Future-Proofing the Chemical Industry with Digitalization

Future-Proofing
Over the next five to seven years, the chemical sector will place a greater emphasis on sustainability, and digitization will play a significant part in this. Reducing resource use, pollution, energy consumption, and waste are some of its main applications. Additionally, it will increase demand for a circular economy supported by IoT, AI, and other digital technologies.

Some of the systems now in place or being used in the sector include autonomous solutions that enable lower energy usage, dispatching systems for effective logistics and strategies for sustainable power and fuel consumption.

Chemical players making the switch to digital platforms have a chance to triumph if they move swiftly and update their operational models in accordance with a few common success characteristics. In fact, according to our study, making the correct decisions can increase total earnings before interest, taxes, depreciation, and amortization by 3 percent or more (EBITDA).


The Next Step of Operational Excellence

The same level of transformation is available with digital technology for optimal performance, together with success-enabling measures. The same level of corporate participation and realignment will also be necessary for the effective implementation of digital technology.

Finance and telecoms were early leaders in adopting digital technology faster than the chemical sector, which has just recently started to move in more significant numbers toward digitalization.

A circular economy in the sector is also being enabled by the use and evaluation of digital technology. The "Right to Fix" movement is being driven by governments and legislators in Europe and the US, and small and medium-sized businesses in the industry are expected to invest in technology that makes it easier to repair electronic items with the least amount of waste.

On a side note, by enabling the re-use of resources and products throughout the supply chain, digitalization with lean manufacturing (LM) would enable businesses to improve operational excellence and create value, thereby supporting the circular economy goal.


Conclusion

Given its extensive safety and regulatory requirements, the chemical sector has evolved slowly. However, as the global economy changes, some skills will become obsolete and others essential.

The interconnectedness of people, processes, and technology, as well as the requirement for real-time insight at the levels closest to the action, are among the basic principles of Industry 4.0. These values have existed for some time and are an extension of our teams' current operational excellence initiatives.

Digital transformation is not a technology endpoint but rather the following stage in the process and business evolution as the chemicals industry advances continuously.

Spotlight

Koch Ag & Energy Solutions, LLC

Koch Fertilizer, LLC and Koch Energy Services, LLC are subsidiaries of Koch Ag and Energy Solutions. Koch Ag and Energy Solutions (KAES) was formed in 2014 to help support Koch companies’ continued growth and innovation in the global fertilizer and energy sectors From a fertilizer perspective, an expanding world population is increasing agricultural demands. The result is a greater need for efficient fertilizer products. In fact, fertilizer is among the fastest developing segments of all Koch businesses

OTHER ARTICLES
Chemical Technology

Survey Report: The State of Intelligent Operations in Oil and Gas

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Intelligent Operations can play a vital role in creating connected content environments, however, many companies – especially within oil and gas – having been slow on the uptake. Businesses that implement digital transformation initiatives often gain a competitive advantage over their rivals, as they benefit from reductions in human error, increases in productivity and further support for compliance efforts. This report, produced in collaboration with OpenText, dives into the results of our Intelligent Operations in Oil and Gas Survey 2020, revealing where the industry is in terms of its adoption of Intelligent Operations and the hurdles it needs to overcome to truly embrace digital platforms and solutions.

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Demographics are reshaping petrochemicals trade flows, investment patterns and demand

