Sustainable Crude Oil Production
DM-XTech’s Pioneering Initiatives for Low-Carbon Feedstocks for Fuels Production
Executive Summary
DM-XTech's Sustainable Crude Oil Production and Heavy Crude Oil Decarbonization Program is an initiative aiming to enhance sustainability in the crude oil industry. The program focuses on:
Sustainable Crude Oil Production: Converts waste materials into Sustainable Crude Oil (SCO) using advanced pyrolysis technologies. SCO is an eco-friendly replacement for traditional crude, ideal for Sustainable Aviation Fuel (SAF) and Universal Marine Fuel (UMF).
SCO production minimizes waste and emissions, providing a cleaner alternative to fossil fuels. It utilizes pyrolysis technology for cost-effective conversion, thereby reducing waste management expenses and generating income.
Pyrolysis plants' scalability allows strategic placement based on feedstock availability, optimizing operations and reducing emissions.
Decarbonization of Heavy Crude Oil: This process refines heavy crude oil into Decarbonized Light Crude Oil (DLCO). It increases the hydrogen-to-carbon ratio while storing excess carbon in a solid state. DLCO is an excellent feedstock for the production of low-carbon transportation fuels and can be used as a blending stock for SCO. This decarbonization process allows oil-producing countries to present their product to the global market in a more acceptable manner, without resorting to greenwashing.
DM-XTech’s program merges innovative technology with strict environmental standards, addressing waste management and energy sustainability challenges, presenting a profitable business opportunity, and promoting a circular economy.
Introduction
The Sustainable Crude Oil Production and Heavy Crude Oil Decarbonization Program is an initiative by DM-XTech that combines two strategies: Sustainable Crude Oil Production and the Heavy Crude Oil Decarbonization. These two strategies are designed to produce climate-friendly, ultraclean and long-term sustainable transportation fuels.
Sustainable Crude Oil Production converts recyclable and organic waste, industrial wastes, and designed fuels into Sustainable Crude Oil (SCO) using various pyrolysis technologies followed by appropriate upgrading processes. The end result is a light crude oil free of unsaturated hydrocarbon species and devoid of non-hydrocarbon contaminants such as organometallic compounds, sulfur, halogens, and naphthenic acids, which are commonly present in fossil crude oils. SCO is an excellent feedstock for manufacturing Sustainable Aviation Fuel (SAF) and Universal Marine Fuel.
The Heavy Crude Oil Decarbonization Program focuses on decarbonizing heavy crude oil to convert it into Decarbonized Light Crude Oil (DLCO) with a higher hydrogen-to-carbon ratio than the original feedstock. The rejected carbon remains in solid form in the earth’s lithosphere. The resulting product is clean, low-carbon light crude oil, an ideal feedstock for the production of ultraclean, low-carbon transportation fuels. It is also an excellent blending stock for Sustainable Crude Oil (SCO).
Sustainable Crude Oil Production
The project to transform a variety of carbonaceous waste materials into sustainable, clean crude oil through dedicated pyrolysis plants and centralized processing is both innovative and environmentally significant.
Distributed Production Model
Under this production model, the pyrolysis plants will be located in proximity to their respective feedstock sources. The type of each plant will be determined by the feedstock it processes. These plants will convert feedstock into a form suitable for a centralized production complex and densify it to reduce transportation costs.
The DPM is specifically designed for efficient feedstock processing and transportation. By placing pyrolysis plants near their feedstock sources, the model ensures a seamless conversion process. Each plant is designed to handle its specific feedstock type, converting it into a form ready for the Centralized Production Complex (CPC) and densifying it to minimize transportation expenses.
The CPC plays an essential role in refining the product. It receives pyrolysis oils from various plants and refines them into the final product, Sustainable Crude Oil (SCO). The SCO has a composition similar to fossil light crude oil, but it is purer and free from common impurities found in fossil crude oils. It is primarily composed of saturated hydrocarbons.
The DPM system operates like a Hub-and-Spokes model. The CPC serves as the Hub, with the various pyrolysis plants acting as the Spokes. These plants, located near feedstock sources, produce pyrolysis oils which are then transported at lower cost to the CPC or the Hub for further refining into the final product, the SCO.
