Attached files
| file | filename |
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| 8-K - 8-K - W R GRACE & CO | a8-kx051815xhydroplant8xk.htm |
| EX-99.1 - EXHIBIT 99.1 - W R GRACE & CO | a8-kx051815xhydroplantrele.htm |
1 © 2015 W. R. Grace & Co. May 18, 2015 W. R. Grace & Co. New Hydroprocessing Catalyst Plant
2 © 2015 W. R. Grace & Co. Advanced Refining Technologies (ART) New Hydroprocessing Catalyst Plant World-scale Catalyst Plant Based on Solid Demand from Licensed Units Under Construction Project Scope Direct investment by ART in new residue hydroprocessing catalyst plant in Lake Charles, LA Total investment of approximately $105M by ART Capital efficient investment Leverage existing infrastructure and workforce Leverage U.S. Gulf Coast low energy prices and operating costs Tax incentives from the State of Louisiana Funded from the cash flow of the ART joint venture Strategic Rationale Invest to capture growth in $2B hydroprocessing catalyst market with an estimated 6% CAGR (2015-2018) Refiners investing in technologies for bottom-of-the-barrel upgrading and production of ultra-low sulfur transportation fuels to create value Resid upgrading allows increased processing of heavy crudes which are more available and lower cost Hydrocracking very cost effective for production of ultra-low sulfur diesel High capacity utilization of new plant expected on start up based on refining units already under construction
3 © 2015 W. R. Grace & Co. Hydroprocessing Market Overview New ART HPC plant primarily focused on production of Fixed Bed Resid Hydrotreating catalysts Upgrades low cost feedstocks for further processing to gasoline and petrochemicals ART has #1 position in Fixed Bed Resid catalysts >10% market CAGR New ART HPC plant will also produce Ebullating Bed Resid Hydrocracking catalysts Upgrades ultra-heavy feedstocks for diesel and gasoline production ART has #1 position in Ebullating Bed Resid catalysts ~5% market CAGR Free capacity and fungibility of existing plants will be used to produce additional Hydrocracking catalysts Provides more cost-effective one-step production of ultra-low sulfur diesel ART has #2 position in Hydrocracking catalysts and growing ~6% market CAGR ART First Fill and Incumbent Advantage Provided by Licensing Success of Chevron Lummus Global (CLG)