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—ABB Oil, Gas and Chemicalwww.abb.com/chemicals

© Copyright 2018 ABB. All rights reserved. Specifications subject to change without notice.

—WHITE PAPER

Transforming chemical operations through technologyPart 2: Analyzing the industry’s digital present and future in greater detail

2 TR A N S FO R M I N G CH E M I C A L O PE R ATI O N S TH RO U G H TECH N O LO GY 3

— Contents

The fourth industrial revolution is set to transform businesses worldwide by making dumb machines smart, using sensors and advanced technology. Over the Internet of Things (IoT), smart assets and systems will communicate and cooperate not only with each other but also with humans in real time to improve performance through the entire value chain.

In this new world, information systems can create virtual copies of the physical world by enriching digital plant models with sensor data. These smart ecosystems can help human operators by aggregating, visualizing, analyzing and prioritizing big data sets to help people make informed decisions and solve problems quickly.

Increasingly these smart ecosystems are making decisions on their own and performing tasks quite autonomously – only escalating issues for human resolution when necessary (e.g., conflicting goals, unusual results outside expected parameters).

These smart machines can further help humans by conducting a range of tasks that are unpleasant, exhausting, or dangerous. They can also be self-aware enough to tell operators when they need servicing, triggering maintenance on a just-in-time basis and facilitating near zero downtime.

—The digital opportunity in chemicals

—Industry 1.0 – 1712Mechanical production with the help of steam

—Industry 2.0 – 1870Assembly lines with the help of electricity

—Industry 4.0 – today and tomorrowSmart equipment ecosystems powered by Industrial Internet of Things (IIoT) and enabled by cloud computing

—Industry 3.0 – 1969Further automation with the help of electronics and software-based control

—Executive summary

The chemical sector is undergoing an intense period of transformation brought about by the ever-increasing potential of digitalization to improve profit , productivity and safety in what is a particularly complex industry.

The precursor to this white paper discussed particular internal and external challenges which digitalization can help chemical companies manage better than more traditional approaches.

Here, we delve deeper into what digital solutions can deliver to businesses, how technologies are being deployed today and the ways in which digitalization is likely to add value in the coming years.

For those ready to explore how digitalization can improve their chemical enterprises, this white paper is intended to help illuminate the way.

03 Executive summary 03 – 05 The digital opportunity in chemicals 04 A model of digitalization 05 Quantifying the potential benefits06 – 08 Four imperatives to thrive during the fourth industrial revolution 06 Enterprise-wide digitalization and connectivity 07 Simplification and standardization 07 CEO leadership 08 Deeper supplier partnerships09 – 15 Digitalization in chemicals: Ready for change 09 Digital priorities 10 Factors driving change 10 Today and tomorrow’s digital trends 10 Efficient new project execution 11 Super-efficient mega-sites 11 Fewer control rooms 11 Integrated process optimization 12 Better demand and supply side visibilty 13 Improved energy management 13 Optimized maintenance 14 Increasingly open architectures 15 High fidelity simulations: Digital twins of entire plants 15 Rising importance of cybersecurity16 – 19 ABB’s enabling approach and technologies 16 Collaborative Operations and Intelligent ProjectsTM

17 Greenfield 18 Brownfield20 – 22 Optimizing chemical performance in practice 20 Trinseo: Digitalizing control system migration projects to

achieve fast return on investment 21 Lion CoPolymer: Increasing production and reducing off-spec

waste byproducts 21 Arkema: Optimizing boiler efficiency to reduce energy costs at

the world’s largest HFC-32 refrigerant production plant 22 Wacker Chemie: Enhancing the efficiency of aging assets while

improving operating costs and enabling predictive maintenance23 Conclusion23 References

4 TR A N S FO R M I N G CH E M I C A L O PE R ATI O N S TH RO U G H TECH N O LO GY 5

Essentially, businesses are in the process of creating intelligent networks along the entire value chain that can control each other autonomously freeing up human operators for more value-added activities in safer environments.

The fourth industrial revolution is making it easier for companies to keep production going with fewer workers and increased safety. This protects margins when times are challenging, for example, when feedstock prices are high and consumer demand is constrained. It likewise helps companies extract even more profit during boom times, such as in the US where the shale revolution continues to deliver low feedstock prices.

Remote management, increased automation and cloud-based computing will enable chemical companies to deploy fewer experts across a

wider set of assets which is useful in a time when many seasoned workers are retiring. It also means that, in emerging market areas where the comparatively young local labor force is often less skilled than in more mature markets, these less skilled employees are supported in ways which maximize production and safety objectives.

Additionally, machine learning and self-diagnosing equipment will help companies take action –the right action at the right time– significantly reducing operational expenditures while avoiding revenues lost due to unplanned shut-downs.

Extensive data analytics will help optimize daily operations to plan production in the most profit-maximizing manner or adjusting manufacturing levels to suit changing end-user demand.

SensorsDevices

Sensors and devices: the “things” where information originates, such as a pressure or temperature, but also radio frequency identification (RFID) technology that uniquely identifies an object.

A model of digitalization

Edge computing: Often data needs to be processed at the edge to achieve enough speed or safety, like a compressor anti surge loop, a safety integrity level 2, 3 (SIL) loop or an electronic lock. Edge computing may happen in the device “thing” itself or across multiple things. In process control this is the distributed control system.

Connectivity is what ties the devices, edge and the cloud together across many standards and systems to one homogenous system. It may be integrated with the cloud such as the ABB AbilityTM cloud based on Microsoft Azure.

Analytics or big data analytics are the many applications that process information in the cloud to deliver information about equipment diagnostics, logistics and inventory, trends and analysis; for example, data such as “this type of motor from manufacturer xx has an excessive failure rate when used for YY” or “use of consumable AA is particularly high on BB so we need to stock up before”

The cloud is the secure but open central repository where all information is stored accessible to users and applications of many types. In other architectures, this was called a “Historian”, a “SCADA Database” or a “Central Database”.

Cloud

EdgeComputing

SensorsDevices

SensorsDevices

EdgeComputing

SensorsDevices

Analytics

Connectivity

A model of digitalization

Quantifying the potential benefitsThe potential for chemical companies who embrace digitalization is significant.

A 2017 analysis by Accenture and the World Economic Forum estimates that the digital transformation in the chemistry and advanced materials industry will deliver approximately $310 billion to $550 billion between 2016 and 2025.1 Benefits are expected on a number of fronts including research and development (R&D), digitalizing plant operations and supply chain management. Digitalization is also anticipated to augment workforce performance and permit more advanced customer interaction in the form of customer analytics and trend sensing, for example.

In a separate analysis, Accenture estimate that using technology to increase operational efficiency could save an average of $91,261 per

chemical company employee2 while McKinsey suggests companies can improve their EBIDTA by 8-13 percent taking into account improvements across a wide range of areas and functions.3

While the transition to a more digitalized environment is exciting, it will not be easy.

Winners in this new world will be those who turn intention into reality and leverage the opportunity digitalization provides to transform their companies – at a full enterprise level – to become leaner, quicker and safer as well as more responsive to supply- and demand-side conditions.

The time has never been better to invest in digital scale and drive better operational results and improve margins now and longer term.

This paper is designed to help provide some guidance along the way.

Earnings before interest, tax, depreciation and amortization (EBITDA) impact by functional leverMcKinsey: Digital improvement can boost EBITDA by up to 8–13 percentage points

1 Other: Procurement 0.7-1.2, R&D 0.5-1.0, G&A 0.4-0.8, Supply chain 0.1-0.2. McKinsey analysis.

Source: McKinsey chart as presented in digitalization cover story, IHS Chemical Week, 17 October 2016.

