LARTC 2025
Transforming Latin America’s refineries: profit, performance, and decarbonisation
RAFAEL ARAUJO and TERCIO LOPES ACELEN MOHAN PATHAK and SANJAY BHARGAVA KBC (A yokogawa company)
A 75-year-old Brazilian refinery is rewrit- ing the rules of modern energy by pairing digitalisation with a Profit Improvement Programme (PIP) to boost profitability, pro- cess reliability, energy, and supply chain performance, alongside a bold $2.4 billion investment in clean fuels. Across Latin America, refiners face mounting pressure to improve margins, slash spending, shrink emissions, and stay competitive in a shifting landscape. In response, refiners are launching digi- tal profitability improvement programmes focused on process optimisation, energy reduction, and margin improvement. These programmes also target key operational levers for cost reduction – especially energy, which accounts for nearly 50% of refinery operating costs – to deliver measurable cost savings and greenhouse gas (GHG) mitigation while Bringing Decarbonization to Life ® . These dual benefits – higher margins and lower emissions – are defining the region’s most forward-looking refiners. Among them is Brazil’s Mataripe Refinery (owned by Acelen), where a full-scale transforma- tion is turning ambitious goals into achieva- ble results. Since its launch, the programme has delivered more than $100 million in cumulative improvements. The 2024 total shattered planned performance targets by 26%. These consistent monthly gains span operations across process, energy, reliability, and supply chain performance, as shown in Figure 1 . Notable outcomes include a ~6.5 vol% increase in middle distillates from 2023 to 2024 and a 10% leap in energy efficiency, with low Capex, in just five months. Building a Model for Modern Refining In 2022, the refinery launched a full-scale transformation. More than a patchwork of upgrades, this effort rewove the refin- ery’s DNA, threading digital tools, opera- tional excellence, and sustainability into the site’s operational fabric. A virtual refin- ery-wide model and first-principle process digital twins with linear programming (LP) vector generation capability were criti- cal components of the digital transforma- tion. These changes laid the foundation for a new era of operational intelligence to boost profitability while reducing emis- sions across the long-standing, but strate- gically vital, site. Moving Toward Autonomous Operations With the digital backbone in place, the leadership began its progression toward autonomous decision-making. The refinery combined first-principles process simula- tion models, upgraded advanced process control systems, and real-time optimi- sation dashboards to move from reac- tive responses to predictive operations. These tools provided a digital window into operations to make quicker and informed decisions in real-time. One example is
ment, driven by low- or no-Capex opportuni- ties identified during the project. After March 2023, the site launched a series of additional targeted initiatives, including pinch analysis, Energy Real- Time Optimization (ERTO), heat exchanger monitoring, and the ongoing Multi-Period Optimization (MPO). The site also devel- oped its own initiatives to improve energy efficiency. These resulted in further improvements beyond the initial 10% improvement during the first five months. Investing in a Clean Fuel Future Building on this momentum, Acelen announced in 2023 a R$12 billion ($2.44 billion) investment to build a new biorefin- ery in Mataripe. The facility aims to produce one billion litres annually of renewable die- sel (RD) and sustainable aviation fuel (SAF). This bold move positions Brazil as a global leader in clean fuel production, turning spe- ciality crop oils into jet fuel for tomorrow’s skies and renewable diesel for the roads. Boosting Availability and Cutting Costs via Smarter Maintenance Structured turnaround reviews (strategy, scope, planning/scheduling, and execu- did you know? When paired with the right strategy and partners, legacy refineries can continue to breathe new life into operations
Planned-budget (MM$) Planned-stretch (MM$) Actual (MM$)
Nov-24 Oct-24
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Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sept-24
Figure 1 Validated cumulative benefit trending close to planned stretch targets
improvements to improve yields and over- all process performance while reducing energy. Focused upgrades in crude sep- aration, catalyst use, and stream routing increased middle distillate yields by 6.5 vol%. Improved process unit capability, with better catalyst and constraint man- agement, significantly reduced lower-value fuel oil production in favour of higher-value distillates. Furthermore, tighter quality control reduced giveaway and maximised distillate yields. A systematic crude selection programme identified and processed additional lube crudes. Near-zero hydrogen flaring was achieved through improved hydrocarbon accounting, mass balance tracking, and equipment optimisation. In addition, gas flaring, which was once constant, costly, and carbon-intensive, was reduced by 30%. In total, these yield-related initia- tives generated more than $100 million in profit. Turning Energy Efficiency into Profits Energy efficiency was one of the major driv- ers behind Mataripe’s transformation. In October 2022, KBC’s Best Technology (BT) benchmarking revealed significant room for improvement. By March 2023, a follow-up BT benchmarking showed a 10% improve-
the installation of an Energy Real-Time Optimizer (ERTO) and online Visual MESA Greenhouse Gas Emissions Management (VM-GEM) software to reduce energy con- sumption and increase profits. This is now being enhanced with a multi-period util- ity plant optimiser to optimise further over several months, as shown in Figure 2 . Another example was automating a compressor’s control strategy to resolve chronic hydrogen flaring, plugging a leak in both emissions and margin. Operational planning was also modern- ised. The site team overhauled its process industry modelling system (PIMS)-based LP models and integrated backcasting to bridge gaps between planned and actual performance. This allowed teams to con- tinuously refine crude selection and align economic targets with operations. The LP overhaul increased profits by more than $30 million per year with better crude selection based on a more accurate LP model. Additional benefits are being cap- tured with an enhanced crude selection methodology. Executing Operational Optimisation for Margin Gains As part of the PIP, the refinery team exe- cuted more than 25 targeted process
Figure 2 Real-time optimisation dashboard supports predictive operations and KPI tracking
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