CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : MARCH 2016 
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CARIBBEAN Petroleum Update A Publication of the Caribbean Energy Information System (CEIS)
March 2016 ISSUE
Thermal Depolymerization
An Alternative Energy Solution In the leading crude oil theory, dead organic material accumulates on the bottom of oceans, riverbeds or swamps, mixing with mud and sand. Over time, more sediment piles on top and the resulting heat and pressure transforms the organic layer into a dark and waxy substance known as kerogen. Left alone, the kerogen molecules eventually crack, breaking up into shorter and lighter molecules composed almost solely of carbon and hydrogen atoms. Depending on how liquid or gaseous this mixture is, it will turn into either petroleum or natural
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gas. Like ancient Alchemist who search for ways to turn common metals into gold, modern magicians have discovered an even more valuable technology to turn waste into black gold. Since almost everything on Earth contains carbon, this technology can turn almost any material into oil, essentially mimicking the Earth’s process of transforming fossil fuel into oil and gas, but instead using waste products. This technology is called Thermal Depolymerization (TDP). It uses the process of hydrous pyrolysis in which orcontinued on page 2/
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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : MARCH 2016
Thermal Depolymerization: An Alternative Energy Solution ganic compounds are heated at high temperatures with the presence of water. Organic materials include wood, leaves, grass, food, paper, plastic, paint, cotton, synthetic fabrics, sludge from sewage, animal parts, bacteria, any carbohydrates, or hydrocarbons. This process emulates what the earth has done for millions of years. The depolymerization process for fuel production from organic materials takes two forms, thermal and catalytic. The thermal process acts similarly to a pressure cooker by turning all matter into a vapor. First the organic matter is put through a grinder with a water base. Water not only helps to convey heat more efficiently but also donates some of the hydrogen required in the latter reaction steps. The vapour then flows to distillation columns where the lighter molecules are separated from the heavier moleucules. This simply means that gas is drawn off from the top, the oils are removed from the middle and the powdered carbon is taken out from the bottom of the distillation process. In the absence of oxygen, organic chemicals are cracked under pressure into selected hydrocarbon chains which are further converted into carboxylic oil. The second stage breaks down the carboxyl group to even smaller fragments and ultimately leaving you with a light oil. This last carboxyl group is composed of a carbon, two oxygen atoms, and a hydrogen atom. This is the oil that can then be further distilled
continued from page 1/ to become the lighter fuels such as gasoline, kerosene, and naphtha. On the otherhand, the catalytic depolymerization process occurs at relatively low temperatures and low pressure. Due to the low temperatures, a catalyst is required to crack the hydrocarbon molecule. The process requires a temperature above 270 °C and the use of an ion exchange catalyst. The process can be operated below 400 °C to avoid the production of carbon dioxide, dioxin’s and furan’s. Although the thermal depolymerization (FischerTropsch) process has been understood for some time, human-designed processes were not efficient enough to serve as a practical source of fuel because more energy was required than was produced. Research breakthroughs in the 1980’s led to efficient processes that were eventually commercialized. Some thermal depolymerization demonstration plants were constructed in the late 1990’s, including a commercial plant in Carthage, Missouri, which turn turkey waste into oil. There is however, a limitation of Thermal depolymerization, the process only breaks long molecular chains into short chains. As a result, small molecules like methane or carbon dioxide cannot be converted into oil using this process. Hence, there is a need for additional refining steps. In addition, as the process requires temperature
CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : MARCH 2016
greater than 400°C (752°F), toxic byproducts like furan and dioxin may be released in addition to methane and carbon dioxide. The catalytic approach is preferable to the thermal approach, both from efficiency and safety/environmental aspects. The latter requires substantial energy input to reach required temperature, a reactor that can withstand high pressures, and further processing to deal with toxic byproducts. Assuming a suitable catalyst is available, the catalytic approach only requires a temperature greater than 270°C and proper mixing to insure complete reaction of the feedstock with the catalyst.
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ecules such as methane or carbon dioxide are not suitable for this process. Most of the bio mass is already being used as animal feed or fertilizers and so are not really available in plenty for this process.
