Chemical Technology April 2016

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Chemical Technology • April 2016 10
As mentioned earlier, the API gravity of opportunity crudes can
vary despite coming from the same source. Figure 3 highlights
these variations showing Eagle Ford basin tight oil with the highest
variability. The refiners should be aware of this variation to ensure
modern crude tank level measurements can accurately measure
the tank no matter the API gravity, and mass flow measure-
ments with crude oil blending to ensure more consistent blends.
If blending is based on a volume basis, additional laboratory
samples or online density measurements are needed to monitor
for varying crude oil gravity.
Finally, refiners processing light tight oils initially saw deficien-
cies in fuel product qualities such as cold flow properties, however,
catalyst manufacturers quickly changed functionality of catalyst to
compensate for changes in the raw feedstock qualities. In addition,
tight oil has shown higher levels of calcium and iron which can lead
to catalyst poisoning. Although the catalyst loaded will be fixed
until the next turnaround, there are options to change depending
on expected future use crude oil feedstocks and product quality
specifications and desired yield.
Light tight oil production is currently being tested with low crude
oil prices globally and the abundance of other opportunity crudes.
There may be a temporary decline in tight oil production during
this over supply period, but long-term tight oil will be a crude oil
that refiners use and need to understand the challenges associ-
ated with this different oil. Because their properties can vary, a
traditional crude assay does not always represent the crude oil
delivered to the refinery. Hence, refiners will learn to process this
tight oil and make the required modifications to their processing
configuration to best utilise the lighter crude oil.
Figure 3: API Gravity Variability (Source: Platts)
PETROCHEMICALS
It is not well known that many of the burdens of
carbon offset schemes have been significantly
reduced through innovations in recent years,
designed to reduce the barriers in accessing
carbon finance while maintaining the cred-
ibility of the programmes and the integrity of
the carbon credits generated.
A report produced by Promethium Carbon
on Fast-Tracking Low Carbon Development in
SA, funded by the British High Commission in
Pretoria, supports the unlocking of low carbon
investment in South Africa in line with the
National Development Plan.
The unique carbon tax and offset scheme
proposed for South Africa allows for carbon
offsets to be used to mitigate a firm’s carbon
tax liability. Projects that qualify to generate
credits for the scheme must use an interna-
tionally recognised programme approved by
the government and must be implemented
Fast-tracking low carbon development in South Africa
inside the borders of the country and comply
with the stated eligibility.
The research focuses on the streamlining
of administrative processes to be followed to
obtain carbon finance. It also addresses the
removal of barriers faced by smaller projects.
Carbon finance is linked to specific carbon
programmes such as the Clean Develop-
ment Mechanism (CDM), Verified Carbon
Standard (VCS) and Gold Standard (GS). The
programmes proposed for the South African
carbon offset scheme have a reputation of
having large administrative burdens. In many
cases this is deserved.
Many of these burdens have been sig-
nificantly reduced, however, through recent
innovations, designed to reduce the barriers
in accessing carbon finance while maintain-
ing the credibility of the programmes and the
integrity of the carbon credits generated. The
two main areas of innovation lie in proving
additionality and establishing standardised
baselines.
Additionality is the effect of the offset
project activity to reduce anthropogenic
greenhouse gas emissions below the level
that would have occurred in the absence of
the project activity. It is also defined as whether
an emissions reduction project would have oc-
curred in the absence of incentives, such as a
payment for emissions reductions.
The baseline scenario is the scenario
for an offset project activity that reasonably
represents the anthropogenic emissions that
would occur in the absence of the proposed
project activity. The baseline emissions are the
greenhouse gas emissions that would occur in
the baseline scenario.
Carbon offset programmes are designed
with the primary aim of maintaining environ-
mental integrity. Recent developments in both
the CDMand the VCS have focused on the eas-
ing of this burden. Many of the changes are,
however, not automatically available.
Offset projects provide valuable GHG
mitigation and support low carbon economic
development opportunities in South Africa
while offering financial benefit to tax payers.
Investment in these carbon offset projects
should be fast-tracked enabling implementa-
tion in 2016, in order to be ready for trading
against carbon tax in 2017.
The fast track options can assist low carbon
development through utilising recent develop-
ments in the three programmes identified in
the South African offset scheme to reduce bar-
riers to project registration through automatic
additionality, positive lists and standardised
baselines; and streamlining the administrative
process of project registration based on these
interventions.
For more information contact:
Robbie Louw on tel: +27 861 227 266;
email: ; or go to
by Harmke Immink, a director of Promethium Carbon, a carbon advisory firm