Breaking It Down into Digestible Sections
Feedstocks Classification
Categories of various feedstocks into four broad groups based on their origin and physical characteristics:
  1. Recyclable Wastes Recyclable wastes are a broad category of waste materials that can be processed and transformed into new products or raw materials, rather than discarded into the environment. This category includes items such as used tires and various forms of plastic waste. These materials are largely composed of long-chain hydrocarbons, complex organic molecules that, through the recycling process, can be broken down into shorter, more valuable hydrocarbon fractions. These fractions can then be used in the production of a variety of other products, thereby contributing to the conservation of resources and the reduction of environmental pollution.
  1. Organic Wastes This category of waste, known as organic waste, encompasses a variety of materials such as biomass, municipal solid waste (MSW), and solid recovered fuels (SRFs). These materials are primarily carbon-based, indicating that they are largely composed of carbon. However, they can also contain other elements such as oxygen, nitrogen, and hydrogen. The sources of these organic wastes are diverse, ranging from plant material, which includes leaves, stems, and other plant parts, to food waste, which can be anything from uneaten leftovers to spoiled produce. Furthermore, this category also includes non-recyclable paper or wood. These materials cannot be processed through the standard recycling procedures due to contamination or other reasons.
  1. Industrial Residues Materials such as refinery bottoms, off-spec bunker oils, and bitumen fall into this category. These substances represent the by-products or waste products that inevitably result from various industrial processes. These substances are often left over from the intricate and extensive processes of refining oil and petroleum products. As such, these industrial residues can serve as a poignant reminder of the significant environmental footprint that such industrial activities can leave behind. While they may initially appear to be waste, these industrial residues can sometimes be repurposed or recycled in innovative ways, highlighting the potential within even the most seemingly mundane or unwanted of materials.
  1. Engineered Fuels Refuse-derived fuels (RDFs) are a specific type of energy resource that is innovatively created from various types of waste. The types of waste that can be used to produce these fuels range from municipal solid waste - the kind of everyday rubbish we generate at home, to industrial waste - the byproducts of manufacturing and other industrial processes, and commercial waste - the refuse that is produced by businesses and retail establishments. The creation process of these fuels involves a meticulous procedure where these wastes are thoroughly processed. During this processing stage, inorganic substances, which are substances not originally from living organisms, are effectively removed. The remaining combustible waste, which can catch fire and burn, is carefully recovered. This procedure turns what was once considered as waste into a valuable energy resource.
Business Case for Sustainable Crude Oil Production

Business Case Summary

Market Need Sustainable crude oil production from waste products provides a cleaner alternative to fossil fuels and reduces waste, addressing the need for cleaner energy sources and recycling technologies. Environmental Impact Reduce waste, lower emissions, provide cleaner energy. Economic Viability Pyrolysis technology advancements make waste-to-oil conversion cost-effective, generating revenue and reducing waste management costs. Scalability Pyrolysis plants can be tailored and located according to feedstock availability, cutting costs and emissions. The central processing complex streamlines operations, refining pyrolysis oils into high-quality crude oil efficiently. Social Benefits This initiative can create jobs in waste management, pyrolysis operations, and refining processes, contributing to local economies and social development.

Business Case Details
  1. Market Need In today's global scenario, there is a significant shift towards sustainability and reducing carbon footprints. This change has opened new markets that favor cleaner, greener energy sources and advanced recycling technologies. A prime example is the production of sustainable crude oil from waste products, specifically, creating Sustainable Aviation Fuel (SAF) from the pyrolysis oil derived from used tires. This innovative approach provides a cleaner and more eco-friendly substitute to traditional fossil fuels and also helps in waste reduction. Therefore, it addresses two major global concerns - sustainable energy and efficient waste management - offering a solution beneficial to both the environment and the energy sector.
  1. Environmental Impact The implementation of this initiative stands to have a profoundly positive impact on our environment. Specifically, it can significantly reduce the volume of waste that we are currently sending to landfills. This reduction in landfill waste is not merely a matter of managing resources and space more efficiently. It also has the potential to lower greenhouse gas emissions. These emissions are primarily produced from two sources: the decomposition of waste and the burning of traditional fossil fuels. By reducing the waste going to landfills, we can decrease the emissions resulting from decomposition. Meanwhile, the initiative also offers a cleaner, more sustainable energy source, which can replace our reliance on traditional fossil fuels and further lower our greenhouse gas emissions. Thus, this initiative can help us progress toward a more sustainable future.
