Renewable naphtha is an expected derivative from producing renewable diesel (RD) and sustainable aviation fuel (SAF). Fuel refiners have been finding uses for this byproduct for decades, primarily as a blend stock with gasoline, and the renewable fuels space is no exception. Now, renewable naphtha is positioned with the potential to be used as a feedstock for plastics, hydrogen and other fuels.&nbsp;Located in Great Falls, Montana, Montana Renewables got its start in 2020 and began production of renewable diesel in 2022, followed by SAF in 2023. The facility produces 200 MMgy of renewable diesel and 30 MMgy of SAF, as well as roughly 10 MMgy of renewable naphtha derived from renewable feedstocks, including vegetable oils and waste inputs such as used cooking oil, animal fats and corn oil. “The target molecules, of course, are the diesel and the sustainable aviation fuel, which almost as they come out of the unit are fit for purpose to go into the diesel and jet fuel markets,” says Michael Wojciechowski, director of commercial optimization and compliance with Montana Renewables.For World Energy, the focus is primarily on SAF production. Its Paramount, California, facility produces SAF and sends its naphtha to the fuels market. Joe Ran, vice president of business development and innovation at World Energy, explains that the company works to offer its corporate customers low-carbon solutions to assist them in meeting emissions reduction goals across their supply chains by supporting the expansion of renewable biofuels in hard-to-abate sectors such as aviation. “When we’re intentionally making SAF, there will be some residual renewable diesel, and there will be renewable naphtha as a byproduct,” Ran says.Understanding the Chemistry&nbsp; Montana Renewables uses the hydrotreated esters and fatty acids (HEFA) process to produce its RD and SAF. Wojciechowski explains that the process breaks down triglycerides—made up of a propane molecule plus three diesel molecules—and separates the propane molecule, leaving molecules to make diesel and SAF. In the process, some of those molecules will break apart due to the chemistry, making slightly shorter-chain molecules: naphtha. This fuel has roughly 2%-3% lower energy density than RD or SAF. The fuels produced through the HEFA process are typically all given the same carbon intensity (CI) score—around 35 points is normal for Montana Renewables, according to Wojciechowski.&nbsp;“Renewable naphtha is paraffinic, meaning that it is a long-chain molecule with little to no carbon chains branching off,” explains Henrik Rasmussen, managing director and senior VP of the Americas for Topsoe. Topsoe’s HydroFlex technology utilizes the HEFA process to transform fats, oils and greases into RD, SAF and naphtha. Typically, naphtha is a byproduct of producing SAF and RD; however, the technology could be used to make 100% renewable naphtha if the customer so desires. “Up until this moment, we never had anyone come and ask us for that, but if they did, we could do that,” he says. “As a matter of fact, it’s easier to make naphtha than to make diesel and jet. You have to be very selective when you’re making jet and diesel, but if you just want naphtha, you could just crack the jet and diesel and make a large amount of naphtha.”Three main factors impact how much SAF and RD are produced as well as the naphtha yield, according to Wojciechowski. The first factor is the type of feedstock being sent into the process; each feedstock has a predisposition to produce more or less of each output. Secondly, the technology being used in the process also plays a role. The temperature, pressure and catalytic chemistry all have an impact. Finally, the severity of the process increases the amount of naphtha produced, he explains. “The reason for more severity is to try to make more sustainable aviation fuel,” Wojciechowski says. “The more you try to make sustainable aviation fuel out of the diesel, you will break more of these molecules into naphtha.”Similarly, Rasmussen explains that producing low-cloud diesel or “winter diesel” also requires the production team to operate the catalyst more severely, leading to increased naphtha production.&nbsp;As those three factors are adjusted, the naphtha yields may increase, but in Montana Renewables’ case, the shift is not drastic. At every facility that uses a HEFA process, these variables determine the process naphtha yield.Process Integration&nbsp; Using naphtha on-site as part of the HEFA production process is one of the solutions available to fuel producers, according to Rasmussen. About 20 HydroFlex units are in operation today, and two of those have Topsoe’s H2bridge technology integrated into the system, which is a hydrogen plant that transforms the off gases and naphtha byproduct into low-carbon-intensity hydrogen for use in SAF and RD production. “Topsoe is the only licensor that can license both a renewable jet and diesel plant and a hydrogen plant,” Rasmussen says. We license them as a combined integrated unit. This circular hydrogen production reduces the carbon intensity because you’re not importing fossil natural gas to make your hydrogen for jet and diesel [fuel]. You’re making your own hydrogen from a biogenic feedstock to produce the low-carbon-intensity hydrogen, and that benefits the carbon intensity of your jet and diesel.”Fueling Options&nbsp; Naphtha is derived from every refining process, whether that be from renewable sources or petroleum. Typically, naphtha is used as a gasoline blending component, according to Wojciechowski. Because it has a boiling point like gasoline, naphtha comes out of the process as an unfinished fuel, or a blend stock. “Just by using this material, the carbon footprint of your traditional gasoline will have a lower carbon count,” Ran says.