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IHS CHEMICAL

Hydrocracking by Slurry Process

Process Economics Program Report 211C

November 2017 ihs.com

PEP Report 211C

Hydrocracking by Slurry Process

Gajendra Kumar
Principal Analyst
IHS Chemical | PEP Report 211C Hydrocracking by Slurry Proces

PEP Report 211C

Hydrocracking by Slurry Process
Gajendra Kumar, Principal Analyst

Abstract

Rising demand for transportation fuels and petrochemicals as well as the rising supply of heavy residue of
crude oil have resulted in a renewed interest in the processing of heavy residue to generate useful lighter
fuels and chemicals. Nonconventional feeds such as vacuum residue and heavy oils have shown high
potential as alternate sources for the production of high-value transportation fuels, as these are abundantly
available. These feeds are of low quality because of the presence of impurities like Conradson
carbon residue (CCR), asphaltenes, sulfur, nitrogen, and heavy metals.

Several process technologies have been developed to upgrade these feeds, which can be broadly divided
into carbon rejection and hydrogen addition processes. Carbon rejection processes mainly are visbreaking,
steam cracking, fluid catalytic cracking, and coking, while hydrogen addition processes are hydrocracking,
fixed-bed catalytic hydroconversion, ebullated catalytic bed, slurry bed catalytic hydroconversion,
hydrovisbreaking, and hydropyrolysis.

Though coking, resid fluidized catalytic cracking (RFCC), and hydrocracking are the major commercial
residue upgrading processes, slurry-phase hydrocracking is gaining popularity among refiners. PEP Report
228, Refinery Residue Updating (June 2000) covered the above-mentioned processes. In this report, we
cover slurry-phase hydrocracking technology for upgrading vacuum residue and the production economics
thereof. The main advantage of the slurry-based process is that it can process a variety of feedstocks from
refinery residue with more than 90% conversion. Also, as dispersed catalyst is used in the reactor, it is not
prone to plugging from coke.

In this design, we have presented our understanding of the process technology and production economics
of the following slurry-phase hydrocracking technologies:

• Honeywell UOP’s Uniflex™

• KBR’s Veba Combi Cracker (VCC™)

• ENI’s slurry technology (EST)

We also describe our understanding of other slurry-phase hydrocracking technologies, such as the Chevron
Lummus Global (CLG) LC-SLURRY process.

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IHS Chemical | PEP Report 211C Hydrocracking by Slurry Proces

Contents

1 Introduction 10
2 Summary 12
General perspective on residue upgrading technologies 12
Commercial aspects 13
Technical aspects 14
Technologies for residue upgrade 14
Slurry hydrocracking 15
Operating conditions 16
Process summary 16
Process economics 17
Economics calculation modules for non-US regions 19
Other residue upgrading technologies 19
Carbon emissions and water usage 21
3 Industry status 23
Crude oil quality 23
Crude oil supply/demand 24
Refined products market 25
Refining capacity 26
Refining market impact from a 2020 marine fuel sulfur reduction 27
Impact on prices and refining margins 31
Hydrocracking market 33
4 Technology review 37
Refinery feedstock 38
Crude oil properties 39
Refinery products 40
Crude distillation 41
Refinery residue 41
Properties of refinery residue 42
Residue upgrading processes 44
Carbon rejection process 45
Hydrogen addition process 48
Fixed-bed hydrocracking 49
Ebullated-bed hydrocracking 50
LC-FINING 55
H-OilRC process 58
HC-OilDC process 59
HCAT® hydrocracking 60
STRONG technology 61
Slurry-phase hydrocracking 62
Microcat-RC™ process 63
MRH process 64
Slurry-bed process by China University of Petroleum 66
KOBELCO SPH 66
HDH technology 68
Super oil-cracking (SOC) technology 68

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IHS Chemical | PEP Report 211C Hydrocracking by Slurry Process