Article | June 21, 2021

TEN YEARS AGO, fellowblogger Paul Hodgesand Ifirst highlighted the leading rolethat changing demographics would play in reshaping petrochemicals supply and demand. We have been emphasising the importance of demographics ever since. Demographics have, of course, always been a critical shaper of economies throughout human history. But during the last 70 years, there have been such major changes in demographics that the study of demographics must be at the very heart of your company’s strategy. The Babyboomer generation in the West led to a surge in demand as the rapid increase in babies born in the 1950s and early 1960s joined the workforce from the 1970s onwards. This helps explain high levels of inflation during that decade because too much demand was chasing too little supply. Another driver of inflation was the Middle East embargos against oil exports to the West because of the West’s support for Israel. Then came the 1990s and first the integration of Eastern Europe into the global economy. This helped dampen inflationary pressures because of the plentiful supply of workers in the east willing to work for low wages in export-focused factories. This reduced the cost of finished goods in the West. Next came Deng Xiaoping’s critically important“southern tour”in the early 1990s and China’s gradual integration into the global economy. China increasingly leveraged its very youthful population to again make cheap goods to export to the West. Hundreds of millions of young people were willing to migrate from the countryside to China’s coastal cities to work in export-focused manufacturing plants. The world began to talk about the “China price” and how it was further depressing global inflation.

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Global polyolefins for the rest of 2021: supply to lengthen as demand muddle continues

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SOMEHOW, despite the still very serious container freight shortages that have limited imports, buying sentiment seems to have weakened in the European polyolefins market, according to my outstanding ICIS colleague, Linda Naylor.

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Global polyethylene demand boom likely, increasing the sustainability challenge

Article | June 15, 2021

IT FEELS LIKE several lifetimes ago. If you recall, way back in November-December 2019 Asian variable cost integrated naphtha-based polyethylene (PE) margins turned negative because of the increase in US capacity. Then in January the following year, deep Asian and Middle East operating rate cuts returned some order to the market. Then, bang, as we all know, the pandemic arrived and turned everything on its head. The pandemic has, in my view, accentuated trends that were already well underway. I believe this means that the supply-driven downturn that started in late 2019 will not return.Long before coronavirus upended everyone’s lives, PE demand was becoming increasingly divorced from GDP growth because of the shifting nature of end-use demand. Booming internet sales was, I believe, a major factor behind the split between the growth of the overall economies in the developed world plus China and PE demand.The average product bought online is dropped 17 times because of the large number of people involved in the logistics chain, according to Forbes. This had led to a surge in demand for protective packaging made not from PE and other polymers such as polypropylene, expandable polystyrene and PET films (I will look at their demand growth prospects in later posts).Despite sustainability pressures, the scale of demand for stuff bought online translated to a lot more consumption of virgin polymers.

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Spotlight

Koch Ag & Energy Solutions, LLC

Koch Fertilizer, LLC and Koch Energy Services, LLC are subsidiaries of Koch Ag and Energy Solutions. Koch Ag and Energy Solutions (KAES) was formed in 2014 to help support Koch companies’ continued growth and innovation in the global fertilizer and energy sectors From a fertilizer perspective, an expanding world population is increasing agricultural demands. The result is a greater need for efficient fertilizer products. In fact, fertilizer is among the fastest developing segments of all Koch businesses

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LyondellBasell & MSI Technology, LLC Collaborate on Innovative Consumer Packaging

LyondellBasell | February 02, 2024

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Charter Next Generation Launches GreenArrow™ Cavitated Recycle-Ready PE Films For Confectionery Applications Using Void Technologies'

