Energy Optimization Steps Toward Net Zero

Energy Optimization Steps Toward Net Zero

India’s refineries are setting the pace for decarbonization
Jagadesh Donepudi, Mayur Talati, Chris Bealing

 

Abstract

As much as energy transitions to renewables, green hydrogen, fuel cells etc are work in progress, energy efficiencies and improvements will always remain practical pathways not only to improve profitability of a plant’s operations but also to reduce green house gas emissions. In this article a comprehensive energy optimization program is laid out, how to go about it and how digitalization enables and expedites it scientifically and in measurable manner.

India’s announcement of ambitious plans to tackle climate change is a watershed moment for the international fight against global warming. This initiative is in response to the 21st annual Conference of Parties (COP21) held in 2015. During this conference, delegates agreed to limit global warming to 2°C and work towards zero net carbon emissions. Therefore, India’s oil and gas refineries are on a transformation path to reach net zero by 2070, with most planning to meet this target between 2035 and 2050. This ambitious target will be achieved through a combination of both operating performance improvement activities and capital investments that lower capital expenditures and carbon emissions.

To reach this goal, industry leaders are taking steps to transition the energy sector to a clean energy economy. According to the leading GHG Protocol corporate standard, industrial emissions can be either direct or indirect and are categorized into three different scopes as shown in Figure 1. While Scope 1 and 2 emissions require mandatory reporting, Scope 3 is not only voluntary but also difficult to monitor and has the greatest negative impact on society. Scope 1 emissions are mainly derived from heating, which typically uses hydrocarbon combustion. However, as renewable resources become more widespread, this relationship will break down, making process heating more economically feasible. Scope 2 and 3 emissions are caused by power generation and transportation fuel, respectively. Currently, renewable electricity is displacing fossil fuels while low cost battery storage is threatening to replace liquid fuels. Overall, energy improvements could contribute to reducing emissions by 20-30% from total green house gas emissions.

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