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Advancing the Basics of Refining and Future of Energy Renewable Diesel WITH CAPITAL DISCIPLINE, INNOVATION AND UNMATCHED EXECUTION RELIABLE AFFORDABL E SUSTAINABLE ENERGY I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1
Gary Simmons Executive Vice President Chief Commercial Officer . I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 2
Agenda
1 Crude Oil Overview
2 Refining Basics
3 Refinery Optimization and Economics
4 Renewable Diesel Basics
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 3
Crude Oil Characteristics
• Crude oils are blends of hydrocarbon molecules
o Classified and priced by density, sulfur content and acidity Heavy, sour,
• Density is commonly measured in API gravity high acid
(relative density of crude oil to water) crude oils are
o API > 10: lighter, floats on water more difficult
o API < 10: heavier, sinks in water to process, but
trade at a
• Sulfur content is measured in weight percent discount
o Less than 0.7% sulfur content = sweet relative to
o Greater than 0.7% sulfur content = sour light, sweet,
• Acidity is measured by Total Acid Number (TAN) low acid
o High acid crudes are those with TAN greater than 0.7 crudes oils
o Acidic crudes are corrosive to refinery equipment and require
greater investment to process significant volumes
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 4
Crude Oil Reserves and Quality
1.73 Trillion Barrels of Oil Reserves (2019) Sour Crude Oil Quality
Majority of
4.0
Asia Pacific 3% Maya global
Cold Lake
Africa Canada U.S. 4% WCS reserves are
Basrah
7% 10% 3.0 sour crude oils
Arab
Sulfur, wt%
2.51
M100 Napo Medium
South & Southern Green
Central
2.0 Castilla
America 19%
Middle East 48% Mars Arab Light
Oriente WTS WTI and Brent
Europe 1% 1.0 ANS Bakken WTI are the
Russia / FSU 8% Dalia LLS Midland primary light
Brent
Eagle Ford WTI Light sweet crude
Sweet
0.0
0 10 20 30 40 50 60
oil pricing
API Gravity benchmarks
Heavy Light
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 Source: Valero and industry reports. 5
What is in a Barrel of Crude Oil?
Crude Oil Types Characteristics Inherent Yields
3% 2019 U.S. Refinery
• > 34 API Gravity Production Refineries
Light Sweet 32%
• < 0.7 % Sulfur upgrade
(WTI, LLS, Brent) 30% Propane/
• Most Expensive
7%
8% Refinery Gases
Butane crude oil into
35%
Gasoline
higher value
RBOB gasoline and
CBOB
45% Conventional distillates
2%
CARB
• 24 to 34 API Gravity 24% Premium
Medium Sour
(Mars, Arab Medium) • > 0.7 % Sulfur 26%
• Less Expensive 48% Distillate
Jet Fuel
38% Diesel
Heating Oil
1%
• < 24 API Gravity 15%
Heavy Sour 21% Fuel Oil &
• > 0.7 % Sulfur 10% Other
(Maya, WCS)
• Least Expensive 63%
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 Source: Energy Information Administration. 6
Basic Refining Concept
Intermediates Final Products
C1 - C4
Light Ends Fuel Gas
Recovery & Propane
Natural Gas Treatment NGLs
< 90°F Propane
Butane
Crude Distillation
90– C5 - C8 Isomerization /
Unit 220°F Blending
Gasoline
Distillation Tower
Light Naphtha
(Atmospheric)
C8 - C12 Reformer / Gasoline
220–
315°F Heavy Naphtha Blending Petrochemicals
C12 - C30 Kerosene
315– Hydrotreater Jet fuel
450°F Kerosene Diesel
Furnace C30 - C50+ Hydrotreater / Gasoline
450–
Diesel / Hydrocracker Diesel
650°F
Crude Light Gasoil
Oil
C30 - C50+ FCC / Gasoline
Vacuum Hydrocracker Diesel
