Chemical Technology April 2016

PETROCHEMICALS

If blending is based on a volume basis, additional laboratory samples or online density measurements are needed to monitor for varying crude oil gravity. Finally, refiners processing light tight oils initially saw deficien- cies in fuel product qualities such as cold flow properties, however, catalyst manufacturers quickly changed functionality of catalyst to compensate for changes in the raw feedstock qualities. In addition, tight oil has shown higher levels of calcium and iron which can lead to catalyst poisoning. Although the catalyst loaded will be fixed until the next turnaround, there are options to change depending on expected future use crude oil feedstocks and product quality specifications and desired yield. Light tight oil production is currently being tested with low crude oil prices globally and the abundance of other opportunity crudes. There may be a temporary decline in tight oil production during this over supply period, but long-term tight oil will be a crude oil that refiners use and need to understand the challenges associ- ated with this different oil. Because their properties can vary, a traditional crude assay does not always represent the crude oil delivered to the refinery. Hence, refiners will learn to process this tight oil and make the required modifications to their processing configuration to best utilise the lighter crude oil.

Figure 3: API Gravity Variability (Source: Platts)

As mentioned earlier, the API gravity of opportunity crudes can vary despite coming from the same source. Figure 3 highlights these variations showing Eagle Ford basin tight oil with the highest variability. The refiners should be aware of this variation to ensure modern crude tank level measurements can accurately measure the tank no matter the API gravity, and mass flow measure- ments with crude oil blending to ensure more consistent blends.

Fast-tracking low carbon development in South Africa

by Harmke Immink, a director of Promethium Carbon, a carbon advisory firm

represents the anthropogenic emissions that would occur in the absence of the proposed project activity. The baseline emissions are the greenhouse gas emissions that would occur in the baseline scenario. Carbon offset programmes are designed with the primary aim of maintaining environ- mental integrity. Recent developments in both the CDMand the VCS have focused on the eas- ing of this burden. Many of the changes are, however, not automatically available. Offset projects provide valuable GHG mitigation and support low carbon economic development opportunities in South Africa while offering financial benefit to tax payers. Investment in these carbon offset projects should be fast-tracked enabling implementa- tion in 2016, in order to be ready for trading against carbon tax in 2017. The fast track options can assist low carbon development through utilising recent develop- ments in the three programmes identified in the South African offset scheme to reduce bar- riers to project registration through automatic additionality, positive lists and standardised baselines; and streamlining the administrative process of project registration based on these interventions. For more information contact: Robbie Louw on tel: +27 861 227 266; email: robbie@promethium.co.za; or go to www.promethuim.co.za

It is not well known that many of the burdens of carbon offset schemes have been significantly reduced through innovations in recent years, designed to reduce the barriers in accessing carbon finance while maintaining the cred- ibility of the programmes and the integrity of the carbon credits generated. A report produced by Promethium Carbon on Fast-Tracking Low Carbon Development in SA, funded by the British High Commission in Pretoria, supports the unlocking of low carbon investment in South Africa in line with the National Development Plan. The unique carbon tax and offset scheme proposed for South Africa allows for carbon offsets to be used to mitigate a firm’s carbon tax liability. Projects that qualify to generate credits for the scheme must use an interna- tionally recognised programme approved by the government and must be implemented

inside the borders of the country and comply with the stated eligibility. The research focuses on the streamlining of administrative processes to be followed to obtain carbon finance. It also addresses the removal of barriers faced by smaller projects. Carbon finance is linked to specific carbon programmes such as the Clean Develop- ment Mechanism (CDM), Verified Carbon Standard (VCS) and Gold Standard (GS). The programmes proposed for the South African carbon offset scheme have a reputation of having large administrative burdens. In many cases this is deserved. Many of these burdens have been sig- nificantly reduced, however, through recent innovations, designed to reduce the barriers in accessing carbon finance while maintain- ing the credibility of the programmes and the integrity of the carbon credits generated. The two main areas of innovation lie in proving additionality and establishing standardised baselines. Additionality is the effect of the offset project activity to reduce anthropogenic greenhouse gas emissions below the level that would have occurred in the absence of the project activity. It is also defined as whether an emissions reduction project would have oc- curred in the absence of incentives, such as a payment for emissions reductions. The baseline scenario is the scenario for an offset project activity that reasonably

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Chemical Technology • April 2016