Used Oil Re-Refining and Blending Plant The Responsible Action. Tampa Bay Association of Environmental Professionals Monthly Luncheon August 21, 2013

Transcription

1 Used Oil Re-Refining and Blending Plant The Responsible Action Tampa Bay Association of Environmental Professionals Monthly Luncheon August 21, 2013

2 Manufacture Base Oils and Lubricants 24 MM gpy Lubricants and mineral oils 28 MM gpy Used Oil 1.5 MM gpy ULSD 2.5 MM gpy Asphalt flux

3 Lubricants Are Made From Base Oil

4 Crude Oil Refineries Produce Base Oil U.S. Base Oil Refiners Group I (MM gpy) Group II (MM gpy) Base oil capacity competes with FCC and hydrocracking of Vacuum Gas Oil (VGO) for fuel markets. Fuels refining economics drive base oil feedstock values. Approx 660 crude oil refineries world-wide produce fuels, but only 165 produce base oil. In North America, only 13 out of 130 refineries produce base oil. American Refining - PA 30 4 Calumet - LA Chevron - CA Ergon WV Excel LA ExxonMobil LA ExxonMobil TX ExxonMobil TX Holly Frontier OK Lyondell Basell TX 0 14 Motiva TX Paulsboro NJ Petro Canada - ON TOTAL 895 1,725

5 Million gpy Lubricants Become a Waste Product % % 75% % % % North America South America Europe Lubricant Demand Collectable UO Collected UO Re-refined BO Kline & Company 2010

6 Disposition of Used Oil in Florida 154MM gallons of used oil and oil wastes are collected in Florida, with 84 MM gallons identified as automotive oils. Used oil is largely used as a boiler fuel by small industrials and power plants, typically priced at a discount to No. 6 Residual Fuel Oil 3% Sulfur. Low natural gas prices and expanding gas distribution systems will decrease the market for used oil as a fuel ($3.50/MMBtu for natural gas vs $10.00/MMBtu for used oil). Increasing scrutiny and regulations to limit burning due to high emissions release Mixed Oils 31 MM Sources (Gallons) Disposition (Gallons) Waste Water Treatment 34 MM Incinerated 2 MM Landfilled 11 MM Industrial 39 MM Automotive 84 MM Phosphate Production 6 MM Boiler Fuel 101 MM Florida Dept of Environmental Protection, 2011 Annual Report

7 Re-refining Competitive Landscape Ten large existing re-refining plants represent a total capacity of 318 MM gallons of used oil annually Six plants produce Group II while four plants produce lower quality Group I or VGO Group I and II plants currently produce approximately MM gallons of base oil annually, or approximately 10% of the total U.S. demand ORRCO 8 MM Group I Evergreen 24 MM Group II Bango 20 MM Group II Universal 12 MM Group II Safety Kleen 30 MM Group I 110 MM Group II Heartland 24 MM Group II Heritage 30 MM Group II Mil Speck 25 MM Group II FCC 40 MM Group II Noble 30 MM VGO Avista 30 MM Group I Existing Re-refinery Omega 30 MM VGO NexLube Tampa 24 MM Group II Announced Re-refinery

8 Tampa is a Great Site June 2012 August 2012

9 2012 Site Photos September 2012 November 2012

10 2013 Site Photos March 2013 April 2013

11 2013 Site Photos June 2013 August 2013

12 Plant Employment Tank Farm: 6-8 Operations: Blending: Engineering: 5-7 Administrative: 4-7

13 Used Oil Can Be A Threat To Public Health and Environment 1 Gallon of used oil can pollute 1 Million gallons of water Combustion of used oil releases Polycyclic Aromatic Hydrocarbons - (PAHs) - identified as carcinogenic, mutagenic, and teratogenic. Chlorinated organics, heavy metals and organic compounds such as PCB s and dioxins into the atmosphere. Nitrogen Oxides (NOx) - reacts with water to make nitric acid. Sulfur Dioxide (SO2) precursor to acid rain. DOE estimates 7-10 million barrels per year of used oil is illegally dumped. This is about twice the estimated amount of crude oil spilled into the Gulf of Mexico by the BP Macondo well in April 2010.