Charter Next Generation | January 30, 2024

Charter Next Generation (CNG), a leading provider of sustainable films, announced that it has expanded its GreenArrow portfolio with a new line of cavitated polyethylene (PE) films. Developed in collaboration with VOID Technologies (VOID), the new recycle-ready films meet the rapidly growing demand for flow wrap and confectionery applications. Using VOID's patented VO+™ PE Voiding Agent Masterbatch and Machine Direction Orientation (MDO) film processing, CNG has successfully developed high-performing PE film structures that are opaque yet compatible with existing PE recycling streams making more packaging suitable for recycling. Adoption of MDO PE film is a rapidly growing industry trend as it enables recyclable, high-performing flexible packaging. By using VO+ Masterbatch, CNG can now produce thin gauge voided MDO PE films that offer a combination of low density and high opacity not achievable with mineral additives such as TiO2 pigments or CaCO3 cavitation agents. This innovation creates a unique PE-based recycle-ready alternative to conventional PP-based substrates that often require biaxial orientation. "CNG continues to raise the bar and re-invent packaging with a sustainability-first mindset. Using VOID's patented VO+ technology enables us to achieve the high opacity, ease of processing, and recycle-ready performance we are targeting for these films. This in turn allows our customers to reduce their use of virgin materials and process their packaging in existing polyethylene film recycling streams," said Brent Greiner, Vice-President of Technology at Charter Next Generation. The VO+ PE Masterbatch is added to PE resin to create nano and micro-scale voids, reducing density and creating high levels of opacity via light scattering through the voided structure. VOID's latest VO+ PE Masterbatch product is compliant with direct food contact standards in North America and Europe and has passed key recycling standards. James Gibson, CEO of VOID Technologies, commented, "CNG is a highly innovative and forward-thinking company. We are delighted with this collaboration and to be part of launching this new generation of recycle-ready voided PE films. As we look to the future, we are excited to be working with CNG across a range of projects that directly address sustainability and recycling targets." About Charter Next Generation Charter Next Generation (CNG) is North America's leading producer of highly engineered solutions used in the food, consumer, healthcare, and industrial markets. Committed to a sustainability-first approach, CNG leverages material science to engineer materials that help companies meet and exceed their sustainability goals. Known for world-class manufacturing capabilities and an innovation-driven approach, CNG operates fifteen facilities and employs over 2,200 employees and is a proud partner of Ownership Works®—a nonprofit partnering with companies to enable shared ownership, granting employees a stake in the value they create. About VOID Technologies VOID is a materials science company accelerating the transition to more sustainable plastics and packaging. The company combines its VO+ cavitation technology and R&D labs to help plastic and packaging companies rapidly develop new innovative products with a reduced environmental footprint. VOID's extensively patented VO+ technology was first conceived as part of a research initiative at Kimberly-Clark. Soon after, in 2015, VOID was launched as an independent company. Today, VOID has R&D labs and a compound manufacturing facility based in Neenah, Wisconsin (USA) and has commercial teams in Canada, France, and the UK.

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Infinium and Amogy Team Up to Spearhead Green Ammonia and eFuels Solutions