• +1.5-2.5% ROS in reduced cost to serve

• +1.5-2.5% ROS improved margins

• +3-5% increased growth

• -10-25% in operating costs • -10-40% in maintenance costs • +5-25% in throughput

• +1-3% in yield

3.5–5%0.1–0.2%

1.7–3.2% 8.7–13.2%0.7–1.2%0.5–1.0%

0.4.0.8%

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• 1-6% reduction in procurement spend

• 20-50% reduced time to market

• 50-70% reduction in planning lead time

TotalOperations Other1Marketing and sales

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Digitalenablers

performance

Yield & energy

Big Data/AA for

opex and capex

6 TR A N S FO R M I N G CH E M I C A L O PE R ATI O N S TH RO U G H TECH N O LO GY 7

We predict four imperatives will distinguish the winners from the losers in the chemical industry’s fourth industrial revolution.

1. Enterprise-wide digitalization and connectivityThe true benefits of digitalization will only be realized if it spans across the organization – beyond an individual piece of equipment, an individual plant or even an individual country. Winners will have a holistic view of their entire operations. While operators onsite will have more accurate information than ever before, technicians at remote control centers – and managers throughout the organization– will have a similarly clear picture of what is going on.

Machines will communicate with each other to optimize production and reduce risks, escalating issues requiring human intervention to the right individuals at the right time in a prioritized manner.

It will no longer be sufficient to have pockets of machine intelligence in an organization. For maximum results an entire ecosystem of smart equipment and appropriately informed human operators will need to be created. Over time those who take a piece-meal approach will be leapfrogged by those who deploy digitalization throughout the length and breadth of the operation.

That is not to say, however, that an entire organization must be digitalized all at once, however. Unless you are dealing with a greenfield site, this would be extremely difficult and costly. What successful companies will do, however, is have enterprise-wide digitalization as a defined long-term goal with a specific plan of how to get there in stages.

Bringing together information and operational technologies - effectivelyUntil recently the chemicals industry has been very conservative in embracing widespread digitalization, often due to cybersecurity concerns. However, this is changing as it becomes clearer that the potential benefits from digital investments will likely outweigh the risks,

particularly when such risks can be managed with robust cybersecurity policies.

The fourth industrial revolution provides greater integration visibility and intelligence within and among the operational technology (OT), production control systems and information technology (IT) that manage a company’s critical assets, logistics, planning and operations. The result is unprecedented agility in operations as well as to supply and demand fluctuations throughout the hydrocarbon chain.

As IT and OT convergence brings more information from real-time systems into IT software, the following are among the four benefits that will enhance efficiency, responsiveness and profitability across the companies –irrespective of area of chemical specialization:• Smart production• Intelligent response to critical asset condition• Demand-driven planning• Reduced energy consumption and waste

Yet a major challenge in achieving these goals is a lack of integration between IT and OT systems. A growing number of chemical companies see the single leading benefit of IT/OT data integration as optimizing for cost and efficiency. This directly addresses the challenges of:• Managing ever increasing costs• Minimizing schedule overruns• Mitigating risk• Optimizing or maximizing production• Controlling energy expenditure and efficiency

Unfortunately, many companies have little or no data integration across the value chain and still operate in silos, with data not being shared with other departments. Many still rely on spreadsheets combined with human expertise for crucial decision support.

Additionally there are issues with the data itself to overcome. Key information is often buried in diverse legacy systems, each with its own protocols. This makes it hard for the right data to get shared where it is needed most whether that be in the IT or OT domain. What is the point of talking about clouds, key performance indicators

—Four imperatives to thrive during the fourth industrial revolution

• Safety systems• Field telecommunications• Analyzers and instruments

Historically, nine different bids would be put out for such work and selections which may appear cost competitive when viewed individually often work out more expensive overall.

Bundling the above with one supplier can often reduce direct and indirect costs initially, and for the life of the project, by making it easier to streamline the effort, space and equipment needed. ABB has been able to deliver 20 to 30 percent CAPEX and OPEX savings in a wide range of chemical projects.

Much of these savings come from ABB’s integration activities across electrical, control, instruments and telecoms (ECIT) technology over more traditional models.

Such an integrated approach can also significantly mitigate risk through the elimination of disparate interfaces and data and by having a single point of accountability.

3. CEO leadershipThe above imperatives are unlikely to be present without backing and support from the CEO and his or her executive team. Difficult, and potentially unpopular, decisions will need to be made so priorities must be firmly communicated from the top and aligned down the decision chain.

There will likely be tremendous resistance within organizations where people have become used to operating in silos without considering the bigger picture. Digitalization in silos, however, will not provide the cross-asset, cross-functional insights needed to drive results which will transform performance to required levels. An enterprise-wide approach is needed.

and dashboards, if the data being fed is incomplete?

But, things are changing with companies now taking steps to implement IT/OT data integration. These manufacturers have a consolidated view of production systems and the most advanced can dynamically view and adjust operations across the value chain.

It appears that a growing number of players understand that IT and OT cannot operate in silos if they are to continue to deliver good shareholder returns in light of increasingly difficult and uncertain market realities.

Companies are coming to realize that addressing emerging challenges effectively means transitioning to an environment which provides remote asset diagnostics, continuous automation and production optimization made possible through a fully integrated approach to power, automation and telecommunication systems.

2. Simplification and standardizationTo realize the objective of a fully digitalized organization, processes and equipment must become simplified and standardized. Obviously, simple solutions are easier to replicate than complex ones, while standard approaches and equipment are more straightforward and considerably cheaper to monitor, manage, maintain and upgrade.

The need for simplification and standardization is best met by bundled, highly integrated solutions. For example, power, automation and telecommunications projects typically consist of nine packages:• Motors and drives (medium and low voltage)• Transformers (liquid-filled and dry-type)• E-houses / PDCs (switchgear, MCCs etc)• Substations (air or gas insulated)• Automation platform• Power management systems

8 TR A N S FO R M I N G CH E M I C A L O PE R ATI O N S TH RO U G H TECH N O LO GY 9

Performance packages, for example, may need to be linked to longer term results and priorities than is currently the case – both for employees and suppliers. Too often we see companies focus on initial purchase price without sufficient consideration of ongoing running costs, integration with other systems and ease of upgrading over the full life cycle of a plant.

Additionally, different parts of the organization find it challenging to communicate with each other as they have chosen, and gotten familiar with, different systems to their colleagues. It will take a clear direction from the top to drive the necessary changes which will make life easier and more profitable in the long run… but which will probably entail a somewhat difficult transition process to get through across non-greenfield sites.

4. Deeper supplier partnershipsThe scale of changes to come over the next 20 years of digitalization-driven change will be so large and disruptive it will be impossible to go it alone. The need to standardize and simplify explained above means there will be an increasingly symbiotic relationship between customers and vendors in order to extract optimal results across the value-chain. To that end customers will need to carefully select their long-term partners.

Things to consider will include:• Breadth of portfolio: Many players exist who are

experts in individual areas. The key will be to pick supplier partners who excel in more than one domain and can thus integrate multiple mission-critical elements

• Likelihood of vendor remaining ahead on the technological front: Supplier decisions will be long lasting and far reaching so companies need to have confidence their partner will evolve with the times

• Technical expertise: The more experience the supplier has, the more proven and effective the solutions are likely to be

• Service capabilities and geographic coverage: Every hour of production lost is costly so responsiveness is key

As can be seen in the SABIC and Yitai boxed items which follow, examples of such deepening partnerships already exist.

