Carbon Reduction Management for Refineries - Case Study Example

Carbon management plan for Refineries By Outline Carbon management plan for Refineries Thesis: Identifying carbon management strategies in the refinery industry I. Executive Summary 4 II. Purpose of the Plan: Identifying carbon management strategies in the refining industry 4 III. Introduction a. Contribution of the refinery industry to carbon emissions in the atmosphere 4 b. Introduce various carbon management strategies including energy efficiency 5 c. An overview of the concept of carbon footprint 6 IV. Carbon Foot: Examines the average carbon footprint in a refinery 6 V. Discuss the various sources of fuel in refineries 6 VI. Carbon Management Strategies a. Energy efficiency: How energy efficiency reduces carbon emission 7 b. Fuel Sub substitution: Introduction to various alternative fuels 8 i. Bio-fuel: over view of bio-fuel as an alternative to fossil fuels in the refinery 8 ii. Natural gas: how it helps to reduce carbon emission 9 iii. Solar Power: production and application of solar power in refineries 9 iv. Wind Power: Production and utilisation of wind power by Refineries 10 v. Economic benefits of the alternative sources of fuels in refineries 10 c. Carbon Capture i. Introduction to carbon capture as a carbon management strategy 10 ii. Effectiveness of carbon capture in reducing carbon emission by refineries 11 iii. The carbon capture stages 11 d. Carbon offsetting i. Introduce and define the concept of carbon offsetting 12 ii. Examine hoe the concept of carbon offsetting serves facilitates reduction of carbon emissions 12 iii. Evaluate the economic benefits of carbon offsetting and how it works 13 e. Carbon Lock-in i. Introduce and define carbon lock-in 14 ii. Examine various ways of enhancing carbon lock-in 14 iii. The role of government policies and corporations in enabling carbon lock-in 15 iv. How carbon lock-in increases the amount of carbon in the atmosphere 16 VII. Conclusion: summary of carbon management strategies and carbon offsetting and lock-in concepts 17 VIII. Bibliography 18 Executive Summary Gas refining is currently the largest part of the coal and petroleum industry. Refining industries use the highest percentage of energy in the manufacturing sector and emit huge amounts of carbon to the atmosphere. Carbon management is an important initiative in the refining industry since it helps reduce the amount of greenhouse gases within the atmosphere and facilitates efficiency in energy consumption in the industry. The essay establishes a project plan for managing carbon emissions and their footprints in the refining industry. In addition, it provides a critical analysis of the various carbon footprints in the petroleum industry. The plan establishes the carbon management plans available and identifies the most efficient one for refineries. Moreover, it evaluates the carbon lock-in and offsetting relative to the refineries. Purpose of the Plan The carbon management plan aims at identifying carbon management strategies in the refining industry. Additionally, it evaluates various concepts on carbon reduction in refineries. Introduction The use and production of petroleum-based fuels accounts for approximately half of carbon emissions in the world. It is important to explore various methods of reducing carbon levels in the refining industry. The amount of carbon emitted by other manufacturing sectors is reducing drastically due to the employment of effective energy sources such as sunlight, wind and agricultural wastes. The refining industry faces criticism from environmental activists because of the large amounts of carbon it emits. In addition, the industries consume huge amounts of energy resulting to considerably high carbon levels in the atmosphere. The hope of effective fuel efficacy and minimised carbon emissions in the refineries lies in the use of environmentally friendly technology and green fuels (Shunshun, 2012: 6). Carbon management is crucial presently because of the initiatives taken to conserve the environment and enhance fuel efficacy in the manufacturing and processing industries. Corporate responsibility and environmental consciousness contributes to the growing interests of organisations to explore various carbon reduction strategies. Businesses, especially in the petroleum-manufacturing sector, are making improvements regarding their approach towards carbon emission reduction. The industries can fast track their impact on the global climate by evaluating their carbon footprint (Busch and Shrivastava, 2011: 5). Carbon management enables companies to establish modus operandi of minimising carbon emissions and energy efficiency projects. Many organisations lack a definitive approach that espouses the management of carbon emissions. The companies are likely to establish ways of reducing carbon emissions by examining carbon emission data. They are also likely to initiate carbon reduction projects and implement fuel efficiency in their production process. Carbon management