AspenTech: New Paradigms of Sustainable Development and Digital Transformation in Industry

In 2020, the psychological barrier was overcome. The world economy has taken a long hiatus, and people around the world have been forced to reduce travel. It has become clear that these developments are having a very significant impact on short-term carbon emissions trends and on global transport fuel demand.

When it became apparent that human behavior had a significant impact on CO ₂emissionsGlobally, the world’s major energy and chemical companies have set much more ambitious sustainability goals. In March 2020, LUKOIL announced its intention to plant 33 million trees in the Volga floodplain. In Europe, BP, Shell, Equinor, Repsol and Eni have announced tougher renewable energy and zero carbon targets. In the US, chemical giants Dow and LyondellBasell and other major companies have made tough commitments to develop a circular economy. Leading players such as Sinopec, Saudi Aramco, SABIC, ADNOC and Reliance have announced the start of major projects.

In 2021, the global energy sector remains in a state of uncertainty, so it is difficult to predict the pace of economic recovery to the level of new stability. The predicted trajectory of the energy transition is also widely discussed.

At the moment, there is no consensus, but most market analysts offer at least three significantly different strategies for further development. One of the most important factors is the growth of regional and global GDP, which is believed to largely depend on the duration of the pandemic in the world and the rate of recovery from it.

Against the backdrop of these trends, many companies are stepping up their digital transformation efforts. According to a survey of 220 companies recently conducted by Crystol Energy and AspenTech, 18% of participants noted a significant increase in the intensity of digitalization compared to the era before the pandemic.

Why is this happening? Moving towards sustainable development leads to increased investment in digitalization projects to accelerate change and innovation. In 2021, the pace of investment is growing. The global transition to modern methods of generating energy has received a powerful impetus and in 2021 it already seems inevitable. 

What are the main business and technological development trends of the main players in the energy market in 2021?

Keeping the course for digitalization. In response to the economic and energy shocks in 2020, energy companies around the world have accelerated their digitalization programs. The consequences of this exceeded all expectations. We believe that the pace and scale of digitalization has increased significantly in 2021.

Recently, the global rate of growth of technological innovation has skyrocketed.If we compare software solutions released to the market in 2020 and 2021, in 2021 the pace of innovation and the results in the form of added value increase. Part of this additional funds will be used to support the growth that is expected in connection with the economic recovery (this process is already being observed in China, and subsequently will spread to all Asian countries and ultimately reach the United States and Europe). The rest will be used to achieve sustainable development goals, and the rest will go to reorganize supply chains and improve resiliency.

Maintaining and increasing attention to energy efficiency issues.The maximum concentration of business efforts is expected to increase the energy efficiency of production in the areas of oil refining, LNG production, as well as production, storage and transportation of petroleum products. This makes sense as it helps to reduce operating costs and carbon footprint.

Further reduction of carbon emissions. The largest regional energy companies will closely study the experience of “pioneers” in Europe and the Middle East to identify the most promising technologies for capturing and reducing carbon dioxide emissions at all stages of energy production.

Innovation in the field of new energy sources and new materials.Despite the numerous economic and technical problems that still stand in the way of commercialization and industrialization of hydrogen energy sources, hydrogen energy and transport are again attracting increased interest.

Displacement of the structure of production in the field of oil refining in the direction of chemical raw materials. As the economy grows and the middle class gains momentum, initiatives such as India’s RRPCL megaproject, combining oil refining and chemical production, become more relevant to meet growing and changing demand.

Continued evolution from oil to gas, especially with regard to chemical feedstocks and power generation.The demand for electricity continues to grow, in connection with this, the role of natural gas in meeting the needs in this area is increasing.

Moving towards more sustainable chemical production. The desire of society to reduce waste in general and plastic waste in particular is becoming an additional factor for integrated and chemical enterprises that determines further innovation and the need for investment in this area.

Digital transformation in industry is already playing a key role in many areas of development, stimulating technological innovation, process intensification, technical and economic optimization and accelerated scaling. For example, the Technology Center Mongstad plant, which develops breakthrough carbon capture solutions, uses digital simulation systems to validate results in its demonstration plants. The world’s leading algae fuel researchers are using digital modeling tools, energy and economic solutions to develop new means of achieving energy balance and increasing the cost-effectiveness of this approach. And researchers developing a new generation of technological processes for the hydrogen economy, fuel cells,₂ in chemicals, use digital modeling solutions as the basis for innovation. There are also promising new hybrid model technologies that are ideally suited to accelerate work in these areas.