pt q&a
More answers to these questions can be found at www.digitalrefining.com/qanda
Q How is energy transition and product diversification planning affecting revamp projects? A Romain Roux, VP Decarbonization and Consulting, Axens, romain.roux@axensgroup.com, and Leandro Labanca, Business Development Manager Decarbonization and Consulting, Axens, leandro.labanca@axensgroup.com The energy transition represents a significant market shift, characterised by unknown prices of feedstocks, fluctuat - ing product prices, and evolving regulations. This transition necessitates innovative approaches to asset management, particularly by revamping existing assets. This strategy not only reduces initial investments but also aligns with the shift towards sustainable business practices. The EU downstream industry faces several challenges, including high costs, intense competition, multiple EU regulations, reduced margins, and loss of competitiveness. Revamping assets to target new markets can minimise costs and address these challenges. By repurposing existing infra - structure, companies can adapt to market changes and regu - latory pressures while minimising investment costs. A step-by-step approach, from preliminary studies to detailed engineering and start-up, ensures that every aspect of the revamp is carefully evaluated at the right time, optimising costs and finding the best fit for each site. A comprehensive offer accompanying refiners from the very first thoughts to start-up and operation helps find the best fit for each site, gaining time in executing the project and optimising costs associated with developing the revamp. Detailed feasibility studies compare scenarios on Capex vs Opex, evaluate site integration, and assess synergies between refineries. This helps in defining priorities and identifying quick wins for decarbonisation. For example, a European refiner evaluating future transformation options for two of its refineries conducted a feasibility study to compare three scenarios for transforming the facilities. The study aimed to ensure high-quality diesel and jet fuel pro - duction while minimising investment costs. Another example includes the transformation of small teapot refineries in Shangdong, which are not competitive against bigger, newer, and integrated sites. By repurposing their sites, these refineries can avoid closure and capitalise on available feedstocks to produce higher-margin sustain - able aviation fuel (SAF). This innovative approach is driven by the need to adapt to market changes and regulatory pressures while minimising investment costs. The concept of repurposing existing sites or processes in refineries for new applications related to the energy transi - tion is a key strategy. This approach not only reduces initial investments but also aligns with the shift towards sustain - able business practices. By maximising the reuse of exist - ing infrastructure, companies can achieve significant Capex reduction and timeline savings.
The energy transition and product diversification planning significantly impact revamp projects by necessitating inno - vative approaches to asset management. By repurposing existing assets, companies can reduce initial investments, adapt to market changes, and comply with evolving regu - lations. Strategic partnerships, detailed feasibility studies, and comprehensive planning are essential to successfully navigate this transition and capitalise on new business opportunities. A Mark Schmalfeld, Global Marketing Manager, Refining Catalyst, BASF, mark.schmalfeld@basf.com Energy transition and product diversification planning are significantly influencing revamp projects in the refinery and petrochemical sectors. As the industry shifts towards renewable energy sources and sustainable practices, there is a growing need to adapt existing infrastructure to accom - modate these changes and to ensure the specific market economics support these investments. This involves integrating lower-carbon process improve - ments, carbon capture, renewable energy technologies, such as solar and wind power, into traditional refinery operations to reduce carbon emissions and improve energy The transition necessitates the development of advanced process simulation tools and optimisation strategies to manage the increased complexity of operations efficiency. It also involves continuing to look for efficiency improvements. Additionally, the transition necessitates the development of advanced process simulation tools and optimisation strategies to manage the increased complex - ity of operations and ensure seamless integration of inno - vative technologies. Product diversification planning is also driving revamp projects by pushing refineries to produce a broader range of high-value products. This includes shifting focus from tradi - tional fuels to petrochemicals and other specialty products with higher profit margins and are in greater demand. To achieve this, refineries are investing in innovative technolo - gies and upgrading existing equipment to enhance flexibil - ity and efficiency. In some regions of the world, using alternative feedstocks (renewables, recyclables) is important to the product’s car - bon footprint delivered to refinery customers. The use of renewables and recycled feedstocks is increasing in interest
5
PTQ Q3 2025
www.digitalrefining.com
Powered by FlippingBook