650 - 800°F Heavy Gasoil
Distillation
Unit C50 - C100+ Coker / Resid Gasoline
Hydrocracker Diesel
+800°F Residual Fuel Oil Coke
/ Asphalt
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 7
Low Conversion: Hydroskimming (Topping)
LPG
Fuel Gas
4% Propane
8% Butane Low
complexity
Distillation Tower
Gasoline
Naphtha
RBOB refineries
Gasoline 32% CBOB
Reformer
Conventional
process sweet
CARB crude oils
Premium
Hydrogen
Kerosene ULSK / Jet Fuel Distillate
Distillate 32% ULSK / Jet Fuel
Light, Sweet Diesel Hydrotreater ULSD ULSD
Crude Heating Oil
Vacuum Gasoil VGO
Vacuum 32% Fuel Oil
Distillation Resid Asphalt
Unit & Other
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 8
Medium Conversion: Catalytic Cracking
LPG Fuel Gas
8% Propane
Butane
Moderate
complexity
Distillation Tower
Naphtha Reformate Gasoline
Reformer RBOB
43% CBOB
refineries tend
Conventional to run more
CARB
Hydrogen Premium sour crudes,
Light-
Kerosene
~~
ULSK / Jet Fuel Distillate
yield more
high value
Medium,
Distillate ULSK products and
30% Jet Fuel
Sour Crude
Diesel Hydrotreater ULSD ULSD achieve higher
LCO
Alkylate
~~ Heating Oil
volume gain
Alkylation
Fluid Catalytic Unit
Gasoil FCC Gasoline
Cracker (FCC)
Vacuum
Distillation Slurry
Resid / Asphalt Fuel Oil
Unit
19% Asphalt
& Other
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 9
Québec FCC unit.
Fluid Catalytic Cracker (FCC)
Fluid Catalytic Cracker Yields
Refinery Gases
Butylene FCC converts
Fractionator
(Alky Feed) low-value
Gasoline gasoils into
higher value
Reactor
Light Cycle Oil
(Distillate) light products
Spent
Catalyst
Regenerator
Slurry
Gasoil Regenerated
Catalyst
Total FCC liquid volume yield is
approximately 110% of throughput
Air
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 10High Complexity: Coking / Resid Destruction
LPG Hydrogen Hydrogen Fuel Gas
Hydrocracker Propane
Plant Propane / Butane 6% Butane
High
Naphtha Reformate Gasoline
Reformer
RBOB complexity
Kerosene
Hydrogen
~
ULSK / Jet Fuel
47% CBOB
Conventional
CARB
refineries can
run heavier,
Diesel
Hydrogen
Distillate
Hydrotreater
ULSD
~ ~~ Premium
Distillate
more sour
crudes oils
Gasoline
Medium – Light Gasoil Hydrocracker
ULSD / ULSK / Jet Fuel
Jet Fuel
while
Heavy,
Sour Crude LCO
(HCU)
Alkylation
~~ 33% ULSK
ULSD
Heating Oil
achieving the
highest light
Butylene
Unit
Fluid Catalytic
Cracker (FCC) Gasoline
Alkylate product yields
Slurry and volume
Gasoil Coker Gasoil gain
Naphtha Reformer
Vacuum
Distillation Resid Delayed Diesel
Distillate Hydrotreater Heavy
Unit Coker Coke 14% Fuel Oil
& Other
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 11Port Arthur Hydrocracker Unit.
Hydrocracker Unit (HCU)
Hydrocracker Yields
Upgrades high
sulfur gasoil
into low sulfur
Refinery Gases
gasoline, jet
Hydrogen and diesel
Fractionator
Reactor
Gasoline
Gasoil Increases
Distillate volumetric
Unconverted Oil yield of
Unconverted Oil
products
through
hydrogen
Total Hydrocracker liquid volume yield
is approximately 110% to 115% of throughput
saturation
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 12Port Arthur Delayed Coker Unit
Delayed Coker
Coker Yields
Upgrades low
value residual
Refinery Gases fuel oil into
Fractionator
Coke Drum
Coke Drum
Gasoline higher value
light products
Distillate
Gasoil
Coke
Fuel Oil
(Resid)
Total Coker unit liquid volume yield
Furnace is approximately 80% of throughput.
