Smart tank storage solutions for new biofuel feedstocks Mission-critical heat tracing systems and innovative tank insulation help tank farm owners with flexible, energy-efficient storage
Kees Oerlemans, Koen Verleyen and Pele Myers nVent
S eismic change is on the horizon for the chemical storage sector. For many years, the industry has relied on oil production as its main source of new investment streams. In 2020, however, this well-established trend was challenged. As a result of the pandemic, worldwide oil production dropped from 100 million bpd to 88 million bpd – a downturn felt even more keenly by the US market, which fell by a staggering 20% (N agle, 2020 ). In the US, overall biofuels production capacity – which includes renewable diesel, biodiesel, ethanol, and other biofuels – reached 23 billion gallons per year (gal/y) in January 2023, a 6% increase in total production capacity from January 2022. Fuel ethanol accounted for 78% of US biofuel production capacity, renewable diesel and other biofuels accounted for 13%, and biodiesel accounted for 9% ( EIA, 2023 ). While both demand and production levels have risen sharply ( IEA, 2021 ), this dramatic shift is likely a sign of the market developments to come. The increasing move to renewable feedstocks and the consequent need for storage of both fossil products and renewable products are driving demand for additional tank storage. With mounting pressure from governments to reduce reliance on fossil fuels and limit global warming to below 2°C in line with the Paris Agreement, crude oil’s position as the primary growth driver for the tank storage sector seems set to change permanently ( Davies, et al., 2020 ). Shifting focus The growing demand for electric vehicles and other carbon emission reduction initiatives have led to some facility owners choosing
to repurpose their existing oil refining infrastructure for renewable energy production ( Davies, et al., 2020 ). As the petrochemical market pivots to focus on high-quality, high-margin chemical feedstock products, investment in tank storage sites are growing, as evidenced by global organisations, including Vopak and Ineos, announcing major new sustainability-focused storage projects in the past year ( Vopak, 2021; Ineos, 2020; Ineos, 2020b ). New growth opportunities are now opening up for tank farm operators. To take advantage, though, owners will have to contend with a range of evolving challenges, from storage flexibility demands to improving energy efficiency and taking site safety to the next level. Smart heat tracing systems, paired with the
Biofuels production at a smart tank farm
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