Transcript
**0:00** · So, Aduro had a press release today about how it filed a new patent uh for using its hydro chemolytic technology to upgrade uh paraffinic crude oils in the Uinta uh basin in Utah.**0:18** · So, as I said in the video, the oil in Utah is very waxy, kind of like peanut butter and chocolate, and because of that, it cannot be moved through conventional pipelines.**0:33** · It has to be either sold to local refineries. There are only five of them in the area.**0:41** · And if you want to sell it further, you have to send it or ship it through heated pipelines or uh heated railcars.**0:51** · Um in other words, very expensive, so you have limitations as to how far you can ship them.**1:00** · And Aduro uh tested this technology, and it was successfully was able to turn this waxy waxy crude oil into liquid that can now be moved through conventional pipelines without losing the fantastic refining refining characteristics because refineries want this type of uh waxy oil, so the bottleneck the problem is the logistics. And then so some people are like, "What's going on here? Why is Aduro shifting to crude oil?**1:39** · Why why doesn't it stick to plastics?"**1:43** · Blah blah blah blah blah. Okay? So, I'm going to show you something.**1:47** · Do you remember when I made uh the video about Aduro Chemistry? I showed you this uh chemical structure.**1:56** · Do you remember it?**1:57** · What am I showing you?**2:00** · Well, I showed you specifically the picture on the bottom.**2:05** · This is a poly ethylene.**2:09** · This is plastic, okay?**2:13** · What is the thing on the top? What is this?**2:18** · Well, you can say, "Well, it's polyethylene.**2:22** · It looks exactly the same."**2:24** · Well, no, this is not This is not polyethylene. This is paraffinic crude oil.**2:31** · Doesn't it look the same?**2:33** · Well, it's practically the same.**2:37** · You have a carbon.**2:39** · You have hydrogen. That These are the only things you have. You have carbons connected with single bond connections.**2:48** · The chemical structure of paraffin crude oils is fundamentally very similar similar to polyethylene in chemical terms.**3:01** · The difference is how many carbons it has.**3:06** · Plastics have these long chains, and they are they contain thousands thousands of carbons, where paraffinic crude has lower number of carbons.**3:19** · But, if Aduro's hydro chemolytic technology can take this and and turn it into naphtha, don't you think that this technology can also do this?**3:35** · So, it's really the same. This technology is not for plastic. Hydro chemolytic technology is a platform technology that can work or break uh carbon to carbon connections. And because of that, it has applications in many different areas, okay? So, it's not uh going somewhere else because the pilot is not working on plastic or whatever. If there is a party that's interested in Aduro running a test, whether it's on tires, renewable oil, or waxes, they can use the same thing and just to do the same thing. So, it's it's nothing different. And as you know, in plastic, they put they heat up plastic, they melt it, they put it into the reactor.**4:36** · The reactor, they also put water at a certain temperature.**4:41** · They add uh catalysts and hydrogen donor, and they break carbon to carbon connection so that those long molecules become shorter with shorter number of carbons. And when the cut is made, then there's a hydrogen donor because each hydrogen needs four connections.**5:04** · Well, it's no different to paraffinic uh crude oil, the waxy. Now, the reason why plastic molecules are harder because they they are longer. They have more carbons.**5:16** · Paraffinic oil has less carbons, okay?**5:19** · And therefore, it's not in a plastic form, but in a waxy form, okay? And but that's not liquid enough to move it through pipelines. So, with Aduro's technology, they can break those carbon and carbon connections.**5:38** · Again, using water and catalyst, and then donate hydrogen so that the resulting product has lower number of carbons, and that makes it liquid. That makes it liquid and thus movable through conventional uh pipelines. But the the characteristics the refining characteristics of the new product stay the same. So, the refineries still want this product, but now it is transport transportable through conventional pipelines.**6:11** · Now, but the goal the goal of recycling plastic polyethylene is to create naphtha, right? Is to create naphtha so that naphtha can go into steam crackers, and steam crackers can crack it to create building blocks for plastic. That's the goal of the plastic vertical.**6:32** · What is the goal of this? The goal of this is not to produce naphtha. The goal of this is to break those carbon carbon connections so that the new molecules that are created, they are in the range of liquid crude oil so that it can move through conventional pipelines. That's the goal for the Uinta basin. That's what the clients want, and that's what the clients need, right? But now, could could they could Aduro take this waxy oil and turn it into naphtha? Of course.**7:11** · Of course Aduro could do this. It would just require uh breaking those carbon to carbon connections into the sizes that define naphtha, and then it could go into the steam cracker. But that's not the goal of the producers at the Uinta basin. They want They They want to just to flow through pipelines. That's all.**7:33** · And also, it takes less work and less energy, less OPEX to turn these molecules these paraffin crude oils into liquid flowable uh crude oil than it would to create naphtha. To create naphtha, it would take more energy.**7:56** · But just to make it flow through conventional pipelines, it takes less energy, and that's their goal. But if Aduro wanted to make naphtha out of it, it could. So, in other way of saying it, polyethylene is essentially a giant paraffin. That's all there is to it.**8:15** · So, now I hope this is helpful, and I hope you understand that they are not deviating from anything.**8:26** · The same technology applied for different things. And actually, if you studied Aduro, you know that they actually discovered this phenomena working on oil.**8:40** · Then they they realized, "Oh, oil heavy oil has similar very similar chemical composition. If we can do it on oil, we can do it on plastics."**8:53** · But now, they are more advanced on the plastic side, but there's no problem going back and testing on batch for for the producers in Utah. And so far, they only did on batch system, and I'm hearing, "Oh, it's just a batch system." Uh and we don't know if it's going to work on continuous system. How many times are we going to go through this?**9:16** · You think that if plastic works in a batch system, and it works better in a continuous system, and it works better on a larger continuous system, you think all of a sudden a similar structure like this with that's actually easier, all of a sudden it's not going to work on continuous system?**9:34** · So, that's the explanation, and that's it for this video.