is the raw material for a wide variety of products, and has established itself as the second major member of the globalolefins business, only after ethylene.

Globally, the largest volume of propylene is produced in steam crackers and through the fluid-catalytic cracking (FCC) process.The propylene is typically considered a co-product in these processes, which are primarily driven by ethylene and motor gasolineproduction respectively.

As a result, new and novel lower-cost chemical processes for on-purpose propylene production technologies are of high interestto the petrochemical marketplace. Such processes include: Metathesis, Propane Dehydrogenation, Methanol-to-Olefins/Methanol-to-Propylene, High Severity FCC, and Olefins Cracking.

In this report, the production of propylene via metathesis from ethylene and butenes is reviewed. Included in the analysis is anoverview of the technology and economics of a process similar to the CB&I Lummus OCT process. Both the capital investmentand the operating costs are presented for a plant constructed in 2011 in the US Gulf and Germany.

Also, alternative ways to produce propylene via butenes-only metathesis, called self-metathesis, as well as via ethylene-onlymetathesis, through the use of an ethylene dimerization unit together with a metathesis plant, were presented. Discussionsregarding the integration of a metathesis unit with an olefin plant are also presented.

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Information, analyses and/or models herein presentedare prepared on the basis of publicly availableinformation and non-confidential information disclosedby third parties. Third parties, including, but not limitedto technology licensors, trade associations ormarketplace participants, may have provided some ofthe information on which the analyses or data are based.Intratec Solutions LLC (known as “Intratec”) does notbelieve that such information will contain anyconfidential information but cannot provide anyassurance that any third party may, from time to time,claim a confidential obligation to such information.

The aforesaid information, analyses and models aredeveloped independently by Intratec and, as such, arethe opinion of Intratec and do not represent the point ofview of any third parties nor imply in any way that theyhave been approved or otherwise authorized by thirdparties that are mentioned in this publication.

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Contents

About this Study...................................................................................................................................................................8

Object of Study.....................................................................................................................................................................................................................8

Analysis Performed.............................................................................................................................................................................................................8

Construction Scenarios ..............................................................................................................................................................................................................8

Location Basis ...................................................................................................................................................................................................................................9

Design Conditions ..............................................................................................................................................................................................................9

Study Background ............................................................................................................................................................ 10

About Propylene...............................................................................................................................................................................................................10

Introduction.................................................................................................................................................................................................................................... 10

Applications.................................................................................................................................................................................................................................... 10

Manufacturing Alternatives .......................................................................................................................................................................................11

Licensor(s) & Historical Aspects ...............................................................................................................................................................................13

Technical Analysis ............................................................................................................................................................. 14

Chemistry ..............................................................................................................................................................................................................................14

Raw Material ........................................................................................................................................................................................................................14

Ethylene ............................................................................................................................................................................................................................................ 15

2-Butenes ......................................................................................................................................................................................................................................... 15

Technology Overview ...................................................................................................................................................................................................16

Detailed Process Description & Conceptual Flow Diagram...................................................................................................................17

Area 100: Purification & Reaction ...................................................................................................................................................................................... 17

Area 200: Separation ................................................................................................................................................................................................................. 17

Key Consumption..................................................................................................................................................................................................................... 18

Technical Assumptions ........................................................................................................................................................................................................... 18

Labor Requirements.................................................................................................................................................................................................................. 18

ISBL Major Equipment List ..........................................................................................................................................................................................20

OSBL Major Equipment List .......................................................................................................................................................................................21

Other Process Remarks .................................................................................................................................................................................................22

Typical Complete Process Scheme.................................................................................................................................................................................. 22

Other Process Scenarios ......................................................................................................................................................................................................... 22

Economic Analysis ............................................................................................................................................................ 25

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General Assumptions.....................................................................................................................................................................................................25

Project Implementation Schedule.........................................................................................................................................................................26

Capital Expenditures.......................................................................................................................................................................................................26

Fixed Investment......................................................................................................................................................................................................................... 26

Working Capital ............................................................................................................................................................................................................................ 29

Other Capital Expenses ........................................................................................................................................................................................................... 30

Total Capital Expenses ............................................................................................................................................................................................................. 30

Operational Expenditures ...........................................................................................................................................................................................30

Manufacturing Costs................................................................................................................................................................................................................. 30

Historical Analysis........................................................................................................................................................................................................................ 31

Economic Datasheet ......................................................................................................................................................................................................31

Economic Discussion........................................................................................................................................................ 34

Regional Comparison ....................................................................................................................................................................................................34

Capital Expenses.......................................................................................................................................................................................................................... 34

Operational Expenditures...................................................................................................................................................................................................... 34

Economic Datasheet................................................................................................................................................................................................................. 34

Remarks...................................................................................................................................................................................................................................35

References............................................................................................................................................................................ 37

Acronyms, Legends & Observations .......................................................................................................................... 38

Technology Economics Methodology ...................................................................................................................... 39

Introduction.........................................................................................................................................................................................................................39

Workflow................................................................................................................................................................................................................................39

Capital & Operating Cost Estimates ......................................................................................................................................................................41

ISBL Investment............................................................................................................................................................................................................................ 41

OSBL Investment ......................................................................................................................................................................................................................... 41

Working Capital ............................................................................................................................................................................................................................ 42

Start-up Expenses ....................................................................................................................................................................................................................... 42


Manufacturing Costs................................................................................................................................................................................................................. 43

Contingencies ....................................................................................................................................................................................................................43

Accuracy of Economic Estimates............................................................................................................................................................................44

Location Factor ..................................................................................................................................................................................................................44

Appendix A. Mass Balance & Streams Properties.................................................................................................. 46

Appendix B. Utilities Consumption Breakdown .................................................................................................... 48

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Appendix C. Process Carbon Footprint..................................................................................................................... 49

Appendix D. Equipment Detailed List & Sizing...................................................................................................... 50

Appendix E. Detailed Capital Expenses .................................................................................................................... 54

Direct Costs Breakdown...............................................................................................................................................................................................54

Indirect Costs Breakdown ...........................................................................................................................................................................................55

Appendix F. Economic Assumptions ......................................................................................................................... 56

Capital Expenditures.......................................................................................................................................................................................................56

Construction Location Factors............................................................................................................................................................................................56

Working Capital ............................................................................................................................................................................................................................ 56


Operational Expenditures ...........................................................................................................................................................................................57

Fixed Costs ...................................................................................................................................................................................................................................... 57

Depreciation................................................................................................................................................................................................................................... 57

EBITDA Margins Comparison...............................................................................................................................................................................................57

Appendix G. Released Publications............................................................................................................................ 58

Appendix H. Request Submitted to Intratec........................................................................................................... 59

Subject of the Publication...........................................................................................................................................................................................59

Remarks and Comments .............................................................................................................................................................................................59

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List of Tables

Table 1 – Construction Scenarios Assumptions (Based on Degree of Integration) ......................................................................................9

Table 2 – Location & Pricing Basis ....................................................................................................................................................................................................9

Table 3 – General Design Assumptions .......................................................................................................................................................................................9

Table 4 – Major Propylene Consumers......................................................................................................................................................................................10

Table 5 – Metathesis Reactions for Propylene......................................................................................................................................................................14

Table 6 – Isobutene Side Reactions .............................................................................................................................................................................................14

Table 7 – Typical Crude C4 Stream from an Olefins Plant ............................................................................................................................................15

Table 8 – Raw Materials & Utilities Consumption (per ton of Product) ...............................................................................................................18

Table 9 – Design & Simulation Assumptions.........................................................................................................................................................................18

Table 10 – Labor Requirements for a Typical Plant ...........................................................................................................................................................18

Table 11 – Main Streams Operating Conditions and Composition.......................................................................................................................20

Table 12 – Inside Battery Limits Major Equipment List...................................................................................................................................................20

Table 13 – Outside Battery Limits Major Equipment List ..............................................................................................................................................21

Table 14 – Integration of a Metathesis Unit with a Naphtha Steam Cracker ..................................................................................................22

Table 15 – Butenes Auto-Metathesis Reactions ..................................................................................................................................................................24

Table 16 – Base Case General Assumptions...........................................................................................................................................................................25

Table 17 – Bare Equipment Cost per Area (USD Thousands).....................................................................................................................................26

Table 18 – Total Fixed Investment Breakdown (USD Thousands) ..........................................................................................................................26

Table 19 – Working Capital (USD Million) ................................................................................................................................................................................29

Table 20 – Other Capital Expenses (USD Million) ...............................................................................................................................................................30

Table 21 – CAPEX (USD Million) ......................................................................................................................................................................................................30

Table 22 – Manufacturing Fixed Cost (USD/ton) ................................................................................................................................................................30

Table 23 – Manufacturing Variable Cost (USD/ton)..........................................................................................................................................................31

Table 24 – OPEX (USD/ton)................................................................................................................................................................................................................31

Table 25 – Technology Economics Datasheet: Propylene via Metathesis at US Gulf ..............................................................................33

Table 26 – Technology Economics Datasheet: Propylene via Metathesis in Germany ...........................................................................36

Table 27 – Project Contingency......................................................................................................................................................................................................43

Table 28 – Criteria Description.........................................................................................................................................................................................................43

Table 29 – Accuracy of Economic Estimates .........................................................................................................................................................................44

Table 30 – Detailed Material Balance Stream Properties...............................................................................................................................................46

Table 31 – Detailed Material Balance Stream Properties...............................................................................................................................................47

Table 32 – Utilities Consumption Breakdown ......................................................................................................................................................................48

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Table 33 – Assumptions for CO2e Emissions Calculation.............................................................................................................................................49

Table 34 – CO2e Emissions (ton/ton prod.)............................................................................................................................................................................49

Table 35 – Reactors..................................................................................................................................................................................................................................50

Table 36 – Heat Exchangers ..............................................................................................................................................................................................................50

Table 37 – Pumps......................................................................................................................................................................................................................................51

Table 38 – Columns.................................................................................................................................................................................................................................52

Table 39 – Utilities Supply...................................................................................................................................................................................................................52

Table 40 – Vessels & Tanks Specifications ................................................................................................................................................................................53

Table 41 – Indirect Costs Breakdown for the Base Case (USD Thousands) ......................................................................................................55

Table 42 – Detailed Construction Location Factor............................................................................................................................................................56

Table 43 – Working Capital Assumptions for Base Case................................................................................................................................................56

Table 44 – Other Capital Expenses Assumptions for Base Case...............................................................................................................................56

Table 45 – Other Fixed Cost Assumptions ..............................................................................................................................................................................57

Table 46 – Depreciation Value & Assumptions ....................................................................................................................................................................57

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List of Figures

Figure 1 – OSBL Construction Scenarios .....................................................................................................................................................................................8

Figure 2 – Propylene from Multiple Sources .........................................................................................................................................................................12

Figure 3 – Process Block Flow Diagram.....................................................................................................................................................................................16

Figure 4 – Inside Battery Limits Conceptual Process Flow Diagram.....................................................................................................................19

Figure 5 – Typical Integration Between Olefin Plant and Metathesis Unit .......................................................................................................23

Figure 6 – Metathesis Technology Alternatives ..................................................................................................................................................................24

Figure 7 – Project Implementation Schedule .......................................................................................................................................................................25

Figure 8 – Total Direct Cost of Different Integration Scenarios (USD Thousands) ......................................................................................28

Figure 9 – Total Fixed Investment of Different Integration Scenarios (USD Thousands) .......................................................................28

Figure 10 – Total Fixed Investment Validation (USD Million) .....................................................................................................................................29

Figure 11 – OPEX and Product Sales History (USD/ton) ................................................................................................................................................32

Figure 12 – EBITDA Margin & IP Indicators History Comparison..............................................................................................................................32

Figure 13 – CAPEX per Location (USD Million).....................................................................................................................................................................34

Figure 14 – Operating Costs Breakdown per Location (USD/ton) .........................................................................................................................35

Figure 15 – Methodology Flowchart...........................................................................................................................................................................................40

Figure 16 – Location Factor Composition ...............................................................................................................................................................................44

Figure 17 – ISBL Direct Costs Breakdown by Equipment Type for Base Case ................................................................................................54

Figure 18 – OSBL Direct Costs Breakdown by Equipment Type for Base Case..............................................................................................54

Figure 19 – Historical EBITDA Margins Regional Comparison ...................................................................................................................................57

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This study follows the same pattern as all TechnologyEconomics studies developed by Intratec and is based onthe same rigorous methodology and well-defined structure(chapters, type of tables and charts, flow sheets, etc.).

The subject of this assessment was defined by a majorplayer in the chemical and allied industries sector throughIntratec’s website. The submitted request is presented in“Appendix H. ”

In this chapter you will find a summary of all inputs andassumptions used to develop the current technologyevaluation. All required data were gathered by our team ofspecialists from publicly available information, Intratec’s in-house databases, and process design standards.