Infinium | January 25, 2024

Leading eFuels provider Infinium and Amogy Inc. ("Amogy"), a pioneer of carbon-free, energy-dense power solutions, have entered into a memorandum of understanding (MOU) to explore opportunities to integrate their technologies and develop commercial applications across the eFuels and green ammonia value chain. Infinium and Amogy are also exploring collaborations with both Mitsubishi Heavy Industries (MHI) Group and SK Innovation for deployment of the integrated solution. To accelerate the decarbonization of heavy industry sectors, the companies will jointly study and identify the most suitable applications to deploy their eFuels and green ammonia solutions. A key focus of this collaboration is the potential integration of Amogy's ammonia-cracking technology to provide low-cost, accessible green hydrogen feedstock as an input to produce Infinium's eFuels. Infinium eFuels, also known as electrofuels or Power-to-X, are made from green hydrogen and waste carbon dioxide (CO2) in a proprietary process. Amogy's ammonia-cracking technology leverages its state-of-the-art catalyst materials to crack ammonia into hydrogen and nitrogen at lower reaction temperatures with high durability, reducing heating and maintenance requirements. Upon identifying promising applications, Infinium and Amogy will initiate strategic pilot programs, showcasing tangible and scalable implementations of their clean technology solutions. The partnership also entails the evaluation of additional opportunities for collaboration within the eFuels and ammonia spaces, with a focus on the development of commercial use cases. "Ingenuity and collaboration are critical to creating decarbonization solutions today. Our partnership with Amogy will go a long way toward helping advance our ability to rapidly scale the production of ultra-low carbon Infinium eFuels, including eSAF, eDiesel and eNaphtha," said Robert Schuetzle, CEO at Infinium. "We are thrilled to forge this alliance with Infinium. By uniting our expertise and resources, we aim to unlock innovative opportunities that will pave the way for sustainable solutions," says Seonghoon Woo, CEO of Amogy. "This partnership reflects a shared commitment to accelerating technologies that can contribute to the reduction of carbon emissions in the heavy industry sectors." Mitsubishi Heavy Industries (MHI) has invested in both Infinium and Amogy and is exploring potential collaboration for new solutions and applications in energy sector project development. "Decarbonizing heavy industries requires numerous approaches that can concurrently and collaboratively help mitigate greenhouse gas emissions," said Ricky Sakai, Senior Vice President of New Business Development at MHI of America. "We are excited to see how Amogy's emission-free, energy-dense ammonia solution and Infinium's proprietary eFuels production process might be aligned to overcome challenges and accelerate the global availability of commercial decarbonization solutions." SK Trading International (SKTI) invests in solutions that contribute to addressing climate change and environmental pollution and is an investor in Infinium while its parent company SK Innovation has invested in Amogy. "Our global goals to slow the warming of the planet require significant efforts so they can quickly scale, find synergies, and explore new pathways," said Hyunchol Park, Managing Director and Head of Global Trading at SKTI. "Infinium and Amogy are leaders in their progress and proven solutions, and I believe their partnership will result in the identification of breakthrough opportunities to expand and grow access to cleaner fuels." About Infinium Infinium is an electrofuels provider on a mission to decarbonize the world. Electrofuels are a new class of synthetic fuels made using renewable power and waste carbon dioxide, not petroleum or resources needed to produce food. Infinium electrofuels can be dropped into existing trucks, planes and ships, significantly reducing harmful carbon dioxide emissions compared to fossil-based fuels. In addition to helping the transport industry meet carbon reduction goals, Infinium electrofuels are a lower carbon alternative for chemical processing, including plastics production. About Amogy Founded in 2020, Amogy is on a mission to unlock the potential of ammonia as a clean energy source, accelerating the global journey to Net Zero and sustaining future generations. With a presence in Brooklyn, Houston, Norway, and Singapore, Amogy is developing fully integrated ammonia-to-power systems to enable the decarbonization of the hard-to-abate sectors, such as shipping, power generation, and heavy-duty transportation.

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Chemical Management

LyondellBasell & MSI Technology, LLC Collaborate on Innovative Consumer Packaging

LyondellBasell | February 02, 2024

LyondellBasell and MSI Technology, LLC announced they have entered into an agreement for MSI Technology to serve the LyondellBasell Polybutene-1 (PB-1) resin line into consumer packaging applications for North America. MSI Technology is also the sales representative for the LyondellBasell Plexar product line. The expansion of the relationship is a strategic fit relative to the markets MSI Technology serves today. MSI Technology will use its technical sales approach combined with its current specialty product portfolio to enhance offerings to customers in consumer packaging. LyondellBasell PB-1 resins are commonly used in consumer packaging applications for easy-open packaging and film modification for seal initiation temperature providing Broad seal-peel temperature range Consistent and reproducible peel performance Adjustable peel force to end-use requirements Similar initiation and propagation peel force "Whitening" with "Smooth & Clean" peel surface Good seal integrity Easy processability Usable in blown film, cast film, extrusion coating and sheet extrusion "At LyondellBasell, we're passionate about creating solutions for everyday sustainable living," said Palmer Giddings, vice president Polymers at LyondellBasell. "Collaborating with MSI Technology on innovative packaging solutions is a major step forward in achieving that goal." "We are thrilled to expand our collaboration with LyondellBasell," said Brian McCaghy, president of MSI Technology. "The PB-1 resins align perfectly with our mission to provide specialty polymers and solutions to the packaging industry." The PB-1 resin line is part of MSI Technology's product offerings. The company also provides clients with access to dedicated sales and technical service specialists who provide guidance on technical resin selection to meet customer requirements. About LyondellBasell We are LyondellBasell – a leader in the global chemical industry creating solutions for everyday sustainable living. Through advanced technology and focused investments, we are enabling a circular and low carbon economy. Across all we do, we aim to unlock value for our customers, investors and society. As one of the world's largest producers of polymers and a leader in polyolefin technologies, we develop, manufacture and market high-quality and innovative products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare. About MSI Technology, LLC MSI Technology specializes in the sales, marketing, and development of specialty polymers. Our product lines include: Plexar tie-layer adhesives (manufactured by LyondellBasell), SPS peelable sealants, and SpeciPurge purging compound. MSI Technology and its sister company, Soarus LLC, are located in Arlington Heights, IL. Soarus markets Soarnol™), ethylene vinyl alcohol copolymer (EVOH), (manufactured by Mitsubishi Chemical Group) into North and Latin America. The two companies together provide sales and technical service for specialty polymers focused on the packaging market.

