Aspen Technology, Inc. is a global leader helping Industries meet the challenges of several challenges on sustainability, energy transitions, resource efficient productions etc. AspenTech solutions address complex environments where it is cirtical to optimize the asset design, operation and maintenance lifecycle.

Excerpts from the interview

Q 1. Chemical Industry Digest (CID): As is well known by now, Industry 4.0 digital technologies are a game changer. How transformational is it going to be for chemical and allied industries?

Ron Beck (RB): For most chemical sites, the production environment, while being run safely and profitably today, is far from optimized. For instance, most chemical processes can achieve 15–30% incremental energy efficiency with corresponding reduction in carbon emissions.

The manufacturing executive of a major Southeast Asian chemical concern, agreed with me on that opportunity at a recent executive panel in Singapore. Almost all of this can be achieved through pervasive digitalization of both the supply and demand side of energy use. At the same time, many high value chemical processes still have challenges in terms of detailed understanding of the reasons for variability in their reactor processes.

These can be impacted significantly by Industrial AI. For example, Dow Chemical presented in a public forum regarding how they are solving production challenges in a complex reaction unit through hybrid models (combining first principles models with AI), increasing yields by 10% with immediate benefits in profitability. The company explained this exciting digitalization result in a public webinar we sponsored. The recording is available online. In both supply chain and production areas, digitalization is strategic in prioritizing actions that can be taken to both decarbonize and to reduce water use.

Finally, R&D is seeing renewed focus globally in chemical organizations, as companies race to develop and commercialize new materials based on bio – and renewable feedstocks. In R&D and early design, concurrent engineering workflows are enabling leaders to do techno-economic evaluations much faster and better, and then to scale up at an accelerated rate using concurrent, automated, and AI enabled workflows.

Q 2. CID: What are the AspenTech core software offerings or solutions for chemical and allied industries?
RB: AspenTech provides a broad and deep range of digital software solutions used strategically across the chemical industry. The company’s engineering simulation and digital twin models solution, based around the Aspen Plus system, is used in areas ranging from base chemicals, to petrochemicals, to polymers, and to performance chemicals. These are used by leading companies as an end-to-end digital thread, from R&D through production to maintenance.

In production, the multivariate control solution Aspen DMC 3 is a standard solution in both conti-nuous and batch processes, with well-established ability to drive production to higher margins, higher yield, better quality, and lower waste.

AspenTech’s supply chain solutions (Aspen Collaborative Demand Manager and Aspen Supply Chain Management Insights) are used for both demand-driven and operational excellence driven business lines. The company’s asset performance management solutions apply data science, root cause analysis, and AI to improving asset uptime. AspenTech’s digital grid and microgrid solutions are helping companies to electrify and decarbonize operations.

The company has multiple ongoing projects and is embedding industrial AI across this broad portfolio, including areas, such as the Dow example (provided earlier), as well as providing guidance to operators in production optimization, supply chain, and prescriptive maintenance.

Q 3. CID: What are the key benefits that your digital solutions provide to chemical companies embarking on digitalization? And what should chemical companies do to accelerate digitalization?

RB: AspenTech’s chemical customers are seeing several areas of key benefits. In today’s cost-constrained chemical environment, digital solutions can provide immediate benefits in reduced operating costs, improved production uptime, reduced variability in product streams, and better on time delivery. Strategically, a huge area of benefit is time-to-market for new chemical products, and another is agility in adjusting to global supply chain instabilities. A third crucial area that advanced digitalization creates benefits is training and upskilling the new generation of workers.

Many chemical companies have experienced brain drain with the most experienced operators, engineers, and R&D staff retiring – turning key roles over to a new generation. Digitalization and industrial AI are playing a key role in providing guidance to these newer work forces, in operating safely and in taking advantage of operating history to inform them of the best possible operating strategy today and going forward.

Q 4. CID: Sustainability as well as major transitions in energy feedstocks etc are major challenges and opportunities. To what extent can digitalization and software solutions enable these transitions in an overall context? What is the digital transformation needed in chemical companies?

RB: In simplest terms, here are some key areas where digitalization will strategically help chemical companies to excel in this new environment:

If you can’t measure it, you can’t improve!