Object of Study

This assignment assesses the economic feasibility of anindustrial unit for propylene production via metathesis fromethylene and butenes implementing technology similar tothe CB&I Lummus OCT process.

The current assessment is based on economic datagathered on Q3 2011 and a chemical plant’s nominalcapacity of 350 kta (thousand metric tons per year).

Analysis Performed

Construction Scenarios

The economic analysis is based on the construction of aplant partially integrated to a petrochemical complex, inwhich feedstock is locally provided but propylene productmust be stored to be sent outside the complex. Therefore,storage is only required for the product. Utilities supplyfacilities must also be built, since there is no utility supplyfrom the existing petrochemical complex.

Since the Outside Battery Limits (OSBL) requirements–storage and utilities supply facilities – significantly impactthe capital cost estimates for a new venture, they may play adecisive role in the decision as to whether or not to invest.Thus, in this study three distinct OSBL configurations arecompared. Those scenarios are summarized in Figure 1 andTable 1.

About this Study

Figure 1 – OSBL Construction Scenarios

Non-Integrated

Petrochemical Complex

Raw MaterialsProvider

ISBL Unit

Products Storage

Petrochemical Complex

Partially Integrated Fully Integrated

Raw MaterialsProvider

ISBL Unit

Products Consumer

Raw MaterialsStorage

ISBL Unit

Products Storage

Grassroots unit Unit is part of a petrochemical complex Most infrastructure is already installed

Source: Intratec – www.intratec.us

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Location Basis

Basis: Q3-2011 US Gulf Germany

Location Factor 1.00 1.32

Pricing

PG Propylene USD/ton 1690 1294

Raffinate-2 USD/ton 1043 962

Ethylene USD/ton 1304.7 1246.7

Cooling Water USD/m3 0.0005 0.0016

LP Steam USD/ton 15.4 50.2

Inert Gas USD/Nm3 0.10 0.15

Electricity USD/kWh 0.07 0.12

Fuel USD/MMBtu 4.4 14.4

Operator Salaries USD/man-hour 56.8 75.8

Supervisor Salaries USD/man-hour 85.3 113.7

Regional specific conditions influence both constructionand operating costs. This study compares the economicperformance of two identical plants operating in differentlocations: the US Gulf Coast and Germany.

The assumptions that distinguish the two regions analyzedin this study are provided in Table 2.

Design Conditions

The process analysis is based on rigorous simulation modelsdeveloped on Aspentech Aspen Plus and Hysys, whichsupport the design of the chemical process, equipment andOSBL facilities.

The design assumptions employed are depicted in Table 3.

Cooling water temperature 24 °C

Cooling water range 11 °C

Steam (Low Pressure) 7 bar abs

Refrigerant (Propylene) -45 °C

Wet Bulb Air Temperature 25 °C

Table 1 – Construction Scenarios Assumptions (Based on Degree of Integration)

Storage Capacity (Base Case for Evaluation)

Feedstock & Chemicals 20 days of operation Not included Not included

End-products & By-products 20 days of operation 20 days of operation Not included

Utility Facilities Included All required All required Only refrigeration units

Support & Auxiliary Facilities

(Area 900)

Control room, labs, gate house,

maintenance shops,

warehouses, offices, change

house, cafeteria, parking lot

Control room, labs,

maintenance shops,

warehouses

Control room and labs


Table 2 – Location & Pricing Basis


Table 3 – General Design Assumptions


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About Propylene

Introduction

Propylene is an unsaturated organic compound having thechemical formula C3H6. It has one double bond, is thesecond simplest member of the alkene class ofhydrocarbons, and is also second in natural abundance.

Propylene 2D structure

Propylene is produced primarily as a by-product ofpetroleum refining and of ethylene production by steamcracking of hydrocarbon feedstocks. Also, it can beproduced in an on-purpose reaction (for example, inpropane dehydrogenation, metathesis or syngas-to-olefinsplants). It is a major industrial chemical intermediate thatserves as one of the building blocks for an array of chemicaland plastic products, and was also the first petrochemicalemployed on an industrial scale.

Commercial propylene is a colorless, low-boiling,flammable, and highly volatile gas. Propylene is tradedcommercially in three grades:

Polymer Grade (PG): min. 99.5% of purity.

Chemical Grade (CG): 90-96% of purity.

Refinery Grade (RG): 50-70% of purity.

Applications

The three commercial grades of propylene are used fordifferent applications. RG propylene is obtained fromrefinery processes. The main uses of refinery propylene arein liquefied petroleum gas (LPG) for thermal use or as anoctane-enhancing component in motor gasoline. It canalso be used in some chemical syntheses (e.g., cumene orisopropanol). The most significant market for RG propyleneis the conversion to PG or CG propylene for use in theproduction of polypropylene, acrylonitrile, oxo-alcohols andpropylene oxide.

While CG propylene is used extensively for most chemicalderivatives (e.g., oxo-alcohols, acrylonitrile, etc.), PGpropylene is used in polypropylene and propylene oxidemanufacture.

PG propylene contains minimal levels of impurities, such ascarbonyl sulfide, that can poison catalysts.

Thermal & Motor Gasoline Uses

Propylene has a calorific value of 45.813 kJ/kg, and RGpropylene can be used as fuel if more valuable uses areunavailable locally (i.e., propane – propene splitting tochemical-grade purity). RG propylene can also be blendedinto LPG for commercial sale.

Also, propylene is used as a motor gasoline component foroctane enhancement via dimerization – formation ofpolygasoline or alkylation.

Chemical Uses

The principal chemical uses of propylene are in themanufacture of polypropylene, acrylonitrile, oxo-alcohols,propylene oxide, butanal, cumene, and propene oligomers.Other uses include acrylic acid derivatives and ethylene –propene rubbers.

Global propylene demand is dominated by polypropyleneproduction, which accounts for about two-thirds of totalpropylene demand.

Polypropylene Mechanical parts, containers, fibers, films

Acrylonitrile Acrylic fibers, ABS polymers

Propylene oxide Propylene glycol, antifreeze,

polyurethane

Oxo-alcohols Coatings, plasticizers

Cumene Polycarbonates, phenolic resins

Acrylic acid Coatings, adhesives, super absorbent

polymers

Study Background

Table 4 – Major Propylene Consumers


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Manufacturing Alternatives

Propylene is commercially generated as a co-product, eitherin an olefins plant or a crude oil refinery’s fluid catalyticcracking (FCC) unit, or produced in an on-purpose reaction(for example, in propane dehydrogenation, metathesis orsyngas-to-olefins plants).

Globally, the largest volume of propylene is produced inNGL (Natural Gas Liquids) or naphtha steam crackers, whichgenerates ethylene as well. In fact, the production ofpropylene from such a plant is so important that the name“olefins plant” is often applied to this kind of manufacturingfacility (as opposed to “ethylene plant”). In an olefins plant,propylene is generated by the pyrolysis of the incomingfeed, followed by purification. Except where ethane is usedas the feedstock, propylene is typically produced at levelsranging from 40 to 60 wt% of the ethylene produced. Theexact yield of propylene produced in a pyrolysis furnace is afunction of the feedstock and the operating severity of thepyrolysis.

The pyrolysis furnace operation usually is dictated bycomputer optimization, where an economic optimum forthe plant is based on feedstock price, yield structures,energy considerations, and market conditions for themultitude of products obtained from the furnace. Thus,propylene produced by steam cracking varies according toeconomic conditions.

In an olefins plant purification area, also called separationtrain, propylene is obtained by distillation of a mixed C3stream, i.e., propane, propylene, and minor components, ina C3-splitter tower. It is produced as the overheaddistillation product, and the bottoms are a propane-enriched stream. The size of the C3-splitter depends on thepurity of the propylene product.

The propylene produced in refineries also originates fromother cracking processes. However, these processes can becompared to only a limited extent with the steam crackerfor ethylene production because they use completelydifferent feedstocks and have different productionobjectives.

Refinery cracking processes operate either purely thermallyor thermally – catalytically. By far the most importantprocess for propene production is the fluid- catalyticcracking (FCC) process, in which the powdery catalyst flowsas a fluidized bed through the reaction and regeneration

phases. This process converts heavy gas oil preferentiallyinto gasoline and light gas oil.

The propylene yielded from olefins plants and FCC units istypically considered a co-product in these processes, whichare primarily driven by ethylene and motor gasolineproduction, respectively. Currently, the markets haveevolved to the point where modes of by-productproduction can no longer satisfy the demand for propylene.

A trend toward less severe cracking conditions, and thus toincrease propylene production, has been observed in steamcracker plants using liquid feedstock. As a result, new andnovel lower-cost chemical processes for on-purposepropylene production technologies are of high interest tothe petrochemical marketplace. Such processes include:

Olefin Metathesis. Also known as disproportionation,metathesis is a reversible reaction between ethyleneand butenes in which double bonds are broken andthen reformed to form propylene. Propylene yields ofabout 90 wt% are achieved. This option may also beused when there is no butene feedstock. In this case,part of the ethylene feeds an ethylene-dimerizationunit that converts ethylene into butene.

Propane Dehydrogenation. A catalytic process thatconverts propane into propylene and hydrogen (by-product). The yield of propylene from propane isabout 85 wt%. The reaction by-products (mainlyhydrogen) are usually used as fuel for the propanedehydrogenation reaction. As a result, propylenetends to be the only product, unless local demandexists for the hydrogen by-product.

Methanol-to-Olefins/Methanol-to-Propylene. Agroup of technologies that first converts synthesis gas(syngas) to methanol, and then converts the methanolto ethylene and/or propylene. The process alsoproduces water as by-product. Synthesis gas isproduced from the reformation of natural gas or by thesteam-induced reformation of petroleum productssuch as naphtha, or by gasification of coal. A largeamount of methanol is required to make a world-scaleethylene and/or propylene plant.

High Severity FCC. Refers to a group of technologiesthat use traditional FCC technology under severeconditions (higher catalyst-to-oil ratios, higher steaminjection rates, higher temperatures, etc.) in order tomaximize the amount of propylene and other lightproducts. A high severity FCC unit is usually fed with

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gas oils (paraffins) and residues, and produces about20-25 wt% propylene on feedstock together withgreater volumes of motor gasoline and distillate by-products.

Olefins Cracking. Includes a broad range oftechnologies that catalytically convert large olefinsmolecules (C4-C8) into mostly propylene and smallamounts of ethylene. This technology will best beemployed as an auxiliary unit to an FCC unit or steamcracker to enhance propylene yields.

These on-purpose methods are becoming increasinglysignificant, as the shift to lighter steam cracker feedstockswith relatively lower propylene yields and reduced motorgasoline demand in certain areas has created an imbalanceof supply and demand for propylene.

Figure 2 – Propylene from Multiple Sources

Steam Cracker

Refinery FCC Unit

PDH

Metathesis

MTO/MTP

High Severity FCC

Olefins Cracking

NaphthaNGL

RG Propylene CG/PG Propylene

Gas Oil

Propane

Ethylene/Butenes

Methanol

C4 to C8Olefins

Gas Oil


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Licensor(s) & Historical Aspects

By the 1960s, Phillips Petroleum developed the firstcommercial process of olefin metathesis. The focus, at thattime, was to convert propylene into ethylene and 2-butene.This technology was developed in an effort to increaseethylene and butene production from “low value” cracker-derived propylene to meet the growing market demand forpolyethylene and polybutadiene. A plant based on thePhillips Triolefin technology was operational from 1965 to1972 by Shawinigan Chemicals, in Canada, until itsshutdown due to economic reasons. The plant had thecapacity to process 50 thousand tons of propylene per year(kta), that was obtained from a naphtha steam cracker,producing 15 kta of ethylene and 30 kta of butenes.

The fact that metathesis is a reversible reaction, and that thedemand for polymer grade (PG) propylene grew from the1970s on, led to the use of the Phillips Triolefin process in areverse way. This reverse process is known as OlefinConversion Technology (OCT), and is now offered forlicense by Lummus Technology, a CB&I Company. LummusOCT was first used in 1985 by Equistar (now a wholly ownedsubsidiary of LyondellBasell industries), in the United States,to produce propylene by using ethylene and butenes. Theunit's capacity was expanded in 1992.

The Institut Français du Pétrole (IFP) and the ChinesePetroleum Corporation (CPC) have jointly worked todevelop a process for the production of propylene, calledMeta-4. This technology is currently being developed byFrance’s Axens, a subsidiary of IFP, formed in 2001 throughthe merger of IFP’s licensing division with ProcatalyseCatalysis & Adsorbents; however, until April 2012 Meta-4was not commercialized.

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Chemistry

Metathesis is a general term for a reversible reactionbetween two olefins, in which the double bonds are brokenand then reformed to form new olefin products. In order toproduce propylene by metathesis, a molecule of 2-buteneand a molecule of ethylene are combined in the presenceof a tungsten oxide catalyst to form two molecules ofpropylene.

