Seventy-percent of utility executives surveyed responded that the three critical areas for helping customers electrify include vehicles, industrial processes, and buildings (heating and cooling.). Depending on the resources used to generate electricity, electrification can potentially reduce carbon dioxide (CO) emissions from the transportation, building, and . Paul drives key sector industry initiatives to help companies adapt to an environment of rapid change and uncertaintyglobalization, exponential technologies, the skills gap, and the evolution of Industry 4.0. Energy efficiency trends in the industry Third, it could enable direct use of electricity from a nearby intermittent renewable production site, such as a solar or wind farm. h20P0P00TF Significant growth of the share of (intermittent) renewable power in the chemical industry is imperative to meet increasingly stricter limits on CO 2 exhaust that are being implemented within Europe. Papanikolaou G, Centi G, Perathoner S, Lanzafame P. ACS Catal. These projections and other projections mentioned in this article are from McKinseys Global Energy Perspective 2020. ht+@n@cAaAZ Ah'iX``2m"d!`H#\iz Yy[}$vT0 ) Further, the confluence of electric-powered facility heating and cooling systems and the rise of smart, connected building management systems is a powerful combinationone that could be a catalyst for using electricity to optimize industrial spaces, including factories, warehouses, and offices.19. Short-term electrification potential in flexibility Electricity is the set of physical phenomena associated with the presence and motion of matter that has a property of electric charge.Electricity is related to magnetism, both being part of the phenomenon of electromagnetism, as described by Maxwell's equations.Various common phenomena are related to electricity, including lightning, static electricity, electric heating, electric discharges . Third, customers appear to be growing more concerned about environmental and sustainability issues, and want their suppliers to become greener. We can reduce it through industrial electrification. Electrochemical production of chemical intermediates and products. Women in the Workplace 2022; . These oil products are not used for their energy content, but as a building block to produce other materials. 2018 Jun 10;544(1):55-61. doi: 10.1016/j.ijpharm.2018.03.059. Before DTTL (also referred to as "Deloitte Global") does not provide services to clients. For medium- and high-temperature heat applications, electric boilers and furnaces require a similar capital investment and have similar efficiency as the conventional alternatives (as mentioned earlier in this article). 2022. Considering the applicability available, we may innovate industrial processes from idea to commercial-scale implementation. Given the potential focal points of industrial fleets, processes, and spaces, the following recommendations may help guide manufacturing leaders in their decisions: As the United States and the rest of world progress from hydrocarbon dependence across the economy toward greater reliance on cleaner energy sources, many industrial manufacturing companies are becoming increasingly active participants in this energy transition. The time has arrived for industrial companies, supported by policy makers and utilities, to plan for the adoption of electric technologies for their current fuel use. There are exceptions to this. This article identifies the macro trends that are driving adoption of electrification in industrial products and the impact it is having on industrial fleets, processes, and spaces. To implement management systems based on standards stipulated under ISO 9001, ISO 14001, and SS506. Two electrochemical reactions drive this reaction. The authors would like to thank John England from Deloitte Advisory and Marlene Motyka from Deloitte Transactions and Business Analytics LLP; Duane Dickson, Jim Thompson, Joe Zale, and Francesco Fazio from Deloitte Consulting LLP for their significant contribution in shaping our research. The IDEAL path to equity, diversity, & inclusion. For example, BASF is developing petrochemical cracking furnaces that reach 850 degrees Celsius, and planning to have these full-scale active in six years from now. The chemical industry relies heavily on energy for all production processes, from petrochemical to pharmaceuticals to common everyday items. 8. In contrast to complete electrification, a hybrid or dual setup allows the capturing of these balancing revenues without affecting a continuous industrial process. Research and development of electric industrial equipment and processes could significantly improve the financial attractiveness of industrial electrification by lowering the capital costs and increasing the energy efficiency of electric equipment. 7. Manufacturing goes digital: Smart factories have the potential to spark labor productivity. Although electrification is explored for both processes, the alternative processes that are based on electricity are still in the research or early pilot phase. Electric furnaces for industrial heat demand up to approximately 1,000 degrees Celsius are technologically feasible but are not yet commercially available for all applications. View in article, Chip Cummins and Marie Beaudette, CEOs show optimism at Davos, despite gloomy data, Wall Street Journal, January 21, 2020. In 2020, SABIC collaborated with a group led by the World Economic Forum (WEF), which focused on how the chemical industry can accelerate and scale up the use of low carbon electrification . Electrification and the rise of sustainability as a corporate mandate, Where electrification is occurring in industrial manufacturing: Fleets, processes, and spaces. Leow WR, Lum Y, Ozden A, Wang Y, Nam DH, Chen B, Wicks J, Zhuang TT, Li F, Sinton D, Sargent EH. The AIChE online library includes articles, journals, books, blog posts, and more on a variety of topics. 