Developing processing capabilities to participate in the renewable diesel & sustainable aviation fuels value chains
Infrastructure Services – Energy Transitions
The Engagement:
HVO feedstocks pre-treatment project development
The Client:
A Petrochemicals and Biofuels storage and processing operator in Rotterdam, Europe
The Challenge:
Initiation and conceptual design to convert and recommission an existing 1st generation biofuels processing plant into a pre-treatment plant to treat different HVO feedstocks.
Duration:
8 months
How Energex helped:
- Highlighted the new opportunity to invest in pre-treatment capabilities at the client site and how this would fit in a renewable value chain
- Led the development of the technical and operational concept for cost-effectively converting an existing Fame asset to a feedstocks pre-treatment plant to allow further processing into HVO and SAF at a 3rd party site
- Provide project management and setting up client’s site team including process engineers, project management and a 3rd party engineering. Including linking manufacturers specialising in building pre-treatment plants
- Energex commercial team carried out a market study to determine forward supply and demand factors for 1st vs. 2nd generation biodiesel feedstocks (and end products such as HVO and SAF) to underpin the strategic rationale for capital investment
- Energex commercial team ran robust project economic analysis and economic metrics for presentation to the board for the release of capital and further development funds
- Generated a list of potential customers with a strong match to our client from a feedstocks type/location / business activity perspective
Tangible impact:
- Allowed our client to successfully appraise the project options and focus on pre-treatment capabilities that would be most attractive to potential customers
- Determined the best scope options vs. investments based on the impurities and properties of the feedstock options varying from used cooking oil to category 3 animal fats
- Advised on commercial structures to allow our client to generate attractive returns from their investment
- Determined the use of ancillary storage and handling assets to optimise the pre-treatment processing unit
- Listed and then assisted in the engagement of customers to allow the project to move to the next stage