Ethylene 2-Butene Propylene

The following table summarizes the reactions that occur inthe metathesis reactor. All reactions are essentiallyisothermal.

2-butene + ethylene 2 propylene Fast

1-butene + 2-butene propylene + 2-pentene Fast

1-butene + 1-butene ethylene + 3-hexene Slow

The reaction of 1-butene with ethylene is non-productive,occupying catalyst sites but producing no product. So amagnesium oxide co-catalyst is added to the metathesisreactor to induce double bond isomerization reactioncausing the shift from 1-butene to 2-butene and allowscontinued reaction.

When isobutene is present in the metathesis reactor, sidereactions occur, as presented in Table 6 – Isobutene SideReactions.

Isobutene + 2-butene propylene + 2-methyl 2-

buteneFast

Isobutene + 1-butene ethylene + 2-methyl 2-

penteneSlow

The reaction of isobutene with ethylene is also non-productive. If neglected, the concentration of this non-reactive species in the metathesis unit builds up, due toprocess recycles, reducing capacity.

Raw Material

As previously explained, the raw materials for theproduction of propylene via metathesis reaction areethylene and 2-butenes. Both components are mainlysupplied from steam cracker units (olefins plants). FCC unitscan also be used as a source of such olefins.

Steam cracker units are facilities in which a feedstock suchas naphtha, liquefied petroleum gas (LPG), ethane, propaneor butane is thermally cracked through the use of steam in abank of pyrolysis furnaces to produce lighter hydrocarbons.

The products obtained depend on the composition of thefeed, the hydrocarbon-to-steam ratio, and on the crackingtemperature and furnace residence time.

Light hydrocarbon feeds such as ethane, LPGs, or lightnaphtha produce lighter products, mainly ethylene,propylene, and butadiene, with smaller amounts of heavierby-products. Heavier hydrocarbon feeds such as naphthaproduce these lighter products, but also produce aromatichydrocarbons, and hydrocarbons suitable for inclusion ingasoline or fuel oil.

Technical Analysis

Table 5 – Metathesis Reactions for Propylene


Table 6 – Isobutene Side Reactions


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The higher cracking temperature (also referred to asseverity) favors the production of ethylene and benzene,whereas lower severity produces higher amounts ofpropylene, C4-hydrocarbons and liquid products.

After the pyrolysis process, the olefins are separated fromthe other by-products by distillation.

Ethylene

High-purity ethylene (min. 99.5 wt% purity) can be obtainedfrom olefins plants. The use of PG ethylene in metathesisprocesses is desired because it requires minimalpretreatment for trace components, while other sources ofethylene typically require more rigorous pretreatment.Although PG ethylene prices are higher, capital expenditurefor the metathesis unit is lower because no investment inpretreatment is required.

Besides steam crackers, other common sources of ethyleneare FCC off-gas and vents from polyethylene units. FCC off-gas is an inexpensive source of ethylene, because thisstream is usually valued at fuel gas cost. Pretreatment,fractionation and refrigeration are necessary for recovery ofthe ethylene product; however, an FCC off-gas recoverysystem typically has an attractive internal rate of return (IRR).

Polyethylene unit vents may not normally provide thequantity of ethylene necessary to supply metathesis units;consequently, other sources of ethylene would supplementany deficit. These vents must be treated to remove waterand oxygen and a compressor is usually required to boostthe vent streams to a metathesis processing pressure.

2-Butenes

The 2-butenes used as feedstock for the metathesis processare obtained from the crude C4 stream produced in olefinsplants. This C4 stream consists of C4 acetylenes, butadiene,iso-/n-butenes, and iso-/n-butane. A typical composition isprovided in Table 7.

The desired C4 stream in a metathesis process consists of n-butenes (mainly 2-butenes), low amounts of isobutene (toavoid excess capacity due to excess recycling) and is almostdevoid of butadiene (to avoid rapid catalyst fouling) andacetylenes. Iso-/n-butanes are inert to the metathesisprocess.

C4 acetylenes Traces

Butadiene 33

1-butene 15

2-butenes 9

Isobutene 30

Iso-/normal- butanes 13

Before feeding a metathesis process, the C4 stream fromolefins plants must be treated.

Usually, the butadiene and C4 acetylenes are removed firstto produce the designated raffinate-1. Such removal can beaccomplished through either hydrogenation or extractivedistillation.

The components remaining in the mixture consist of 1-butene, 2-butene, isobutene, and iso-/n-butanes from theoriginal feed, in addition to what was produced in thehydrogenation steps, as well as a small quantity ofunconverted or unrecovered butadiene.

Isobutene can be removed through fractionation ofraffinate-1, reaction with methanol, reaction with water, orreaction with itself. In all cases, the resulting mixture maycontain both normal and iso-paraffins.

The product from isobutene removal is designatedraffinate-2, and it consists primarily of normal olefins andparaffins and minimal iso-olefins and iso-paraffins.Raffinate-2 is the most common source of butenes used inmetathesis reactions.

The paraffin components present in raffinate-2 areessentially inert and do not react in the metathesis process.Such paraffins are typically removed from the process via apurge stream in the separation system that follows themetathesis reactor.

1 The components in a refinery or FCC based C4 cut are similar,with the exception that the percentage of paraffins is considerablygreater.

Table 7 – Typical Crude C4 Stream from an Olefins Plant


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Technology Overview

The Lummus OCT process for propylene consists of twomain areas: purification & reaction, and separation. Thesimplified block flow diagram in Figure 3 summarizes theprocess.

Ethylene feed plus recycled ethylene are mixed with thebutenes feed plus recycled butenes and heated prior to

The catalyst promotes the reaction of ethylene and butene-2 to form propylene, and simultaneously isomerizes butene-1 to butene-2. A small amount of coke is formed on thecatalyst, so the beds are periodically regenerated usingnitrogen-diluted air. The ethylene-to-butene feed ratio to

and maintain the per-pass butene conversion above 60%.Typical butene conversions range between 60 to 75%, withabout 90% selectivity to propylene.

The reactor product is cooled and fractionated to removeethylene for recycle. A small portion of this recycle stream ispurged to remove methane, ethane, and other lightimpurities from the process. The ethylene column bottomis fed to the propylene column where butenes areseparated for recycle to the reactor, and some is purged toremove butanes, isobutylenes, and heavies from theprocess. The propylene column overhead is high-purity, PGpropylene product.

This process description is for a stand-alone metathesis unit

complex. The utility requirements – which include coolingwater, steam, electricity, fuel gas, nitrogen, and air – aretypically integrated with the existing complex.

Figure 3 – Process Block Flow Diagram

Area 100Purification &

Reaction

Light Ends Fuel Gas

PG PropyleneArea 200

Separation

Heavy Ends Fuel Gas

Ethylene Feed

Butene Feed

Ethylene Recycle

Butene Recycle


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Detailed Process Description &

Conceptual Flow Diagram

This section describes the process for production ofpropylene via metathesis in detail. This description refers toa process similar to Lummus OCT process; however, somedifferences may be found, as all of the information hereinpresented is based on publicly available information.

For the purpose of this report, n-butenes, with a purity of80%, will be considered raffinate-2. The process is dividedinto two main areas: purification & reaction, and separation.

For a better understanding of the process, please refer tothe Inside Battery Limits Conceptual Process Flow Diagram;the Main Streams Operating Conditions and Composition;and the Inside Battery Limits Major Equipment List,presented in the next pages.

Area 100: Purification & Reaction

First, fresh ethylene from ISBL storage tank and recycledethylene are mixed with fresh and recycled butenes, andare fed through reactor feed treaters. The treaters consist ofguard beds to remove potential catalyst poisons for themetathesis reaction, such as oxygenates, sulfur, alcohols,carbonyls, and water. The guard beds have a cyclicoperation. One is normally in operation, while the other isregenerating.

After treating, the stream is vaporized in a heat exchangerand superheated in a fired heater to the reactiontemperature, typically between 280-320°C.

The reactor feed contains ethylene and n-butenes, mainly 2-butenes, at the desired reaction ratio.

Although the theoretical molar ratio between ethylene andbutenes is 1:1, it is common to employ significantly greaterethylene/butene ratios to minimize undesirable sidereactions, and to minimize C5+ olefin formation. The per-pass butene conversion is between 60 and 75%.

The metathesis reaction occurs in a fixed bed catalyticreactor. The main reaction that occurs is between ethyleneand 2-butenes, to produce propylene. Side reactions alsooccur, producing by-products, primarily C5-C8 olefins. Thereactor exit stream is cooled prior to the separation area.

The process selectivity to propylene is typically about 90%.The catalyst used is tungsten oxide supported on silica

(WO3/SiO2). Also, the co-catalyst magnesium oxide (MgO)is used to perform a double bond isomerization of 1-buteneto 2-butene.

The raffinate-2 stream used in the metathesis unit istypically free of butadiene and has low isobutene content.Butadiene is typically removed below 50 wt ppm level andit is done to minimize fouling of the catalyst. Isobutene isremoved to reduce the size of the metathesis unit.Isobutene is not a poison to the catalyst, but it reacts in themetathesis reactor at low conversion, which results in build-up of this molecule in the internal butenes recycle streamand increases hydraulic requirement and sizes of theequipment. Commercial units are in operation with about 7wt% isobutene in the raffinate-2 feed stream.

Coke, a by-product of the reaction, is deposited on thecatalyst throughout the process. During regeneration thecoke is burned in a controlled atmosphere. Systemsrequired for regeneration include a fired regeneration gasheater and a supply of inert gas (usually nitrogen),compressed air, and hydrogen. Each reactor can run forabout 30 days before requiring regeneration.

Area 200: Separation

The reactor exit stream contains a mixture of propylene,unconverted ethylene and butenes, butane, and some C5+components from side reactions.

Propylene purification is carried out in two columns. Thefirst column separates unreacted ethylene for reuse in thereactor. The second column produces PG propylene as anoverhead product and a bottom heavies stream.

The stream leaving the reactor is first cooled against thereactor feed stream in an exchanger, and then cooledagainst cooling water before being sent to thedeethylenizer column.

The column is re-boiled by low pressure (LP) steam, anduses propylene refrigeration in the top condenser.Cryogenic temperatures exist due to the presence ofunconverted ethylene in the top of the column. Pressure ofthe column is dependent upon the available refrigeration.

The deethylenizer column overhead (unconvertedethylene) is recycled back to the reaction area through thecolumn reflux pumps. The recycled ethylene stream ismixed with fresh ethylene, fresh butenes (raffinate-2) streamand recycled butenes stream. A small vent streamcontaining light paraffins and a small amount of

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unconverted ethylene leaves the overhead of thedeethylenizer reflux vessel as a lights purge stream. Thisstream can be returned to the ethylene cracker for recovery.

The bottom stream of the deethylenizer column is sent tothe depropylenizer column for propylene recovery. Thedepropylenizer column separates PG propylene in theoverhead from a heavies product stream (C4+) in thebottoms. PG propylene and heavies streams are sent to theproduct ISBL storage tank and C4+ purge storage tankrespectively. LP steam is used in the reboiler and coolingwater in the top condenser.

A side-stream from the bottoms of the column is sent backas butenes recycled stream to the fresh/recycle C4 tank.This rate is set to maintain a high overall n-butenesconversion in the metathesis reactors. The column’sbottoms can be sent to another column for recovery ofgasoline and fuel oil.

Key Consumption

Raffinate-2 0.97 ton

Ethylene 0.32 ton

Cooling Water 68.3 m3

LP Steam 1.0 ton

Inert Gas 32.1 Nm3

Electricity 286 kWh

Fuel 0.5 MMBtu

Fuel By-Product 12.8 MMBtu

Technical Assumptions

All process design and economics are based on world-classcapacity units that are competitive globally. Assumptionsregarding the thermodynamic model used, reactor designbasis and the raw materials composition are shown in Table9. All data used to develop the process flow diagram wasbased on publicly available information.