—ABB and SABIC: Partnering closer together to drive chemical innovation

In March 2018 ABB and SABIC signed a Memorandum of Understanding to focus on a global strategic framework for the development of high-technology industries and potential technology ventures across the world. This partnership gives SABIC greater access to ABB’s integrated industrial Internet offering and cloud infrastructure. Strengthening their existing relationship at strategic and working levels enables them to use their combined experience to develop next generation solutions.

—ABB and Yitai Group: Joining forces to build intelligent coal chemical plants

In February 2018 ABB signed a strategic cooperation framework agreement with Yitai, a well-known Chinese coal production and further processing enterprise, to deepen their cooperation. Under the agreement, ABB will provide intelligent plant-wide solutions for Yitai’s upgrading of established plants and newly-built plant projects based on the integration of electrical, control, instrumentation and communications (EICT). This will help Yitai break the "information silos" of plants to open up the data connection among various systems and also to leverage big data and collaborative operation to achieve the goals like improving productivity and profit, reducing investment and operation costs, and so on. In addition, ABB will also form a consortium with Yitai in the future to jointly develop the global intelligent market for coal chemical industry.

Chemical executives appear ready to embrace the benefits more intense digitalization has to offer.

According to a 2018 PwC study, chemical companies plan to invest 5 percent of annual revenue in digitalization over the next five years and nearly a third claim to have already achieved an advanced level of digitalization.4

Digital prioritiesAnd, a 2017 research study conducted by Accenture surveying 360 C-suite executives, top management executives and functional leaders from chemical companies across 12 countries, found that5:• 85 percent expect their investments in digital to

increase over the next three years with around 75% expecting an increase between one to 25 percent and one in 10 respondents expecting to increase their investments over 25 percent

• The leading digital solution currently being deployed is analytics, with 67 percent of executives either running a pilot or using it in actual production with another 27 percent defining their analytics strategy

• A third or more include advanced process control, artificial intelligence, cloud or sensor-based initiatives within their top investment priorities

• Planning and scheduling is the number one priority for 23 percent of respondents while 52 percent had this within their top three

• Material management/supply chain was another high priority area with 18 percent citing it as their top priority and 62 percent including it within their three most important areas

This is consistent with other similar chemical industry executive surveys, including one from Deloitte in 2016 which surveyed 102 chemical industry participants, most of whom were also C-Suite and senior executives from a diverse range of countries and company sizes, which found that the top four digital priorities by category were as follows6:• Operational enhancement: Reducing operating

costs and/or working capital, improving sales/channel efficiency and reducing risk through greater product quality, asset reliability and safety

• Growth: Increasing sales channel effectiveness, generating new business development opportunities, developing new products and/or services to address unmet needs, improving pricing/margins

• Engagement: Enhancing the experience of various stakeholders such as existing and prospective clients, employees and contractors, suppliers and distributors plus enhancing other stakeholder communications and improving a ‘shared’ collaborative environment.

Operate

Frequency of item appearing in the top three

Note: Percentage of respondents who ranked an area as ‘1’, ‘2’, and ‘3’ have been summed together. Source: Deloitte Touche Tehmatsu Limited 2016 Global Digital Chemistry Survey. December 2016 as reported in Deloitte's "Digital Transformation: Are chemical enterprises ready? January 2017.

Areas of digital intervention

Grow

Engage

Increase sales channel effectiveness 36%

Generate new businesses development opportunities 34%

Enhance existing and prospective client experience 31%

Improve sales/channel efficiency 25%

Reduce risks (e.g. product quality, asset reliability, safety) 23%

Develop new products and/or services to address unmet needs 23%

Improve pricing/margin 19%

Increase speed to market for new product development 17%

Enhance employee and contractor experience 14%

Enhance supplier and distributor experience 11%

Enhance other stakeholder communication 10%

Improve ‘shared’ collaborative environment 1%

Reduce operating costs and/or working capital 56%

—Digitalization in chemicals: Ready for change

10 TR A N S FO R M I N G CH E M I C A L O PE R ATI O N S TH RO U G H TECH N O LO GY 11

It is also worth noting that an Accenture study – Industry X.O. Unlocking the the power of digital operations– also found that, of those who have already invested in digital7:• 76 percent had already seen a 5 to 15 percent

operational improvement attributed to digital, with more than half saying they had seen increases of 5 to 20 percent improvements in their operating profit and a quarter of respondents saying their profits improved over 20 percent

• 92 percent said they were satisfied with the results of their digital investments, with 37 percent saying they were extremely satisfied and had achieved all or most of the expected benefits

Factors driving changeChemical companies already have a long track record of using digital technologies to improve performance and manage risk. However, it has primarily been at an asset level or in pockets throughout an organization split by function and/or geography. Existing market dynamics and challenges, which differ across regions, are pushing the chemicals industry to embrace digitalization to an even greater extent than ever before. This is due a confluence of factors:• Greater industry uncertainty e.g., return of raw

material input pricing volatility following the oil price shock

• Emerging market growth slowdown • Production overcapacity for certain products

and geographies• Sensor prices having declined significantly over

the last decade due to the digital device explosion in consumer markets

• Increasing viability of secure, cloud data storage solutions

• Wireless networking technologies capable of delivering up to 1 gigabit per second (Gbps)

• Computer processing power sufficient to handle the petabytes of data being generated.

There is also a rising acceptance of cloud computing – a trend which will continue provided that service providers and users remain vigilant in data protection. Many of today’s business leaders see the benefits of easily adjustable storage as a way of tamping down IT costs as well as

facilitating more lucrative interactions with suppliers and customers. For example, ABB uses cloud computing to work more collaboratively with our customers to bring projects online much faster. The explosion of social media interactions in the consumer sector has helped to normalize the idea of online co-creation with OGC employees.

Winners will also be those who take the right steps to ensure that the telemetry data being relied upon to improve decision-making is sufficiently comprehensive and reliable. Operators have told us about losses of up to one million dollars per day for shut-ins due to communications problems, often caused by out-of-date technology. Additionally, if there are gaps in the data, decisions taken by engineers will likely be suboptimal and profits will suffer – albeit in a slightly less obvious way.

Today and tomorrow’s digital trends Efficient new project executionWhile many projects were shelved due to the oil price crash, relative stability in oil prices and a renewed sense of optimism on long-term demand growth is leading to a renewed surge in capital investment. For example, many new projects related to shale gas have started or been announced recently in the US while China has significant planned investment in propane dehydrogenation (PDH) plants.

Given the internal and external challenges outlined earlier, particularly the fact that most projects in the oil, gas and chemical sector run late and over-budget, companies need to use digitalization to streamline their execution costs, accelerate their project schedules and reduce their overall risk. For example, it can facilitate efficient project engineering in the FEED and design stages through elements like virtualization, emulation and simulation. Additionally, cloud engineering can foster improved collaboration between various product teams by making it easier to share information and track project developments while automated data management can get rid of many manual steps, reducing scope for human error.

Super-efficient mega-sitesIn recent years, the chemical industry has displayed a greater interest than ever before in making large-scale upfront investments. Previously, a complex like Sadara, which consists of 26 manufacturing plants built in a single phase, would have been done in smaller chunks over a long period of 15 to 20 years, spreading out the cost and risk as companies became certain demand could support the increased output.

