Question
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In view of the recent wave of refinery closures, including five in the US during 2021 and other closings, what technologies and market strategies are emerging to keep plants operating?
Dec-2022
Answers
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Andy Howell, KBC (A Yokogawa Company), Andy.Howell@kbc.global
Refineries have been under increasing pressure to increase profit margins while reducing carbon emissions. Global policies and regulations are being implemented to meet the Paris Agreement ‘zero-carbon road map’ that attempts to limit global surface temperature increases to 1.5°C by 2050. Furthermore, the rapid expansion of renewable and sustainable energy sources such as wind, solar, and bio-energy are negatively shifting consumers’ perceptions of energy and chemical products, causing a transformation among traditional energy sources.
Due to the changing socio-technical landscape, modern refineries have been able to diffuse niche innovations to fuel decarbonisation efforts and achieve Scope 1 and Scope 2 reductions. These innovative technologies include the development of carbon capture and storage, alternative energy supply, alternative feedstock, improved industrial processes, and waste heat usage. Following are several endogenous factors that can contribute to the success of these innovations:
Advanced software solutions: Process simulation and optimisation software systems monitor and analyse the effect of different feedstocks and operating conditions while enhancing yield and thermal efficiency to help refineries transition from traditional fossil fuels to clean energy whilst improving margins.
New business models: Traditional and new businesses such as refining, farming, and forestation are forming new alliances to restructure their knowledge base and supply chains to develop decarbonisation technologies with Scope 3 changes.Market formations: A growing number of private investors are transforming traditional refineries into renewable fuels producers to expand capacity and market share.
Policy and advocacy coalitions: Lobbyists advocate on behalf of society for public policies that reduce hazardous air pollutants to improve air quality and promote public health.
Dec-2022
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