Hydrocarbon Processing - May 2022 - 43

Digital
Technology
S. LODOLO, Aspen Technology, Bologna, Italy
Save energy and reduce CO2
cal companies face the difficult challenge
of maximizing profitability while achieving
aggressive decarbonization objectives
set for 2030 and beyond. The transition
to a digitally powered business model is
generally accepted across industries as
companies adopt new processes, pursue
new feedstocks and expand automation.
Advanced process control (APC) and
optimization technologies have long
been used to help automate and optimize
operations. More recent innovations have
tackled strong process nonlinearities and
multi-unit dynamic optimization of large
process envelopes to better meet evolving,
volatile market demands. Now, artificial
intelligence (AI) and deep learning
have further enhanced APC and optimization
capabilities to help upstream and
downstream companies achieve energy
and carbon dioxide (CO2
) reduction
goals without significant capital investments.
When applied to fuel gas, steam
and hydrogen utility networks, APC and
dynamic optimization technologies can
have a tremendous impact in meeting an
organization's operational and sustainability
targets. This article explores why
this is so important and how to achieve
beneficial results with a utility network.
Transitioning to a new business
model. Oil and gas, petrochemical and
chemical companies are focused on tackling
the dual challenge to meet the growing
demand for resources from a growing
population with increasing standards of
living, while also addressing sustainability
goals. To do so, these companies are
transitioning to a new sustainable business
model. This typically involves rebalancing
their production portfolio and
emissions with
closed-loop optimization of utilities networks
Oil and gas, petrochemical and chemiinvestment
areas, focusing on new feedstocks,
new products, new energy sources
and new process technologies. A digitalization
journey framework leveraging new
technologies like AI and deep learning
can help with this transition. This journey
is different from one organization to
the next, with each being at a different
digital maturity level. However, sustainability
is always at the forefront of the
transition and the new business model.
In fact, most companies have established
aggressive sustainability targets for
2030, and particularly for CO2
emissions
reduction, with the European Union
(EU) leading the way, setting a goal of
55% reduction from 1990 levels with full
decarbonization to be achieved by 2050.
The global pandemic added more
challenges and squeezed corporate margins,
accelerating this transition process.
Last year we witnessed high volatility
in supply/demand and in energy costs,
which has recently tripled in some regions.
Extremely high CO2
prevalent in areas where a CO2
costs are
trading
and permit system is in place, such as the
EU's Emissions Trading System (ETS).
A well-performing, complex 200,000bpd
European refinery that emits 1.5
MMtpy of CO2
200,000 tpy of CO2
around $18 MM/yr, given current CO2
prices of $90/t-carbon pricing is based
on cost in November/December 2021.
Free allowances are forecast to be reduced
each year and permit costs are
likely to increase even more. This creates
a sense of urgency to reduce energy and
CO2
costs to stay competitive, achieve
costs may even move margins from
sustainability goals or simply survive, as
CO2
positive to negative.
may need to buy around
permits now worth
Owners and operators are planning
significant capital expenditure (CAPEX)
investments to achieve decarbonization
targets set for 2030 and beyond. Examples
of key investment areas include
carbon capture, electrification, green/
blue hydrogen, cogeneration and fuelsto-chemicals.
These CAPEX investments
are strategic, mid-to-long term and will require
significant upfront investment with
a high CO2
abatement cost to achieve the
targets. It is expected that these investments
could help reduce carbon emissions
by approximately 30%-35%.
An additional 20%-25% in carbon reduction
is possible with more tactical investments
to increase process efficiency.
These would generally be less costly, low
hanging fruit improvements that would
not require executive level approval.
There would be a negative CO2
abatement
cost since CO2 reduction is typically
accompanied by energy consumption reduction,
making this secondary approach
an attractive complement to longer-term,
more strategic CAPEX investments.
Process efficiency
improvements.
APC and optimization technologies have
been utilized in the process industries
for several decades to enable improved
process efficiency. Focusing first on large
complex units and then secondary units,
and more recently with large multi-unit
envelopes in scope, like the entire middle
distillates circuit in a refinery or a full
ethylene plant in petrochemicals, optimized
dynamically minute by minute.
Optimization objectives have generally
been in relation to increased capacity or
yields, greater quality control or reduced
giveaway, and-to a lesser extent-energy
savings. Priorities for most providers
Hydrocarbon Processing | MAY 2022 43
Hydrocarbon Processing - May 2022

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