Simulation Software Aspen Hysys

Thermodynamic Model Peng-Robinson

Ethylene 99.9 wt%

Butenes on C4 stream 80 wt%

Temperature 304 oC

Pressure 30 bar abs

Conversion (of Butenes) 67%

Selectivity (Butenes to Propylene) 90%

Ethylene: Butene Molar Feed Ratio 2

Catalyst MgO and

WO3/SiO2

Labor Requirements

Non-Integrated Plant 5 1

Partially Integrated Plant 5 1

Fully Integrated Plant 3 1

Table 8 – Raw Materials & Utilities Consumption (per

ton of Product)


Table 9 – Design & Simulation Assumptions


Table 10 – Labor Requirements for a Typical Plant


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Figure 4 – Inside Battery Limits Conceptual Process Flow Diagram

Ethylenefrom OSBL

R-102A R-102B

10

F-101

9

F-102Nitrogen,Hydrogen,Air

For Disposal

E-101

11

8

13

V-101A

V-101B

7

P-103A/B5

6

2

19

P-101A/B

P-102A/B

4

23

1

C-201C-202

CV-201

14

CP-201A/B

CV-202

CP-202A/B

21

24

18P-202A/B

15

25

P-203A/B

P-201A/B

T-202

16

Butenes(Raffinate-2)from OSBL

ButenesRecycleEthylene

Recycle

LightsPurge

PG Propyleneto OSBL

HeaviesPurge

CW E-201

CC-201LP ST

CC-202LP ST

CW CR-202CR-201RF (C3=)

CW

E-202

CWE-203

Fuel

Fuel

T-201

T-102

T-101

#30

#60

#1 #1

#65

#34

#62


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Table 11 presents the main streams composition andoperating conditions. For a more complete materialbalance, see the “Appendix A. Mass Balance & StreamsProperties.”

Information regarding utilities flow rates is provided in“Appendix B. Utilities Consumption Breakdown.” Forfurther details on greenhouse gas emissions caused by thisprocess, see “Appendix C. Process Carbon Footprint.”

ISBL Major Equipment List

Table 12 shows the equipment list by area. It also presentsa brief description and the construction materials used.

Find main specifications for each piece of equipment in“Appendix D. Equipment Detailed List & Sizing.”

Table 11 – Main Streams Operating Conditions and Composition

Phase L L G L/G L L G L

Temperature (°C) -29 30 304 53 -25 107 -25 113

Pressure (bar abs) 22 6.0 30 30 22 17 22 17

Mass Flow (kg/h) 12,940 38,950 161,520 161,490 33,820 75,800 120 11,760

Ethylene (wt%) 99.9 21.0 21.0 100.0 100.0

Ethane (wt%) 0.1 traces traces traces traces

Propene (wt%) 24.9 24.9 traces 0.5 0.1

Butane (wt%) 20.0 40.1 39.9 75.1 63.5

C5+ (wt%) 5.0 5.1 7.4 22.4


Table 12 – Inside Battery Limits Major Equipment List

Area 100 E-101 Feed Vaporizer CS

Area 100 F-101 Reactor Feed Heater Cr-Mo

Area 100 F-102 Regeneration Gas Heater Cr-Mo

Area 100 P-101A/B Ethylene Feed Pumps CS

Area 100 P-102A/B Raffinate-2 Feed Pumps CS

Area 100 P-103A/B C4 Tank Pumps CS

Area 100 R-102A/B Metathesis Reactor SS

Area 100 T-101 Fresh/Recycle C4 Tank CS

Area 100 T-102 Ethylene ISBL Storage CS

Area 100 V-101A/B Reactor Feed Treaters CS

Area 200 C-201 Deethylenizer Column CS


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OSBL Major Equipment List

The OSBL is divided into three main areas: storage (Area700), energy & water facilities (Area 800), and support &auxiliary facilities (Area 900).

Table 13 shows the list of tanks located on the storage areaand the energy facilities required in the construction of anon-integrated unit.

Table 12 – Inside Battery Limits Major Equipment List (Cont.)

Area 200 C-202 Depropylenizer Column CS

Area 200 CC-201 Deethylenizer Condenser CS

Area 200 CC-202 Depropylenizer Condenser CS

Area 200 CP-201 Deethylen. Reflux Pumps CS

Area 200 CP-202 Depropylen. Reflux Pumps CS

Area 200 CR-201 Deethylenizer Reboiler CS

Area 200 CR-202 Depropylenizer Reboiler CS

Area 200 CV-201 Deethylenizer Accumulator CS

Area 200 CV-202 Depropylen. Accumulator CS

Area 200 E-201 Deethylenizer Feed Cooler CS

Area 200 E-202 C4+ Purge Cooler CS

Area 200 E-203 Butenes Recycle Cooler CS

Area 200 P-201A/B Propylene Pumps CS

Area 200 P-202A/B Ethylene Recycle Pumps CS

Area 200 P-203A/B C4+ Pumps CS

Area 200 T-201 Product ISBL Storage CS

Area 200 T-202 C4+ Purge Storage CS


Table 13 – Outside Battery Limits Major Equipment List

Area 700 T-701 Ethylene Storage CS

Area 700 T-702 Raffinate Storage CS

Area 700 T-703 Propylene Storage CS

Area 700 T-704 Demin. Water Tank CS

Area 700 T-705 Clarified Water Tank CS

Area 800 U-802 Refrigerator CS

Area 800 U-803 Cooling Tower CS

Area 800 U-804 Steam boiler CS

Area 800 U-805 Water Demineralizer CS


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Other Process Remarks

Typical Complete Process Scheme

Currently, most of the propylene produced is a by-productfrom steam cracking units that primarily produce ethylene,or a by-product from FCC units that primarily producegasoline. With the maturity of olefin plants technology,improvements downstream of the steam cracker are moreeconomically promising than improvements in the crackingtechnology itself.

In this context, the use of a metathesis unit downstream ofan olefin plant can bring benefits such as reducing theenergy used and the carbon emissions, as well as increasingpropylene production.

The impact of a metathesis unit to an olefin plant materialbalance to achieve a conventional, low severity, propylene-to-ethylene ratio of 0.67 is analyzed in Table 14. Two casesare presented: a standalone steam cracker unit, withoutmetathesis, and a steam cracker integrated with ametathesis unit. As shown in the table, at a constant overallnet ethylene and propylene production of 1 millionton/year and 670,000 ton/year respectively, the steamcracker integrated with a metathesis unit considerablyimproves the overall plant material balance.

Compared to the standalone steam cracker, the integratedcase consumes about 2% less fresh feedstock, whileproducing 50% more benzene and only 60% of theremaining, lower-valued pyrolysis gasoline. In addition, theenergy consumption of the integrated case is about 13%lower. The reason for this reduction is that fewer olefins areproduced by thermal cracking in the integrated case,thereby lowering the fired duty of the cracking heaters andthe energy consumed in the recovery area.

In the standalone steam cracker case, 1.67 million ton/yearof ethylene and propylene are produced by thermalcracking. In the integrated case, 1.49 million ton/year ofethylene and propylene are produced by thermal cracking,with the remaining propylene (0.18 million ton/year) beingproduced by the metathesis unit. The 13% reduction inenergy consumption results in a 13% reduction ingreenhouse gas emissions.

This level of reduction is significant and, as such, could beone of the major contributing routes to meeting olefinindustry goals of lower greenhouse gas emissions from

steam crackers. The lower energy consumption alsoimproves the operating margin.

Cracker C3=/C2= ratio 0.67 0.47

Overall C3=/C2= ratio 0.67 0.67

Material balance (1,000 ton/year)

Naphtha feed 3,094 3,047

Net ethylene 1,000 1,000

Net propylene 670 670

Benzene 207 312

Pyrolysis gasoline 654 396

Energy consumption Base = 100 87

Total investment Base = 100 94

Investment costs are also lower. As shown in Table 14,capital costs are reduced by about 6%. The investmentcosts associated with the ISBL ethylene plant are reduceddue to lower plant throughput (individual ethylene plantsystem loadings), lower fired duty, and a significantreduction in the size of the propylene fractionator system,which is the single most costly tower system in the ethyleneplant.

Finally, OSBL costs are reduced due to the minimization inenergy consumption. The savings associated with theseunits more than offset the investment costs associated withthe metathesis unit.

Figure 5 shows the most typical integration arrangementbetween a metathesis unit and a naphtha steam cracker.

Other Process Scenarios

Figure 6 illustrates propylene production alternatives viametathesis using only one feedstock: ethylene or butenes.

Table 14 – Integration of a Metathesis Unit with a

Naphtha Steam Cracker


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Ethylene as the Only Feedstock

In some cases, there is not enough butene to use in ametathesis unit to achieve the desired propyleneproduction, as in the case when the feedstocks producer isan ethane steam cracker, which, while it makes largevolumes of ethylene, makes insufficient butene for themetathesis reaction. Ethane crackers are the most commoncrackers used in the Middle East.

For such cases an ethylene dimerization unit can be addedupstream of the metathesis process as a butene-2 source.

Dimerization of ethylene to butenes occurs in a liquid phaseloop reactor according to the following reaction:

Ethylene 2-Butene

Butene as the Only Feedstock

In some regions, the supply of ethylene is tight and/orethylene is expensive, making the building of aconventional metathesis unit unfeasible without subsidies.

Other disadvantages of conventional metathesis are:

Intensive Use of Energy. Conventional metathesisreactions take place with ethylene, which requires anintensive use of energy in the ethylene recirculationloop by using cryogenic refrigeration.

Feedstock Loss. Removing butadiene byhydrogenation from the butenes feed before its use ina conventional metathesis results in thehydroisomerization of the butenes to paraffins,representing a feedstock loss of 10%+. Furthermore,removing isobutene by fractionation of the butenesfeed before its use in a conventional metathesis resultsin an additional loss of butenes, since 1-butene isdifficult to separate from isobutene without anexpensive fractionation tower.

Figure 5 – Typical Integration Between Olefin Plant and Metathesis Unit

Naphtha SteamCracker

ButadieneExtraction

Naphtha

IsobuteneExtraction

Metathesis Unit

Isobutene

Raffinate-2

Raffinate-1

C4+ Purge

PG Ethylene PG Propylene

Crude C4s

PG Propylene

Butadiene


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Although the yield of propylene is high in the conventionalmetathesis process, the aforementioned disadvantagesmotivated the development of a different process, in whicha metathesis reaction occurs with butenes as the onlyfeedstock. This process is called butenes auto-metathesis,or self-metathesis.

In the process, a stream comprised of 1-butene plus 2-butene is admixed with recycled butenes and pentenes inthe metathesis reactor. The stream leaving the reactor issent to a separation unit, composed of distillation columns.

The stream can contain C4 paraffins, but the amount ofisobutene should not exceed 2% of the feed mixture. Table15 shows the reactions that can occur in the process.

The reactions (1) and (2) are the main auto-metathesisreactions. Reactions (3), (4) and (5) occur while the 2-pentenes formed through the main reaction are recycledback to the reactor.

In 2003, a semi-commercial unit owned by Sinopec inTianjin (China), was built to demonstrate auto-metathesisand 1-hexene production. This facility maximizes the 1-butene/1-butene metathesis reaction to produce 3-hexene,and then isomerizes the 3-hexene to 1-hexene. The planthas the capacity to produce 2 kta of 1-hexene.

Table 15 – Butenes Auto-Metathesis Reactions

(1) 1-butene + 2-butene propylene + 2-pentene

(2) 1-butene + 1-butene ethylene + 3-hexene

(3) 2-pentene + 1-butene propylene + 3-hexene

(4) 2-pentene 1-pentene (isomerization)

(5) 1-pentene + 2-butene propylene + 2-hexene


Figure 6 – Metathesis Technology Alternatives

Metathesis

Dimerization

Butenes

Metathesis CG/PG PropyleneEthylene


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General Assumptions

The general assumptions for the base case of this analysisare outlined below.

Engineering & Construction Location US Gulf

Analysis Date Q3 2011

IC Index 158.1

OSBL Scenario Partially Integrated

Nominal Capacity 350 kta

Operating Hours per Year 8,000

Annual Production 320 kta

Project Complexity Simple

Technology Maturity Licensed

Data Reliability High

In Table 16, the IC Index stands for Intratec chemical plantConstruction Index, an indicator, published monthly byIntratec, to scale capital costs from one time period toanother.

This index reconciles prices trends of fundamentalcomponents of a chemical plant construction such as labor,material and energy, providing meaningful historical andforecast data for our readers and clients.

The assumed operating hours per year indicated does notrepresent any technology limitation; rather, it is anassumption based on usual industrial operating rates

Additionally, Table 16 discloses assumptions regarding theproject complexity, technology maturity and data reliability,which are of major importance for attributing reasonablecontingencies for the investment and for evaluating theoverall accuracy of estimates. Definitions and figures forboth contingencies and accuracy of economic estimatescan be found in this publication in the chapter “TechnologyEconomics Methodology.”

Economic Analysis

Table 16 – Base Case General Assumptions


Figure 7 – Project Implementation Schedule


0 1 2 3 4 5 6 7 8

Start-up

Total EPC Phase

Construction

Procurement

Detailed Engineering

Basic Engineering

Quarters

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Project Implementation

Schedule

The main objective of knowing upfront the projectimplementation schedule is to enhance the estimates forboth capital initial expenses and return on investment.

The implementation phase embraces the period from thedecision to invest to the start of commercial production.This phase can be divided into five major stages: (1) BasicEngineering, (2) Detailed Engineering, (3) Procurement, (4)Construction, and (5) Plant Start-up.