Measuring carbon emissions, energy and water use, and greenness of the supply chain using digital modeling and visualization does and will have a huge impact. We have worked with one European downstream company who has implemented this, and two others who are in process. It gives immediate, companywide visibility to whether sustainability targets are on track, and where the areas for technical and management focus should be.

The key underlying concept is that real-time enterprise visibility turns operational and supply chain reporting into actionable decision support. Digitalization “mobilizes” the data to support operational and sustainability excellence. With the data available, as industrial AI becomes more and more impactful, solutions that create value for your situation can be adopted.

Also, many of the topics involving circularity, decarbonization and efficiency require adoption of new processes and technologies. To do that at scale, and with no interruption in business, a digital thread across the lifecycle of an innovation project is critical.

Q 5. CID: Now let’s take AspenTech’s solutions in specific areas: How does it contribute to sustainability and digitalization in chemical industries?

RB: Digital twins (based on engineering simulation) and advanced process control software are reducing energy consumption (and corresponding reduction in carbon emissions) by 5–15% (of the 30% I mentioned at the outset) depending on the type of chemical process.

Multivariate analysis and advance process control solutions are improving product quality by identifying the root causes in the process of product variability and improving operations to eliminate that variability.

Utilities and energy modeling software are enabling companies to plan and execute strategies to maximize use of renewable power, to maximize green content at lowest cost, and to track and manage water use.

Supply chain planning and execution software is able to track “green” content in the supply chain and trace it from source to end user.

Microgrid software is enabling chemical operators to incorporate renewable and low carbon electricity sources into operations, additionally improving the confidence in uninterrupted operations in the face of increasingly stressed regional power grids.

Asset performance management solutions provide advanced warning of equipment degradation, reducing the frequency of unplanned downtime that are emissions-emitter events.

Q 6. CID: How do your solutions enable energy transitions, shifts to renewables, use of biomass feedstocks etc.?

RB: Let us take the example of incorporating bio-feedstocks into chemical processes. One practical approach is to mix between 10–20% bio feedstocks with conventional hydrocarbon-based feedstocks. This involves new ground for most producers, in terms of ensuring the quality and operability of processes. Bio feedstocks are more variable and introduce chemical characteristics that can impact operating strategies and maintainability. A process that was run for years without advanced digital tools, such as digital twins and advanced process control, now needs to be modelled and managed with these digital technologies. The digital twin will provide insights into the behavior of the new mixed feedstocks, while the advanced process control will allow optimized operations based on the insights from the digital twin. The company is currently working with several European chemical companies to incorporate data analytics to understand behavior of the new feedstock regimes and hybrid models.

To support innovation and introduction of new processes in this area, we have added capabilities to support bio-feedstocks. For example, we have expanded our physical property libraries to incorporate characteristics of typical bio-feedstocks and we have developed sample models to get process engineers started in developing models of these systems for use in project work and in digital twins.

Q 7. CID: In what ways can your solutions accelerate the hydrogen economy?

RB: For the hydrogen economy, and many other similar areas, AspenTech has comprehensive digital solutions that cover the entire value chain as well as the entire capital project lifecycle. To communicate this, the company has developed a hydrogen sustainability pathway.
For example, AspenTech has a systems-level modeling software system (Aspen Fidelis) that models system alternatives at the frontend of planning, enabling the evaluation of alternative technologies, alternative processes, and electrical routes.
In another example, the company has developed detailed models of the range of hydrogen electrolysis approaches. These detailed models are seamlessly incorporated into models of the entire balance of plant as well as the renewable power supply.
AspenTech also provides a distributed energy resources management solution to manage the provision of renewable power – buffered by battery storage – to optimize the provision of power evenly to green hydrogen and ammonia units.
There is much more to this digitalization story, but those are a few examples. The ultimate goal of applying digital technology to hydrogen production and use is to drive the cost of hydrogen from about $6/kg to $1/kg over the next 10 years.

Q 8. CID: There is a lot of media highlight on AI as being revolutionary. To what extent is it hype or real in terms of implementation? What role does AI play in AspenTech’s solutions and in chemical industry specific areas?

RB: AI is definitely already beginning to disrupt some industries, and some applications are beginning to be adopted and create value in the chemical and energy industries.

