There’s always a risk when you take a new approach to doing or making something that your expectations won’t pan out — that something you hadn’t figured on happens and messes things up. But oh, the satisfaction that comes when the stars align exactly as you foresaw. The folks who developed Project Traveler, a recently completed Houston-area plant that produces high-value, octane-boosting alkylate from ethylene, isobutane and other widely available and low-cost feedstocks, know that good feeling, as we discuss in today’s RBN blog on the project’s economics.
Alkylate
In these uncertain times, with the energy transition in flux and a recession looming, it takes moxie for a company to make a major capital investment in an energy-related project, especially one that could arguably be called the first of its kind. But that’s what’s happening at a site along the Houston Ship Channel (HSC) in Pasadena, TX, where Next Wave Energy Partners, which is now completing an ethylene-to-alkylate plant, is planning an adjoining ethanol-to-ethylene facility that will enable the company to produce bioethylene, renewable alkylate and/or sustainable aviation fuel (SAF), depending on market demand, production economics and other factors. In today’s RBN blog, we discuss the ins and outs of Next Wave’s Project Lightning.
The thinking behind Next Wave Energy Partners’ late-2019 decision to build a first-of-its-kind ethylene-to-alkylate plant was that a combination of NGL production growth and new ethylene supply — plus increasing demand for alkylate, an octane-boosting gasoline blendstock — would be a win-win-win for ethylene producers, refiners and Next Wave itself. Now, with construction of the plant along the Houston Ship Channel approaching the homestretch, things are shaking out very much as the company had anticipated — even better, in fact. In today’s RBN blog, we discuss the progress being made on Next Wave’s Project Traveler plant and the market forces validating the company’s final investment decision (FID).
For a few years now, the Shale Revolution has been opening up development opportunities hardly anyone would have thought possible in the Pre-Shale Era. For example, new crude oil, natural gas and NGL pipelines from the Permian to the Gulf Coast, lots of new fractionators and steam crackers, as well as export terminals for crude, LNG, LPG, ethane and, most recently, ethylene. And here’s another. Thanks to the combination of NGL production growth and new ethylene supply — plus increasing demand for alkylate, an octane-boosting gasoline blendstock — the developer of a novel ethylene-to-alkylate project along the Houston Ship Channel has reached a Final Investment Decision (FID). Today, we discuss how the FID is driven by both supply-side and demand-side trends in the NGL and fuels markets.
Reformate is a blending component that makes up about 30 percent of US gasoline supplies. It is also an important source of aromatics used as feedstocks for the petrochemicals industry. Ongoing changes in the US crude oil slate are reducing the volume of heavy naphtha available to feed catalytic reformer units that make reformate. At the same time better economics for lighter ethane feedstock are reducing the volume of aromatics produced as byproducts of olefin cracking. The result is a shortage of the aromatic materials used to produce a number of petrochemical intermediates such as polymers and fibers. But more changes are coming to the reformate market due to reductions in the use of reformate in gasoline. Today we look at the changing role of reformate.
Alkylate is a valuable blending component that accounts for about 12 percent of the US gasoline pool. Alkylate is manufactured by combining elements derived from NGLs and crude oil refining and is an important link between these two hydrocarbon markets. Alkylate has critical qualities required to meet complex modern gasoline quality specifications. Today we look at the qualities and manufacture of alkylate.