The duration of each phase is detailed in Figure 7.

Capital Expenditures

Fixed Investment

Table 17 shows the bare equipment cost associated witheach area of the project.

ISBL

Area 100 6,440

Area 200 5,400

OSBL

Area 700 67,910

Area 800 8,760

Process Contingency 4,480

Table 18 presents the breakdown of the total fixedinvestment (TFI) per item (direct & indirect costs andprocess contingencies). For further information about thecomponents of the TFI please see the chapter “TechnologyEconomics Methodology”.

Fundamentally, the direct costs are the total direct materialand labor costs associated with the equipment (includinginstallation bulks). The total direct cost represents the totalbare equipment installed cost.

“Appendix E. Detailed Capital Expenses” provides a detailedbreakdown for the direct expenses, outlining the share ofeach type of equipment in total.

After defining the total direct cost, the TFI is established byadding field indirects, engineering costs, overhead, contractfees and contingencies.

Bare Equipment 92,990

Equipment Setting 330

Piping 7,060

Civil 3,930

Steel 3,610

Instrumentation & Control 2,590

Electrical 2,140

Insulation 2,360

Paint 670

Engineering & Procurement 5,840

Construction Material & Indirects 18,140

G & A Overheads 4,020

Contract Fee 3,620

Project Contingency 22,095

Other - Scaling Exponent

Up 0.87

Down 0.79

Indirect costs are defined by the American Association ofCost Engineers (AACE) Standard Terminology as those"costs which do not become a final part of the installationbut which are required for the orderly completion of theinstallation."

Table 17 – Bare Equipment Cost per Area (USD

Thousands)


Table 18 – Total Fixed Investment Breakdown (USD

Thousands)


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The indirect project expenses are further detailed in“Appendix E. Detailed Capital Expenses.”

Alternative OSBL Configurations

The total fixed investment for the construction of a newchemical plant is greatly impacted by how well it will beable to take advantage of the infrastructure already installedin that location.

For example, if there are nearby facilities consuming a unit’sfinal product or supplying a unit’s feedstock, the need forstorage facilities significantly decreases, along with the totalfixed investment required. This is also true for supportfacilities that can serve more than one plant in the samecomplex, such as a parking lot, gate house, etc.

This study analyzes the total fixed investment for threedistinct scenarios regarding OSBL facilities:

Non-integrated Plant

Plant Partially Integrated

Plant Fully Integrated

The detailed definition, as well as the assumptions used foreach scenario is presented in the chapter “About this Study”

The influence of the OSBL facilities on the capitalinvestment is depicted in Figure 8 and in Figure 9.

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Figure 8 – Total Direct Cost of Different Integration Scenarios (USD Thousands)


Figure 9 – Total Fixed Investment of Different Integration Scenarios (USD Thousands)


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Non-Integrated Partially Integrated Fully Integrated

Area 100 Area 200 Area 700 Area 800 Area 900

0

50,000

100,000

150,000

200,000

250,000

300,000

Non-Integrated Partially Integrated Fully Integrated

Direct Expenses Indirect Expenses Project Contingency

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Fixed Investment Discussion

Figure 10 compares and validates the total fixed investmentestimated in the previous section. Each point depicted inthe chart represents a different plant TFI value announcedin the international press during the last few years. All ofthe total fixed investments announced are adjusted to thesame basis (date and location of the analysis) and comparedto the TFI curves estimated by Intratec for different OSBLintegration scenarios.

TFI differences are primarily driven by how integrated theplant will be with respect to raw material suppliers andproduct consumers.

In fact, the metathesis unit is usually constructed near asteam cracker or FCC unit not only because of synergisticeconomies in their capital costs, but for the easy access tofeedstock.

Working Capital

Working capital, described in Table 19, is another significantinvestment requirement. It is needed to meet the costs oflabor; maintenance; purchase, storage, and inventory offield materials; and storage and sales of product(s).

Assumptions for working capital calculations are found in“Appendix F. Economic Assumptions.”

Raw Materials Inventory 0.7

Products Inventory 30.4

In-process Inventory 1.5

Supplies and Stores 0.3

Cash on Hand 22.1

Accounts Receivable 45.6

Accounts Payable (44.2)

Figure 10 – Total Fixed Investment Validation (USD Million)


Table 19 – Working Capital (USD Million)


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Other Capital Expenses

Start-up costs should also be considered when determiningthe total capital expenses. During this period, expenses areincurred for employee training, initial commercializationcosts, manufacturing inefficiencies and unscheduled plantmodifications (adjustment of equipment, piping,instruments, etc.).

Initial costs are not addressed in most studies on estimatingbut can become a significant expenditure. For instance, theinitial catalyst load in reactors may be a significant cost and,in that case, should also be included in the capitalestimates.

The purchase of technology through paid-up royalties orlicenses is considered to be part of the capital investment.

Other capital expenses frequently neglected are landacquisition and site development. Although these are smallparts of the total capital expenses, they should be included.

Initial Catalyst Load 0.1

Start-up Expenses

Operator Training 1.3

Commercialization Costs 5.4

Start-up Inefficiencies 5.4

Unscheduled Plant Modifications 3.4

Prepaid Royalties 1.7

Land & Site Development 4.2

Assumptions used to calculate other capital expenses areprovided in “Appendix F. Economic Assumptions.”

Total Capital Expenses

Table 21 presents a summary of the total CapitalExpenditures (CAPEX) detailed in previous sections.

Total Fixed Investment 169

Working Capital 56

Other Capital Expenses 22

Operational Expenditures

Manufacturing Costs

The manufacturing costs, also called OperationalExpenditures (OPEX), are composed of two elements: a fixedcost and a variable cost. All figures regarding operationalcosts are presented in USD per ton of product.

Table 22 shows the manufacturing fixed cost.

To learn more about the assumptions for manufacturingfixed costs, see the “Appendix F. Economic Assumptions.”

Operating Labor Cost 7.1

Supervision Labor Cost 2.1

Maintenance Cost 8.5

Operating Charges 2.3

Plant Overhead 8.9

G and A Cost 30.1

Table 23 discloses the manufacturing variable costbreakdown.

Table 20 – Other Capital Expenses (USD Million)


Table 21 – CAPEX (USD Million)


Table 22 – Manufacturing Fixed Cost (USD/ton)


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Raffinate-2 1,015.3

Ethylene 422.2

Cooling Water 0.03

LP Steam 15.6

Inert Gas 0.1

Electricity 20.9

Fuel 2.2

Table 24 shows the OPEX of the presented technology.

Manufacturing Fixed Cost 59.1

Manufacturing Variable Cost 1,476.2

Historical Analysis

Figure 11 depictures Sales and OPEX historic data. Figure 12compares the project EBITDA trends with IntratecProfitability Indicators (IP Indicators). The Basic Chemicals IPIndicator represents basic chemicals sector profitability,based on the weighted average EBITDA margins of majorglobal basic chemicals producers. Alternately, the ChemicalSector IP Indicator reveals the overall chemical sectorprofitability, through a weighted average of the IP Indicatorscalculated for three major chemical industry niches: basic,specialties and diversified chemicals.

Economic Datasheet

The Technology Economic Datasheet, presented in Table25, is an overall evaluation of the technology's productioncosts in a US Gulf Coast based plant.

The expected revenues in products sales and initialeconomic indicators are presented for a short-termassessment of its economic competitiveness.

Table 23 – Manufacturing Variable Cost (USD/ton)


Table 24 – OPEX (USD/ton)


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Figure 11 – OPEX and Product Sales History (USD/ton)


Figure 12 – EBITDA Margin & IP Indicators History Comparison


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1,500

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2,500

Q1-07 Q3-07 Q1-08 Q3-08 Q1-09 Q3-09 Q1-10 Q3-10 Q1-11 Q3-11

OPEX (Cash Cost) Product Sales

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10%

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25%

Q1-07 Q3-07 Q1-08 Q3-08 Q1-09 Q3-09 Q1-10 Q3-10 Q1-11 Q3-11

EBITDA Margin Basic Chemicals IP Indicator Chemical Sector IP Indicator

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Table 25 – Technology Economics Datasheet: Propylene via Metathesis at US Gulf

2011

350 kta unit (Production: 320 kta) TFI Working Capital Other Capital Exp.

IC Index: 158.1 169 57 22

Raffinate-2 0.97 ton/ton prod. 1,043 USD/ton 324.9 1,015.3

Ethylene 0.32 ton/ton prod. 1,304 USD/ton 135.1 422.2

Cooling Water 68.3 m3/ton prod. 0.0005 USD/m3 0.01 0.03

LP Steam 1.0 ton/ton prod. 15.3 USD/ton 5.0 15.6

Inert Gas 32.1 Nm3/ton prod. 0.004 USD/Nm3 0.04 0.1

Electricity 286 kWh/ton prod. 0.1 USD/kWh 6.7 20.9

Fuel 0.5 MMBtu/ton prod. 4.4 USD/MMBtu 0.7 2.2

Operating Labor Cost 5 operators/shift 56.8 USD/oper./h 2.3 7.1

Supervision Labor Cost 1 supervisors/shift 85.3 USD/sup./h 0.7 2.1

Maintenance Cost 2.7 8.5

Operating Charges 25% of Operating Labor Costs 0.7 2.3

Plant Overhead 50% of Operating Labor and Maint. Costs 2.8 8.9

G and A Cost 2% of Operating Costs 9.6 30.1

Depreciation Annual Value 10% of TFI 16.9 52.9

PG Propylene 1 ton/ton prod. 1690 USD/ton 540.8 1,690

Fuel By-Product 13 MMBtu/ton prod. 4.29 USD/MMBtu 17.6 54.9

EBITDA Margin 12.0%

Chemical Sector IP Indicator 15.5%

EBIT Margin 9.0%


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Regional Comparison

Capital Expenses

Variations in productivity, labor costs, local steel prices,equipment imports needs, freight, taxes and duties onimports, regional business environments and localavailability of sparing equipment were considered whencomparing capital expenses for the different regions underconsideration in this report.

Capital costs are adjusted from the base case (a plantconstructed on the US Gulf Coast) to locations of interest byusing location factors calculated according to the itemsaforementioned. For further information about locationfactor calculation, please examine the chapter “TechnologyEconomics Methodology.” In addition, the location factorsfor the regions analyzed are further detailed in “Appendix F.Economic Assumptions.”

Figure 13 summarizes the total Capital Expenditures(CAPEX) for the locations under analysis.


Specific regional conditions influence prices for rawmaterials, utilities and products. Such differences are thusreflected in the operating costs. An OPEX breakdownstructure for the different locations approached in this studyis presented in Figure 14.

Economic Datasheet

The Technology Economic Datasheet, presented in Table26, is an overall evaluation of the technology's capitalinvestment and production costs in the alternative locationanalyzed in this study.

Economic Discussion

Figure 13 – CAPEX per Location (USD Million)


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US Gulf Germany

Total Fixed Investment Other Capital Expenses Working Capital

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Remarks

Ethylene costs range from USD 400 to USD 420 per ton ofpropylene representing about 27% of the totalmanufacturing expenses both at the US Gulf Coast and inGermany, while butene costs, between USD 937 and 1,015per ton (as raffinate-2), represent from 62% to 66% of thosecosts. Together, these raw materials account for more than90% of the total manufacturing expenses.

The values at which ethylene and butene feedstocks areacquired will consequently play a decisive role in theeconomic feasibility of a metathesis unit. While ethyleneprices are between USD 1,240 and 1,750 per ton, butenevalues range from USD 960 to 1,040.

Furthermore, the process is fed with a butene-ethylenemass ratio of approximately 3:1 (butene as raffinate-2). As aresult, the valuation of butene becomes crucial in theoverall economics of the process.

Producers that have access to cheap sources of suchmaterials can operate with improved competitiveness.Ethylene feedstocks for metathesis can be supplied fromeither steam crackers or off-gas extraction from FCC units.Butene feedstocks may be supplied from either steamcracker crude C4 or refinery FCC mixed butenes.

Historically, the US and Europe have exhibited low EBITDAmargins and therefore projects of Lummus OCT units insuch regions are less commonplace. However, installing ametathesis unit inside a petrochemical complex requireslow capital investment. That, coupled with special marketand price conditions can make projects in these, and other,regions more economically appealing.

Figure 14 – Operating Costs Breakdown per Location (USD/ton)


1,200

1,250

1,300

1,350

1,400

1,450

1,500

1,550

1,600

US Gulf Germany

Net Raw Materials Costs Main Utilities Consumption Fixed Costs

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Table 26 – Technology Economics Datasheet: Propylene via Metathesis in Germany

350 kta unit (Production: 320 kta) TFI Working Capital Other Capital Exp.