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 13Greg Bram Vice President Supply Chain Optimization . I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 14
Maximizing Refinery Profit
Linear Programming (LP) Model
Relationship
between
Feedstocks (100+) Products (30+) variables are
modeled in a
• Prices • Prices series of linear
Refinery equations
• Qualities • Specifications
• Availability • Market demand Linear program
(purchase volumes) (sales volumes) is used to find
combination of
feed slate,
products, unit
• 10 to 25+ individual process units operating rates,
• Unit hardware constraints and operating
• Operating parameters parameters that
delivers highest
• Operating costs profit
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 15Linear Program (LP) Example: What’s for Breakfast?
Your goal is to
consume at
least 18 grams
of protein, but
1 LARGE BAGEL 2 LARGE EGGS 3 BACON SLICES not more than
$2.00 $3.50 $4.00 10 grams of
3 g protein 6 g protein 8 g protein total fat for
1 g fat 5 g fat 8 g fat the lowest
price
1 CUP OATMEAL 1 CUP ORANGE JUICE
$2.50 $2.50
4 g protein 2 g protein
1 g fat 0 g fat
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 16Optimizing Breakfast from an Engineer’s Point of View
Solve for number of servings of each item:
Consume at least 18 grams of protein Even with only
five food
18 grams
3g 4g 6g 8g 2g ≥ protein choices, there
are so many
possible
Consume no more than 10 grams of total fat combinations
10 grams that using trial
1g 1g 5g 8g 0g ≤ total fat and error to
find the one
Minimize the cost of breakfast
with the
lowest cost is
$2.00 $2.50 $3.50 $4.00 $2.50 = Minimum not efficient
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 17What’s the Optimal Breakfast?
Servings Unit Cost Protein (g) Total Fat (g)
0 Linear
programming is
2.7 $2.50 = $6.75 4 = 10.8 1 = 2.7 a branch of
applied
0 mathematics
concerned with
0.9 $4.00 = $3.60 8 = 7.2 8 = 7.2 problems of
constrained
optimization
0
Meal
$10.35 18 g 10 g
Price and
GOAL = Lowest Min protein Max fat
“quality” of
each variable
drives the
optimum
solution
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 18Crude Oil Break Even Values
Crude Product Yields and Prices (High and Low Crude Prices)
Light Sweet(1) Medium Sour(2) Heavy Sour(2) Light Sweet Light Sweet
@ $99/bbl @ $51/bbl Break Even Value
Products Yields Yields Yields Prices Prices (BEV) = Alternate
Refinery gases 3% 2% 1% $49 $31 Crude Total
Gasoline(3) 32% 24% 15% $108 $60 Product Value –
Distillate(4) 30% 26% 21% $117 $69
Reference Crude
Total Product
Heavy fuel oil(5) 35% 48% 63% $79 $41 Value
(1) Reference crude.
(2) Alternate crudes.
(3) Gasoline crack: $9/bbl.
(4) Distillate crack: $18/bbl.
BEV for alternate
(5) Heavy fuel oil: 80% of reference crude value.