  1. Economic Viability The rapid advancements in pyrolysis technology are making the transformation of waste to crude oil a more economically viable process. Pyrolysis, a thermochemical decomposition of organic material at elevated temperatures in the absence of oxygen, is proving to be a promising avenue for waste processing. Not only does this technology have the potential to generate substantial revenue from the processing of waste, but it also presents a lucrative opportunity for the sale of the oil produced through this process. Moreover, the adoption of pyrolysis technology can lead to significant cost reductions in waste management and disposal. Traditionally, waste management and disposal can be a costly and environmentally damaging process. However, with the implementation of pyrolysis, these costs can be substantially reduced, while also mitigating the environmental impact. In essence, the utilization of this technology presents a two-fold benefit, transforming a cost center into a potential profit-making venture, while also contributing positively to the environment.
  1. Scalability One of the major advantages of each dedicated pyrolysis plant is its scalability. This scalability means that these plants can be expanded or reduced in size, and strategically located based on the availability of specific feedstocks. Such a setup not only reduces transportation costs, but also significantly lowers carbon emissions, which is highly beneficial for the environment. The centralized processing complex, which is an integral part of these plants, further streamlines operations. This complex, through its advanced mechanisms, allows for the efficient refining of pyrolysis oils into high-quality crude oil. This crude oil can then be used in various industrial processes, making the entire operation highly sustainable and efficient.
  1. Social Benefits Apart from the obvious environmental and economic advantages, this initiative can also have a profound social impact. It has the potential to generate substantial employment opportunities in various sectors such as waste management, pyrolysis operations, and refining processes. These new jobs would not only aid in reducing the unemployment rate but also contribute significantly to the growth of local economies. Moreover, as these sectors develop, they will in turn stimulate other sectors of the economy, creating a positive ripple effect. Additionally, this initiative can also contribute to social development by improving the quality of life and promoting a cleaner and healthier environment for the local communities.
Converting waste and recyclable materials into Sustainable Crude Oil (SCO) is a compelling business opportunity. It offers environmental, economic, and social benefits. By taking advantage of technological advancements and meeting global demand for cleaner energy, this method not only addresses waste management issues but also supports the circular economy. This makes it an appealing investment for stakeholders interested in sustainability and innovation.
Overview of Specific Pyrolysis Technology Applied for Each Category of Feedstocks

Summary

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Process Description
  1. Recyclable Wastes (Used Tires and Plastics)
    Recycling wastes like used tires and plastics is crucial for sustainable waste management and reducing environmental pollution. Various methods exist for recycling these materials, but one particularly effective technique is catalytic pyrolysis.
  • Process Catalytic Pyrolysis. Catalytic pyrolysis is a thermochemical decomposition process that involves using catalysts to induce the breakdown of materials.
  • Description To delve deeper, catalytic pyrolysis is a process that significantly lowers the temperature required for pyrolysis, which is the thermal decomposition of materials at elevated temperatures in an inert atmosphere. This approach substantially improves the quality of the oil produced, thus making it a valuable method for recycling. This process is particularly effective for materials such as plastics and tires. The complex polymers found in these materials are broken down into simpler hydrocarbons more efficiently and selectively by the catalysts. As a result, the desired products have higher yields, including diesel-like fuels and aromatics. These products can then be used for a variety of purposes, thereby contributing to the conservation of natural resources.
  1. Organic Wastes (Biomass, MSW, SRFs )
    This category primarily comprises wastes derived from natural, organic sources, such as biomass, municipal solid waste (MSW), and Solid Recovered Fuels (SRFs).
  • Process Fast Pyrolysis. Fast pyrolysis is the primary process utilized for the treatment of these wastes.
  • Description Fast pyrolysis is a thermochemical process that rapidly heats the biomass in an environment devoid of oxygen. This method is particularly efficient because it maximizes the liquid yield, which is often referred to as bio-oil. The unique aspect of this process is its ability to convert solid biomass into a liquid form efficiently. This liquid form can then be further refined and processed into various useful fuels or chemicals, contributing significantly to resource recovery and waste reduction. Moreover, fast pyrolysis also produces a valuable by-product known as biochar. Biochar has various applications, including its use as a soil amendment, improving soil fertility and crop yield. It can also be used for carbon sequestration, contributing to efforts towards mitigating climate change by trapping carbon and preventing its release into the atmosphere.
