Industry Overview - The global petrochemical industry is ubiquitous, with applications in water treatment, clothing, automotive lightweighting, and home construction, among others [4] - Global plastic demand has nearly doubled since 2000, despite challenges such as inflation, rising costs, geopolitical risks, and sustainability concerns [4] - Ethylene production exceeded 185 million tons in 2023, with a projected 4% CAGR growth from 2023 to 2030 [5] Ethylene Production and Challenges - Steam cracking is the dominant technology for ethylene production, operating at temperatures above 850°C with high energy consumption and significant carbon emissions [5] - Ethylene production costs vary globally, with gas crackers using ethane as feedstock being more cost-effective and having lower carbon emissions compared to liquid crackers using naphtha [6] - Ethane supply and prices are volatile, with North American ethane prices expected to triple in the next 5-7 years, potentially equalizing with naphtha prices [9] NEP Technology Advantages - Honeywell UOP's NEP (Naphtha to Ethane/Propane) technology enables efficient light olefin production in regions with limited ethane and propane supply [3] - NEP technology improves ethylene cracking efficiency, reduces byproducts, and lowers carbon emissions compared to traditional steam cracking [3] - NEP can increase light olefin yield from naphtha cracking from ~50% to over 70%, reducing feedstock consumption by up to 50% and lowering production costs by $30-70/ton [20][22] Case Studies - A new light crude-to-polyolefin complex using NEP technology achieved 69-78% carbon utilization, compared to 53% with traditional methods, and reduced emissions by 36-42% [26][29] - A 1.25 million ton/year ethylene plant using NEP technology reduced propylene production by 94%, lowered capital expenditure by 25%, and increased IRR by ~6% compared to traditional mixed-feed cracking [30][32] Future Outlook - NEP technology offers flexibility in feedstock, allowing production of ethane and propane from LPG or naphtha, mitigating risks from feedstock supply and price fluctuations [33] - NEP technology supports future electrification of cracking processes, with ethane crackers being simpler to electrify than liquid crackers [25] - NEP technology can reduce carbon emissions by up to 50% per ton of light olefins compared to naphtha cracking, with potential for further reductions [25]