&nbsp;Wojciechowski explains that Montana Renewables sells its naphtha to a singular customer, limiting direct market exposure. However, as the recipient of their fuel looks outward, there are plentiful opportunities beyond gasoline blending. The octane content of naphtha is too low for it to be used as a fuel on its own, he explains, as it would cause engine knocking. One potential strategy to make it usable as a fuel is to mix it with E85 to create a 100% renewable gasoline. “Ethanol can be well over 100 octane, and when you blend it with that type of naphtha material, it basically would raise that way up, and then you would have the benefits of an oxygenated fuel mixture made entirely of renewable components,” he says. “So, it doesn’t have contaminants, doesn’t have aromatics, but it lacks octane, and that’s why it needs other blending components to get it up to the specifications where our engines can process it without knocking.”World Energy sends the SAF facility’s naphtha into the E85 market for blending, replacing the gasoline percentage and making the fuel entirely low carbon.&nbsp;Another possibility is to use the naphtha as a denaturant for ethanol, Wojciechowski says. Currently, the ethanol industry must denature its fuel to keep it from being 100% alcohol; liquid natural gas derived from petroleum is mixed with it. “Why not put renewal naphtha in with ethanol and just make ethanol 100% renewable?” he says. “So, use it as an ethanol denaturant. That’s one of the [options]; nobody’s talking about it.”Plastic Potential&nbsp; Naphtha’s low octane number, around 40-45 points, opens up another opportunity, according to Rasmussen. This paraffinic naphtha can be used as feed to an ethylene cracker to make the chemical building blocks needed to produce renewable plastics. Once it is transformed into polyethylene and polypropylene, it can be used to make water bottles, phone packaging, polyester and medical devices, according to Ran.&nbsp;One of Topsoe’s recent initiatives has been PureStep, the company’s circular plastics technology, which makes a variety of plastics infinitely reusable. “The sorted plastic is processed in a pyrolysis unit,” he says. “And Topsoe’s PureStep unit upgrades the pyrolysis oil to an ethylene cracker naphtha feed. So, you see the circularity. The plastic is processed to a naphtha feedstock that goes into an ethylene cracker and this output is used to make plastics again.” Two units are currently in operation, according to Rasmussen.Implementation of this technology is limited by the lack of logistics and knowledge about recycling. If we want a greener approach, it will cost a bit more, Rasmussen explains. The technology to recycle plastic is here now, but the obstacle is economics. “I think you could pass it on to the consumer, but as of right now, the plastic consumers like Coca-Cola and all the other bottle companies have not been willing, as far as I can see, to pay extra for it,” he says. “It all starts with an off taker—somebody to say that they want it."&nbsp;World Energy’s mission to target the most challenging sectors meshes well with renewable plastic opportunities, according to Ran. The company has spoken with a few parties who would be interested in sourcing renewable plastics; however, no project is currently underway. &nbsp;“Ultimately, if you take a long view about this in ground transportation, light-duty vehicles, motor vehicles, gasoline, E85, that sector will eventually get electrified,” Ran says. “With plastics, there are limited substitutes. So, the long-term solution is that it needs to be deployed in that area.”Renewable plastics constitutes a significant opportunity for companies who are “thoughtful and mindful” about sustainability, and who see the potential for retail consumer appeal, Ran says. He sees the existing market for renewable plastics as a nascent—an emerging market, reminiscent of the biodiesel and SAF spaces in years past.&nbsp;The future value of naphtha depends on the economic incentive for it as a product, rather than a byproduct. For now, according to Ran, naphtha is both. However, the potential opportunities for the molecule are myriad. “There are a lot of places it could go,” Wojciechowski says. “I think the fun part and the interesting part is trying to figure out which one makes the most money for you and what that opportunity [is].” &nbsp;Author: Katie Schroeder&nbsp; Contributions Editor, SAF Magazine&nbsp; katie.schroeder@bbiinternational.com&nbsp; &nbsp;

2025-03-10 - The Ins and Outs of Naphtha (SAF Magazine)

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There are different market options for renewable naphtha, both as a SAF byproduct and coproduct.

The Ins and Outs of Naphtha

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