enables businesses to reduce the costs of energy and enhance their public relations (Shunshun, 2012: 3). The petroleum industry uses coal and petroleum fuels in the manufacturing processes, which emits huge amounts of carbon to the atmosphere. The effects of the emissions are evident in the climatic changes ascribed to global warming (Busch and Shrivastava, 2011: 21). In addition, the industries use copious amounts of energy, which affects environmental conservation initiatives. Carbon emissions in industries leads to global warming hence changes in climate patterns. Energy consumption affects carbon emission directly, implying that differential consumption of energy in manufacturing industries reduces carbon emissions (Worrall et al., 2009: 2). A carbon footprint is the amount of green house gases that refineries produce. It is the sum of carbon emissions induced by refinery activities. The calculation of the carbon footprint te evaluation of the carbon gases produced by a company within a particular time. Fuel consumption is the best approach of evaluating the carbon emissions ascribed to an industry. The calculation involves evaluating the carbon produced based on the rate of fuel consumption. For example, in the United Kingdom, for each gallon of fuel consumed, there is an emission of 10.4kg of carbon. Carbon footprint in Refinery The footprints of a typical refinery enable the quantification of the carbon emitted. The paper considers a European FCC-based refinery. It processes 150,000 BPSD of crude oil that generates all power and steam on site, including the refining of fuel oil to fuel gas. Sources of Carbon Emissions in Refinery The various sources of carbon in a refinery include power and steam production, FCC coke, production of hydrogen and the units that convert fuel to refined products. These sources of carbon depend on the refinery’s fuel consumption rates. Various factors determine the emissions of a single refinery such as the configuration of the finery and the type of fuels used by the refinery. The configuration of the refinery is the major determinant of the amount of carbon it emits. Simple hydrosimming configurations produce fewer emissions than their complex counterparts do. The fuels that a refinery uses have an impact on the amount of carbon it produces. The processing of heavy sour crude oil requires a substantial amount of energy while the light sweet crude uses less energy. Carbon Management Strategies There are various approaches to carbon management in a refinery, ranging from the simple low-cost strategies to the expensive, complex approaches. The strategies of reducing carbon in a refinery fall under several categories that include energy efficiency, carbon capture, substitution of the fuel, use of green heat and power. Energy efficiency Energy efficiency connotes performing a certain task using a sustainable amount of energy. It entails reducing energy consumption rates in a company by utilising efficient energy sources and mechanisms. Energy efficiency is a cost effective mechanism and requires minimal capital investment. In oil refineries, energy efficiency facilitates carbon emissions by reducing the amounts of fuel consumed by the refinery. The number of emissions from a refinery relates directly with the amount of fuel consumed. By minimising fuel consumption, the refinery serves reduces its carbon emissions effectively. There are various ways of implementing energy efficiency in refineries, which include blocking steam leaks, adjusting the levels of oxygen in furnaces to enhance heat production and enabling employees’ focus on energy efficiency. Blocking steam leaks prevents energy loss through steam. In addition, it is easier and more efficient to control fuel consumption in a refinery by controlling the level of oxygen in the furnaces. Advancements in technology facilitate the development of energy-efficient systems for heating process in the refinery. The refinery can minimise carbon emissions by adopting a new and advanced approaches in their heating processes. The refinery can also enhance employee awareness regarding energy efficiency. Creating employee awareness facilitates a responsible approach towards the implementation of energy-efficient approaches in the refinery Fuel Substitution Hydrocarbon fuels have significantly different amounts of carbon and this leads to significantly different carbon emissions for equal energy levels. The table bellow provides a comparison of the different sources of fuel and their respective levels of carbon emission. Fuel Calorific value (kJ/kg) CO2 tonnes/ tonne CO2 tonnes/ FOE tonne Methane 50,000 2.75 2.20 Ethane 47,500 2.93 2.47 Propane 46,300 3.00 2.59 Ethylene 47,200 3.14 2.67 Fuel Oil 40,000 3.21 3.21 Hydrogen 119,900 0 0 The refinery reduces carbon emissions by changing from oil-firing fuels to natural gas. This serves to reduce the carbon emission significantly, based on the table above. The use of natural gases is economically viable given the increase in the prices of oil-fire