IC Index: 158.1 223 56 25

Raffinate-2 0.97 ton/ton prod. 962 USD/ton 299.8 936.8

Ethylene 0.32 ton/ton prod. 1,247 USD/ton 129.1 403.4

Cooling Water 68 m3/ton prod. 0.0016 USD/m3 0.04 0.1

LP Steam 1.0 ton/ton prod. 50.2 USD/ton 16.4 51.4

Inert Gas 32.1 Nm3/ton prod. 0.15 USD/Nm3 1.5 4.7

Electricity 286 kWh/ton prod. 0.12 USD/kWh 10.9 34.1

Fuel 0.5 MMBtu/ton prod. 14.4 USD/MMBtu 2.3 7.1

Operating Labor Cost 5 operators/shift 75.8 USD/oper./h 3.0 9.5

Supervision Labor Cost 1 supervisors/shift 113.7 USD/sup./h 0.91 2.8

Maintenance Cost 3.6 11.2

Operating Charges 25% of Operating Labor Costs 1.0 3.1

Plant Overhead 50% of Operating Labor and Maint. Costs 3.8 11.8

G and A Cost 2% of Operating Costs 9.4 29.5

Depreciation Annual Value 10% of TFI 22.3 69.7

PG Propylene 1 ton/ton prod. 1294 USD/ton 414.1 1,294.0

Fuel By-Product 12.8 MMBtu/ton prod. 14.4 USD/MMBtu 58.9 184.1

EBITDA Margin -1.9%

Chemical Sector IP Indicator 15.5%

EBIT Margin -6.6%


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Carter, C. O., 1980. US, Patent No.4,242,531.

Carter, C. O., 1985.

Chodorge, J. A., Cosyns, J., Commereuc, B. & Torck, B., 1997.Propylene Production from Butenes and Ethylene.

, Spring.

Delaude, L. & Noels, A. F., 2007. Metathesis Section. In: s.l.:Wiley-

Interscience.

Drake, C. A. & Reusser, R. E., 1986. US, Patent No. 4,575,575.

Dwyer, C. L., 2006. Metathesis of Olefins. In: G. P. Chiusoli & P.M. Maitlis, eds.

s.l.:Royal Society of Chemistry, pp. 201-217.

Eisele, P. & Killpack, R., 2002. Propene Section. In: s.l.:Wiley-Interscience.

Gartside, R. J. & Greene, M. I., 2007.US,

Patent No. 7,214,841 B2.

Gartside, R. J., Greene, M. I. & Jones, Q. J., 2004.

US, Patent No. 6,777,582 B2.

Gartside, R. J. & Ramachandran, B., 2010.

Hildreth, J. M., Dukandar, K. N. & Venner, R. M., 2009.

Hydrocarbon Processing, 2005.s.l.:Gulf Publishing.

Lummus Technology, 2009. [Online]

Available at:www.cbi.com/images/uploads/tech_sheets/Olefins.pdf[Accessed 20 March 2012].

Lummus Technology, 2010. s.l.:Provided by Lummus

on August, 24th 2010.

Lummus Technology, 2010. s.l.:Provided by Lummus on August, 24th, 2010.

Mol, J. C., 2004. Industrial Applications of Olefin Metathesis.213(1), pp. 39-45.

Network China Industrial Information, n.d.[Online]

Available at: www.chyxx.com[Accessed 10 March 2012].

Senetar, J. J. & Glover, B. K., 2010.

Stanley, S., 2009. Cover Story – Ethylene Enhancement., February.

Sumner, C., 2009.US, Patent

No. 7,525,007 B2.

Takai, T. & Kubota, T., 2010. US,Patent No. 2010/0145126 A1.

Weidert, D. J., 2000. s.l., AIChE 2000 Spring Meeting.

Zinger, S., 2005. One-purpose propylene production., Q3.

References

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AACE: American Association of Cost Engineers

C: Distillation, stripper, scrubber columns (e.g., C-101 woulddenote a column tag)

C2, C3, ... Cn: Hydrocarbons with "n" number of carbonatoms

C2=, C3=, ... Cn=: Alkenes with "n" number of carbon atoms

CAPEX: Capital Expenditures

CC: Distillation column condenser

CG: Chemical grade

CP: Distillation column reflux pump

CR: Distillation column reboiler

CV: Distillation column accumulator drum

CW: Cooling water

E: Heat exchangers, heaters, coolers, condensers, reboilers(e.g., E-101 would denote a heat exchanger tag)

EBIT: Earnings before Interest and Taxes

EBITDA: Earnings before Interests, Taxes, Depreciation andAmortization

F: Furnaces, fired heaters (e.g., F-101 would denote afurnace tag)

FCC: Fluid-catalytic cracking

HP ST: High pressure steam

IC Index: Intratec Chemical Plant Construction Index

IP Indicator: Intratec Chemical Sector Profitability Indicator

ISBL: Inside battery limits

K: Compressors, blowers, fans (e.g., K-101 would denote acompressor tag)

kta: thousands metric tons per year

LP ST: Low pressure steam

LPG: Liquefied petroleum gas

MP ST: Medium pressure steam

NGL: Natural gas liquids

OCT: Olefin Conversion Technology

OPEX: Operational Expenditures

OSBL: Outside battery limits

P: Pumps (e.g., P-101 would denote a pump tag)

PG: Polymer grade

R: Reactors, treaters (e.g., R-101 would denote a reactor tag)

RF: Refrigerant

RG: Refinery grade

ST: Steam

Syngas: Synthesis gas

T: Tanks (e.g., T-101 would denote a tank tag)

TFI: Total Fixed Investment

TPC: Total process cost

V: Horizontal or vertical drums, vessels (e.g., V-101 woulddenote a vessel tag)

WD: Demineralized water

WP: Process water

X: Special equipment (e.g., X-101 would denote a specialequipment tag)

Obs.: 1 ton = 1 metric ton = 1,000 kg

Acronyms, Legends & Observations

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Intratec Technology Economics methodologyensures a holistic, coherent and consistenttechno-economic evaluation, ensuring a clearunderstanding of a chemical processtechnology.

Introduction

The same general approach is used in the development ofall Technology Economics assignments. To know moreabout Intratec’s methodology, see Figure 15.

While based on the same methodology, all TechnologyEconomics studies present uniform analyses with identicalstructures, containing the same chapters and similar tablesand charts. This provides confidence to everyone interestedin Intratec’s services since they will know upfront what theywill get.

Workflow

Once the scope of the study is fully defined andunderstood, Intratec conducts a comprehensivebibliographical research in order to understand technicalaspects involved with the process analyzed.

Subsequently, the Intratec team simultaneously developsthe process description and the conceptual process flowdiagram based on:

a. Patent and technical literature research

b. Non-confidential information provided by technologylicensors

c. Intratec's in-house database

d. Process design skills

Next, all the data collected are used to build a rigoroussteady state process simulation model in Aspen Hysysand/or Aspen Plus, leading commercial processflowsheeting software tools.

From this simulation, material balance calculations areperformed around the process, key process indicators areidentified and main equipment listed.

Equipment sizing specifications are defined based onIntratec's equipment design capabilities and an extensiveuse of AspenONE Engineering Software Suite that enablesthe integration between the process simulation developedand equipment design tools. Both equipment sizing andprocess design are prepared in conformance with generallyaccepted engineering standards.

Then, a cost analysis is performed targeting ISBL & OSBLfixed capital costs, manufacturing costs, and overall workingcapital associated with the examined process technology.Equipment costs are primarily estimated using AspenProcess Economic Analyzer (formerly Aspen Icarus)customized models and Intratec's in-house database.

Cost correlations and, occasionally, vendor quotes of uniqueand specialized equipment may also be employed.

Next, capital and operating costs are assembled in MicrosoftExcel spreadsheets, and an economic analysis of suchtechnology is performed.

Finally, sensitivity analyses are conducted to assess theimpact of key economic variables on capital and operatingexpenses.

According to the demand of the client who requests theTechnology Economics study, the publication may alsoinclude additional analyses. Among other possibilities, thestudy may include sensitivity assessments to evaluate theimpact of technical parameters on capital andmanufacturing costs, as well as a regional comparisonevaluating the economic performance of similar industrialunits operating in different world regions.

Technology Economics Methodology

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Figure 15 – Methodology Flowchart


Intratec Internal Database

Non-ConfidentialInformation from

Technology Licensors orSuppliers

Aspen Plus, Aspen HysysAspen Exchanger Design &

Rating, KG Tower, Sulcoland Aspen Energy Analyzer

Bibliographical Research

Material & Energy Balances, KeyProcess Indicators, List of

Equipment & Equipment Sizing

Capital Cost (CAPEX)& Operational Cost (OPEX)

Estimation

Patent and TechnicalLiterature Databases

Pricing Data Gathering: RawMaterials, Chemicals,Utilities and Products

Aspen Process EconomicAnalyzer, Aspen Capital

Cost Estimator, Aspen In-Plant Cost Estimator &

Intratec In-House Database

Construction LocationFactor

(http://base.intratec.us)

Project Development Phases

Information Gathering / Tools

Vendor Quotes

Study Understanding -Validation of Project Inputs

Technical Validation –Process Description &

Flow Diagram

Economic Analysis

Final Review &Adjustments

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Capital & Operating CostEstimates

The cost estimate presented in the current study considersa process technology based on a standardized designpractice, typical of a major chemical company. The specificdesign standards employed can have a significant impacton capital costs.

The basis for the capital cost estimate is that the plant isconsidered to be built in a clear field with a typical largesingle-line capacity. In comparing the cost estimate herebypresented with an actual project cost or contractor'sestimate, the following must be considered:

Minor differences or details (many times, unnoticed)between similar processes can affect cost noticeably.

The omission of process areas in the design consideredmay invalidate comparisons with the estimated costpresented.

Industrial plants may be overdesigned for particularobjectives and situations.

Rapid fluctuation of equipment or construction costsmay invalidate cost estimate.

Equipment vendors or engineering companies mayprovide goods or services below profit margins duringeconomic downturns.

Specific locations may impose higher taxes and fees,which can impact costs considerably.

In addition, no matter how much time and effort aredevoted to accurately estimating costs, errors may occurdue to the aforementioned factors, as well as cost and laborchanges, construction problems, weather-related issues,strikes, or other unforeseen situations. This is partiallyconsidered in the project contingency. Finally, it mustalways be remembered that an estimated project cost is notan exact number, but rather is a projection of the probablecost.

ISBL Investment

The ISBL investment includes the fixed capital cost of themain processing units of the plant necessary to themanufacturing of products. The ISBL investment includesthe installed cost of the following items:

Process equipment (e.g., reactors and vessels, heatexchangers, pumps, compressors, etc.)

Process equipment spares

Housing for process units

Pipes and supports within the main process units

Instruments, control systems, electrical wires and otherhardware

Foundations, structures and platforms

Insulation, paint and corrosion protection

In addition to the direct material and labor costs, the ISBLaddresses indirect costs, such as construction overheads,including: payroll burdens, field supervision, equipmentrentals, tools, field office expenses, temporary facilities, etc.

OSBL Investment

The OSBL investment accounts for auxiliary items necessaryto the functioning of the production unit (ISBL), but whichperform a supporting and non-plant-specific role. OSBLitems considered may vary from process to process. TheOSBL investment could include the installed cost of thefollowing items:

Storage and packaging (storage, bagging and awarehouse) for products, feedstocks and by-products

Steam units, cooling water and refrigeration systems

Process water treating systems and supply pumps

Boiler feed water and supply pumps

Electrical supply, transformers, and switchgear

Auxiliary buildings, including all services andequipment of: maintenance, stores warehouse,laboratory, garages, fire station, change house,cafeteria, medical/safety, administration, etc.

General utilities including plant air, instrument air, inertgas, stand-by electrical generator, fire water pumps,etc.

Pollution control, organic waste disposal, aqueouswaste treating, incinerator and flare systems

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Working Capital

For the purposes of this study,2 working capital is defined asthe funds, in addition to the fixed investment, that acompany must contribute to a project. Those funds mustbe adequate to get the plant in operation and to meetsubsequent obligations.

The initial amount of working capital is regarded as aninvestment item. This study uses the followingitems/assumptions for working capital estimation:

Accounts receivable. Products and by-productsshipped but not paid by the customer; it representsthe extended credit given to customers (estimated as acertain period – in days – of manufacturing expensesplus depreciation).

Accounts payable. A credit for accounts payable suchas feedstock, catalysts, chemicals, and packagingmaterials received but not paid to suppliers (estimatedas a certain period – in days – of manufacturingexpenses).

Product inventory. Products and by-products (ifapplicable) in storage tanks. The total amount dependson sales flow for each plant, which is directly related toplant conditions of integration to the manufacturing ofproduct‘s derivatives (estimated as a certain period – indays – of manufacturing expenses plus depreciation,defined by plant integration circumstances).