crude as a
Crude Break Even Values (High and Low Crude Prices) percentage of
Light Sweet Light Sweet @ BEV BEV reference crude
@ $99/bbl $51/bbl @ $99/bbl @ $51/bbl value is relatively
Crude BEV BEV % of Light Sweet % of Light Sweet insensitive to flat
Medium sour -$3.55 -$2.58 96% 95% price
environment
Heavy sour -$7.76 -$5.65 92% 89%
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 19Crude Oil Differentials Versus ICE Brent
5%
Premium
0%
-5%
-10%
Discount
-15%
-20%
Maya (heavy sour) ASCI (medium sour) WTI (light sweet) LLS (light sweet)
-25%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 Source: Argus. ASCI represents Argus Sour Crude Index. 20Martin Parrish Senior Vice President Alternative Energy and Project Development I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 21
Global Low-carbon Fuel Policies Driving Demand
Growth for Renewable Diesel
California Renewable
Diesel Consumption
(million gallons) 618
Active Low-carbon
Mandates
Carbon Mandates 113
in Development or
GHG Emissions Goal
2014
2015
2016
2017
2018
2019
2030 GHG Emissions Net-Zero GHG Primary Transportation Fuel
2030 Liquid Fuels Goal
Reduction Target Emissions Target Policy Mechanism
Low Carbon Fuel Standard Reduce the carbon intensity of transportation
California 40% Net-zero by 2045 LCFS Credit Price
(LCFS) fuels by at least 20%
(monthly average, $ per metric ton)
Clean Fuel Standard (CFS) – Reduce the carbon intensity of transportation
Canada 30% Net-zero by 2050
enforcement expected 2022 fuels by 10-12% $200
Renewable Energy Directive II
EU 40% Net-zero by 2050 Replace 14% of transport fuels with biofuels
(RED II)
• Oregon is matching California’s GHG reduction target and has an LCFS policy in place $100
Other Policies • British Columbia and Ontario have existing low-carbon fuels policies
in Place • Sweden is implementing a 21% GHG reduction mandate for diesel by 2020 and aims for 50% of transport fuels to be biofuels by 2030
• Finland aims for 30% of transport fuels to be biofuels by 2030 $0
•
2014
2015
2016
2017
2018
2019
2020
State of Washington continues to debate an LCFS with a 20% GHG reduction target by 2035
Potential
• New York introduced legislation that would require net-zero emissions by 2050 with the possibility of LCFS legislation
Policies
• Certain Midwest states and Colorado are exploring similar renewables mandates Source: California Air Resources Board. LCFS credit
price through December 2020.
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 22Renewable Diesel Driving Low Carbon Results in California
California LCFS Performance LCFS Credit by Fuel Type
(% reduction in carbon intensity) (2020 YTD)
Cost-effective
0% Other
1%
fuel that can be
used with
Biomethane existing vehicles
-6% 9%
-5%
Electricity
(other) 7% Renewable
Diesel Does not
31%
-10% Electricity require
Historic Compliance Targets (on-road charging) infrastructure
13%
Reported % CI Reduction
investments
-15% Future Compliance Targets
Biodiesel
14%
Over 2 billion
-20%
Ethanol gallons
24%
-20% consumed since
2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2011
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 Source: California Air Resources Board. 2020 through June 30. 23Diamond Green Diesel (DGD) Feedstock and Margin Indicator
DGD Feedstock Carbon Intensity and Product Value DGD Margin Indicator
$ per gallon
New York Ultra Low Sulfur Diesel (ULSD) price ($ per gallon) DGD is designed
LCFS credit value ($ per gallon) + 1.7 * Renewable Identification Number (D4 RIN, $ per RIN) to process low
$1.89 + 0.007 * Low Carbon Fuel Standard (LCFS) credit ($ per metric ton)
$1.70 Carbon Intensity (g CO2e / MJ) - 8.5 * Chicago Soybean Oil price ($ per pound) carbon
$1.58
feedstocks for
higher product
$1.01
100
value
82
54
32
27
20
Used Distillers Animal Soybean Grid Diesel NYMEX D4 RIN LCFS Feedstock Renewable
Cooking Oil Corn Oil Fats Oil Electricity ULSD Diesel Margin
Source: California Low Carbon Fuel Standard (LCFS) 2020 values, assuming $200 per metric ton carbon price.
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 24Renewable Diesel Process and Properties
Property Renewable Diesel
Physical properties Cetane > 70, Sulfur < 2 ppm
Pretreatment Cold temperature issues No issues
A Pretreatment
Unit Stability No issues
Allowed in pipelines Yes
Unit allows the
Practical limit in blend No limit with proper labeling; 85% sold in California plant to process
advantaged,
Deoxygenation low carbon
H2
Reactor intensity
feedstocks
Feedstocks:
Used Cooking Oil, Product
Recycled Animal Separation Isomerization
Separation
Fats and Inedible
Corn Oil
Light Fuels / Renewable Renewable
Water Propane Naphtha Diesel
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 25Questions and Answers I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 26
Appendix Contents
Topic Pages
Major Refining Processes – Crude Processing 28
Major Refining Processes – Cracking 29
Major Refining Processes – Combination 30
Major Refining Processes – Treating 31
Refining and Renewable Diesel Acronyms 32
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 27Major Refining Processes – Crude Processing
• Definition
• Separating crude oil into different hydrocarbon groups.