fuels. Additionally, the company reduces the amount of fuel it uses by almost a third. Natural is easily available and has lower polluting effects on the environment (Corbo and Migliardini, 2009: 9-14). Bio-fuel Oil refineries are currently investing into finding alternative sources of fuel that are effective in reducing carbon emissions and the cost of production. Bio-fuels are one of major source of fuel that refineries presently use (Corbo and Migliardini, 2009: 12). Agricultural products are the main ingredients of the fuel. Agricultural crops, such as palm oil and sugar cane are effective sources of bio-fuel across the globe. Organic compounds with high levels of hydrogen and carbon compounds are similarly apt sources of bio-fuel. This source of fuel has minimal pollutant effects on the environment. The fuel does not contain heavy metal or sulphur compounds that cause pollutions when petroleum burns. They provide adequate and effective energy to power the refinery plant (Henry, 2010: 28). Natural gases Natural gas is another alternative source of fuel used in refineries. It mainly comprises of butane and propane, which are abundant in various countries across the world. The Fischer-Tropsch process converts the gases into viable sources of fuel for powering the refinery (Xu, Wu and He, 2013: 35). Solar Power Many companies are looking into generating solar power for use in electricity production. There two ways of generating solar power, which include the use of photovoltaic cells to tap radiant rays from the sun and the concentrating solar power system. Solar power is useful in heating process and the powering of electrical machinery in the refinery. Solar power is also essential for lighting systems in the refineries hence enhancing power efficiency. The process of generating power through solar energy is, however, expensive, and the amount of power generated is not adequate for industrial use (Chen, Sheng and Kanjanaphachoat, 2011: 6812-6815). Wind Power Wind power is cost-effective and is the second largest form of power utilised by various industries across the globe. The process of generating the power entails turning of turbines by wind to produce electricity. The refineries can use the power to run various electric systems such as motors, electronics and boilers. The power is environmentally friendly and has no carbon emissions Economic Benefits The current technology in refineries limits the process of replacing fossil fuel with natural gas and bio-fuel. Most refineries use a technology that promotes cost-effectiveness by using fossil fuels hence limiting other alternatives. Competition and economic factors therefore limit the use bio-fuels and natural gas in refineries. The refineries are, however, researching on applicable technologies that facilitate the utilisation of alternative fuels in the industry. Carbon Capture The oil and gas industries use carbon capture to recover oil from carbon products. This method entails trapping the carbon used by refineries and damping it safely. The main stages of the capture and storage (CCS) process include trapping carbon and separating it from other gases, transferring the carbon to the storage site and keeping it away from the atmosphere. The methods of collecting carbon are pre-combustion, post-combustion and oxy-fuel combustion. A refinery uses fossil fuels for burning crude oil. The process of combusting fossil fuels produces carbon and other emissions (David and Herzog, 2000: 14). The pre-combustion process is useful in removing carbon from natural gas. After combusting fossil fuels, it emits carbon, water vapour, nitrogen oxides and sulphur. The products undergo a separation process, which involves the removal of carbon from the mixture. This process is effective in removing ninety percent of carbon from the by-products of fossil fuel combustion. The pre-combustion process involves the elimination of carbon from the fossil fuel before burning. It entails heating a mixture of coal and natural gas in a pure oxygen environment (Gibbins and Chalmers, 2008: 4319). The process produces a mixture of carbon monoxide and hydrogen. A catalytic converter facilitates the process of producing hydrogen and carbon dioxide from the mixture. The process ends with the separation of carbon dioxide from hydrogen gas using amine. The oxy-fuel combustion carbon capture involves the burning of fossil fuels alongside oxygen to produce a mixture of steam and carbon dioxide. The mixture undergoes a thorough a cooling and compressing process, which separates carbon from the steam. The process is costly but enables the elimination of 90 percent carbon from the refineries (Haszeldine, 2009:1648). The refineries use fossil fuels for heating processes which results in the increased emission of carbon to the atmosphere. The emissions contribute to global warming, hence climate change. Alternative fuels such as bio-fuels and natural gas are effective in minimising carbon emissions from the refineries to the atmosphere. In addition, the fuels are