The trend towards such mega-sites stems, in part, from a desire to make products closer to where they are consumed. It is more efficient to run one big site than having 30 small chemical plants and ship the bulk material to where the end products are being made. For example, rather than shipping the chemicals around to make a plastic toy in the Middle East or China, the constituent parts are already nearby. And, if shipping raw materials is required, having the facilities nearby to convert materials into a more logistically-friendly form can be another reason for having a larger site with multiple plants. Instead of exporting excess supplies of gas, which can be costly, some companies are using gas to liquid processes with ethane crackers producing ethylene which, in turn, feeds downstream derivative plants.

Mega-sites have many systems to integrate and optimize. They can also be run with fewer ongoing resources -fewer control rooms and thus fewer people to manage operations- as there is scope for more automation. And, because these plants all feed each other, costs can be optimized. For example, if there is slowdown in one process, the rest of the plants can be throttled down as required and then throttled back up later once the issue is resolved. In a non-mega-site situation, the other plants would operate much more independently and keep producing at regular levels with over-production in relation to the slowdown in the other part of the chain. They would then have to pay for storage tanks to keep the material until the other part of the chain is ready for it. It is thus much easier to adapt to problematic conditions across one mega-site versus lots of steps when dealing with many small plants. Logistics models are also changing as a result.

Fewer control rooms and more remote operationsThe future of the industry lies in bringing equipment, systems and people together so that they talk the same language and are integrated into one system where all information is available, quickly and in the form they need to make decisions. Collaboration between people across locations within a company as well, as

with suppliers and customers, is rising.

While local control rooms may still exist, the trend is towards fewer, more centralized control rooms manned by a reduced number of workers. Or, in some cases, no onsite control rooms at all, with everything being overseen remotely e.g., at headquarters, supported where appropriate by other internal and external experts such as suppliers.

A modern, digitalized cracker can now be run with three to four consoles and a similar number of operators in a single control room. People with different roles can work together in the same environment. In a more traditional set-up you would have had up to four times as many employees across different locations struggling to communicate effectively.

Digitalization tears down barriers and ensures people can collaborate more easily either in one location or across various sites and geographies. This creates a safe, reliable and predictable production process with better visibility and performance.

Integrated process and batch optimizationIn days gone by, control rooms had pneumatic controllers along the walls and operators manually checked readings to assess plant operations and conditions. Today’s process management involves collecting data via sensors from various sources such as the lab, alarms, and process equipment and sending real-time data to control room technicians, saving operators time and reducing scope for error. Analytical tools can spot patterns and deviations in chemical processes before they occur, thus reducing production risks. Control loops can adjust themselves and process analytics or simulation capabilities can help employees to make predictions on system changes. This is particularly helpful in environments where expert personnel are in short supply either due to retirement issues in mature markets or inexperience in emerging ones.

Real-time analytics and automated control actions thus enable greater control over batch consistency in an industry where process results are affected by many factors such raw material quality and dosing, temperature, residence times, system fouling, and aging catalysts for example.

Despite such advances, sluggish global growth, with many commoditized products, mean companies need to explore new areas of process optimization and market development to extract value. McKinsey estimates that petrochemical producers, for example, can increase their return

12 TR A N S FO R M I N G CH E M I C A L O PE R ATI O N S TH RO U G H TECH N O LO GY 13

on investment (ROI) by an additional 10 percent through optimizing each element of their operations8.

Many chemical companies, for example, can only analyze a set number of batches at a time, thereby limiting their ability to improve operations on a broader scale. Digitalization can enable the monitoring and optimization of hundreds of batches at any given time. Using big data and predictive analytics on large data sets generates can give chemical companies the insights they need to quickly control and change operating conditions and variables to improve process quality and throughput.

Better visibility and control over demand and supply side variablesIn addition to improved maintenance strategies, another way technology can help refineries and chemical companies generate competitive advantage is by improving their visibility beyond an individual site to take a wider view of the supply and demand chain. Doing so can yield benefits from a cost-saving and revenue-generating point of view.

For example, technology is making it easier for chemical companies and refineries to optimize their raw material costs and achieve pricing excellence – better matching product costs with anticipated sales, monitoring and adjusting input purchases and sales prices to maximize profitability.

Securing the raw material inputs (e.g., feedstock and additives) at the best price, quantity, quality and specification is essential for profitability within the chemicals industry. Purchasing can account for 20 to 60 percent of sales revenue for a specialty chemical producer and 50 to 80 percent for commodity chemical makers. Making the right choices is thus vital9. Buying these ingredients is far from straightforward, however, as they come in a vast array of grades, form (eg dry vs liquid) and packaging etc, each of which will have implications on manufacturing and logistics. Additionally, prices for these items can be volatile (eg the recent oil price shock) or fluctuate more

predictably, such as on a seasonable basis. Digitalization can support short- and long-term planning, for example, by considering data such as weather forecasts, commodity prices and order information in real time.

In this industry, even small changes in the characteristics of raw material inputs can disproportionately change the cost it takes to turn them into finished products. This means purchasers need a deep understanding of the technical and marketplace issues involved. And, despite the best will and knowledge in the world, human planners are limited in the amount of information they can process. Advanced analytical programs, however, can take into consideration thousands of variables and a million constraints to help support these decisions. Big data can help companies better assess what they should buy, what they should make and how best to produce it to maximize yield and profit10. Demand sensing technology, inventory analytics and advanced warehouse automation can also help reduce safety stock requirements and improve inventory turns while reducing likelihood of stock-outs11.

On the refinery side, investing in information systems which give refiners clearer visibility into the complete supply chain makes it easier to optimize the quantity and quality of crude blends purchased. For example, the level of bitumen and sulfur in cheap crudes can offset any price benefits due to the increased operating and maintenance expenses which may be required. Having sensors on refinery equipment, which enable it to gather information on the trade-offs in processing the different crudes available, combined with pricing, availability, delivery and inventory information empower refiners to optimize purchases by quickly working through robust scenario planning.

Advanced analytics can also provide early warning indicators of pending oil price shocks etc and collaborative operations facilitated by digital can ensure that executives have the information they need quickly to take the right decisions in times of intense volatility when every minute counts.

Likewise, deeper insights into the end-user needs will help chemical manufacturers adjust more nimbly to changing demand patterns. The more insight chemical companies have into their customers’ operations, the better the real-time recommendations they can provide to optimize results on both sides.

Also, in some cases, customers may need the products be delivered within a specific temperature or pressure in order to be for use in their production processes. Digital technologies can be used to monitor chemicals during transit – a tricky time for controlling conditions. GPS can be used to see where the products are during the shipping process and sensors can be used to track the physical properties of the chemicals, with alerts provided to enable corrective action, manual or automated, in a timely manner if a potential problem is identified.

Greater digital interconnectivity facilitates all of this.

Improved energy management and efficiencyMany chemical production processes are highly energy intensive and contribute significantly to a chemical plant’s production costs. A typical plant involves multiple activities with high interactions, making it difficult for operators to select optimal operating conditions. Here, digitalization can optimize asset usage by using data mining and analytical modeling to develop dynamic target values for plant energy consumption, taking into consideration a multitude of variables such as internal operating conditions and external temperatures to determine the best options for minimizing energy usage. Energy monitoring and analytics can identify energy usage patterns and inefficiencies giving companies the insights they need to take corrective action.

