The 32nd JCCP International Symposium January 30,2014 Philosophy and Strategy of Idemitsu for the Future of Petroleum Refining Industry - In Pursuit of Harmony between Value of Hydrocarbons and Conservation of Environment Presented by Itaru Matsuhiro 松広格 Executive Officer & General Manager Technology & Engineering Center Business Activities of Idemitsu Idemitsu Group Core Business Qatar UAE Vietnam Functional Materials Business Laffan Condensate Refineries Technical Research Centre Nghi Son Refinery Resource Business Expanding business to the global market Operating four refineries and two petrochemical plants for Core Business in Japan. 1 Management Philosophy and Technology Strategy Idemitsu Kosan was Established in 1911 by Mr. Sazo Idemtisu, the founder. Practicing the founder’s concept of ‘Respect for Human Being’ in the conduct of business through the history of Idemitsu for over 100 years. Environmental Preservation by Management Philosophy and Technical Innovation Vision of the Petroleum Refining Industry Farther into the Future. 2 Environmental Preservation as Management Philosophy ‘Customers First’ : Consider customer satisfaction and act accordingly 1967 Constructed World First Resid HDS 1983 Launched Unleaded High Octane Gasoline First in Japan 1993 Launched Low Benzene Gasoline First in Japan 2005 Launched Sulfur Free Gasoline & Diesel Fuel 3 Environmental Preservation as Management Philosophy Harmony with Communities: Contribute to the development of local community as a good corporate citizen. 1957 Construction of Tokuyama Refinery The refineries incorporated a green belt intended to harmonize with the natural surroundings. 1963 Construction of Chiba Refinery 1973 Construction of Hokkaido Refinery 1975 Construction of Aichi Refinery Certified by Social and Environmental Green Evaluation System 4 Balance between Value of Products and Preservation of Environment Petroleum Products Petrochemical Products Catalysts By Products Process Energy Minimize Environmental Impacts Waste Material Waste Heat Refinery Maximize Value of Products Crude Oil Naphtha To Balance the Trade-Offs by Technology: Future Vision of Refining Industry 5 Value Chain of Idemitsu: High Performance Plastics Polycarbonate Syndiotactic PS Low Modulus PP 6 ARDS-RFCC Upgrading Environ. Impact ：Maintain Atmospheric Residue Atmospheric Residue VAC Vacuum Residue OCR/RDS Product Value Add：Maximize Maximize RFCC Gasoline Diesel Fuel Purpose: Maximize Charge of Vacuum Residue to RFCC Condition: Control Catalyst Deactivation （Maintain Value of Products） Approach: Predict and Use up the Activity in the Run Length Steps of Approach Analyze Influence of Asphaltene and feed type to catalyst life Optimize combination of feed type and throughput Catalyst Activity Index Influence of feed type and throughput to the catalyst life Unused × Minimum Activity × OK Shortfall time Plan to maximize throughput of heavy bottom within the life Reduce feed cost & use up of the catalyst life 7 Ⅰ Catalyst Regeneration(RDS) Product Value Add：Maintain Environ. Impact ：Minimize Purpose ： Reduction of catalyst waste and catalyst cost by regeneration of used catalyst Condition： Recover 1 year of catalyst life (comparable performance as fresh catalyst) Approach： Determine optimum regeneration conditions Regeneration Ratio Of Spent Catalyst（RDS) 25％ Mild Regeneration condition Severe 6％ Japan Idemitsu Reference： hydroprocessing（2000） p．407 8 Ⅱ By-Product Recycle to FCC Environ. Impact ：Minimize Product Value Add：Maintain FCC By-Products Petrochemical Plant Residue in middle distillate range Low polymers (PE, PP) 9 Ⅲ Energy Conservation Environ. Impact ：Minimize Product Value Add：Maintain Improved energy efficiency more than 15% in the past 20 Years Energy Conservation by TPM TPM: Total Productive Management Energy Conservation Task Force (company-wide activity) Energy Efficiency (%) target ▲１５％ Fiscal Year 10 Optimization of Cleaning Cycle of Heat Exchangers Purpose: Optimize Cleaning Cycle of Heat Exchangers Conditions: Balance Cleaning Cost and Energy Conservation Approach: Estimate Quantitatively Fouling of Heat Exchangers Saved 9,000 (kl/y) of energy U値 Fouling Index 500 400 Estimate Heat Exchanger Fouling Index of the end of 2 years’ operation in the first few months. ⇒ Determine Optimum Cleaning Cycle 300 200 100 0 Opening and Cleaning Day 11 Ⅲ Energy Conservation Environ. Impact ：Minimize Product Value Add：Maintain Improved energy efficiency more than 15% in the past 20 Years Energy Conservation by TPM TPM: Total Productive Management Energy Conservation Task Force (company-wide activity) Energy Efficiency (%) Advanced Process Control Real Time Optimization System target ▲１５％ Fiscal Year 12 Optimization of Utilities (Total Utility Management) Operation Scheduling: Utility Scheduling: Purchase Crude Oil Processing and Process Operation Schedule based on Market Demand Need detailed coordination of operation schedule and utility supply balance. Develop Cost minimum utility supply plan in real time Hydrogen Purchase Crude Oil Refinery Fuel Refinery Processes Weekly Operation Schedule Steam Products Electric Power Purchase & Selling 13 Ⅲ Energy Conservation Environ. Impact ：Minimize Product Value Add：Maintain Improved energy efficiency more than 15% in the past 20 Years Energy Conservation by TPM TPM: Total Productive Management Energy Conservation Task Force (company-wide activity) Energy Efficiency (%) Advanced Process Control Real Time Optimization System Operation Management System (XHQTM) target ▲１５％ Fiscal Year 14 Optimization of Utility Supply (Management by XHQTM) Enabling refinery operation information sharing simultaneously and in real time Timely Decision and Problem Solving（from the top management to operators) Headquarters Technical Service Center ・Problems happening at the site of operation ・Best practices of energy management Refinery Technical Service Staff Refinery Operation Groups 15 Enhancement of Competitiveness and Environmental Preservation in Petrochemical Complex Develop energy management practices from one refinery to the whole petrochemical complex Petroleum Products Petrochemical Products Catalysts By-Products Process Energy Minimize Environmental Load Waste Material Waste Heat Petrochemical Complex Refinery Maximize Value of Products Crude Oil Naphtha 16 Cold Energy Utilization at Chita Environ. Impact : Minimize Cold Energy from Chita LNG’s Vaporization Plant is introduced to Aichi refinery for process cooling ⇒ To improve cooling efficiency of the refinery LNG To reduce sea water intake. Power Plant Fuel Vaporizer × Connecting a Pipeline To reduce cold energy discharge. Reduced 40,000Kl of crude oil throughput. × Crude Oil CDU Residue Oil RFCC Power Plant Idemitsu Aichi Refinery LPG Recovery LPG Propylene Gasoline Gas Oil Idemitsu Aichi Refinery Chita LNG Chita LNG Sea Water Product Value Add : Maximize ・Increase Recovery Ratio of LPG and Propylene ・Increase Crackability ・Energy Conservation Started operation in 2013 as one of the programs of RING’s “Projects for Stable Supply of Petroleum Products”17 RING：Research Association of Refinery Integration for Group-operation Epilogue Technology Management of Refineries for Future - Keep up with the latest technology - Build up operation technology and know-how elaborately - Balance between value of products and impacts to environment - Essential for the next generation refinery 18 Technology Exchange with Oil Producing Countries Oil producing countries and Japan are good business partners into the future. Idemitsu Kosan will promote technical exchange with oil producing countries through the JCCP programs. 19 Thank you for your attention 20