1181-1182) Curbing carbon emissions while maintaining quality of life is a global challenge for manufacturing processes that will require process innovation. Electrification is a key part of decarbonizing energy sources, one of the six channels of the energy transition identified in Navigating the energy transition from disruption to growth. The future of electrified systems within industrial manufacturers looks promising, with increasing penetration rates among a majority of companies analyzed for this study. View in article, Porter and Hardin, Navigating the energy transition from disruption to growth. See something interesting? Figure 6 highlights some of these initiatives. With more solar and wind energy being produced, sustainable electricity supply is constantly increasing. jlbarton@dow.com. Plugging in: What electrification can do for industry. Close mobile search navigation. Here's a news item from the current issue of Science: Electrification of the chemical industry (Barton, Science 12 Jun 2020 Vol. Alkhadra MA, Su X, Suss ME, Tian H, Guyes EN, Shocron AN, Conforti KM, de Souza JP, Kim N, Tedesco M, Khoiruddin K, Wenten IG, Santiago JG, Hatton TA, Bazant MZ. The international chemical industry has a large carbon footprint. European technology catalyses electrification of the chemical industry. 9. First, fuel costs can be lower. PMID: 32527815 DOI: 10.1126 . The racecourse on which US chemical companies run has been dramatically altered in 2022, setting the trajectory for the next major change and greater . Explore areas of advancement below. As described in a recent McKinsey publication on the 1.5 degree pathway, industrial electricity consumption would triple. In the United States, Phase 2 emission standards, passed in August 2017, target trailers and heavy-duty pickup trucks to reduce fuel consumption by 9% and 17%, respectively, by 2027.13 These efforts will likely spur industrial companies to create a pathway toward electric fleet adoption that adheres to these policies. Electrification allows more efficient building energy management by using smart energy systems, when compared to gas or coal as an energy source. 2. Heat pumps that reach temperatures above 100 degrees Celsius are also being developed. In contrast to complete electrification, a hybrid or dual setup allows the capturing of these balancing revenues without affecting a continuous industrial process. Given the importance of the relative fuel price in the financial attractiveness, electrification is generally a lower-cost option (in applications where electrification is technologically possible) than converting to hydrogen as a fuel. endstream endobj 784 0 obj <>stream 100 percent renewablesaspiration or destination? Process assessment, integration and optimisation: The path towards cleaner production. A recent Deloitte executive study revealed that more than 70% of respondents have agreed to move toward electrification of industrial processes and more than 50% of respondents have targeted electrification of space and water heating and fleets within their ecosystem by 2030.2. This increased efficiency will likely become a focal point as companies move toward electrification. content. For example, process electrification will likely be a viable solution for sectors that have processes where combined heat and power is not used, where induction heating technologies are viable, and/or where process heating temperatures are lower. In some regions the electricity price is increasingly fluctuating. Being aware on further development of the European legislation, in particularly package Fit for 55 . has been removed, An Article Titled Electrification in industrials The chemical industry is a major source of economic productivity and employment globally and among the top 3 industrial sources of greenhouse gas (GHG) emissions, along with steel and cement. Status quo of electricity use in the chemical industry and the case for electrification In 2018, electricity accounted for only 20.4% of on-site energy use in the U.S. chemicals sector (Figure 2A),11 with the rest provided by combustion-derived heat. Similarly, once battery capacity has declined and replacement is required, there are service providers that offer not only battery replacement but will also manage the redeployment of the old vehicle battery into second-life applications in the power sector and elsewhere. This can offer great opportunities for the chemical industry! Med Hypotheses. to receive more business insights, analysis, and perspectives from Deloitte Insights, Telecommunications, Media & Entertainment, CEOs show optimism at Davos, despite gloomy data, U.S. consumed more renewables than coal for first time in 134 years, Final rule for Phase 2 greenhouse gas emissions standards and fuel efficiency standards for medium- and heavy-duty engines and vehicles, Electricity demand growth by end-use and scenarios in advanced and developing economies, 2018-2040, A framework for the utility customer of the future. The decision should be based on the expected price development of electricity and conventional fuels. 