It is also worth bearing in mind that nearly 70 percent of industrial electrical energy use goes to powering electric motors and so these motors are key to reducing energy use and improving efficiency.

Consider a powertrain comprising a variable speed drive (VSD), electric motor, mounted bearing/coupling and gearbox and the load such as a pump, fan or compressor. It has long been recognized that a VSD adjusts the motor speed to provide just the right amount of power that the application demands, inherently saving energy. Advances in digital are broadening the efficiencies and cost savings to be made. It is now possible to retrofit smart sensors, without wires, to the frame of most installed low voltage induction motors; previously such an undertaking would have been too expensive. Such sensors can

also be applied to pumps and mounted bearings. Digitalization is thus giving users new and meaningful data they can use to identify inefficiencies and accurately determine energy usage.

The other side of energy management involves having the right trading mechanisms regarding which energy to use or purchase and when. Many chemical plants have their own energy production facility while also being connected to the utilities. These plants can use digitalization to optimize when to buy energy in from utilities and when to use their own to reduce their energy bills.

Optimized maintenanceOf course, once things are up and running, a critical part of managing the bottom line is to ensure downtime at refineries and chemical plants is minimized since unplanned shutdowns lead to expensive repairs and foregone revenues from lost production. And yet, such shutdowns remain relatively common.

According to the US Department of Energy, refinery shutdowns from 2009 to 2013 in the US alone, for example, averaged 1.3 incidents per day.12 And, electrical problems accounted for 20.6 percent of these shutdowns with electrical equipment failures and power supply problems leading to over 80 percent of the disruptions.13 In addition to power outages, ineffective maintenance practices are hitting refinery profits hard. ARC consultants estimate that suboptimal maintenance procedures cost refiners $60 billion per year globally due to unscheduled downtime.14

Strategically integrated systems standardize and streamline the parts involved making ongoing repairs more straightforward and providing for easier upkeep and system expansions. For example, if making updates is a matter of configuration, rather than program, there is significantly less risk of a process disruption.

Another way to minimize downtime is to take advantage of today’s availability of inexpensive, non-intrusive sensors, advanced wireless mesh networks and real-time asset-monitoring systems. These make it possible for chemical companies to shift away from a time-based maintenance strategy – which may repair equipment too often or too little – to one which is based on the actual needs of a given piece of equipment. Avoiding unnecessary repairs is not only cheaper, due to its happening less often, but also it minimizes the opportunities for things to go wrong. It is not uncommon for equipment which has been maintained not to be put back to the correct parameters, for example.

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Additionally, if your equipment tells you it is likely to break down soon, you have the opportunity to take proactive action before it fails. Not only do you avoid the opportunity costs of an unplanned shutdown but also your repair costs will be cheaper as they will be undertaken on a non-emergency basis.

Those companies able to step back and see the bigger picture of enterprise-wide integration will achieve a significant cost advantage over those who stick to more traditional, more narrowly-focused approaches.

Why then is predictive asset monitoring not more widespread in the chemical industry?

At the moment companies appear to be tracking individual assets which are particularly critical to operations; it is much rarer to see plant-wide operations, let alone multi-site tracking. Non-critical equipment has hardly been considered at all since to have instrumented it would have previously been prohibitively expensive in terms of labor, copper wiring, testing etc. Instead, plants have hundreds of pumps and they are usually in pairs: one active and one on standby to take over if the other is down due to maintenance or breakdown. There was little need to optimize as there was a relatively inexpensive backup option.

Wireless technology and the availability of inexpensive sensor technology has changed the economics of the situation and ABB has seen a rise in enquiries from chemical companies keen to work with ABB to explore fleet-wide predictive maintenance. In one such project currently underway a large global chemical player is using wireless sensors on its rotating machines to optimize a fleet of 60,000 assets at a plant where some 80 percent of issues had been caused by this equipment. Rotating equipment typically operates at 1 to 10,000 rpm and needs to withstand high

temperatures and pressure. Combined with centripetal and centrifugal forces, these factors contribute to increased wear that inevitably leads to failure which could mean several days or weeks of lost production and potentially millions in repair costs and downtime. By knowing what is going to fail and when, predictive maintenance activities can deliver fewer unexpected failures, thereby increasing production efficiency and minimizing costs.

Increasingly open architecturesThere is a trend towards open architectures over proprietary systems. The operational benefits from digitalization described throughout this white paper depend on effective information sharing. Open architectures facilitate this by making data aggregation quicker and easier.

Such architectures also help manage long-term capital expenditures more effectively by making obsolescence easier to manage. Companies are looking for longer running, more easily upgradable and updatable investments. They seek to avoid spikes in capital investments required just to keep something running. They would rather spend that money improving operations and productivity instead of making such investments simply so a plant can keep running at a pre-existing level of performance.

In an open environment companies have greater flexibility to pick what they perceive as the best-in-class elements from various providers and weave them into one integrated system. Over time, instead of ripping out and replacing entire systems when technology is obsolete, it becomes a question of swapping out relevant modules.

Indeed 2017 saw the kick off of the Open Process Automation Forum (OPAF), a working group within The Open Group, a vendor- and technology-neutral industry consortium. Championed by ExxonMobil, the OPAF is focused on developing a standards-based, interoperable and secure process control architecture that can be leveraged across multiple industries including oil, gas, petrochemicals, pharmaceuticals, mining, metals, pulp and paper, food and beverage and utilities.

— “Closed, proprietary industrial control systems have served us well until now, but the future will be more IIoT-like with more open and interoperable systems.”15 Kenny Warren, Vice President of Engineering at ExxonMobil Research & Engineering, in his keynote address at the 2018 ARC Industry Forum

simulators in a low and medium fidelity manner, for example with respect to simulating parts of processes.

ABB, however, is now providing customers with the opportunity to create 1:1 copies of their physical plant in a digital form. This means customers can simulate decisions and know exactly what such actions will deliver if applied for real.

This can be particularly useful in the development phases of a new facility. By being able to simulate the entire electrical side of a plant early on customers can better predict, plan and budget for the required power needs.

Rising importance of cybersecurityWhile harnessing the IoT has the potential to generate significant competitive advantage for those who deploy it correctly, companies must be even more vigilant than ever before in protecting their assets.

In the pre-digital world, it was easier to see the threats coming as they typically had a physical presence. Now, operations can be disrupted by unseen players from thousands of miles away.

Recent Accenture research suggested that 30 percent of chemical companies are not tracking cybersecurity attacks of their plants’ production operations and, of those who do track them, 75 percent have experienced over 30 attacks in a 12-month period. And, while 44 percent of companies successfully fixed the problems in a few hours, the rest took days, weeks or months fix the issues20.

Fortunately, solutions exist to protect assets from cybercrime but companies will need to ensure their assets are protected correctly from the very start and be vigilant on an ongoing basis. This may sound obvious but it is not uncommon for us to find, when we conduct cybersecurity reviews for chemical clients, that their protection software, particularly in the area of process control, is not up to date.

Also, in many cases, cybersecurity measures have been bolted on after the fact which can provide potential cracks for attacks to wedge their way through. Recognizing such risks early on, ABB, for example, has for many years built cybersecurity into its systems, conforming to draft rules and standards long before such regulation became official. While many other players are now playing catch up, a cybersecurity analysis by Shell identified ABB systems as being head of the curve in this area.

Likewise, NAMUR, an international association of automation technology users in process industries, is pursuing an open architecture initiative. The NAMUR Open Architecture (NOA) program is not intended to compete with the above-mentioned initiative. Instead, it aims to provide an intermediate stepping stone, with practical implementation suggestions17.

