Hydrogen Generation from Vacuum Gas Oil (VGO)

Refineries are the primary hydrogen consumer in the US. Over the last 30 to 40 years they have required more and more hydrogen to remove metals, sulfur and nitrogen from crude oil as well as upgrade heavy crude by breaking large molecules into smaller more valuable ones. Unfortunately, updating refineries to produce more hydrogen is expensive. TDA Research Inc. is developing a process that will allow refineries to produce hydrogen at less than half the energy expenditure (energy lost due to the process of conversion) and a cost that is considerably lower than conventional technologies, such as steam methane reforming (SMR). TDA’s technology will permit refineries to convert less valuable bottom of the barrel feedstocks such as vacuum gas oil (VGO) and heavy feedstocks into valuable hydrogen, which will permit more valuable distillate fuels to be obtained from each barrel of crude oil. TDA Research Inc. tested multiple VGO steam reforming catalysts, optimized the hydrogen yield by performing statistically designed experiments, and demonstrated energy efficient hydrogen production, catalyst stability and cost effective performance. In Phase I we used our bench-scale, single bubbling fluidized bed reactor to simulate our novel reactor system, and demonstrated hydrogen generation from VGO for over 50 hours. We generated hydrogen (70% by volume on a dry basis) without any long-term catalyst deactivation. Based on our Phase I results, we then completed a design for a continuous VGO steam reforming system that we will build during Phase II. Finally, we developed an economic model of our process for generating hydrogen from VGO in an integrated oil refinery and compared it to generating the same amount of H2 using SMR. In Phase II, we will design and build a continuous VGO steam reforming system and measure its performance. The operating conditions and catalyst properties will be optimized for performance with the goal of improving the energy efficiency and reducing the cost of making H2. We will then perform a highly detailed technoeconomic analysis of the process with our industrial and commercial partners. The US oil refining industry is the largest in the world, utilizing 139 operating domestic refineries with a total capacity of 15.5 million barrels per day of crude oil. Energy costs are a major factor in operating refineries, currently about 30%. Increasing energy efficiency will reduce costs, and greenhouse gas and other emissions. TDA’s VGO steam reforming technology reduces energy demands during refining and increases the energy efficiency of hydrogen production in the refinery.