14 DOE Energy Policy Act of 2005 Used Oil Re-refining Study Antiwear: Zinc dithiophosphates, acid phosphates, organic sulfur and chlorine compounds. Sulphurized fats, sulfides and disulfides Detergents: Metallo-organic compounds of sodium, calcium and magnesium phenolates. Phosphonates and sulphonates Anticorrosion: Zinc dithiophosphates, metal phenolates, fatty acids and amines Dispersants: Alkylsuccinimides, alkylsuccinic esters Friction Modifiers: Organic fatty acids. Lard oil. Phosphorous based compounds Pour point depressants: Alkylated naphthalene and phenolic polymers, polymethacrylates Seal Swell Agents: Organic phosphates, aromatic hydrocarbons Viscosity Modifiers: Polymers of olefins, methacrylates, di-enes or alkylated styrenes Antifoamant agents: Silicone polymers, organic copolymers Antioxidants: Zinc dithiophosphates, aromatic amines, sulphurized phenols Metal Deactivators: Organic complexes containing nitrogen and sulfur amines, sulphides Phosphates

15 DOE Energy Policy Act of 2005 Used Oil Re-refining Study

16 DOE Energy Policy Act of 2005 Used Oil Re-refining Study Waste Management Ranking (from Environmental Perspective) Most Preferable Least Preferable Option Prevent the waste in the first place Re-use and reclaim the product Recover energy by burning Dispose of the waste by land filling or incineration Considered Action Step Source reduction (e.g. extended oil drain intervals) Re-refine used oil Combust used oil for heating value recovery* Recover and collect used oil for proper disposal *The environmental ranking of combusting used oil depends on the fuel that is displaced. Displacement of high environmental impact fuels like coal or petroleum coke would make combustion of used oil rank higher from an environmental perspective.

17 Government Requirement for Re-Refining Used Oil The Resource and Conservative Act Section 6002, Appendix and 9.6.3, and Executive Order ( April 2000) No federal agency shall purchase, sell or arrange for the purchase of virgin petroleum motor lube oils when re-refined motor lube oils are reasonably available and meet the vehicular manufacturer s recommended performance standards. U. S. Department of Energy, Energy Policy Act of 2005, Section 1838 Re-refining used oil is the most preferred option for the environment and gives the highest ultimate value disposition. Increasing the volume of used oil available for rerefining offers the maximum energy conservation and environmental benefits. Rerefining used oil recovers not only its inherent heating value, but also preserves its unique chemical composition so it can be re-used in producing fresh lube oil.

18 Used Oil Disposal Choices in Florida Incineration Unsustainable process Destroys hydrocarbon Hazardous air emissions Potential health risks Fuel Market Unsustainable process Destroys hydrocarbon Hazardous air emissions Potential health risks Re-Refining Sustainable process Infinite life cycle Eliminate hazardous air emissions Big economic impact Reduce dependence on imported crude

19 NexLube Reduces the Environmental Impact Of Used Oil Emissions Burned Small Boiler Tons/Year Re-Refining Tons/Year NOx 228 <25 CO 60 <1 SO2 882 <25 PM 62 <2 These emissions are based on EPA and DOE Energy Policy Act of 2005 calculated for 24 Million gallons of used oil. The option of using used oil as a fuel resulted from not having other options for disposal. Now, there is an option. Re-Refining used oil utilizing new and proven pollution control technology significantly reduces air pollutants.

20 Revivoil TM Process Used oil Preflash Thermal De-asphalting Light HC Water Dry Oil Hydrofinishing Gasoil ULSD Asphalt Base Oil Spindle Light Heavy White Oil

21 Typical Fully Integrated Thermal Oxidation System Pollutant Permits Expected Value NOx 100 TY 16 TPY SO2 100 TY 16 TPY CO 100 TY <1 TPY

22 Re-refining is a Viable, Proven, Responsible Alternative NexLube is committed to recovering the most valuable products from a waste. Helps us grow and prosper as a nation by meeting recycling and green economy targets. NexLube s new technology will be able to process used automotive oils generated throughout Florida. Addresses EPA emphasis to discover environmentally friendly high technology solutions. Encourages governmental agencies, private companies and citizens to consider re-refining used oil as an alternative to burning as a fuel. Facilitates the Federal mandate for purchasing at least 25% rerefined lubricants.

23 Re-Refining is the RESPONSIBLE ACTION From a hazardous waste to a usable and sustainable product

24 Thank You For Your Time Monte Bell President North Dallas Parkway Addison, TX Office