PNNL

Abstract

A refinery modeling framework is developed to estimate the benefits of blending high-quality biofuels directly with refinery gasoline components for attaining a premium grade fuel (also termed as Co-Optima Boosted SI gasoline here). Our results change the paradigm of bio-blendstocks (BBs) being competitors to fossil components, by identifying opportunities for refineries to add value to their product slate, from some favorable BB properties. This potential value can be characterized by calculating the breakeven value (BEV), as defined down below. The proposed modeling framework incorporates extensive data from (1) projected product over the next few decades, (2) crude oil and refinery products pricing, and (3) fuel specifications. The complete refinery models serve as a basis for assessing the value of biofuels, assuming profitability remains the same for representative petroleum refinery configurations. Our assessment showed wide range of variation of biofuels BEV from $20-$120/bbl, within the considered blending level and crude prices. Further, the BEV was correlated with the fuel octane ratings such as octane numbers (research, RON and motor octane numbers, MON) and both antiknock index (AKI, average of RON and MON) and sensitivity (S, difference between RON and MON), with a slightly higher correlation with the sensitivity. However, the expected decrease in gasoline demand for the upcoming years could negatively impact biofuels demand and value, in a business-as-usual scenario. Our analysis also showed a more valuable bio-blendstocks incorporation in smaller refineries since they can enhance the capabilities for producing specialty, high-value fuels/products, and introduce high octane-barrels into otherwise constrained blending operations. Additional implications towards refiners include opportunities to rebalance operations, access to high-value fuel markets, and synchronization with broader transportation industry trends. Furthermore, results indicate the value of Co-Optima boosted spark ignition (BSI) efficiency gains can extend to refiners to incentivize decarbonization and diversified feedstock production.