cost-effective, making them economically viable. Most governments across the world are in the process of facilitating the use of natural gas for industrial purposes. This helps to reduce the high levels of carbon emission to the atmosphere. Another approach of mitigating carbon emission is the use of environmental-friendly sources of power such as wind and the sun (Wall, 2007: 41). Wind power is adequate for industrial use and is cost-effective. Most refineries currently use wind power to run their electrical and electronic systems. The power is clean and produces no carbon during its generation. Solar energy, just like wind energy, is environmentally friendly and cost-effective. In addition, this form of power requires less capital to generate compared to fossil fuel and there is no production of carbon during its generation. Carbon capture is another mechanism of removing carbon from the atmosphere. This method removes most of the carbon from the atmosphere but is less effective compared to the use of bio-fuel, natural gas, solar and wind sources of fuel (Wall, 2007: 43). Carbon Offsetting Carbon offsetting involves decrease carbon and other greenhouse gasses in a certain location with the aim of making up or counterbalancing carbon emission in another place. The standard measurement for Carbon counterbalances is metric tons; it measures the amounts of carbon dioxide-proportionate (Co2e) and may refer to six essential types of greenhouse gasses such as carbon dioxide (Co2), methane (Ch4), nitrous oxide (N2o), perfluorocarbons (Pfcs), hydrofluorocarbons (Hfcs), and sulfur hexafluoride (Sf6). One carbon counterbalance is equivalent to carbon dioxide or other greenhouse gases in the tune of one metric tonne (Worrall et al., 2009: 26). Carbon offsetting comprises of two markets, which include the bigger, consistent market, organizations and governments, or different entities that purchase carbon counterbalances in order to conform to regulations on the aggregate sum of carbon dioxide that authorities allow them to emit (Labatt and White, 2007). This business operates in conjunction with the commitments of Annex 1 ascribed to Parties that relate with the Kyoto Protocol as well as obligated elements found under the EU Emission Trading Scheme. It was emergent in 2006 that an approximate $5.5 billion carbon offsets resulted from the business sector, peaking to around 1.6 billion metric huge amounts of Co2e diminishments (Shunshun, 2012: 14). In the much more diminutive, international business, people, organizations, or governments buy carbon offsets to relieve individual emissions of greenhouse gases arising from transportation, power utilization, and other different sources (Neeff et al., 2009). For Instance, an individual may buy carbon offsets to make up for the carbon emissions resulting from individual air travel. Numerous organisations offer carbon counterbalances as an up-offer to enable their clients to counter carbon emissions resulting from the use of carbon-emitting fuels (Mair, 2011: 220). Monetary backing facilitates carbon-offsets regarding the undertakings that facilitate reduction of the emission of greenhouse gases both in the long and short terms. The most widely recognized undertaking sort is renewable energy, which comprises of the wind power, biomass vitality, or hydroelectric dams. Others incorporate vitality productivity ventures, the annihilation of mechanical poisons or horticultural side effects, decimation of landfill methane as well as forestry projects. Energy efficiency and wind power are the major undertakings by a corporate to reduce carbon emissions to the atmosphere (G"ossling et al., 2007: 247). Carbon offsets are cheap and convenient alternatives for reducing an individuals consumption of fossil fuels. Critics oppose the concept of carbon-offset bases owing to the limitations in its benefits (Mair, 2011: 224). These offsets are however, an integral part of environmental conservation. The major setback of the policy on climate change is the unequal prices ascribed to carbon within the economy. These can result in collateral damage in case it moves to regions with commercial enterprises that have lower costs of carbon. Offsetting is very effective in the refinery industry. Refineries purchase offsets to cater for carbon reduction activities including tree planting, the construction of dams and establishment of windmills. In addition, the refineries take part in green house reduction activities that enhance the carbon-offsetting concept. The refineries also buy these offsets on behalf of their customers hence they are able to compensate for the customers’ use of petroleum products at personal level (Lovell, Bulkeley and Liverman, 2009: 2357). Carbon Lock-in Carbon lock-in refers to the self-controlling inertia that the large fossil fuel-based energy sources and systems create. The inertia prevents the initiatives taken by the public to contain climate changes resulting from carbon emission to the atmosphere. Carbon lock-in entails the refrains