8600 Rockville Pike The decarbonisation of the chemical industry requires a transformation of the sources of energy, raw materials, and structure of the sector. This price is to be compared with the input electricity price of 0.05 $ kWh -1. Industry consumes more energythan any other sector: 149 million terajoules in 2017. The system efficiency of commercial electrolysers ranges from 56% to 73% or 70.1 to 53.4 kWh/kg H 2 at 1 atm and 25 C [30] . This could spur the energy transition as it increases the attractiveness of investments in renewable energy production. Electrochemical recycling of homogeneous catalysts. implementation of electrification for achieving decarbonization in chemicals. A hybrid of dual setup could mean GHG emissions are initially not reduced as much as with full electrification. The https:// ensures that you are connecting to the DoubleTree by Hilton Hotel Houston - Greenway Plaza, Houston, TX, Palmer House a Hilton Hotel, 17 E Monroe St, Chicago, IL 60603, Institute for Learning & Innovation (ILI), Disability & Outreach and Inclusion Community (DORIC), RAPID - RAPID Manufacturing Institute for Process Intensification, A Practical Guide to Techno-Economic Analysis, Computational Catalysis: A Process Intensification Tool. Process Intensification and Electrification of the Chemical Industry. The electrification of chemical process is drawing much attention in the industry and academia, which can provide huge potential benefits for CO 2 reduction in the chemical industry [3,[27][28][29 . on-site transportation, and refrigeration. DTTL and each of its member firms are legally separate and independent entities. hD The demonstration plant aims to show that continuous olefin production is possible using electric heating. . Electrification adoption varies from one industry to another, but each industry has made dedicated efforts in this direction. With a dual or hybrid boiler setup, steam can be produced from both electricity and fossil fuels. Something went wrong. Electric systems tend to have a relatively superior design, yield, process controllability, and flexibility compared with existing systems. F J Clean Prod. Of all the fuel that industrial companies use for energy, we estimate that almost 50 percent could be replaced with electricity, using technologies available today (Exhibit 2). Other OxyChem products include caustic potash, chlorinated organics . A reference process, with a basis of 400,000 tonne per annum, is first simulated in Aspen Plus to producemethanol via traditional natural gas reforming. She leads Deloittes research team covering the implications of the energy transition for the industrial, oil, gas, and power sectors. Her expertise includes developing thought leadership at theintersection of business and technology, and covering emerging technologies from cloud to blockchainand augmented reality. 70% of the industrial . Meanwhile, an ecosystem is developing to support fleet electrification, with companies focused on offering the services that a manufacturer may not be able to provide itself. To capitalize on these opportunities in the near term, industrial companies should begin factoring electrification into their capital spending plans. S. Electrification of very high temperature heat furnaces might require an adjustment in the heat exchangers that capture residual heat from the furnace. Author John L Barton 1 Affiliation 1 Dow Chemical Company, Midland, MI 48667, USA. All other uses are forbidden without the express consent of the author(s). For four hours, attendees were able to receive the most updated innovations performed by the two projects, and invited speakers provided their vision on the electrochemical industry challenges for the. The e-Refinery was established to make the process of electrification of the chemical industry possible on all fronts. Hence, the financial attractiveness of electrification heavily depends on the difference between the ongoing costs of energy to run electric equipment and conventional fuel equipment. Our 2023 chemical industry outlook explores four trends that are top of mind for business leaders in the year ahead. Electrification of the chemical industry Barton, John L. Abstract. What You'll Be Doing - The Maintenance Electrical Leader is an experienced electrical minded individual who excels at planning, sourcing parts and materials, managing contractor resources, and assisting in troubleshooting electrical systems and components. See Terms of Use for more information. At Deloitte, our purpose is to make an impact that matters by creating trust and confidence in a more equitable society. Advertisement. Bookshelf The six channels along which progress in the transition is measured include: decarbonizing energy sources, increasing operational energy efficiency, commercialization of new technologies, investment in new business areas, adjusting to new policy mandates, and managing customer and stakeholder expectations. If industrial players significantly increase their electricity consumption if electricity prices drop below that of the conventional fuel, it could act as a floor price in the power market. Such an off-grid setup could lower electricity costs significantly, as grid connection costs, taxes, and other levies are avoided. Electrification of chemical processes. New entrants. 