The key challenge in the chemical and energy industry is to ensure that the AI that is adopted provides realistic and correct recommendations, that operators and engineers remain in charge to ensure the validity of the output of the AI, and that the AI is transparent and explainable.

It is also important to select the right technology for the right problem. AI is needed to solve some, but definitely not all problems, and is o

verkill for many business processes in the chemical industry.
AspenTech believes that we are in a unique position to provide these solutions, because we are well positioned to combine AI with models based on engineering fundamentals, putting crucial guardrails around the AI applications so that the results follow the laws of chemistry, physics, electricity, and geoscience, and so that the outcomes are safe.
We call that approach of domain-expertise guardrails, “Industrial AI,” and we believe it is fundamental to successful adoption of AI in the right places in the chemical industry.
We have released over 25 different industrial AI capabilities, deployed within our existing strategic systems that are widely used in industry. These solutions are creating value in areas, such as (a) business agility, (b) guidance to operations and technical workers, and (c) automation of time-consuming processes.

For example, Corteva Agriscience implemented AspenTech’s Industrial AI Hybrid Models in Aspen Plus within a day. These models enabled them to monitor their heat exchange columns, linked to crucial chemicals production columns. The company has calculated that the solution is already yielding cost-savings amounting to over USD 10 million per year in improved quality and yield and lower maintenance costs.

Nissan Chemicals is using similar hybrid models to provide accurate insights into their ammonia reformer units, which saves the company 2% in steam usage (and associated carbon emissions) per year. Another company, IOCL, is using hybrid models in one of their refining units, as a soft sensor to predict viscosities in the unit, enabling them to improve process performance and yields.

Q 9. CID: Do asset optimization, process optimization, plant and machinery reliability play significant roles in sustainability in addition to vastly improving manufacturing efficiencies and productivity?

RB: Absolutely, Process optimization is particularly important. Most chemical operations can gain significant energy efficiency, potentially up to 30% in total. Process optimization can provide about 5% of that total energy efficiency and carbon emissions reduction. Predictive maintenance solutions also play a significant role. Unplanned shutdowns, cost by unexpected equipment degradation or failure, are very significant sources of emissions over the typical year of a plant’s operations. Using prescriptive maintenance to turn unplanned downtime into scheduled maintenance can avoid those emissions events. Further, there is a spike in energy use any time equipment or units are restarted.

Q 10. CID: What are the key challenges you face in getting industry to incorporate high tech digital solutions such as yours? What changes do you expect/want from chemical industry companies so that there is ease of adopting such digital technologies?

CF: Digitalization is not simply a technology adoption activity. The organization needs to be ready to take full advantage of the digital solution. This means that organizational change and readiness is as important as digital technology itself.
One leading chemical company presented a fantastic success story of implementing digital twins using AspenTech’s Aspen HYSYS process simulation platform, explaining that the key breakthrough is the understanding that they needed to instill a “culture of modeling.” There are several key aspects of this.

The most fundamental is to understand the breadth of value that can be unlocked with digitalization and therefore, the value in fully training the spectrum of potential users, of encouraging these user communities to explore new value opportunities, to share best practices, and to also understand that the technology will increase the value of their work – help and augment the workers, not replace them. This is especially important as industrial AI solutions are introduced. In the complex and safety conscious world of a chemical manufacturing site, industrial AI is not going to replace workers. It is going to provide an expert co-pilot and advisor who is at the disposal of helping the worker to make better, more strategic decisions, faster. It is about instilling that culture.

In this interaction, Namitesh Roy Choudhury, Vice Chairman and Managing Director of LANXESS India showcases the company’s vision and achievements in sustainability.

Q 1. Chemical Industry Digest (CID): ‘Sustainability’ has become a dominant driving force today; however, purposeful action is needed. Has sustainability become a top management function? Are companies adopting sustainability due to regulatory pressures or are they intrinsically driven realising the benefits of sustainability?

Namitesh Roy Choudhury (NRC): Sustainability has emerged as a dominant driving force for businesses across various industries, including the hydrocarbon and downstream chemical sectors. In many organizations, sustainability has become a top management function, with executives and board members actively involved in setting sustainability goals, formulating strategies, and overseeing implementation efforts. At LANXESS, a certain part of the compensation of the board of management has been directly linked with the organization’s sustainability target achievements. This is a solid demonstration of the commitment LANXESS has towards the topic of Sustainability.

