Mitigating energy security, affordability and sustainability

The new year has opened with ongoing volatility and uncertainty for many companies. Amid the longer-term global backdrop touting the dual challenge of meeting the growing demand for resources and higher standards of living from a growing population, while also addressing sustainability goals, the industry must also grapple with near-term uncertainty.

The energy markets have been particularly turbulent in the past year and new emphasis has been placed on a concept discussed for more than a decade: the Energy Trilemma. The World Energy Council (WEC) introduced this index in 2010, highlighting the competing demands of energy security, affordability and sustainability. Since then, the WEC has been charting this balancing act for 127 countries, and the public conversation on this topic gained volume this year.

Globally, process industry companies need to address the impact of the Energy Trilemma on their businesses and communities.

Diversity of supply is an important consideration for energy users, both in terms of types of energy as well as sources of supply. Many countries are moving to expand the use of renewable sources like solar and wind, especially as rapid innovation has helped to lower the cost and increase the availability of alternate energy sources. Policy support and subsidies in the recent Inflation Reduction Act in the US and new flexibility in Green Deal proposals in the EU reflect the eagerness of governments to encourage corporate investment in these growing alternatives.

To support Net Zero targets, many companies in the oil and gas, chemicals and mining industries are working to electrify energy production and process heat to lower the carbon intensity of existing operations. Vendors that provide robust microgrid and distributed grid solutions can reliably integrate these expanding renewable networks. Additionally, geologic modelling capability provides valuable insight for the siting and design of geothermal projects, a rapidly growing alternative power source.

Process optimisation is also a long-established approach to lower the costs of energy production and make fuels more affordable to businesses and consumers. Advanced process control is a crucial solution that many operators use to stabilise operations to avoid energy and product losses that can happen with unexpected process upsets. Digital twins — digital simulations of existing assets — are particularly valuable when evaluating multiple scenarios, in parallel, to test options and target new levels of operational excellence.

Digitally enabled data management helps operators track and optimise resource use and make better decisions when processes falter or market conditions shift. Many companies have been recording and capturing large amounts of data for decades but lack a data management strategy to unlock its value. Providing context and analysis to this data is fundamental to enable production optimisation to lower energy use and emissions, or to ensure accurate and effective emissions tracking.

With new energy technologies emerging, modelling is an important tool to accelerate research efforts and to cost-effectively scale new production capabilities to meet growing demand. Developing hydrogen, for example, as a new energy source demands an expansive redesign of the entire value chain, and digital technologies are aiding each step — from simulation of new electrolysis processes, to collaborative workflows to scale new projects, to integrated supply chain planning and distribution. With the expansion of renewable energy resources, digital grid management solutions help companies integrate these distributed power sources and manage a smart network of generation and storage solutions.

In relation to sustainability, digital tools have targeted sustainability-related objectives for decades, mainly focusing on energy efficiency, pollution control and value chain optimisation. Traditionally, cost savings drove much of the efficiency efforts, but now companies are moving toward more specific metrics such as the reduction of emissions, effective carbon capture and storage, or the integration of renewable or recycled feedstocks to reflect the environmental impact of operations.

A crucial first step is to gather current data to identify the largest emitters. Digital processes are fundamental for data recording and collection from sensors and unit operations, combining isolated systems to provide an enterprise view. This data can be leveraged to make informed decisions about how operational actions impact CO₂ emissions and waste generation.

With the increase in ESG reporting requirements across regions, the value of data is shifting from general external communications to form the basis for reliable external reporting. Operational data systems must capture the relevant detail and make it easily retrievable and understood, and ready for auditing as needed by local authorities.

* Paige Marie Morse helps companies progress toward their sustainability targets providing strategic guidance and targeted digitalisation solutions to the process industry. Prior to AspenTech, she worked for leading operating companies, including Shell, Dow and Clariant, in R&D, commercial and strategy roles. Morse holds a PhD in chemistry from the University of Illinois.

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