— “Many automation architectures still aren't close, extracting data remains painful, and integrating new technologies is often slow or doesn't happen at all.”18

Christian Klettner, Senior Automation Manager for digitization at BASF SE and chair of NOA's working group for automation architecture and wireless speaking at the 2017 ARC Industry Forum

Modular AutomationModularization simplifies plant level engineering, makes production more flexible and thus improves overall competitiveness. Modular process plants have pre-automated modular, ‘plug and play’ units that can be easily added, arranged and adjusted according to the production needs. Distributed control systems act orchestration systems that manage the operation of the modular units.

— “Modular Automation is very important for future production plants and the corner stone for IoT and Industry 4.0.”19

Dr. Torsten Knohl, Senior Project Manager, Bayer AG, in a press release announcing the company’s collaboration with ABB on this topic.

High fidelity simulations: Digital twins of entire plantsMany companies are currently able to use

The members of the Open Process Automation Forum include a range of large operating and end-user companies16:

Aramco Services Merck and Merck KGaABASF PraxairBP Reliance IndustriesChevron SabicConocoPhillips ShellDow StatoilDuPont TotalExxonMobil Woodside EnergyKoch Industries

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For over five decades ABB has been at the forefront of equipping companies across the hydrocarbon chain with a wide range of technologies to support some of the world’s largest and most challenging chemical projects.

For example, ABB spearheaded the automation and instrumentation for the world’s largest chemical complex ever built in a single phase with 26 integrated world-scale manufacturing plants – the Dow and Saudi Aramco Sadara project. It also supplied power and automation for the world’s largest chemical cellulose plant, Sappi Saiccor.

With an installed base of more than 70 million connected devices and more than 70,000 digital control systems across a range of industries, and its deep understanding of the oil, gas and chemicals industry in particular, ABB makes it possible to understand and optimize industrial processes like never before. Additionally, ABB's preference for open, as opposed to proprietary systems, means our solutions tend to be easier to integrate in the short term and to upgrade if and when obsolescence becomes a concern.

ABB is an expert in developing and enhancing process control systems, communications solutions, sensors and software for the industrial IoT, helping chemical companies to exploit fully the promise of the fourth industrial revolution. Only when things, services and people are in sync will real change occur – all three matter and ABB has a proven track record of bringing these elements together seamlessly.

ABB’s proven approach and technological capabilities help chemical customers analyze data more intelligently, optimize their operations, boost productivity and enhance profitability while reducing risks to schedule and safety across their entire operations.

And, knowing just how critical it is for the right people to have the right information at the right time, ABB has gone a step further for customers by partnering with Microsoft to develop one of the world’s largest industrial cloud platforms. This partnership will give customers new insights to empower faster, more astute decision making.

Likewise, ABB has partnered with Hewlett Packard Enterprise (HPE) to combine ABB’s deep domain expertise in operations technologies (OT) with HPE’s leadership in information technologies (IT). ABB and HPE are delivering joint industry solutions that merge OT and IT to turn industrial data into insights and automatic action. They are combining cloud platforms like Microsoft Azure with IT systems running in corporate data centers and OT systems at the edge of the network closest to where the raw data is being collected. By helping customers employ the right mix of IT platforms and serve their OT data more effectively into those IT systems, ABB is helping customers accelerate data processing and enabling effective control of industrial processes across multiple locations.

Collaborative operations: A proven four-angled approach to cut costs, reduce schedules and minimize risk through properly integrated digitalizationABB’s collaborative operations approach addresses the need to use big data and data analytics to realize the potential of the industrial internet of things. We consolidate data to manageable levels whereby people can take decisions, helping to improve coordination between functional silos by providing greater visibility and real-time system integration. Collaborative operations is an operating mode which facilitates effective business transformation.

Collaborative operations is made up of four key elements and has been proven to work across many industries, including chemicals:• Intelligent engineering: An integrated approach

which covers the processes, tools and standards that take project execution from a traditional multi-vendor approach to one which streamlines the equipment to reduce human error, risks, labor and CAPEX costs. It also provides single-source accountability for extra peace of mind and shortens completion time. This project delivery model goes beyond traditional approaches to deliver extra value in large projects.

• Intelligent infrastructure: Having an intelligent infrastructure which seamlessly integrates

—ABB’s enabling approach and technologies

process control, safety, power, automation, telecoms and electrification systems into one collaborative system is the backbone of many operations. By optimizing how machines, applications and people communicate ABB, when used a single-source supplier, has proven that companies can significantly reduce CAPEX and OPEX expenditures while simultaneously improving production.

• Intelligent applications: Are software and system components that help improve efficiencies and optimize performance across the enterprise. They ensure the intelligent infrastructure reaches its full potential to deliver sustainable profitability. To that end ABB offers a suite of applications designed to enhance day-to-day equipment efficiency, promote safe and secure production and make it easy to access expert guidance whenever and wherever required.

• Intelligent services: Minimize downtime and improve employee effectiveness through a combination of human intervention and technological solutions which enable companies to move from costly reactive or unnecessary time-based maintenance to planned and predictive interventions based on actual equipment needs to ensure a cost-efficient and extended equipment lifecycle.

The first two elements provide the foundation on which performance improvement and cost containment rely while the other elements ensure that initial engineering and infrastructure investments continue.

Our approach is scalable such that companies can join in where it makes sense –though full benefits will only accrue to those opting for the totally integrated solution.

GreenfieldFrom a greenfield point of view, companies benefit from combining intelligent engineering with intelligent infrastructure, the first two elements of ABB’s collaborative operations framework. The former simplifies and accelerates project execution while the latter helps to further reduce initial CAPEX expenditures by streamlining the equipment required and reducing required

footprints. We call this Intelligent ProjectsTM and the approach can cut costs 20-30 percent and shorten schedule completion by a quarter. It should be noted, however, that the benefit goes beyond the initial design and build phase; an intelligent CAPEX investment here enables higher OPEX savings once the project is up and running.

Intelligent Projects are delivered using engineering in the cloud, standardized processes, automated data management, smart I/O systems and soft marshalling to decouple the hardware and software engineering activities in greenfield projects.

For example, standardized hardware designs and smart I/O products significantly reduce the need for upfront planning. Virtualization, emulation and simulation are technologies that can be used to enable application software testing to be conducted in a cloud environment without requiring the hardware. This allows hardware to be shipped to site much sooner leading to an earlier completion of installation and field loop verification.

This approach eliminates the need for project-specific junction boxes, armoured multi-core field cables and marshalling cabinets. Standard junction boxes containing smart configurable I/O become smart junction boxes. These can be procured from stock and installed in any convenient location. Field devices are simply cabled to the nearest smart junction box. The I/O loops are quickly and efficiently tested and verified by taking advantage of digital communication technologies. All this is achieved in parallel with the software engineering in the cloud. When the application software is downloaded into the hardware, the I/O system is soft marshalled and connected to the application software using a simple signal names (tag) matching process.

Cloud computing thus paves the way for “virtual commissioning” using process models which can be used to significantly boost the value of functional testing by providing a more realistic feedback. This approach results in far fewer changes and modifications being required on-site during commissioning.

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ABB’s cloud computing approach is further used to make designs, workflows, methodologies, support tools and lessons learned accessible to all project execution groups. This automated data management facilitates a common approach to automation engineering even when multiple EPC contractors across different countries are involved.