that the current systems in the energy sector put towards the adoption of environmentally friendly energy systems. It results from previous government and corporate policies r regarding domestic and industrial sources of energy (Laihui, 2009: 13). The policies set by various governments to regulate energy production and consumption limits the efforts made to manage carbon in the atmosphere. Regardless of the efforts made by the corporate to adapt to environmentally friendly sources of energy, the current systems create a barrier. It is, therefore, important to evaluate the present energy generation and consumption systems in order to develop systems that are more effective in terms abating carbon emissions. In addition, various governments across the world are not ready to adopt new approaches of energy distribution owing to the associated high costs of re-inventing existent energy systems (Unruh, 2002: 316). Carbon lock-in results from systems’ interaction with government policies and inhibits the efforts of introducing renewable sources of energy. For example, the process of generating electricity involves utilising huge amounts of fossil fuels that facilitate the emission of carbon to the atmosphere (Unruh, 2000: 825). These types of systems generate high amounts of power for industrial and domestic use. The installation of these systems requires huge capital investment by the government and other corporations. It therefore creates a carbon lock-in within the power generation sector. Government policies inhibit the adoption of new systems because of the cost of installing incumbent systems and their effectiveness in power generation regardless of the amount of carbon they emit. Moreover, most businesses enhance carbon lock lock-in since they are reluctant to install energy efficient systems that facilitate carbon emission to the atmosphere. The efficiency of the fossil fuel-based systems and the cost of their installation enhance carbon emission in the atmosphere by limiting efforts to adapt to new systems (Unruh and Carrillo-Hermosilla, 2006: 1190). The refinery industry contributes the highest amount of carbon to the atmosphere. Refineries use fossil fuels in most of their process including onsite and offsite operations. The burning of these fuels at the refineries espouses greenhouse gas emissions to the atmosphere. The design of the systems in the refineries is dependant on fossil fuels. The main source of energy for the petroleum refining processes is fossil fuel. Fossil fuel is efficient and cost-effective; hence, companies are reluctant to adopt the use of environmentally friendly fuels (Labatt and White, 2007). In addition, economics as a factor prevents the refineries from installing new systems because of the cost of installation associated with renewable energy sources. For instance, a company that runs effectively on fossil fuel tends to stick to the old systems regardless of the impact they have on the environment. Moreover, the automotive manufacturers emulate the diesels and petrol vehicles because of their high demand. Most of the people prefer to drive these cars due to the efficiency and strength associated with them, hence the high demand. These systems tend to limit efforts aimed at adapting energy effective systems both at the refineries and at consumer level. The refineries also depend on the national grid for electricity, which uses fossil fuels for power generation. This limits the companies from adapting the use of other sources of power. The current green energy technology is effective in producing limited amounts of energy, which is not sufficient for large industrial applications. Current government policies protect systems that contribute to the emission of carbon in the atmosphere, which creates a carbon lock-in. In addition, most industrial processes use fossil fuels that lead to the generation of carbon and other greenhouse gases. Carbon lock-in limits the efforts to establish environmentally friendly energy sources. The government’s bureaucracy and policies limit the populace’s efforts of mitigating carbon emissions (Brown et al., 2007: 1-4) Conclusion Carbon management focuses on strategies aimed at reducing carbon emission from the refineries to the atmosphere. Carbon is one of the contributors of global warming and ultimately climate change. Huge amounts of carbon reduce the ozone layer, contributing to global warming. Various human activities lead to the emission of carbon in the atmosphere. They include industrial manufacturing and processing, power generation, domestic activities, burning fossil fuels, automobiles, air travel and smoking. The amount of carbon emitted to the atmosphere increases on a daily basis regardless of the efforts made by governments and environmental organisations to mitigate it. The refinery industry contributes the highest percentage of carbon and other greenhouse gas emissions to the atmosphere. Carbon management entails reducing the amount of carbon that a business or an individual contributes to the