KBR Veba Combi Cracker (VCC™) technology 68

Historical development of VCC™ technology 69
Principles of VCC™ technology 70
Catalyst 72
Value proposition for VCC™ technology 74
Slurry reactor hydrodynamics 74
Feedstock flexibility 75
Refinery integration 75
Coker versus VCC™ technology 77
Eni slurry technology (EST) 78
Historical development of EST technology 78
Principles of ENI slurry technology 80
Catalyst mechanism 81
Value proposition for Eni slurry technology 82
Commercial experience 83
UOP slurry hydrocracking process Uniflex™ 84
Historical development of Uniflex™ technology 84
Principles of Uniflex™ technology 85
Catalyst 86
Value proposition for Uniflex™ technology 87
Comparison of residue conversion technologies 87
Commercial experience 89
LC-SLURRY process 90
Slurry hydrocracking process review 91
Chemistry 91
Residue hydrocracking mechanism 92
Reaction kinetics 94
Hydrocracking thermodynamics 96
Development of catalysts for slurry-phase hydrocracking 97
Oil-soluble catalyst 97
Water-soluble catalyst 98
Process variables in hydrocracking 99
Slurry-phase hydrocracking process conditions 101
5 Slurry-phase hydrocracking via KBR VCC™ technology 106
KBR VCC™ technology block diagram 106
VCC™ technology design basis 107
Feedstock and product properties 108
VCC™ process flow diagrams and process description 108
Section 100—Vacuum residue reaction and separation 109
Section 200—Vacuum gas oil reaction and separation 110
Process discussion 116
Feedstock 116
Reactor 116
Hydrogen supply 117
Storage 117
Offsites and miscellaneous package units 117
Recycle gas treatment unit 117
Hydrogen purification unit 118
Process waste effluent 118
Materials of construction 118
Cost estimates 121
Fixed capital costs 122
Production costs 122
6 Slurry-phase hydrocracking via Eni slurry technology (EST) 127
EST block diagram 127
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IHS Chemical | PEP Report 211C Hydrocracking by Slurry Process

EST technology design basis 128

EST process flow diagrams and process description 129
Section 100—Hydrocracking unit 130
Section 200—Product separation unit 131
Section 300—Solvent deasphalting unit 131
Process discussion 137
Feedstock 137
Reactor 138
Catalyst 138
Hydrogen supply 138
Storage 138
Offsites and miscellaneous package units 138
Recycle gas treatment unit 138
Hydrogen purification unit 139
Process waste effluent 139
Materials of construction 139
Cost estimates 142
Fixed capital costs 142
Production costs 143
7 Slurry-phase hydrocracking via UOP Uniflex™ technology 148
UOP Uniflex™ technology block diagram 148
Uniflex™ technology design basis 150
Feed and product properties 150
Uniflex™ process flow diagrams and process description 151
Section 100—Hydrocracking unit 152
Section 200—Product separation unit 153
Process discussion 158
Feedstock 158
Reactor 158
Catalyst 159
Hydrogen supply 159
Storage 159
Offsites and miscellaneous package units 159
Recycle gas treatment unit 159
Hydrogen purification unit 160
Process waste effluent 160
Materials of construction 160
Cost estimates 163
Fixed capital costs 163
Production costs 164
Appendix A—Patent summary table 168
Appendix B—Design and cost bases 174
Design conditions 175
Cost basis 175
Capital investment 175
Production costs 176
Effect of operating level on production costs 176
Appendix C—Cited references 178
Appendix D—Patent summaries by company 184
Appendix E—Process flow diagrams 186

Tables
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IHS Chemical | PEP Report 211C Hydrocracking by Slurry Process

