Adapting terminal infrastructure to support biofuels storage

Adapting terminal infrastructure to support biofuels storage

Adapting terminal infrastructure to support biofuels storage

Biofuels

Infrastructure Services – Energy Transitions

The Engagement:

Repurposing of fuel oil tanks to biofuels use

The Client(s):

A mineral fuels, vegetable oils and chemicals terminal operator in Europe and their oil major customer

The Challenge:

What is the best use of the client terminal asset footprint, given the energy transition, to allow diversification in the operating model?

Duration:

3 months

How Energex helped:

  • Provided energy transition scenarios for the client’s core products and markets, with a specific focus on biofuels demand
  • Matched the capabilities against the technical, operational and storage capacity required in the context of the expected throughput of bio product types
  • Built a customised operational design for each storage tank and connected infrastructure to allow quantitative decisions on what is fit for purpose
  • Identified mitigation options for declining core revenues through converting storage to products such as FAME and HVO, along with the required line segregations and heating 
  • Built on existing operating standards, assessing the fit for diversification with the client’s business and location
  • Created a ‘tie-in’ program for the existing infrastructure already in bio grades service with the new assets 
  • Supported our client in commercial negotiations regarding the converted capacity

Tangible impact:

  • Confirmed that client’s customer biofuels trading volumes are robust, with challenges around diesel use-case which required specific focus on capacity
  • Technical and commercial meetings were held with commercial, operations and projects teams
  • Identified more efficient and economical ways to store and handle biofuels with the existing assets available
  • Managed the interface between storage provider and their oil major customer to ensure that the Statement of Requirements was properly defined and understood
  • Assisted the client’s commercial management team in gaining investment approvals for the conversion projects from their board