Over the next few decades, global demand for chemicals rose, forcing chemical companies to increase production while the industry had to shift to sustainability in order to mitigate climate and environmental crises. Faced with this dual challenge, it is necessary for businesses to adopt creative solutions to recycle or reuse materials and create a circular economy as an alternative to the linear economy. The United Nations Sustainable Development Goal 12 emphasizes the concept of “responsible consumption and production” and many chemical companies have adopted it as a guideline.

IC693PWR331C Chemical companies are taking a variety of approaches to improve resource efficiency, and pursuing energy efficiency is a relatively easy goal to achieve that may not require significant capital investment. At a time of frequent geopolitical conflicts around the world, energy security and improving energy efficiency have become major concerns for chemical executives. Another way to improve resource efficiency is to reuse raw materials, such as advanced plastic recycling schemes.

It is important to note that in the pursuit of optimal resource efficiency, commodity chemical manufacturers may employ a different set of strategies than small specialty chemical manufacturers. For example, ethylene producers urgently need to reduce emissions from range 1, while specialty polymer manufacturers may focus on eliminating waste and product circularity. Regardless of the size, nature and priority of the chemical product production plant, digital solutions help to maximize IC693PWR331C resource efficiency. A holistic view of the entire production value chain is needed to improve operational efficiency, profitability and sustainability as a whole.

Effective planning and scheduling

Global supply chains have come under unprecedented pressure during the pandemic, with frequent supply chain disruptions in the energy and chemical industries. Demand for plastics in healthcare is soaring, while demand for energy is plummeting. While the outbreak is receding and the world is starting to get back on track, conflict in Europe is adding to market volatility. In the face of such a changing market environment, chemical companies can maintain profitability by integrating upstream and downstream models, meet product demand through production planning and scheduling, and conserve resources (such as raw materials) to maximize production profits. For example, PTT Global Chemicals, a well-known olefins and aromatics producer in Southeast Asia, has partnered with Aspen on a supply chain plan optimization project to improve supply chain visibility.

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Improve energy efficiency and reduce your carbon footprint

Some chemical companies are experimenting with new business models to take advantage of new raw materials, new energy sources and new products, while others are promising to reduce their carbon footprint and become carbon neutral by 2050. In addition to the EU’s Emissions Trading System (ETS), other parts of the world are also considering promoting carbon taxes in the form of trading markets. Deviating from these targets would result in high operating costs and a IC693PWR331C significant cut in profit margins. Free allowances for emissions trading are expected to be reduced, which in turn will push up the price of carbon permits. In addition to reducing utility needs such as fuel gases and steam, companies must also improve the energy efficiency of important processes if they are to survive and thrive in the long term. With a highly competitive market, volatile raw materials and low profit margins, commodity chemical producers can significantly boost their bottom lines by simply improving their operations to improve energy efficiency.

Creating a factory digital twin can help identify opportunities across the plant to improve energy efficiency without capital investment. For example, LG Chemical’s 900,000-tonne-per-year ethylene plant in Daesan, South Korea, created a digital twin for the plant using Aspen Plus and Aspen Energy Analyzer. A single energy analysis can identify about 60 energy-saving opportunities. After evaluating commercial and operational feasibility, LG Chem selected 20 of these opportunities and implemented IC693PWR331C the corresponding initiatives, resulting in a 3-4% reduction in overall energy consumption, which is estimated to generate an additional $10 million in annual profit for the plant.

Another way to improve profit margins and reduce your carbon footprint is to optimize utilities such as fuel, hydrogen and steam, which is exactly what some large chemical companies are doing with active utility management to improve energy efficiency. By deploying digital solutions such as Advanced Process Control (APC) and digital twins, companies will be able to better understand and control utility operations, emissions levels, and consumption reduction opportunities. APC has been used by the process industry for decades to improve process efficiency. In addition to solving nonlinear problems, the new APC tool leveragesartificial intelligence and machine learning (ML) to learn from the historical performance of the plant, allowing users to optimise the required economic and operational variables in very little time. Similarly, digital twins are a powerful tool for tracking and managing emissions, as well as providing many insights into eliminating process bottlenecks. Digital twins facilitate monitoring at the equipment level, locate sources of emissions, and help verify and coordinate site-wide data that can be used for reporting and decision-making.