Raw material inventory. Raw materials in storagetanks. The total amount depends on raw materialavailability, which is directly related to plant conditionsof integration to raw material manufacturing(estimated as a certain period – in days – of rawmaterial delivered costs, defined by plant integrationcircumstances).

In-process inventory. Material contained in pipelinesand vessels, except for the material inside the storagetanks (assumed to be 1 day of manufacturingexpenses).

Supplies and stores. Parts inventory and minor spareequipment (estimated as a percentage of totalmaintenance materials costs for both ISBL and OSBL).

2 The accounting definition of working capital (total current assetsminus total current liabilities) is applied when considering theentire company.

Cash on hand. An adequate amount of cash on handto give plant management the necessary flexibility tocover unexpected expenses (estimated as a certainperiod – in days – of manufacturing expenses).

Start-up Expenses

When a process is brought on stream, there are certain one-time expenses related to this activity. From a timestandpoint, a variable undefined period exists between thenominal end of construction and the production of qualityproduct in the quantity required. This period is commonlyreferred to as start-up.

During the start-up period expenses are incurred foroperator and maintenance employee training, temporaryconstruction, auxiliary services, testing and adjustment ofequipment, piping, and instruments, etc. Our method ofestimating start-up expenses consists of four components:

Labor component. Represents costs of plant crewtraining for plant start-up, estimated as a certainnumber of days of total plant labor costs (operators,supervisors, maintenance personnel and laboratorylabor).

Commercialization cost. Depends on raw materialsand products negotiation, on how integrated the plantis with feedstock suppliers and consumer facilities, andon the maturity of the technology. It ranges from 0.5%to 5% of annual manufacturing expenses.

Start-up inefficiency. Takes into account thoseoperating runs when production cannot bemaintained or there are false starts. The start-upinefficiency varies according to the process maturity:5% for new and unproven processes, 2% for new andproven processes, and 1% for existing licensedprocesses, based on annual manufacturing expenses.

Unscheduled plant modifications. A key fault thatcan happen during the start-up of the plant is the riskthat the product(s) may not meet specificationsrequired by the market. As a result, equipmentmodifications or additions may be required.

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Prepaid Royalties. Royalty charges on portions of theplant are usually levied for proprietary processes. Avalue ranging from 0.5 to 1% of the total fixedinvestment (TFI) is generally used.

Site Development. Land acquisition and sitepreparation, including roads and walkways, parking,railroad sidings, lighting, fencing, sanitary and stormsewers, and communications.

Manufacturing Costs

Manufacturing costs do not include post-plant costs, whichare very company specific. These consist of sales, generaland administrative expenses, packaging, research anddevelopment costs, and shipping, etc.

Operating labor and maintenance requirements have beenestimated subjectively on the basis of the number of majorequipment items and similar processes, as noted in theliterature.

Plant overhead includes all other non-maintenance (laborand materials) and non-operating site labor costs forservices associated with the manufacture of the product.Such overheads do not include costs to develop or marketthe product.

G & A expenses represent general and administrative costsincurred during production such as: administrativesalaries/expenses, research & development, productdistribution and sales costs.

Contingencies

Contingency constitutes an addition to capital costestimations, implemented based on previously availabledata or experience to encompass uncertainties that mayincur, to some degree, cost increases. According torecommended practice, two kinds of contingencies areassumed and applied to TPC: process contingency andproject contingency.

Process contingency is utilized in an effort to lessen theimpact of absent technical information or the uncertainty ofthat which is obtained. In that manner, the reliability of theinformation gathered, its amount and the inherentcomplexity of the process are decisive for its evaluation.Errors that occur may be related to:

Uncertainty in process parameters, such as severity ofoperating conditions and quantity of recycles

Addition and integration of new process steps

Estimation of costs through scaling factors

Off-the-shelf equipment

Hence, process contingency is also a function of thematurity of the technology, and is usually a value between5% and 25% of the direct costs.

The project contingency is largely dependent on the plantcomplexity and reflects how far the conducted estimation isfrom the definitive project, which includes, from theengineering point of view, site data, drawings and sketches,suppliers’ quotations and other specifications. In addition,during construction some constraints are verified, such as:

Project errors or incomplete specifications

Strike, labor costs changes and problems caused byweather

Intratec’s definitions in relation to complexity and maturityare the following:

Complexity

SimpleSomewhat simple, widely known

processes

Typical Regular process

Complex

Several unit operations, extreme

temperature or pressure, more

instrumentation

Maturity

New &

ProvenFrom 1 to 2 commercial plants

Licensed 3 or more commercial plants

Table 27 – Project Contingency

Plant Complexity Complex Typical Simple

Project Contingency 25% 20% 15%


Table 28 – Criteria Description


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Accuracy of Economic Estimates

The accuracy of estimates gives the realized range of plantcost. The reliability of the technical information available isof major importance.

The non-uniform spread of accuracy ranges (+50 to – 30 %,rather than ±40%, e.g.) is justified by the fact that theunavailability of complete technical information usuallyresults in under estimating rather than over estimatingproject costs.

Location Factor

Economic regional comparisons eventually presented inTechnology Economics studies are based on locationfactors. A location factor is an instantaneous, total costfactor used for converting a base project cost from onegeographic location to another.

A properly estimated location factor is a powerful tool, bothfor comparing available investment data and evaluatingwhich region may provide greater economic attractivenessfor a new industrial venture. Considering this, Intratec hasdeveloped a well-structured methodology for calculatingLocation Factors, and the results are presented for specificregions’ capital costs comparison.

Intratec’s Location Factor takes into consideration thedifferences in productivity, labor costs, local steel prices,equipment imports needs, freight, taxes and duties onimported and domestic materials, regional businessenvironments and local availability of sparing equipment.For such analyses, all data were taken from internationalstatistical organizations and from Intratec’s database.Calculations are performed in a comparative manner, takinga US Gulf Coast-based plant as the reference location. Thefinal Location Factor is determined by four major indexes:Business Environment, Infrastructure, Labor, and Material.

The Business Environment Factor and the InfrastructureFactor measure the ease of new plant installation indifferent countries, taking into consideration the readinessof bureaucratic procedures and the availability and qualityof ports or roads.

Table 29 – Accuracy of Economic Estimates

Reliability Low Moderate HighVery

High

Accuracy+ 30%

- 20%

+ 22%

- 18%

+ 18%

- 14%

+ 10%

- 10%


Figure 16 – Location Factor Composition

Infrastructure FactorLabor Index

Location Factor

Material Index Business Environment

Factor

Local Labor IndexRelative SalaryProductivity

Expats Labor

Domestic Material IndexRelative Steel PricesLabor IndexTaxes and FreightRatesSpares

Imported MaterialTaxes and FreightRatesSpares

Ports, Roads, Airportsand Rails (Availabilityand Quality)CommunicationTechnologiesWarehouseInfrastructureBorder ClearanceLocal Incentives

Readiness ofBureaucraticProceduresLegal Protection ofInvestorsTaxes


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Labor and material, in turn, are the fundamentalcomponents for the construction of a plant and, for thisreason, are intrinsically related to the plant costs. Thisconcept is the basis for the methodology, which aims torepresent the local discrepancies in labor and material.

Productivity of workers and their hourly compensation areimportant for the project but, also, the qualification ofworkers is significant to estimating the need for foreignlabor.

On the other hand, local steel prices are similarly important,since they are largely representative of the costs ofstructures, piping, equipment, etc. Considering thecontribution of labor in these components, workers’qualifications are also indicative of the amount that needsto be imported. For both domestic and imported materials,a Spare Factor is considered, aiming to represent the needfor spare rotors, seals and parts of rotating equipment.

The sum of the corrected TFI distribution reflects the relativecost of the plant, this sum is multiplied by the Infrastructureand the Business Environment Factors, yielding the LocationFactor.

For the purpose of illustrating the conducted methodology,a block flow diagram is presented in Figure 16 in which thefour major indexes are presented, along with some of theircomponents.

.

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Appendix A. Mass Balance & Streams Properties

Table 30 – Detailed Material Balance Stream Properties

Phase L L L L L L L G G G

Temperature (°C) -29 -28 30 50 52 25 25 260 304 304

Pressure (bar abs) 22 30 6.0 6.0 30 30 30 30 30 30

Mass Flow (kg/h) 12,940 12,940 38,950 114,750 114,750 161,520 161,520 161,520 161,520 161,520

Ethylene (wt%) 99.9 99.9 28.9 28.9 28.9 28.9 21.0

Ethane (wt%) 0.1 0.1 traces traces traces traces traces

Propene (wt%) 0.4 0.4 0.3 0.3 0.3 0.3 24.9

Butenes (wt%) 80.0 38.3 38.3 27.2 27.2 27.2 27.2 9.0

Butane (wt%) 20.0 56.4 56.4 40.1 40.1 40.1 40.1 40.1

C5+ (wt%) 4.9 4.9 3.5 3.5 3.5 3.5 5.0

Molar Flow (kmol/h) 461 461 689 1,988 1,988 3,654 3,654 3,654 3,654 3,654

MW 28.1 28.1 56.5 57.7 57.7 44.2 44.2 44.2 44.2 44.2

Mass Density

(kg/m3)438.9 439.6 588.3 555.1 557.9 510.9 510.9 32.2 29.1 29.2

Mass Enthalpy

(kcal/kg)335 335 -233 -392 -391 -180 -180 13 41 41

Volume Flow (m3/h) 29 29 66 207 206 316 316 5,015 5,546 5,538

Thermal

Conductivity (W/m K)0.11 0.11 0.09 0.09 0.09 0.09 0.09 0.05 0.05 0.05

Mass Heat Capacity

(kJ/kg °C)3.5 3.4 2.4 2.6 2.5 2.7 2.7 2.6 2.7 2.7

Viscosity (cP) 0.06 0.06 0.14 0.12 0.12 0.10 0.10 0.02 0.02 0.02

Surface Tension

(dyne/cm)4.2 4.1 12.3 9.7 9.4 6.9 6.9 0.0 0.0 0.0

LHV (kcal/kg) 11,280 11,280 10,820 10,870 10,870 10,990 10,990 10,990 10,990 10,990


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Table 31 – Detailed Material Balance Stream Properties

Phase L/G L/G L L L L L L G L

Temperature (°C) 53 45 89 39 -25 -24 107 60 -25 113

Pressure (bar abs) 30 30 22 16 22 30 17 17 22 17

Mass Flow (kg/h) 161,490 161,490 127,560 40,000 33,820 33,820 75,800 75,800 120 11,760

Ethylene (wt%) 21.0 21.0 traces 0.1 100.0 100.0 100.0

Ethane (wt%) traces traces traces traces traces traces traces

Propene (wt%) 24.9 24.9 31.5 99.5 traces traces 0.5 0.5 0.1

Butenes (wt%) 9.0 9.0 11.4 0.1 16.9 16.9 14.1

Butane (wt%) 39.9 39.9 50.6 0.3 75.1 75.1 63.5

C5+ (wt%) 5.1 5.1 6.5 traces 7.4 7.4 22.4

Molar Flow (kmol/h) 3,654 3,654 2,444 950 1,205 1,205 1,298 1,298 4 196

MW 44.2 44.2 52.2 42.1 28.1 28.1 58.4 58.4 28.1 60.1

Mass Density (kg/m3) 210.1 332.6 458.7 482.4 428.6 429.4 462.6 541.1 42.6 468.5

Mass Enthalpy (kcal/kg) -152 -163 -285 35 339 340 -441 -474 413 -393

Volume Flow (m3/h) 769 486 278 83 79 79 164 140 3 25

Thermal Conductivity (W/m K) 0.00 0.00 0.07 0.10 0.11 0.10 0.00 0.08 0.02 0.06

Mass Heat Capacity (kJ/kg °C) 2.9 2.9 3.4 3.0 3.7 3.6 3.4 2.6 2.2 3.4

Viscosity (cP) 0.00 0.00 0.07 0.06 0.06 0.06 0.00 0.12 0.01 0.07

Surface Tension (dyne/cm) 5.3 5.6 3.4 5.1 3.7 3.5 3.7 8.5 0.0 3.8

LHV (kcal/kg) 10,990 10,990 10,910 10,950 11,280 11,280 10,900 10,900 11,280 10,870


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Appendix B. Utilities Consumption Breakdown

Table 32 – Utilities Consumption Breakdown

Cooling Water Deethylenizer Feed Cooler 144 m3/h

Cooling Water C4+ Purge Cooler 47 m3/h

Cooling Water Butenes Recycle Cooler 193 m3/h

Cooling Water Depropylenizer Condenser 773 m3/h

Cooling Water Refrigeration System 1576 m3/h

LP Steam Deethylenizer Reboiler 21 ton/h

LP Steam Depropylenizer Reboiler 20 ton/h

Inert Gas Catalyst Regeneration 1283 Nm3/h


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The process’ carbon footprint can be defined as the totalamount of greenhouse gas (GHG) emissions caused by theprocess operation.

