HP March 2022 eBook—Energy Transition - 8

Special Focus
Digital Transformation
C. LAU, Schneider Electric, Houston, Texas
Reduce OPEX and improve sustainability through
digital energy optimization strategies
Oil and gas companies are looking for
quick ways to reduce OPEX amid the pandemic
and oil and gas market crises. Initiatives
to improve sustainability are further
intensifying this challenging environment.
Energy cost is about 30% of variable and
labor costs, the second largest expense following
feedstock cost. Energy optimization
is a key opportunity to reduce energy
cost and lower emissions.
Digital transformation solutions can
accelerate the return of energy optimization
investments. By implementing digital
energy optimization strategies, an average-size
refinery (200,000 bpd) or petrochemical
plant can improve profitability
by an estimated $15 MM/yr-$30 MM/yr
and reduce carbon dioxide (CO2
) emissions
by 500,000 mtpy-900,000 mtpy:
the equivalent to taking 100,000-200,000
gasoline-fueled cars out of service.
Visualization and monitoring. Visualization
and monitoring can be simple and
effective solutions to reduce energy costs.
Integrating various sources of energy data
and displaying them in key performance
indicators (KPIs) that operators can relate
to-and how their actions can impact the
company's overall objectives-enforces
accountability. An often overlooked basic
solution is automation loop tuning and
performance monitoring. Automation
loop performance monitoring ensures
that each control loop is performing to its
designed performance. A South African
chemical company was able to reduce its
steam cost by $3.6 MM/yr utilizing realtime
accounting and visualization solutions.
Energy
management and utilities
modeling. Using proven software technologies,
such as advanced regulatory
control and advanced process control
(APC), can reduce variance of operational
conditions. Once the process is achieving
stable operation, the application of
real-time optimization allows the plant
to run close to its optimal target. The
benefits include energy conservation,
minimizing material consumption, maximizing
throughput and reducing product
quality variance. A Japanese refinery reported
a 5% reduction in energy cost using
a real-time optimization strategy. The
largest Indian refinery reported a savings
of $7.2 MM through better visualization
and $5 MM via real-time optimization.
Variable speed drive. A variable speed
drive (VSD) is a simple energy-saving
solution that provides quick payback.
By using VSDs vs. on-off switch direct
across the line motor starters, up to 50%
of energy cost can be saved. Thousands
of pumps function in an average refinery,
and hundreds of fans in a liquefied natural
gas (LNG) plant, so energy costs can
Energy optimization
Efficiency
Use energy more
efficiently
Reduce energy
cost and reduce
emissions
Sourcing
Acquire energy at
a lower cost
Purchase less expensive energy
Produce less expensive energy
add up quickly. Pumps and motors are
often oversized, so more energy is being
consumed than is required. Most new
VSDs also have smart condition-based
monitoring capabilities that help improve
asset availability. The author's company's
remote electrical asset monitoring solutions
helped a U.S. petrochemical plant
detect undersized VSDs and malfunctioning
transformers that caused premature
aging, allowing them to avoid unscheduled
plant shutdowns.
Digital twin. Digital twins are a hot topic
today, but what would generate more return
on investment (ROI) is using one
digital twin model for the entire lifecycle-from
design to simulation, to engineering
and commissioning, to operator
training, to operations and maintenance.
Digital twin for equipment monitoring is
an online asset monitoring strategy based
on the design vs. actual concept. It assists
operating sites to improve performance by
New process technology
Improve heat recovery
Optimize process
Improve visualization and monitoring
Enhance on line control and operation
Improve heat integration
Reduce waste heat and loss
New catalyst/new technology
Improve resource allocation
Improve boiler turbine performance
Optimize fuel mix
Balance supply and demand
Contract management
Feedstock selection
Sustainability
Reducing emissions
Increase low carbon
energy mix
Reduce CO2, C2H4 emissions
Incorporate sustainability
as optimization constraint
Natural gas, renewables
electrification
FIG. 1. Manage the three elements of energy efficiency, sourcing and sustainability by adopting
a strategic comprehensive plan to help reduce energy cost and lower emissions.
Hydrocarbon Processing | FEBRUARY 2021 | HydrocarbonProcessing.com

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HP March 2022 eBook—Energy Transition

Table of Contents for the Digital Edition of HP March 2022 eBook—Energy Transition