• The most common means is through distillation.
• Process
• Desalting – Prior to distillation, crude oil is often desalted to remove corrosive salts as well as metals and other suspended
solids.
• Atmospheric distillation – Used to separate the desalted crude into specific hydrocarbon groups (straight run gasoline, naphtha,
light gas oil, etc.) or fractions.
• Vacuum distillation – Heavy crude residue (“bottoms”) from the atmospheric column is further separated using a lower-
pressure distillation process. Means to lower the boiling points of the fractions and permit separation at lower temperatures,
without decomposition and excessive coke formation.
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 28Major Refining Processes – Cracking
• Definition
• Breaking down large, heavy hydrocarbon molecules into smaller hydrocarbon molecules through application of heat (thermal) or
the use of catalysts.
• Process
• Coking – Thermal non-catalytic cracking process that converts low value oils to higher value gasoline, gas oils and marketable
coke. Residual fuel oil from vacuum distillation column is typical feedstock.
• Visbreaking – Thermal non-catalytic process used to convert large hydrocarbon molecules in heavy feedstocks to lighter
products such as fuel gas, gasoline, naphtha, and gas oil. Produces sufficient middle distillates to reduce the viscosity of the
heavy feed.
• Catalytic cracking – A central process in refining where heavy gas oil range feeds are subjected to heat in the presence of
catalyst, whereby large molecules crack into smaller molecules in the gasoline and lighter boiling ranges.
• Catalytic hydrocracking – Like cracking, used to produce blending stocks for gasoline and other fuels from heavy feedstocks.
Introduction of hydrogen in addition to a catalyst allows the cracking reaction to proceed at lower temperatures than in catalytic
cracking, although pressures are much higher.
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 29Major Refining Processes – Combination
• Definition
• Linking two or more hydrocarbon molecules together to form a large molecule (e.g. converting gases to liquids) or rearranging to
improve the quality of the molecule.
• Process
• Alkylation – Important process to upgrade light olefins to high-value gasoline components. Used to combine small molecules
into large molecules to produce a higher octane product for blending into gasoline.
• Catalytic reforming – The process whereby naphthas are changed chemically to increase their octane number. Octane number is
a measure of whether a gasoline will knock in an engine. The higher the octane number, the more resistance to pre or self–
ignition.
• Polymerization – Process that combines smaller molecules to produce high octane blendstock.
• Isomerization – Process used to produce compounds with high octane for blending into the gasoline pool. Also used to produce
isobutene, an important feedstock for alkylation.
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 30Major Refining Processes – Treating
• Definition
• Processing of petroleum products to remove some of the sulfur, nitrogen, heavy metals, and other impurities
• Process
• Catalytic hydrotreating and hydroprocessing – Used to remove impurities (e.g. sulfur, nitrogen, oxygen, and halides) from
petroleum fractions. Hydrotreating further upgrades heavy feeds by converting olefins and diolefins to paraffins, which reduces
gum formation in fuels. Hydroprocessing also cracks heavier products to lighter, more saleable products.
