Propylene Production via Propane Dehydrogenation

By Intratec Solutions

$/million ton product

ecause natural gas supplies are significantly increasing due to the rising exploitation of shale gas, mainly in the U.S., propane prices are decreasing. Coupled with low propane prices, ethylene producers are shifting to lighter feedstocks (more ethane, less naphtha), which is decreasing yields of propylene in cracking operations. The increasing demand for propylene and the availability of low-cost feedstock make propane dehydrogenation an economically attractive chemical route. Propane, the main feedstock for propane dehydrogenation (PDH) processes, can be obtained as a byproduct of petroleum refinery operations and can be recovered from propane-rich liquefied petroleum gas (LPG) streams from natural-gas processing plants. The PDH process PDH is an endothermic equilibrium reaction. The PDH process depicted below is similar to the Oleflex process developed by UOP LLC (Des Plaines, Ill.; www.uop.com), and is suited to produce polymer-grade (PG) propylene from propane. The maximum unit capacity is around 650,000 ton/yr. This process is carried out in the presence of a platinum catalyst and achieves overall propylene yields of about 90 wt.%. The industrial plant can be divided into two main sections: reaction and product recovery. Reaction. In the reaction section, after heavy impurities removal in the de-oiler column, propane is sent to the dehydrogenation reactors. The propylene yield in such reactors is favored by higher temperatures and lower pressures. However, temperatures that are too elevated will promote thermal cracking reactions that generate undesirable byproducts. Therefore, the PDH reaction usually occurs at temperatures of about 650C and near atmospheric pressures. In order to purge the coke accumulated on the catalyst surface during the reaction, a continuous catalyst regenerator (CCR) unit is required. The catalyst circulates in moving beds through the reactors, before being fed to the CCR unit, which operates independently of the reaction, burning off the coke and returning the catalyst to its reduced state. Product recovery. The reactor effluent is compressed, dried and sent to the product recovery section. In this section, a hydrogen-rich stream is recovered and light hydrocarbons and hydrogen traces are removed in a de-ethanizer. The PG propylene product is further purified in a propane-propylene (PP) splitter and leaves as the top product. Economic performance An economic evaluation of the process was conducted based on data from the second quarter of 2012. The following assumptions are assumed for the analysis:  A 550,000 ton/yr PDH unit erected inside a petrochemical complex (all equipment represented in the simplified flowsheet below)  No storage of feedstock and product is considered  Net raw materials cost is the difference between propane and catalyst make-up costs and credits from fuel and electricity generated in the process

Regional cost comparison

1,400 1,200 1,000 800 600 400 200 0 US Gulf Brazil China Net raw materials costs Main utilities consumptions Fixed costs

Total capital investment

700 600 Total fixed investment (TFI) Working capital Other

$, millions

500 400 300 200 US Gulf Brazil China

Global perspective Recently, conditions in the U.S. have led to the lowest production costs and the most attractive EBITDA (earnings before interest, taxes, depreciation and amortization) margins (about 30%), due to the availability of low-cost propane derived from shale gas. Low-cost propane imported from the Middle East allows China to present favorable EBITDA margins of about 20%. The optimism about this process is demonstrated by the recently announced plans for at least six PDH units in China. Considering the capital-cost requirements presented and an operating rate of 91%, the internal rate of return is above 30% in the U.S. and about 20% in China. On the other hand, South America and Europe do not offer favorable conditions for PDH units. Edited by Scott Jenkins Editors Note:
The content for this column is supplied by Intratec Solutions LLC. (Houston; www. intratec.us) and edited by Chemical Engineering. The analyses and models presented herein are prepared on the basis of publicly available and non-confidential information. The information and analysis are the opinions of Intratec and do not represent the point of view of any third parties. More information about the methodology for preparing this type of analysis can be found, along with terms of use, at www.intratec.us/che.

Lights to fuel
6 1 3 4 2 9 8 7 5

(1) Reactors (2) Reactor heaters (3) CCR (4) Compression & drying (5) Cold box (6) PSA (7) Selective hydrogenation (8) Deethanizer (9) P-P Splitter (10) Deoiler

CW

RF

PG propylene RF
11

FU

ST
10

Fresh propane
CW : Cooling water FU: Fuel RF: Refrigeration uid ST: Steam

(11) C3= Refrigeration unit Heavies to fuel

CCR: continuous catalyst regeneration

PSA: pressure-swing absorption

Catalyst ow