We have integrated sustainability principles into our corporate strategy and operations and this is evident through the consistent recognition that we have received from industry bodies like Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce and Industry (FICCI), Indian Chemical Council (ICC) and Dow Jones Sustainability Index (DJSI) Europe for our exemplary performances in this areas. We are proud to say that LANXESS India is a front-runner in sustainability within the global LANXESS network. Currently, we are almost 84% climate neutral on Scope 1 and Scope 2 emissions on an annualized basis.

Q 2. CID: The understanding of what exactly is sustainability varies from one company expert to another. What is your definition of sustainability? Can you outline your company’s long-term vision for sustainability?

NRC: At LANXESS, we want to actively shape the transformation of the industry and the global value chains and thus contribute to a more sustainable future.

Our vision of sustainability is to be a responsible and resilient company that creates long-term value for its stakeholders while contributing to a more sustainable future. By integrating sustainability into the core business strategy and operations, LANXESS aims to drive positive environmental, social, and economic outcomes for both the company and society as a whole.

Q3. CID: To be on the road to sustainability a combination of multiple pathways are required. What are the steps you feel industry should take and what steps have you undertaken? Enumerate the steps in brief only.

NRC: LANXESS has undertaken various steps which include investing in renewable energy for our operations, implemented resource-efficient processes, developed sustainable product range by finding alternative raw materials sourced from renewable sources, engaged with stakeholders to ensure responsible practices and participated in the industry initiatives to promote sustainability.

We also provide transparent reporting on sustainability performance and progress towards our goals. LANXESS publishes annual sustainability reports and communicates openly about its sustainability initiatives and achievements.

Q4. CID: How do you integrate sustainability goals into your overall business strategy and into your plant operations? How can industry make a success of circular economy and how can it be integrated into current operations?

NRC: Sustainability is a strategic objective for LANXESS. Our ambition is to be a leading, stable, stable, sustainable, and profitable company. We centre our activities around five key topics that are derived from this ambition.

Five Topics are That area the Core of Our Path to More Sustainability.

• Circular and Sustainable Sourcing:

Our increasingly circular value chains start from a diverse, sustainable raw material portfolio. We engage with our suppliers and relevant stakeholders to improve the working and environmental conditions in the global supply chains. LANXESS has set high standards worldwide for the procurement of raw materials, equipment, machinery, and services. As a founding member of the “Together for Sustainability” initiative, we have established a systematic sustainability risk analysis to evaluate all suppliers.

• Safe and Sustainable Sites:

We manufacture sustainable products at competitive and sustainable chemical sites. Continuous process improvements and investments are fundamental to our success. We care about the communities to which our sites belong.

Common standards for facility planning, construction, and operation ensure a high level of safety across our locations. Global regulations for dangerous goods and transportation safety ensure that hazards are avoided to the greatest possible extent.

• Climate Protection and Energy Efficiency:

For us, climate action based on efficient energy use is the right thing to do for society and also a key to delivering financial performance in the long term. We have been able to reduce our greenhouse gas emissions (Scope 1 + 2) by more than two–thirds since 2004 and we aim to be a climate neutral company by 2040.
The independent “Science Based Targets Initiative” confirms: LANXESS’s climate targets help to limit global warming to 1.5 degrees Celsius.

• Good Governance and Energized Employees:

We aim to be an attractive employer and to develop peoples’ full potential throughout their professional lives. To this end, we create a motivating working environment for all employees, striving for high engagement and impact. We invest in individual career development programs and constantly provide training opportunities to our employees. We nurture and promote a value-based, performance orientated culture.

• Sustainable Products:

We systematically evaluate the sustainability of our portfolio and consider sustainability criteria in the development of products and applications. We have long-term relationships with our customers, drive innovation together and help them to make their business sustainable.

With our brand “Scopeblue” we mark products that contain biobased or recycled raw materials and/or have a significantly reduced carbon footprint. By developing innovative processes and products, we support our customers to make their business more sustainable.