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 31Refining and Renewable Diesel Acronyms
• AGO – Atmospheric Gasoil • HAGO – Heavy Atmospheric Gasoil • P–P – Propane–Propylene
• API – American Petroleum Institute • HCU – Hydrocracker Unit • PSI – Pounds per Square Inch
• ATB – Atmospheric Tower Bottoms • HDS – Hydrodesulfurization • RBOB – Reformulated Blendstock for Oxygenate Blending
• B–B – Butane-Butylene Fraction • HDT – Hydrotreating • RDS – Resid Desulfurization
• BBLS – Barrels • HGO – Heavy Gasoil • RFG – Reformulated Gasoline
• BPD – Barrels Per Day • HOC – Heavy Oil Cracker (FCC) • RFS – Renewable Fuel Standard
• BTC – Blenders Tax Credit • H2 – Hydrogen • RIN – Renewable Identification Number
• BTX – Benzene, Toluene, Xylene • H2S – Hydrogen Sulfide • RON – Research Octane Number
• CARB – California Air Resource Board • HF – Hydroflouric (acid) • RVP – Reid Vapor Pressure
• CCR – Continuous Catalytic Regenerator • HVGO – Heavy Vacuum Gasoil • SMR – Steam Methane Reformer (Hydrogen Plant)
• CI – Carbon Intensity • kV – Kilovolt • SOX – Sulfur Oxides
• DAO – De–Asphalted Oil • kVA – Kilovolt Amp • SRU – Sulfur Recovery Unit
• DCS – Distributed Control Systems • LCFS – Low Carbon Fuel Standard • TAME – Tertiary Amyl Methyl Ether
• DHT – Diesel Hydrotreater • LCO – Light Cycle Oil • TAN – Total Acid Number
• DSU – Desulfurization Unit • LGO – Light Gasoil • UCO – Used Cooking Oil
• EPA – Environmental Protection Agency • LPG – Liquefied Petroleum Gas • ULSD – Ultra Low Sulfur Diesel
• ESP – Electrostatic Precipitator • LSD – Low Sulfur Diesel • ULSK – Ultra Low Sulfur Kerosene
• FCC – Fluid Catalytic Cracker • LSR – Light Straight Run (Gasoline) • VGO – Vacuum Gasoil
• GDU – Gasoline Desulfurization Unit • MON – Motor Octane Number • VOC – Volatile Organic Compound
• GHT – Gasoline Hydrotreater • MTBE – Methyl Tertiary–Butyl Ether • VPP – Voluntary Protection Program
• GOHT – Gasoil Hydrotreater • MW – Megawatt • VTB – Vacuum Tower Bottoms
• GPM – Gallon Per Minute • NGL – Natural Gas Liquids • WTI – West Texas Intermediate
• NOX – Nitrogen Oxides • WWTP – Waste Water Treatment Plant
I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 32Cautionary Statement This presentation contains forward-looking statements made by Valero Energy Corporation (“VLO” or “Valero”) within the meaning of federal securities laws. These statements discuss future expectations, contain projections of results of operations or of financial condition or state other forward-looking information. You can identify forward- looking statements by words such as “believe,” “estimate,” “expect,” “forecast,” “could,” “may,” “will,” “targeting,” or other similar expressions that convey the uncertainty of future events or outcomes. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the control of Valero and are difficult to predict including, but not limited to, the effect, impact, potential duration or other implications of the COVID-19 pandemic. These statements are often based upon various assumptions, many of which are based, in turn, upon further assumptions, including examination of historical operating trends made by the management of Valero. Although Valero believes that the assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies, which are difficult or impossible to predict and are beyond its control, Valero cannot give assurance that it will achieve or accomplish its expectations, beliefs or intentions. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements contained in Valero’s filings with the Securities and Exchange Commission, including Valero’s annual reports on Form 10-K, quarterly reports on Form 10- Q, and other reports available on Valero’s website at www.valero.com. These risks could cause the actual results of Valero to differ materially from those contained in any forward-looking statement. I N V E S T O R P R E S E N TAT I O N | B A S I C S O F R E F I N I N G A N D R E N E W A B L E D I E S E L 2 0 2 1 33
Investor Relations Contacts
Our products fuel modern life
and make a better future Homer Bhullar
possible Vice President, Investor Relations
210.345.1982
Homer.Bhullar@Valero.com
Eric Herbort
Senior Manager, Investor Relations
210.345.3331
Eric.Herbort@Valero.com
Gautam Srivastava
Senior Manager, Investor Relations
210.345.3992
Gautam.Srivastava@Valero.com
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