  1. Industrial Residues (Refinery Bottoms, Off-spec Bunker Oils, Bitumen)
    Industrial residues, which include refinery bottoms, off-specification bunker oils, and bitumen, pose a unique challenge in the petrochemical industry. These heavier fractions are often difficult to process due to their high molecular weight and variable composition.
  • Process Thermal Cracking Pyrolysis Thermal Cracking Pyrolysis is a specialized process that has been developed to handle these challenging feedstocks.
  • Description Thermal cracking pyrolysis operates by heating these heavy residues at extremely high temperatures in the absence of a catalyst, a feature that distinguishes this process from other forms of pyrolysis. The high-temperature environment is especially effective at breaking down complex, high-molecular-weight hydrocarbons that characterize industrial residues. This breakdown produces lighter, more commercially valuable fractions. These fractions can then be further processed or sold directly, providing significant value to what was previously considered a waste product. One of the key advantages of thermal cracking pyrolysis is its ability to handle variability. The process is robust enough to accept feedstocks of different compositions and can effectively manage the presence of contaminants, often an issue with industrial residues. This flexibility makes it an essential tool in the processing of heavy residues.
  1. Engineered Fuels (RDFs)
  • Process Slow Pyrolysis
  • Description DM-XTech’s Slow Pyrolysis Process is done in 2 stages:
    1) Torrefaction Pre-Treatment; and
    2) Fluidized Bed Fast Pyrolysis
  • Torrefaction Pre-Treatment Torrefaction is a method that operates at relatively lower temperatures and for more extended reaction times when compared to its counterpart, fast pyrolysis. Torrefaction stabilizes and partially devolatilizes the feedstock. The slow pyrolysis method is significantly effective when it comes to refuse-derived fuels, as it allows for the gradual and controlled breakdown of materials. This slow and steady process results in a char-rich solid output. This output is exceptionally valuable, as it can be used for energy production or repurposed as a carbon-rich material in various applications. Slow pyrolysis is particularly beneficial when dealing with RDFs because these types of fuels have a heterogeneous composition. The slow pyrolysis process ensures a more uniform and consistent product, regardless of the initial diverse material input.
  • Fluidized Bed Pyrolysis The second stage of DM-XTech's carefully designed slow pyrolysis process, used for pyrolyzing Refuse-Derived Fuels, is strategically focused on producing liquid products. This emphasis on liquid production optimizes the yield of the desired output, significantly improving the process's overall efficiency and effectiveness.
  • Description Fluidized bed pyrolysis involves passing the torrefied RDFs through a reactor containing a bed of hot sand or another inert material that is fluidized by a gas stream, typically air or steam. This process allows for rapid heating and mixing of the feedstock, leading to a uniform temperature distribution and efficient heat transfer. The conditions within a fluidized bed reactor are conducive to breaking down the complex molecules present in the torrefied RDFs into smaller, liquid hydrocarbons.
  • Advantages
  1. High Efficiency: The rapid and uniform heating ensures efficient conversion of the torrefied material into pyrolysis oil, maximizing the yield of liquid products.
  1. Flexibility: Fluidized bed reactors can handle a wide range of feedstock sizes and compositions, making them suitable for the heterogeneous nature of RDFs.
  1. Quality of Oil: The process conditions can be optimized to produce a higher quality pyrolysis oil with fewer impurities, which is beneficial for the subsequent refining steps at the CPC.
  1. Scalability: This process can be easily scaled up to accommodate large quantities of torrefied RDFs, making it suitable for industrial applications.
  • Considerations
  1. The specific parameters of the fluidized bed pyrolysis process, such as temperature, residence time, and type of fluidizing medium, would need to be optimized based on the characteristics of the torrefied RDFs to achieve the best results in terms of oil yield and quality.
  1. Pre-treatment methods, such as grinding or pelletizing the torrefied RDFs, might be necessary to ensure uniform feedstock size for optimal reactor performance.
  1. Post-pyrolysis, the pyrolysis oil may require further treatment or refining to remove impurities and enhance its properties for transportation and use as a feedstock in the CPC.

    Adopting a two-step process involving torrefaction followed by fluidized bed pyrolysis offers a comprehensive strategy to transform engineered fuels into valuable liquid hydrocarbons, aligning with the goal of producing sustainable crude oil from waste materials.
Each of these pyrolysis processes is optimized for the specific characteristics of the feedstock category, maximizing the yield and quality of the pyrolysis oil and other products while also considering the environmental impact and energy efficiency of the conversion process.
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