atmosphere. This process entails adopting the use of environmentally friendly energy sources. The various sources of energy in refineries include fossil fuels, wind power, hydroelectric power and solar energy. Fossil fuels contribute the highest percentage of energy used in refineries. The refineries use this energy for heating and powering purposes. In addition, most electric and electronic systems use power from the national grid. The various strategies of mitigating carbon emission include using renewable sources of energy, alternative energies, carbon capture and carbon offsetting. Renewable sources of energy are the most effective methods of reducing carbon emissions to the atmosphere. These sources have zero tolerance on carbon hence can reduce carbon emissions effectively. These sources of energy include the solar power, wind power and bio-energy. The process of generating power solar involves the use of photovoltaic cells to generate electricity. The electricity generated through this method is useful in running electrical systems and the lighting of refineries. Wind power generation employs the use of electricity-generating turbines through windmills. Wind power is effective in running electrical equipment, manufacturing systems and lighting the refineries. Agricultural products are utilised in the production of bio-fuel. The other alternative sources of fuel are the natural gas and hydroelectric power. Other strategies of mitigating carbon emissions include carbon capture and carbon offsetting. Carbon capture is a technological approach while carbon offsetting is an induced mechanism. Carbon offsetting involves corporate and government subsidies offered to the public to cater for carbon emissions in other regions other than zones of high carbon emission. The government pays a certain amount of offsets to individuals for the carbon used. In addition, people purchase these offsets for contributing to increased carbon emissions in the atmosphere. Carbon offsetting is also effective among corporations and the public. The corporations buy offsets to cater for the carbon emissions ascribed to their products. The users of such products are able to enjoy this service. Carbon offsets fund environmental projects geared towards the reduction of carbon emitted to the atmosphere. Bibliography Brown, M., Chandler, J., Lapsa, M. and Sovacool, B. 2007. Carbon lock-in: Barriers to the deployment of climate change mitigation technologies. Busch, T. and Shrivastava, P. 2011. The global carbon crisis. 1st ed. Sheffield, UK: Greenleaf Publishing. Chen, W., Sheng, C. and Kanjanaphachoat, C. 2011. The application of solar energy for chicks warming system to reduce carbon dioxide emmision. pp.6812--6815. Corbo, P. and Migliardini, F. 2009. Natural gas and biofuel as feedstock for hydrogen production on Ni catalysts. Journal of Natural Gas Chemistry, 18(1), pp.9--14. David, J. and Herzog, H. 2000. The cost of carbon capture. pp.13--16. G"ossling, S., Broderick, J., Upham, P., Ceron, J., Dubois, G., Peeters, P. and Strasdas, W. 2007. Voluntary carbon offsetting schemes for aviation: Efficiency, credibility and sustainable tourism. Journal of Sustainable tourism, 15(3), pp.223--248. Gibbins, J. and Chalmers, H. 2008. Carbon capture and storage. Energy Policy, 36(12), pp.4317--4322. Haszeldine, R. 2009. Carbon capture and storage: how green can black be?. Science, 325(5948), pp.1647--1652. Henry, R. 2010. Plant resources for food, fuel and conservation. 1st ed. London: Earthscan. Labatt, S. and White, R. (2007). Carbon finance. 1st ed. Hoboken, N.J.: John Wiley & Sons. Laihui, X. 2009. Carbon Lock-in, Unlocking and Low Carbon Development [J]. China Opening Herald, 5, pp.8--14. Lovell, H., Bulkeley, H. and Liverman, D. 2009. Carbon offsetting: sustaining consumption?. Environment and planning. A, 41(10), p.2357. Mair, J. 2011. Exploring air travellers’ voluntary carbon-offsetting behaviour. Journal of Sustainable Tourism, 19(2), pp.215--230. Neeff, T., Ashford, L., Calvert, J., Davey, C., Durbin, J., Ebeling, J., Herrera, T., Janson-Smith, T., Lazo, B., Mountain, R. and others, 2009. The forest carbon offsetting survey 2009. The forest carbon offsetting survey 2009. Shunshun, Y. 2012. On Challenges and Measures for Voluntary Carbon Emmision Market Growth in China. China Opening Journal, 5, p.014. Unruh, G. and Carrillo-Hermosilla, J. 2006. Globalizing carbon lock-in. Energy Policy, 34(10), pp.1185--1197. Unruh, G. 2000. Understanding carbon lock-in. Energy policy, 28(12), pp.817--830. Unruh, G. 2002. Escaping carbon lock-in. Energy policy, 30(4), pp.317--325. Wall, T. 2007. Combustion processes for carbon capture. Proceedings of the Combustion Institute, 31(1), pp.31--47. Worrall, F., Evans, M., Bonn, A., Reed, M., Chapman, D. and Holden, J. 2009. Can carbon offsetting pay for upland ecological restoration?. Science of the Total Environment, 408(1), pp.26--36. Xu, J., Wu, J. and He, Y. 2013. Functions of natural organic matter in changing environment. 1st ed. Dordrecht: Springer. Read More