Although it is difficult to precisely account for the totalemissions generated by a process, it is possible to estimatethe major emissions, which can be divided into:

Direct emissions. Emissions caused by process wastestreams combusted in flares.

Indirect emissions. The ones caused by utilitiesgeneration or consumption, such as the emissions dueto using fuel in furnaces for heating process streams.Fuel used in steam boilers, electricity generation, andany other emissions in activities to support processoperation are also considered indirect emissions.

In order to estimate the direct emissions, it is necessary toknow the composition of the streams, as well as theoxidation factor.

Estimation of indirect emissions requires specific data,which depends on the plant location, such as the localelectric power generation profile, and on the plantresources, such as the type of fuel used.

Oxidation factor 100%

Waste streams Stream #24

Electric power profile Texas

Fuel used in steam boiler Natural Gas

Steam boiler efficiency 85%

Fuel used in furnaces Natural Gas

Furnaces efficiency 85%

The assumptions for carbon footprint calculation and theresults are provided in

Stream #24 0.009

Electricity Generation 0.163

Steam Generation 0.114

Heat Generation 0.031

Equivalent carbon dioxide (CO2e) is a measure thatdescribes the amount of CO2 that would have the sameglobal warming potential of a given greenhouse gas, whenmeasured over a specified timescale.

All values and assumptions used in calculations are basedon data provided by the Environment Protection Agency(EPA) Climate Leaders Program.

Appendix C. Process Carbon Footprint

Table 33 – Assumptions for CO2e Emissions Calculation


Table 34 – CO2e Emissions (ton/ton prod.)


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Appendix D. Equipment Detailed List & Sizing

Table 35 – Reactors

Description Metathesis Reactor

Design gauge pressure (barg) 1.0

Design temperature (deg C) 340

Liquid volume (m3) 68

Shell material SS


Table 36 – Heat Exchangers

Description Reactor Feed

Heater

Regeneration

Gas HeaterFeed Vaporizer

Depropylenizer

Condenser

Deethylenizer

Feed Cooler

C4+ Purge

Cooler

Design gauge pressure (barg) 32.4 32.4

Design temperature (deg C) 334 334

Duty (MW) 6 6

Heat transfer area (m2) 2175 1978 158 36

Item type Furnace Furnace Shell & Tube Shell & Tube Shell & Tube Shell & Tube

Material Cr-Mo Cr-Mo

Shell design gauge pressure

(barg) 32.4 16.7 32.4 25.4

Shell design temperature

(deg C) 334 125 125 144

Shell material CS CS CS CS

Tube design gauge pressure

(barg) 32.4 10.8 21.3 16.6

Tube design temperature

(deg C) 334 125 125 144

Tube material CS CS CS CS


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Table 36 – Heat Exchangers (Cont.)

Description Butenes Recycle

Cooler

Deethylenizer

Condenser

Deethylenizer

Reboiler

Depropylenizer

Reboiler

Design gauge pressure (barg)

Design temperature (deg C)

Duty (MW)

Heat transfer area (m2) 79 1245 195 270

Item type Shell & Tube Shell & Tube Shell & Tube Shell & Tube

Material

Shell design gauge pressure (barg) 17.6 24.4 24.4 17.7

Shell design temperature (deg C) 137 -55 125 143

Shell material CS CS CS CS

Tube design gauge pressure (barg) 11.4 16.0 16.0 11.5

Tube design temperature (deg C) 137 -55 194 194

Tube material CS CS CS CS


Table 37 – Pumps

Description Ethylene

Feed Pumps

Raffinate-2

Feed Pumps

C4 Tank

Pumps

Deethylen.

Reflux Pumps

Depropylen.

Reflux Pumps

Propylene

Pumps

Casing material CS CS CS CS CS CS

Design gauge pressure (barg) 32.4 6.7 32.4 24.4 16.7 25.4

Design temperature (deg C) 18 125 125 18 125 125

Liquid flow rate (m3/h) 32 73 227 313 307 91


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Table 37 – Pumps (Cont.)

Description Ethylene Recycle Pumps C4+ Pumps

Casing material CS CS



Liquid flow rate (m3/h) 87 28


Table 38 – Columns

Description Deethylenizer Column Depropylenizer Column



Number of trays 60 65

Shell material CS CS

Tray material CS CS

Tray spacing (mm) 610 610

Vessel diameter (m) 2.7 2.6


Table 39 – Utilities Supply

Description Cooling Tower Refrigerator Steam boiler Water Demineralizer

Boiler flow rate (kg/h) 47200

Material CS CS CS CS

Water flow rate (m3/h) 3384 6


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Table 40 – Vessels & Tanks Specifications

Description Reactor Feed

Treaters

Deethylenize

r

Accumulator

Depropylen.

Accumulator

Ethylene ISBL

Storage

Ethylene

Storage

Raffinate

Storage


Design temperature (deg C) 125 18 125 -30 -30 125

Liquid volume (m3) 35.6 30.0 30.0 370 5000 11200

Shell material CS CS CS CS CS CS


Table 40 – Vessels & Tanks Specifications (Cont.)

Description Propylene

Storage

Demin. Water

Tank

Clarified

Water Tank

Product ISBL

Storage

C4+ Purge

Storage

Fresh/Recycle

C4 Tank


Design temperature (deg C) 120 20 20 125 120 125

Liquid volume (m3) 13900 3 1700 1050 260 835

Shell material CS CS CS CS CS CS


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Direct Costs Breakdown

Appendix E. Detailed Capital Expenses

Figure 17 – ISBL Direct Costs Breakdown by Equipment Type for Base Case


Figure 18 – OSBL Direct Costs Breakdown by Equipment Type for Base Case


35%

13%18%

10%

14%

10%

Vessels & Tanks Columns Heat Exchangers Pumps, Compressors & Turbines Reactors Furnaces

ISBL Total Direct Cost: USD 21.2 Million

87.76%

1.11%

9.28% 1.42%

0.04%

0.41%

Vessels & Tanks Steam Boiler Refrigeration Units Cooling Tower Water Treatment Buildings

OSBL Total Direct Cost: USD 94.5 Million

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Indirect Costs Breakdown

Table 41 – Indirect Costs Breakdown for the Base Case (USD Thousands)

Home Office Const Suppt 352

Field Const Supv 1,533

Start-up, Commissioning 129

Fringe Benefits 1,209

Burdens 1,381

Consumables, Small Tools 173

Misc (Insurance, Etc) 435

Scaffolding 173

Equipment Rental 1,308

Field Services 439

Temp Const, Utilities 96

Other Freight 4,398

Materials Taxes 6,871

Basic Engineering 1,393

Detail Engineering 3,366

Material Procurement 731

G and A Overheads 4,015

Contract Fee 3,617

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Capital Expenditures

For a better description of working capital and other capitalexpenses components, as well as the location factorsmethodology, see the chapter “Technology EconomicsMethodology.”

Construction Location Factors

Labor Index

Local Labor Index 1.00 1.34

% of Local Labor 100% 100%

Expats Labor Index 1.35 1.35

% of Expats 0% 0%

Material Index

Domestic Material Index 1.00 1.30

% of Domestic Material 100% 90%

Imported Material Index 1.00 1.13

% of Imported Material 0% 10%

Spare Factor 1.00 1.02

Material & Labor Weights

Labor 30%

Material 70%

Infrastructure Factor 1.00 1

Business Environment Factor 1.00 1

Material/Labor Distribution in TFI

Labor 30% 30%

Material 70% 70%

Working Capital

Raw Materials

Inventory0.5 days of raw materials cost

Products

Inventory20

days of raw materials cost +

depreciation

In-process

Inventory1 day of total oper. cost

Supplies and

Stores5%

of total oper. labor and maint.

cost

Cash on Hand 15 days of total oper. cost

Accounts

Receivable30

days of total oper. cost +

depreciation

Accounts

Payable30 days of total oper. cost


Operator Training 150 days of all labor

costs

Commercialization Costs 1% of annual oper.

costs

Start-up Inefficiencies 1% of annual oper.

costs

Unscheduled Plant

Modifications2% of TFI

Prepaid Royalties 1% of TFI

Land & Site Development 3% of TFI

Appendix F. Economic Assumptions

Table 42 – Detailed Construction Location Factor


Table 43 – Working Capital Assumptions for Base Case


Table 44 – Other Capital Expenses Assumptions for

Base Case


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Fixed Costs

Fixed costs are estimated based on the specificcharacteristics of the process. The fixed costs, like operatingcharges and plant overhead, are typically calculated as apercentage of the industrial labor costs, and G & A expensesare added as a percentage of the operating costs.

Operating Charges (% of Operating Labor Costs) 25%

Plant Overhead (% of Oper. Labor and Maint. Costs) 50%

G and A Expenses (% of Subtotal Operating Costs) 2%

Depreciation

Depreciation, while not a true manufacturing cost, isconsidered to be a manufacturing cost for tax purposes.

The goal of depreciation is to allow a credit againstmanufacturing costs, and hence taxes, for the non-recoverable capital expenses of an investment. Thedepreciable portion of capital expense is the total fixedinvestment.

Table 46 shows the project depreciation value and theassumptions used in its calculation.

Depreciation Method Straight Line

Economic Life of Project 10 years

Depreciation Annual Value 10% of TFI

EBITDA Margins Comparison

Figure 19 presents a 5-year analysis, comparing EBITDAmargins estimates for the regional scenarios presented inthis study.

Table 45 – Other Fixed Cost Assumptions


Figure 19 – Historical EBITDA Margins Regional Comparison


Table 46 – Depreciation Value & Assumptions


0%

5%

10%

15%

20%

25%

Q4-06 Q2-07 Q4-07 Q2-08 Q4-08 Q2-09 Q4-09 Q2-10 Q4-10 Q2-11

US Gulf Germany

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The list below is intended to be an easy and quick way toidentify Intratec reports of interest. For a more completeand up-to-date list, please visit the Publications section onour website, www.intratec.us.

TECHNOLOGY ECONOMICS

Propylene Production via Metathesis: Propyleneproduction via metathesis from ethylene and butenes,in a process similar to Lummus OCT.

Propylene Production via Propane

Dehydrogenation: Propane dehydrogenation (PDH)process conducted in moving bed reactors, in aprocess similar to UOP OLEFLEX™.

Propylene Production from Methanol: Propyleneproduction from methanol, in a process is similar toLurgi MTP®.

Polypropylene Production via Gas Phase Process: Agas phase type process similar to the Dow UNIPOL™ PPprocess to produce both polypropylene homopolymerand random copolymer.

Polypropylene Production via Gas Phase Process,

Part 2: A gas phase type process similar to LummusNOVOLEN® for production of both homopolymer andrandom copolymer.

Sodium Hypochlorite Chemical Production: Sodiumhypochlorite (bleach) production, in a widely usedindustrial process, similar to that employed by SolvayChemicals, for example.


Dehydrogenation, Part 2: Propane dehydrogenation(PDH) in fixed bed reactors, in a process is similar toLummus CATOFIN®.


Dehydrogenation, Part 3: Propane dehydrogenation(PDH) by applying oxydehydrogenation, in a processsimilar to the STAR PROCESS® licensed by Uhde.

IMPROVEMENT ECONOMICS

Membranes on Polypropylene Plants Vent Recovery:

The Report evaluates membrane units for theseparation of monomer and nitrogen in PP plants,similar to the VaporSep® system commercialized byMTR.

Use of Propylene Splitter to Improve Polypropylene

Business: The report assesses the opportunity ofpurchasing the less valued RG propylene to producethe PG propylene raw material used in a PP plant.

Appendix G. Released Publications

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A major player in the chemical arena made the request for this publication at www.intratec.us (section “Ask for a New Publication”).

Please find below the request submitted to Intratec.

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Subject of the Publication

Please describe the technology to be approached in the assessment:

Point to a URL of reference Upload files Describe the technology by yourself

Main Product(s): Propylene

Feedstock: Ethylene and Butene

Technology Brief Description (Provide any additional information you might have about the process you want to asses, like:Chemical Route, Process Technology, Technology Licensor, etc.):

The raw materials are converted to propylene through a metathesis reaction.

Remarks and Comments

Please provide any other information that may be relevant for the project description:

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Appendix H. Request Submitted to Intratec

About Intratec

Intratec is an independent research and leading advisory firm for the Chemical and Allied Industries, composed by a mix of consulting professionals, market researchers and skilled engineers with extensive industry experience.

Established in 2002, Intratec has already provided more than 200 reliable, in-depth evaluations of process technologies for the Oil & Gas, Petrochemical, Chemical, Renewable and Energy industries.

From this expertise, Intratec developed a consistent work methodology, continuously tested and proven by our clients.

propylene production via metathesis

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production of propylene

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