Read More

Chemical Management

Charter Next Generation Launches GreenArrow™ Cavitated Recycle-Ready PE Films For Confectionery Applications Using Void Technologies'

Charter Next Generation | January 30, 2024

Charter Next Generation (CNG), a leading provider of sustainable films, announced that it has expanded its GreenArrow portfolio with a new line of cavitated polyethylene (PE) films. Developed in collaboration with VOID Technologies (VOID), the new recycle-ready films meet the rapidly growing demand for flow wrap and confectionery applications. Using VOID's patented VO+™ PE Voiding Agent Masterbatch and Machine Direction Orientation (MDO) film processing, CNG has successfully developed high-performing PE film structures that are opaque yet compatible with existing PE recycling streams making more packaging suitable for recycling. Adoption of MDO PE film is a rapidly growing industry trend as it enables recyclable, high-performing flexible packaging. By using VO+ Masterbatch, CNG can now produce thin gauge voided MDO PE films that offer a combination of low density and high opacity not achievable with mineral additives such as TiO2 pigments or CaCO3 cavitation agents. This innovation creates a unique PE-based recycle-ready alternative to conventional PP-based substrates that often require biaxial orientation. "CNG continues to raise the bar and re-invent packaging with a sustainability-first mindset. Using VOID's patented VO+ technology enables us to achieve the high opacity, ease of processing, and recycle-ready performance we are targeting for these films. This in turn allows our customers to reduce their use of virgin materials and process their packaging in existing polyethylene film recycling streams," said Brent Greiner, Vice-President of Technology at Charter Next Generation. The VO+ PE Masterbatch is added to PE resin to create nano and micro-scale voids, reducing density and creating high levels of opacity via light scattering through the voided structure. VOID's latest VO+ PE Masterbatch product is compliant with direct food contact standards in North America and Europe and has passed key recycling standards. James Gibson, CEO of VOID Technologies, commented, "CNG is a highly innovative and forward-thinking company. We are delighted with this collaboration and to be part of launching this new generation of recycle-ready voided PE films. As we look to the future, we are excited to be working with CNG across a range of projects that directly address sustainability and recycling targets." About Charter Next Generation Charter Next Generation (CNG) is North America's leading producer of highly engineered solutions used in the food, consumer, healthcare, and industrial markets. Committed to a sustainability-first approach, CNG leverages material science to engineer materials that help companies meet and exceed their sustainability goals. Known for world-class manufacturing capabilities and an innovation-driven approach, CNG operates fifteen facilities and employs over 2,200 employees and is a proud partner of Ownership Works®—a nonprofit partnering with companies to enable shared ownership, granting employees a stake in the value they create. About VOID Technologies VOID is a materials science company accelerating the transition to more sustainable plastics and packaging. The company combines its VO+ cavitation technology and R&D labs to help plastic and packaging companies rapidly develop new innovative products with a reduced environmental footprint. VOID's extensively patented VO+ technology was first conceived as part of a research initiative at Kimberly-Clark. Soon after, in 2015, VOID was launched as an independent company. Today, VOID has R&D labs and a compound manufacturing facility based in Neenah, Wisconsin (USA) and has commercial teams in Canada, France, and the UK.