Q 5. CID: In what all ways can industry contribute to the energy transition within the chemical industry? How can industry balance the transition to renewable energy while maintaining operational efficiency and cost-effectiveness? How feasible are renewable energy sources like biomass, solar and wind energy and hydrogen?

NRC: The energy transition in the chemical industry is complex but achievable through a combination of renewable energy adoption, energy efficiency improvements, and innovative technologies. Balancing operational efficiency and cost-effectiveness is crucial, and the feasibility of each renewable energy source varies based on regional and technological factors.

For instance, at our manufacturing plant in Nagda, we have implemented innovative water management practices, such as utilizing domestic sewage from the Grasim colony, treating and reusing the water in our processes. The effluent generated is treated in our Zero Liquid Discharge (ZLD) plant, ensuring no discharge into the environment. This approach has significantly reduced our fresh water usage.

Furthermore, our facility operates a cogeneration plant using biomass, making our electricity and steam production entirely carbon-neutral. These sustainability initiatives required concerted effort, including comprehensive carbon emission assessments, process optimizations, and extensive energy audits.

Similarly, at our Jhagadia site as well, we transitioned from coal to biomass despite potential cost escalation, demonstrating our commitment to sustainable practices over short-term economic gains.

Q 6. CID: What all steps can be taken to reduce carbon footprint, carbon emissions, utilisation of captured carbon dioxide or decarbonisation in general?

NRC: LANXESS has implemented several steps to reduce its carbon footprint and emissions, and to advance decarbonization. Key initiatives include:

• Climate Neutrality Goal: LANXESS aims to be climate neutral by 2040, committing to significantly reducing greenhouse gas emissions
• Energy Efficiency: The company focuses on improving energy efficiency in production processes, adopting new technologies to lower energy consumption
• Renewable Energy: Increasing the use of renewable energy sources in its operations. Shifting towards renewable energy sources such as solar, wind and biomass

LANXESS plays a significant role in driving decarbonization efforts within the Indian chemical industry. It involves investing in R&D, collaborating with stakeholders, advocating for supportive policies, and implementing sustainable practices across its operations and supply chain.

Q7. CID: To sustain the movement forward to sustainability, innovations are crucial, as you would agree. Is industry seized of this importance? To what extent is your R&D doing such work and helping you in achieving your sustainability goals? Can you mention any one major R&D achievement in this regard?

NRC: The One notable innovation/development is our brand ‘Scopeblue’- sustainable product portfolio. The Scopebluelabel of LANXESS identifies product that enable climate-friendly solutions and contribute to a circular economy. They offer a concrete sustainability benefit to our customers. Only products that meet at least one of the following two criteria can receive the Scopeblue label:

• The products contain at least 50% sustainable raw materials + 10% reduced Product Carbon Footprint (PCF)
• The carbon footprint of the products is at least 50% lower than that of conventional products

Sustainable products are the future. To name a few brands which belong to the Scopeblue family include Lewatit® Scopeblue (Based on bio-circular acrylonitrile > 90% sustainable raw materials); TMP® Scopeblue (Uses bio-based n-butylaldehyde 54% sustainable raw materials).

Q8. CID: It has also been articulated by experts that moving on the road to sustainability will also throw up many new business opportunities. Do you agree? What is your experience? And what are the kind of opportunities possible?

NRC: Yes, I absolutely agree. As the society becomes more conscious of environmental issues and seeks sustainable solutions, businesses have vast potential to innovate and provide products & services that meet these demands.

It’s no more about just mitigating the environmental impact; it is also about seizing the economic opportunities that come with creating a more sustainable future.

• Sustainable Construction: Demand for sustainable construction materials, energy-efficient designs, and green building certifications is increasing.
• Water Management: There is a demand for technologies and services that improve water efficiency, treat wastewater, and manage water resources sustainably
• Circular Economy: Embracing the circular economy model, which emphasizes recycling, reuse, and waste reduction, can create opportunities for businesses to develop circular supply chains, product refurbishment services, and remanufacturing processes
• Renewable Energy: Investing in renewable energy sources like solar, wind, and hydroelectric power presents significant opportunities. Companies involved in the production, installation, and maintenance of renewable energy infrastructure stand to benefit.