Table 2.1 Comparison of different hydroprocessing reactors 13

Table 2.2 Comparison of different process for residue upgrading 15
Table 2.3 Licensors for slurry-phase hydroconversion processes 16
Table 2.4 Process summary for three evaluated processes 17
Table 2.5 Overall comparison of slurry-phase hydrocracking economics—TFC investment for
50,000 bpsd vacuum residue upgrade 18
Table 2.6 Overall comparison of the slurry-phase hydrocracking process economics—Production
cost for upgrading 50,000 bpsd vacuum residue 19
Table 2.7 Process economics for upgrading residue via other technologies 20
Table 2.8 Carbon emission from slurry-phase hydrocracking processes 21
Table 2.9 Carbon emission from petroleum products 21
Table 2.10 Water usage comparison 22
Table 3.1 Types of crude oil and distillation yields 24
Table 3.2 World supply/demand for crude petroleum—2015 to 2020 25
Table 3.3 World production of refined petroleum products 26
Table 3.4 World refining capacity based on different processes and years 26
Table 3.5 Hydrocracker average annual capacities 35
Table 4.1 Typical crude oil composition 38
Table 4.2 Properties of crude oils 40
Table 4.3 Principal compositional characteristics of heavy crude oils and bitumens 42
Table 4.4 Asphaltene and maltene content and elemental characterization of residua 43
Table 4.5 Composition of resid solvent fractions 43
Table 4.6 Major FCC processes 45
Table 4.7 Major coking process technologies 46
Table 4.8 Air emissions 47
Table 4.9 Major gasification process technologies 47
Table 4.10 Major SDA process technologies 47
Table 4.11 Major visbreaking process technologies 48
Table 4.12 Major hydrovisbreaking processes technologies 48
Table 4.13 Major fixed-bed hydroprocessing technologies 50
Table 4.14 EBR catalyst portfolio by ART 54
Table 4.15 Vacuum residue properties processed using LC-FINING process 55
Table 4.16 LC-FINING process product yields from the residues obtained from Arabian light and
heavy crude oils 56
Table 4.17 H-Oil process feedstock and product data 59
Table 4.18 STRONG technology characteristics 62
Table 4.19 Microcat-RC™ process yields from hydrocracking Cold Lake heavy oil vacuum
residuum 64
Table 4.20 MRH process feedstock and product data 66
Table 4.21 Properties of atmospheric topped bitumen and Kobelco SPH product yields and
properties 68
Table 4.22 VCC™ licensees 69
Table 4.23 VCC™ typical syncrude properties 71
Table 4.24 Comparison of VCC™ and coker 78
Table 4.25 Characteristics of different feedstock tested in 0.3 bpsd pilot plant 79
Table 4.26 Experimental yields from CDP test runs 79
Table 4.27 Distillates yields from different residue upgrading processes 83
Table 4.28 UOP Uniflex™ process licensing activities 90
Table 4.29 Gaseous product distribution of feedstock oils in thermal hydrocracking and catalytic
hydrocracking processes 94
Table 4.30 Heat of reaction in hydrocracking reactions 97
Table 4.31 Effect of LHSV on slurry hydrocracking of Ural vacuum residue 103
Table 4.32 Effect of temperature on slurry hydrocracking of Ural vacuum residue 104
Table 4.33 Effect of hydrogen partial pressure on slurry hydrocracking of Ural vacuum residue 105
Table 5.1 KBR VCC™—Design bases and assumptions 107
Table 5.2 Feedstock properties 108
Table 5.3 Product properties 108

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IHS Chemical | PEP Report 211C Hydrocracking by Slurry Process

Table 5.4 Diesel production via KBR VCC™ technology—Main stream flows 111
Table 5.5 Diesel production via KBR VCC™ technology—Major equipment 119
Table 5.6 Diesel production via KBR VCC™ technology—Utilities summary 121
Table 5.7 Diesel production via KBR VCC™ technology—Total capital investment 123
Table 5.8 Diesel production via KBR VCC™ technology—Capital investment by section 124
Table 5.9 Diesel production via KBR VCC™ technology—Production costs 125
Table 6.1 Eni slurry technology—Design bases and assumptions 128
Table 6.2 Feedstock and product properties 129
Table 6.3 Diesel production via Eni slurry technology—Main stream flows 133
Table 6.4 Diesel production via Eni slurry technology—Major equipment 140
Table 6.5 Diesel production via Eni slurry technology—Utilities summary 142
Table 6.6 Diesel production via Eni slurry technology—Total capital investment 144
Table 6.7 Diesel production via ENI slurry technology—Capital investment by section 145
Table 6.8 Diesel production via ENI slurry technology—Production costs 145
Table 7.1 UOP Uniflex™—Design bases and assumptions 150
Table 7.2 Feedstock properties 150
Table 7.3 Product properties 150
Table 7.4 Diesel production via UOP Uniflex™ technology—Main stream flows 154
Table 7.5 Typical red mud composition 159
Table 7.6 Diesel production via UOP Uniflex™ technology—Major equipment 161
Table 7.7 Diesel production via UOP Uniflex™ technology—Utilities summary 163
Table 7.8 Diesel production via UOP Uniflex™ technology—Total capital investment 165
Table 7.9 diesel production via UOP Uniflex™ technology—Capital investment by section 166
Table 7.10 Diesel production via UOP Uniflex™ technology—Production costs 166