8 Add H2 infrastructure. Clipboard, Search History, and several other advanced features are temporarily unavailable. Webinar content is available with the kind permission of the author(s) solely for the purpose of furthering AIChEs mission to educate, inform and improve the practice of professional chemical engineering. endstream endobj 780 0 obj <>stream Second, a priority for utilities is helping their customers electrify. Process intensification and electrification of the chemical industry. endstream endobj 775 0 obj <>stream Transitioning to a lower-carbon future through electrification of industrial processes, spaces, and fleets, Why now? 2022 Aug 24;122(16):13547-13635. doi: 10.1021/acs.chemrev.1c00396. These electrified equipment classes can be cheaper to maintain and to operate on average than their diesel equivalents. After that, the electrochemical production of methane and methanol, carbon monoxide and ammonia will . 2022 Oct 21;8(42):eade3094. Rapal Oy, Optimaze workplace review: Insights from 2016 workplace studies, Workplace Insight, May 31, 2017. TNO, VITO and Hysytech will construct a flexible PowerPlatform pilot plant in order to demonstrate technologies and innovations, leading to the implementation of more sustainable electrochemical processes. We offer deep industry knowledge and a global network of professionals. This course introduces the role and practice of Techno-Economic Analysis (TEA) and its connections to process design and economics, and business planning, Why is kinetic modeling conducted and how does it provide you with the quantitative data that you are seeking? Historical evidence that electrification caused the 20th century epidemic of "diseases of civilization". Given the importance of the relative fuel price in the financial attractiveness, electrification is generally a lower-cost option (in applications where electrification is technologically possible) than converting to hydrogen as a fuel. Download this Electrification Of The Chemical Industry Concept Vector Icon Design Green Process Engineering On White Background vector illustration now. Epub 2022 Jul 29. Modular and scalable process technology. 1 Would you like email updates of new search results? Electricity producers could add renewable-generation capacity to the grid that delivers electricity to industrial sites. If you would like information about this content we will be happy to work with you. 2016 Dec;24(4):451-480. doi: 10.1007/s00048-017-0161-z. Real-world client stories of purpose and impact, Cultivating a sustainable and prosperous future, Key opportunities, trends, and challenges, Go straight to smart with daily updates on your mobile device, See what's happening this week and the impact on your business. He is a member of the Executive Leadership Council. Industrial manufacturers surveyed across sectors target achieving 45% overall electrification by 2035, higher than their current rate of 35%.7 When asked how these goals could be met, 64% of manufacturing leaders cited plans to leverage partnerships and joint ventures to transition toward a sustainable future, while 61% will rely on outsourcing strategies with vendors and suppliers. Simultaneously, many companies have published sustainability reports, detailing their strategies for increasing energy efficiency, reducing landfill waste, and lowering greenhouse gas (GHG) emissions. Installing hybrid equipment during replacements and new construction in the near term could make electrification more economical than installing conventional equipment now and switching to electric equipment later. Work with vendors/providers in each area to create transition plans. All rights reserved. #s9cGMKvtG}nkwn/P 7Rw(\ovk{y% Electrification of the fuel that industrial companies use for energy has several benefits. Electrification of the chemical industry requires identifying clear targets for chemical processes that would have a large impact at the energy-carbon nexus ( Figure 1 A). Social login not available on Microsoft Edge browser at this time. As an indirect However, there are clear benefits for other stakeholders, including society. Epub 2013 Aug 1. the electrical grid, transportation, and household devices. FOIA This paper aims to evaluate the potential of a plasma process that converts input CO 2 into a pure stream of CO to aid in renewable energy penetration in this sector. From the middle of the nineteenth century until the outbreak of World War I, the European chemical industry inuenced not only the production and control of science and technology, but also made signicant When looking at the role of a forklift in the steel industry, the facts are clear. In this 60-minute webinar, you'll learn of . The maturity of electrical equipment determines what processes can be electrified. h243W0P04PT624 rb=SS B H Stanley serves as Deloittes US & Global Energy, Resources & Industrials (ER&I) Industry Leader. Dedicated to helping clients navigate the fourth Industrial Revolution and transitioning to a lower carbon future, Stanley has worked with clients to become more sustainable, develop decarbonizing strategies and energy-efficient solutions that address rising environmental and social challenges. In this article, we assess the technological potential of industrial electrification. Fuel consumption for energy accounts for almost 45 percent of energy consumption. h20U0P622RA These are often significant drivers in any decision to change energy sources. Electrification of crackers. The technology developed in PERFORM will reduce CO2 emissions from the production of chemicals due to the efficient utilization of renewable bio-based .
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