Here, Anurag Roy, CEO of Astec LifeSciences Ltd elaborates on how chemical industry can firmly take on the challenges of sustainability through R&D, shift to renewables and circular manufacturing.

Q 1. Chemical Industry Digest (CID): How are sustainability issues driving the future of the chemical industry. What are the challenges for the chemical industry on the road to sustainability, addressing climate change issues?

Anurag Roy (AR): The chemical industry in India faces critical sustainability challenges such as high energy consumption, water usage, and hazardous waste. To address these issues, adopting a robust sustainability roadmap is imperative. This includes enhancing energy efficiency, adopting renewable energy, conserving water, and improving waste management. Aligning with global sustainability standards and integrating cleaner production technologies will reduce environmental impact while fostering economic growth. Transitioning to a low-carbon footprint demands investments in renewable energy, energy efficiency, carbon capture, and bio-based feedstocks. Embracing circular economy principles for waste valorization and promoting collaboration and innovation are crucial. At AstecLifeSciences Ltd, sustainability drives our business strategy. We focus on innovation, strategic partnerships, operational excellence, and cost leadership to achieve sustainable growth while benefiting society and the environment.

Q 2. CID: What is the crucial role of R&D and Innovation to drive sustainability?

AR: Today, the chemical industry’s journey towards sustainability is fuelled by continuous investment in R&D and innovation. Innovator companies in technology and pharmaceutical sectors prioritize substantial budgets for R&D to drive innovation and maintain competitiveness. In contrast, Indian companies historically allocate smaller portions of their revenue to R&D, particularly outside of IT. Recognizing the importance of global competitiveness, Indian firms, including start-ups and established corporations, are increasingly focusing on R&D to foster innovation, develop new technologies, and secure future growth. Enhancing R&D efforts is crucial for adapting to technological shifts and meeting evolving market demands, positioning India as a hub for innovation and driving economic growth. Addressing challenges such as funding constraints and fostering collaboration between academia, industry, and government are essential to sustaining this momentum and achieving long-term technological leadership.

With an aim to offer innovative solutions to our innovator customers,last year we inauguratednew R&D center in Rabale, Navi Mumbai. Named The Adi Godrej Center for Research and Development,the infrastructure at our facility will enable us to develop a newer range of sustainable cost-effective products at a faster pace and at a greater scale.

Q 3. CID: How can sustainability open up new business opportunities in the Chemical industry?

AR: Sustainability is a strategic springboard for growth. Eco-conscious consumers are driving demand for eco-friendly products, creating a fertile market for companies that can deliver. India is recognized for its rigorous environmental regulations, setting a high standard for industries to operate responsibly, prioritizing the well-being of both communities and ecosystems. This commitment not only ensures compliance but also cultivates trust and long-term partnerships.

Our strategic approach revolves around ongoing improvements in product quality, minimizing waste output, and embracing environmentally friendly solvents and state-of-the-art technologies. By continually refining these practices, we demonstrate our unwavering dedication to fostering a sustainable future, where innovation and environmental stewardship go hand in hand.

Q 4. CID: What are the advances in the shift towards renewables from petro based feedstocks, biomass, CO₂ as feedstock, algae based developments?

AR: The chemical industry is increasingly exploring alternatives to traditional petro-based feedstocks, driven by the need for sustainability and the rising demand for renewable resources. This shift encompasses various innovative approaches, including the use of biomass, CO₂ as a feedstock, and developments in algae-based technologies. One particularly promising avenue is the utilization of algae as a renewable feedstock. Algae have the unique capability to capture CO₂ while producing valuable biomass that can be transformed into a wide array of chemical products. This method not only provides a sustainable source of raw materials but also helps reduce greenhouse gas emissions. Significant progress has been made in adopting renewable pathways.

For example, the use of electrolysis to generate hydrogen from water has gained momentum. This hydrogen can serve as a clean feedstock for various chemical processes or as a fuel source, further decreasing dependence on fossil resources.Additionally, integrating biomass into value chains has created new opportunities for sustainable chemical production. Modern chemicals are increasingly being derived from renewable biomass sources like agricultural residues, forestry by products, and dedicated energy crops. This approach not only enhances resource efficiency but also creates economic opportunities for rural communities and fosters the development of a circular bio economy.

Q 5. CID: How to advance towards circular manufacturing/circular economy?