Figures
Figure 1.1 Typical yields from various types of crude oil 10
Figure 2.1 Production costs of diesel via slurry-phase hydrocracking processes in the US Gulf
Coast 18
Figure 2.2 Water usage in slurry-phase hydrocracking processes in the US Gulf Coast 22
Figure 3.1 Crude oil density trends 23
Figure 3.2 Crude oil sulfur content trends 24
Figure 3.3 Global refined product demand—2016 29
Figure 3.4 World demand growth—Total refined products 30
Figure 3.5 International product light-heavy spreads 31
Figure 3.6 International light-heavy crude differentials 32
Figure 3.7 Long-term benchmark margin outlook (US Gulf Coast margins includes renewables
identification number costs) 33
Figure 4.1 Block flow diagram for refinery 38
Figure 4.2 Schematic view of crude oil distillation and downstream processing 40
Figure 4.3 Composition and analysis of petroleum fractions 41
Figure 4.4 Hypothetical asphaltene molecule and its interaction with metalloporphyrins 44
Figure 4.5 Schematic representation of H-Oil ebullated-bed reactor 51
Figure 4.6 Schematic representation of LC-FINING ebullated-bed reactor 52
Figure 4.7 Catalyst offered by Criterion 53
Figure 4.9 LC-FINING with integrated HDT schematic 56
Figure 4.10 LC-MAX process schematic 57
Figure 4.11 H-OilRC process schematic 58
Figure 4.12 H-OilDC process schematic 60
Figure 4.13 HCAT® process schematic 61
Figure 4.13 Microcat-RC™ process schematic 64
Figure 4.14 MRH process schematic 65
Figure 4.15 KOBELCO SPH schematic 67

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IHS Chemical | PEP Report 211C Hydrocracking by Slurry Process

Figure 4.16 Historical development of VCC™ process 69

Figure 4.16 Block diagram for VCC™ 72
Figure 4.17 Slurry reactor hydrodynamics 74
Figure 4.18 Conversion of different feeds as function of LPH reactor temperature 75
Figure 4.19 Fuels production (base) 76
Figure 4.20 Gasoline/PX production 76
Figure 4.21 Gasoline/PX/olefins + diesel 77
Figure 4.22 Gasoline/PX/max. olefins + diesel 77
Figure 4.23 ENI slurry technology schematic 81
Figure 4.24 EST catalyst 82
Figure 4.25 Block flow diagram of EST complex at Sannazzaro 83
Figure 4.26 Comparison of the product yields obtained from EST unit with expected data 84
Figure 4.27 Block flow diagram of Uniflex™ technology 86
Figure 4.28 Typical yields from delayed coker and Uniflex™ process 88
Figure 4.29 Typical yields from delayed coker and Uniflex™ process 88
Figure 4.30 Uniflex™ process integrated with delayed coking unit 89
Figure 4.31 Uniflex™ process integrated with UOP/FW solvent deasphalting and Unicracking™
process 89
Figure 4.32 LC-SLURRY optimal reactor configuration for slurry hydrocracking 90
Figure 4.33 Liquid yields from different CLG residue upgrading technologies 91
Figure 5.1 Block flow diagram for KBR VCC™ process 106
Figure 5.3 Diesel production via KBR VCC™ technology—Net production cost and product value
of diesel as a function of vacuum residue price 126
Figure 6.1 Block flow diagram for Eni slurry technology (EST) 127
Figure 6.3 Typical scheme for ROSE® SDA process 132
Figure 6.4 Eni slurry technology—Net production cost and product value of diesel as a function of
vacuum residue feed price 146
Figure 6.5 ENI slurry technology—Net production cost and product value of diesel as a function of
DAO byproduct price 147
Figure 7.1 Block flow diagram for UOP Uniflex™ technology 148
Figure 7.2 Uniflex™ process asphaltene conversion 149
Figure 7.4 UOP Uniflex™ process—Net production cost and product value of diesel as a function
of vacuum residue feed price 167
Figure 5.2 Process flow diagram of KBR VCC™ technology—Section 100 (vacuum residue
reaction and separation) 187
Figure 5.2 Process flow diagram of KBR VCC™ technology—Section 200 (vacuum gas oil
reaction and separation) 188
Figure 6.2 Process flow diagram of ENI slurry-phase technology—Section 100 (hydrocracking
unit) 189
Figure 6.2 Process flow diagram of ENI slurry-phase technology—Section 200 (product
separation) 190
Figure 7.3 Process flow diagram of UOP Uniflex™ technology (section 100—hydrocracking unit) 191
Figure 7.3 Process flow diagram of UOP Uniflex™ technology (section 200—product separation) 192

© 2017 IHS 7 November 2017

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