Impact
Besides reducing waste and by-products by using water as a medium, thermal depolymerization process also produces fuel resources that can benefit the world. Invaluable fuel products can be produced from organic waste and low quality feed stocks in an environmentfriendly manner. It also yields clean crude oil products Advantages by removing sulfur and nitrogen. Also, researchers have **Thermal depolymerization breaks strong chemical produced oil from agricultural plant wastes like hog bonds of organic poisons which is extremely beneficial manure, animal wastes, plastics using thermal depoto balance the ecosystem. lymerization method where the application of heat and pressure yields oil in addition to carbon dioxide, meth**It can also safely do away with heavy metals by con- ane and water. verting them to stable oxides from their original ionized forms. Thermal Depolymerization must be commended for its efficiency, using only a small fraction of the energy it **Thermal depolymerization is a useful process of recy- produces to fuel the entire process. In addition, the wacling the energy content of organic products while re- ter that is produced from the waste is used again in the taining the water content. In this way you avoid drying process. This is why TDP is so effective and helpful to while producing liquid fuel that separates from water in society as it demonstrates the mantra, reduce and reuse. thermal depolymerization. However, transitioning from conventional production of oil and gas to depolymerization will require some **The vast bulk of waste content can be utilized to protime, but it is something to consider in light of limited duce liquid crude oil products. This will not only make fossil fuel resources, rising energy consumption and of good use of all the non bio-degradable waste but also course an abundance of waste resources. help in producing some crude oil. However, in the present scenario, majority of the waste produced is not fit Thermal depolymerization has yet to make an impact for this process. as an alternative method for liquid crude oil since the cost of the whole process is quite high in addition to the **The light hydrocarbons that are produced by thermal maintenance of the depolymerization plants. If considdepolymerization can be used fuel sources, filters and ered as alternative path to oil, thermal depolymerizafertilizers. It can be used a s a substitute for coal and also tion could well be the answer to meet the acute shortage in quelling the alarming rise of carbon dioxide concenand the dwindling resources of fuel all over the world. tration in the air. CO2 is one of the chief greenhouse This is one way that shows promise as an important engases that is responsible for global warming. ergy source in the coming decades. Thermal Depolymerization can be the new alternate fuel source because of Disadvantages its availability and ingenuity. Only compounds with long molecular chain can be broken down into shorter ones. Smaller chained mol-
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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : MARCH 2016
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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : MARCH 2016
Prices at the Pump MARCH 2016
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Retail prices for Regular Unleaded Gasoline in the thirteen Caribbean countries reviewed at the end of March 2016 showed a 5.3% decrease in prices for Dominica followed by a decrease in prices for Barbados and Grenada of 2% and 2.4% respectively. Prices increased in Bahamas by 2.7% and in Jamaica by 1.8%. Prices in the remaining countries were stable. The average retail price for period remained stable when compared to the previous month.
Regular Unleaded Gasoline: Average Retail Price – January - March 2016 (US$/Litre) 3Mths Avg
COUNTRIES
JAN
FEB
MAR
ANTIGUA
1.11
1.03
1.03
1.06
BAHAMAS
1.01
0.95
0.97
0.98
BARBADOS
1.36
1.35
1.32
1.35
BELIZE
1.00
1.04
1.04
1.03
DOMINICA
0.80
0.78
0.74
0.77
GRENADA
1.06
1.04
1.01
1.04
GUYANA
0.95
0.85
0.85
0.88
JAMAICA
0.91
0.86
0.88
0.86
MONTSERRAT
0.87
0.76
0.76
0.79
ST. KITTS/ NEVIS
0.94
0.94
0.94
0.94
ST. LUCIA
0.86
0.80
0.80
0.82
ST. VINCENT
0.87
0.78
0.78
0.81
TRINIDAD
0.42
0.42
0.42
0.42
AVERAGE RETAIL PRICES
0.94
0.89
0.89
0.91
Comparative Retail Pump Prices Regular Unleaded Gasoline March 2016 vs. 3 Mths Avg (Jan-Mar 2016) 1.60 1.40
MAR
US$/Litre
1.20
3 Mths AVG
NOTE: *US Gallon = 3.785 L *Imperial Gallon = 4.546 L *As at November 1, 2009 MTBE was phased out from all gasoline blends in Jamaica and replaced with 10% Ethanol.
1.00 0.80 0.60 0.40 0.20 0.00
13 Caribbean Countries
See prices for all products at www.cippet.org
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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : MARCH 2016
International OIL PRICES
CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : MARCH 2016
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Average Weekly and Monthly Crude Oil Prices January - March 2016 45.00
36.99
40.00
39.18
US$/Bbl
35.00 30.00
31.32
25.00 20.00 15.00 10.00 5.00 0.00 Period
WK2 Jan-16
WK3 Feb-16
WK4
MTH AVG
Mar-16
Average Monthly Crude Oil Prices 2013-2015 120.00
106.61
105.78
100.00 US$/Bbl
Analysis of International Crude Oil Prices from January to March 2016 period showed an average price of US$37.41/bbl . This average price was 14% higher than the price seen in January 2016 and 24% higher than the average price in February 2016. The highest weekly price seen in March 2016 for the commodity was US$39.18/bbl-reflected in week four while week one accounted for the lowest price of US$34.43/bbl. The average price reported in March 2016 was 22% lower than the average price recorded in March 2015.
WK1
80.00 60.00
59.91
40.00 20.00
2013
2014
2015
0.00
Period
FEATURED OFFERS: P E TS TATS - t h e Ca r i b b e a n E n e rg y I n fo r m at i o n System (CEIS) primary report of historical annual petroleum energy statistics provided for 18 Caribbean Countries. Included are data on total energy production, consumption, and trade; overviews of petroleum, natural gas, electricity, as well as financial and environmental indicators for over twenty years.
Scientific Research Council,
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