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Chemical Management

Infinium and Amogy Team Up to Spearhead Green Ammonia and eFuels Solutions

Infinium | January 25, 2024

Leading eFuels provider Infinium and Amogy Inc. ("Amogy"), a pioneer of carbon-free, energy-dense power solutions, have entered into a memorandum of understanding (MOU) to explore opportunities to integrate their technologies and develop commercial applications across the eFuels and green ammonia value chain. Infinium and Amogy are also exploring collaborations with both Mitsubishi Heavy Industries (MHI) Group and SK Innovation for deployment of the integrated solution. To accelerate the decarbonization of heavy industry sectors, the companies will jointly study and identify the most suitable applications to deploy their eFuels and green ammonia solutions. A key focus of this collaboration is the potential integration of Amogy's ammonia-cracking technology to provide low-cost, accessible green hydrogen feedstock as an input to produce Infinium's eFuels. Infinium eFuels, also known as electrofuels or Power-to-X, are made from green hydrogen and waste carbon dioxide (CO2) in a proprietary process. Amogy's ammonia-cracking technology leverages its state-of-the-art catalyst materials to crack ammonia into hydrogen and nitrogen at lower reaction temperatures with high durability, reducing heating and maintenance requirements. Upon identifying promising applications, Infinium and Amogy will initiate strategic pilot programs, showcasing tangible and scalable implementations of their clean technology solutions. The partnership also entails the evaluation of additional opportunities for collaboration within the eFuels and ammonia spaces, with a focus on the development of commercial use cases. "Ingenuity and collaboration are critical to creating decarbonization solutions today. Our partnership with Amogy will go a long way toward helping advance our ability to rapidly scale the production of ultra-low carbon Infinium eFuels, including eSAF, eDiesel and eNaphtha," said Robert Schuetzle, CEO at Infinium. "We are thrilled to forge this alliance with Infinium. By uniting our expertise and resources, we aim to unlock innovative opportunities that will pave the way for sustainable solutions," says Seonghoon Woo, CEO of Amogy. "This partnership reflects a shared commitment to accelerating technologies that can contribute to the reduction of carbon emissions in the heavy industry sectors." Mitsubishi Heavy Industries (MHI) has invested in both Infinium and Amogy and is exploring potential collaboration for new solutions and applications in energy sector project development. "Decarbonizing heavy industries requires numerous approaches that can concurrently and collaboratively help mitigate greenhouse gas emissions," said Ricky Sakai, Senior Vice President of New Business Development at MHI of America. "We are excited to see how Amogy's emission-free, energy-dense ammonia solution and Infinium's proprietary eFuels production process might be aligned to overcome challenges and accelerate the global availability of commercial decarbonization solutions." SK Trading International (SKTI) invests in solutions that contribute to addressing climate change and environmental pollution and is an investor in Infinium while its parent company SK Innovation has invested in Amogy. "Our global goals to slow the warming of the planet require significant efforts so they can quickly scale, find synergies, and explore new pathways," said Hyunchol Park, Managing Director and Head of Global Trading at SKTI. "Infinium and Amogy are leaders in their progress and proven solutions, and I believe their partnership will result in the identification of breakthrough opportunities to expand and grow access to cleaner fuels." About Infinium Infinium is an electrofuels provider on a mission to decarbonize the world. Electrofuels are a new class of synthetic fuels made using renewable power and waste carbon dioxide, not petroleum or resources needed to produce food. Infinium electrofuels can be dropped into existing trucks, planes and ships, significantly reducing harmful carbon dioxide emissions compared to fossil-based fuels. In addition to helping the transport industry meet carbon reduction goals, Infinium electrofuels are a lower carbon alternative for chemical processing, including plastics production. About Amogy Founded in 2020, Amogy is on a mission to unlock the potential of ammonia as a clean energy source, accelerating the global journey to Net Zero and sustaining future generations. With a presence in Brooklyn, Houston, Norway, and Singapore, Amogy is developing fully integrated ammonia-to-power systems to enable the decarbonization of the hard-to-abate sectors, such as shipping, power generation, and heavy-duty transportation.

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