ABB‘s workflow manager tool, for example, ensures that the right people in the engineering process are quickly informed of any changes and assists in quicker turnaround times by determining the impact that the change requests have on cost and schedule.

BrownfieldFor existing operations, companies may prefer to start their digitalization journey at an asset level which is fine so long as they do so with the end goal of enterprise-wide digitalization in mind. If they do not take such a long- term view, they risk continuing to develop islands of intelligence of an insufficient scale to deliver significant value and they will increasingly find themselves at a disadvantage to other players who create a larger digital ecosystem.

Ultimately they should be striving to close the communication loop more fully by having onsite operators liaise more closely with headquarter locations and suppliers such as ABB who can work remotely or in close proximity with local employees to make operations and services more efficiently.

In fact, at various ABB Oil, Gas and Chemicals Collaborative Operations Centers located throughout the world we have created digital hubs that allow IT and OT experts to work very closely together to solve customer issues in real-time. These centers gather data drawn from assets across the customer’s production sites and

translate this into intelligence, before transferring it back to each plant’s operations center on-site and to management at headquarters.

Using the ABB AbilityTM platform , based on Microsoft’s Azure, data from instrumentation, switchgear, motors, drives and other smart sensors, for example, are channeled through analytics which undertake condition monitoring, remote diagnostics, performance monitoring, cybersecurity and condition-based maintenance. Depending on customer requirements, a full suite of experts can man the center 24/7 meaning that project teams to address crisis situations can be quickly assembled. There are even high security Armor rooms for working directly on customers’ own networks meaning that issues can be addressed particularly quickly and effectively.

Also, ABB AbilityTM EdgeInsight, a new service offering which runs on HPE Edgeline hardware, is being piloted at a number of oil, gas and chemical customers. The new software collects data from field devices / gateways / PLCs in OT systems, converts the various field protocols into one common protocol and serves the standardized output to the IT infrastructure while simultaneously guaranteeing no access to the field network. Data can thus be shared efficiently beyond individual sites while protecting site assets from potential outside interference. Data is merged close to field level ensuring the same timestamp and context across vendors and protocols. By unifying complex industrial languages at the edge, it saves up to 75 percent of the data normally sent through control system databases and avoids data gaps due to control system updates, downtime or faults. Analyses which used to take days are now being done in minutes.

Across a range of oil, gas and chemical projects, ABB has proven it is possible to cut OPEX in existing operations by up to 30 percent while improving uptime by 20 percent and extending facility lifetimes by 20 years.

Collaborative Operations: In SummaryABB’s Collaborative Operations approach is a way of properly harnessing digitalization to increase the speed and quality of decision-making along the full hydrocarbon chain, changing how people interact with others in their organizations, fast-tracking innovation and creating new business models. This can be at an asset level or enterprise-wide, onsite or remotely, with as much expert guidance as required, up to and including the real-time assistance from ABB at a distance.

Range of cloud-based services and advanced analytics

>6,000 solutions installed

>70,000 systems intalled

>70,000,000 digitally-enabled devices connected

ABB AbilityTM cloud platform and services:Remote monitoring solutions

ABB AbilityTM plant and enterprise solutions: Power generation solutions, network management systems, substations

ABB AbilityTM automation and control systems: DCS systems: 800xA,Symphony+, substationautomation systems

ABB AbilityTM products, devices and sensors: Motors, drives, switchgear, transformers, robots, instrumentation, analyzers

Operations, Safety & Security

Management

Energy Management Process Power

Energy Analytics

Production Performance Solutions and

Services

Asset Management and Condition

Monitoring

Smart Wells Flow Assurance

Production Optimization

Whatever your digital needs ABB can meet them…

June 6, 2018 Slide 2

Comprehensive portfolio integrating automation, electrification and telecoms

Digital Project Execution

ABB Ability™, IT Topology and Infrastructure, Cyber Security

Collaborative Operation Centers

Analytics and support from ABB experts help companies turn data into insights which are then visualized into a dashboard which facilitates chemical company decision-making.

Closing the communication loop: Fully collaborative operations.

On site ABB

Headquarter/region

ABB’s extensive cross-industry experience with digitalization underpins its ability to deliver effective solutions for chemicals customers at whatever level is required.

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— Trinseo: Digitalizing control system migration projects to achieve fast return on investment

Challenges addressedBecause of its history, Trinseo has a large installed base of legacy MOD 5 process automation systems – a proprietary system developed by Dow. This system had its own programming language called DOWTRAN while its hardware and software contained many features particular to Dow’s operating philosophy. The large installed base, however, faced significant challenges related to ongoing support. 100,000 input/output devices integrated within production management and business processes and systems needed to be migrated with minimal impact on the business’ key performance indicators. Trinseo sought a way to efficiently migrate its legacy systems to modern control system technology while still retaining previous intellectual property and protecting future investments. Trinseo also wanted to accelerate the development of high fidelity simulations.

HowABB collaborated with Trinseo to create CAFÉ software which automates the process of creating MS Excel-based functional specifications for greenfield and migration projects. It uses a procedural automation-based control philosophy to turn functional specifications into control applications in the ABB AbilityTM System 800xA. In particular it builds a reverse-engineered functional specification from the object-based legacy code. CAFÉ can be used to maintain code and provide updated design documents throughout the lifecycle of a plant going forward.

The tool provides a straightforward, cost-effective way to create standard templates for functional specifications for processing units throughout the company by using CAFÉ to automate converting the legacy code into standard functional specifications. Once Trinseo has created and tested a forward-engineered functional specifications (FS), it creates a unit-based FS template that can be reused in other projects featuring similar processes; minimal reengineering is required. Many hours of coding are saved by CAFÉ making it possible to produce the code automatically. Rapid creation of batch units and the attendant phases and phase parameter lists is also possible with DCS batch code being created through the FS. Also, the company can use the reverse-engineered FS as a code function checklist to ensure all key functions are duplicated or carried forward. Custom engineering is sometimes needed for particularly unique elements but, compared to the previous method of doing this, the effort needed is small.

Additionally, CAFÉ helps speed up Trinseo's development of high-fidelity simulations for testing, training and plant life cycle change management purposes. Building a good model using traditional simulation solutions can take months. By combining intelligent P&ID data with data in the ABB AbilityTM 800xA system, Trinseo can now build the model in minutes. These rapidly created yet sophisticated simulation models enable the company to find leaks, test alarm limits and tank material balances, check the directionality of all control loops, along with many other benefits in ways which are impossible with simpler simulations. And, importantly, it is worth noting that the simulator and control system both run in a common environment.

Trinseo is now also able to automate the creation of many of its HMI graphics using this approach. This is because, when the P&IDs are created, much of the engineering data needed to develop the process graphics and high-fidelity simulations is also created, in an automated fashion, with only limited manual intervention being needed.

Functional Specification CAFE Tool

800xA Objects

Design Build & Test

BackgroundLion Copolymer manufactures and delivers synthetic rubber. Its products include a range of ethylene-propylene-diene terpolymers (EPDM), trilene liquid polymers and copo styrene-butadiene rubber to give but a few examples. It was formerly known as DSM Copolymer, Inc. and changed its name to Lion Copolymer, LLC in November 2005. The company was founded in 1943 and is based in Baton Rouge, Louisiana.

— Arkema: Optimizing boiler efficiency to reduce energy costs at the world’s largest HFC-32 refrigerant production plant

Challenges addressedChemical production can be highly energy intensive leading to huge hills which are a drain on profitability. Arkema’s Calvert City, Kentucky plant was looking to fix inefficiencies in its boiler operations which featured equipment which was many decades old.

How ABB used a digital fingerprint analysis to examine the condition of hardware and controls, test the stability and operation of site’s boilers, performed combustion load trials, and execute dynamic step response tests. Boiler operations were first benchmarked to define existing performance levels and establish a basis for identifying and evaluating improvement opportunities. Recommended improvements were scrutinized to estimate return on investment (ROI) and were then prioritized according to speed of payback.

In short, for both system migration and new automation projects, ABB’s CAFÉ software helps eliminate a significant amount of customization and effort (particularly in the form of repetitive, low value tasks) which had previously been required, already resulting in significant CAPEX reductions. The savings are likely to become even greater when Trinseo starts using standard, repeatable templates more widely across the company. In fact, by using the new approaches described here, Trinseo estimates it will achieve over a 50 percent reduction in total life cycle cost of ownership for its application software -not to mention the training and change management benefits offered by this new digital solution.

BackgroundTrinseo is a large global chemical materials solutions provider and a manufacturer of plastics, latex binders, and synthetic rubber with 30 sites around the globe. Formerly known as Styron, it was created by combining the technologies and capabilities of four businesses of The Dow Chemical Company:• Polycarbonate and Compounds & Blends• Paper and Carpet Latex• Synthetic Rubber• Styrenics (polystyrene, ABS/SAN resins,

expandable polystyrene)

The company adopted the Trinseo name in 2015 for all its businesses.

— Lion CoPolymer: Increasing production and reducing off-spec waste byproducts

Challenges addressedWhen Lion Copolymer’s three-line chemical polymer plant in Louisiana, USA made multiple grade changes, it saw that its automation performance had declined as the company expanded its product line into specialty chemicals.

HowABB deployed a range of digital solutions including LoopPerformance and Transition Fingerprints packaged with implementation services for tuning and corrective action along with ServicePort for sustaining production enhancements. The customer estimates it is achieving over $1 million per year in increased production and reduced off-spec waste by-products.

—Optimizing chemical performance in practice

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ABB began with the second boiler, as this was the one used most often and the least efficient. The analysis returned a comprehensive to-do list for the hardware, control logic and tuning. Measures taken ranged from repairing the FD intake and ID removal fans, to fine-tuning the steam to air curves, and retuning the loops to be less aggressive. For this one boiler alone the savings in energy consumption achieved by ABB were worth around $75,000 a year to Arkema.

Across all four boilers total annual plant energy savings of around $237,000 were achieved. As the service costs for each boiler were only about $25,000, the payback time for Arkema was very short.

BackgroundFrance-based, Arkema is a global manufacturer in specialty chemicals and advanced materials operating in three business segments: high performance materials, industrial specialties, and coating solutions. It operates in approximately 55 countries.

The Arkema site in Kentucky, USA has four boilers, which produce steam at slightly different levels because they are different sizes and were installed at different times. The first two, both installed in 1952, are brick-set with forced-draft intake and induced-draft removal fans. Both are rated at 40,000 lb steam/hour (klb/hr). The third boiler, a 1965 economizer, includes only a forced-draft fan and is rated at 75 klb/hr, but it was typically operated at a maximum of 60 klb/hr. An additional 1996 economizer FGR boiler was operated identically to the third. All four boilers produce steam at about 165 psi, but none were run at maximum load.

— Wacker Chemie: Enhancing the efficiency of aging assets while improving operating costs and enabling predictive maintenance

Challenges solvedWacker Chemie wanted to increase the operational efficiency of its 30-year old Bavarian ketene cracking plant in order to increase operational efficiency and move from planned and reactive maintenance to predictive interventions based on the actual state of the equipment.

HowUsing ServicePort technology, remotely and on-site, to analyze Wacker’s complete automation

system and control loops, ABB service engineers were able to:• Implement minor process changes which helped

operators run their plants more closely to their specification limits, boosting output and energy efficiency without reducing product quality

• Optimize control loops to eliminate weak points and bottlenecks, thereby extending the durability of components and helping the plant run as effectively today as it did on its first day over 30 years ago

Control loops are usually only adjusted during the planning and engineering stages, and their performance is not called into question once a plant is operational. Changes to the production process do not automatically result in control loops being updated, and the effects of aging and wear-and-tear remain unacknowledged. • By automatically and continuously monitoring all

performance parameters, ServicePort notifies operators early of looming faults so the right countermeasures can be taken quickly

• ABB’s digital solution saved 35 days of analysis time, facilitating faster corrective action with less downtime risk and 20 percent OPEX savings

BackgroundWacker Chemie AG is a Munich-based company with production facilities across Europe, Asia and the Americas. In Burghausen, Germany it operates a ketene cracking plant in which liquid acetic acid is evaporated and fed into cracking furnaces in a gaseous state. Special catalysts are then used for separating the gas into ketene and water. Ketene is used as the raw material for producing isopropenyl acetate and acetylacetone.

The ketene plant uses ABB’s Freelance process control system with DigiVis taking care of the operation and observation functions. The required automation tasks are performed by five redundant type AC 800F controllers or rack-based process stations. The part of the plant inspected comprised a total of 139 control loops, including 109 loops that were studied in more detail.

—Conclusion

While profit and growth remain relatively healthy for the chemicals industry, the sector cannot afford to be complacent. The chemicals market, as outlined in this white paper and its predecessor, is characterized by complexity in many dimensions including product diversity and regional differences. An approach which works well in one market environment might not be appropriate for optimum performance in another.

According to McKinsey, approximately 50 percent of chemical companies in the top quintile from 2000 to 2004 were no longer in that position from 2010 to 2014. Given the dramatic digital transformation currently underway in chemicals,and indeed other industries, the change in fortunes among chemical companies is likely to become more pronounced in the coming years.

Traditional approaches to industry challenges are likely to be insufficient to win in the new digital world.

Companies keen to turn digital promise into digital reality would be wise to partner with companies having a proven track record of integrating key areas such as electrical, instrumentation, control and telecoms. Such companies can provide consulting services and insights derived from numerous installations, thereby minimizing risk and expenditure for operators. Those chemical companies who thrive during today’s Fourth Industrial Revolution will also be those who wholeheartedly embrace digital technologies to cut costs, grow revenues and minimize risk in a rapidly changing marketplace.

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Digital Transformation: Are chemical enterprises ready?Article. Deloitte, January 2017. Y. Cohen, D. Dickson, R.Waslo.

Do it for the savings: How integration drives value in Oil, Gas and Chemical projects. Report. ABB Limited, 2015.

Refinery power outage mitigations.Report. Hydrocarbon Publishing, February 2014.

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The chemicals multiverse 4.0: Promising future for the strong decisive and persistentWhite paper. Deloitte, 2017. D. Dickson, K. Raghavan, A. Hussain, B. Kumpf.

ExxonMobil Updates Progress on Open Process Automation Initiative. Article. ARC Advisory Group, February 19, 2018. P. Miller.

OPA Forum expands open, interoperable standard for process control devices interfaces – Part 1.Article. Control Global, March 16, 2018. J. Montague.

NAMUR Open Architecture Introduced at ARC’s Orlando Forum 2017.Article. ARC Advisory Group, February 3, 2017. V. D. Leeuw.

NAMUR blazes trail toward open control. Article. Control Global, March 27, 2018.

Modular automation solution for life science company Bayer AG. Webpage. ABB Limited, 2018.