AR: To embed a circular manufacturing mindset in an organization, companies should emphasize education on sustainability principles and the benefits of a circular economy. Setting clear targets for resource efficiency, waste reduction, and closed-loop systems, empowering employees to innovate and contribute to these goals. By integrating comprehensive waste management strategies that treat waste as a resource, we aim to maximize recovery and minimize environmental impact, reducing our reliance on virgin materials and creating new economic opportunities. We prioritize designing sustainable, biodegradable products with lifecycle considerations for easy recycling, reuse, or decomposition. Collaboration across the value chain is crucial, fostering partnerships to identify synergies and build integrated ecosystems that enhance circularity and resource efficiency. Through these efforts, we strive to ensure that everything we produce is either used or recycled, eliminating waste and promoting a sustainable future.

Q 6. CID: Comprehensive water management and advances in water treatment technologies for enhancing water efficiency.

AR: A key focus area for many chemical companies is the implementation of advanced water recycling and reuse systems. By treating and purifying wastewater streams, it is possible to create closed-loop systems that minimize reliance on fresh water sources, thereby reducing environmental impact and ensuring long-term water security for industrial operations Moreover, the chemical industry is actively exploring the potential of innovative water treatment technologies, such as membrane filtration, advanced oxidation processes, and biotechnological approaches. These cutting-edge solutions offer superior removal of contaminants, enabling more effective treatment and reuse of water while minimizing the environmental impact of industrial operations. At Astec, we are dedicated to designing energy and water-efficient manufacturing using the best in class Zero Liquid Discharge (ZLD) for all our operating plants. We have installed a Multiple Effect Evaporator (MEE). The MEE reduces Total Dissolved Solids in the distillate, allowing for further treatment in the Activated Sludge Process (ASP). Following ASP treatment, the water is efficiently recycled to achieve ZLD.

Q 7. CID: How do latest process control and analytical instrumentation enables sustainable operations?

AR: The latest advancements in process control and analytical instrumentation are revolutionizing the chemical industry, enabling sustainable operations and driving efficiency across the board. One of the key benefits of modern process control systems is increased automation, which translates into reduced downtime and improved operational efficiency. Moreover, the latest analytical instrumentation provides unprecedented insights into our processes and products.

By utilizing techniques such as advanced spectroscopy, chromatography, and mass spectrometry, we can gain a deeper understanding of our material streams, enabling us to identify opportunities for optimization, resource recovery, and waste minimization. These advancements also enable us to operate our plants more efficiently, with increased control and visibility. Currently, we can monitor and control our operations from centralized control rooms, leveraging real-time data and advanced process control algorithms. This level of automation and remote monitoring not only improves our operations but also enhances safety and minimizes the risk of environmental incidents.

Furthermore, the integration of advanced analytical instrumentation with data analytics and machine learning algorithms opens up new frontiers in predictive maintenance. By leveraging data-driven insights, we can anticipate and address potential issues before they occur, minimizing downtime, reducing waste, and ensuring sustainable operations. All Astec’s plants are equipped with latest technology in terms of process control and analytics.

Q 8. CID: How are emerging technologies like AI, Blockchain, Machine Learning, Data Analytics, Digitisation can enable sustainability in the chemical industry?

AR: Astec Lifesciences leverages advanced technologies to transform the chemical industry, enhancing sustainability and fostering innovation. Our manufacturing plants employ data analytics for optimizing processes and monitoring operations. Additionally, we have digitized our R&D centres to drive continuous improvement and innovation. While India’s adoption of AI and blockchain technologies in the chemical sector may currently be limited, Astec remains proactive in tracking emerging technologies for future opportunities. This strategic approach ensures we stay at the forefront of industry advancements, poised to capitalize on new developments for sustainable growth and efficiency.

Source Links:

1. Sustainability roadmap for Indian chemical industry
2. Role of R&D in achieving sustainable goals
3. How to be profitable and sustainable in the chemicals industry
4. A systematic review of industrial wastewater management: Evaluating challenges and enablers
5. What Is Water Management? – 8 Best Innovative Practices for Water Management
6. Advanced Oxidation Process (AOP)
7. Astec Annual Report
8. Integrating machine learning techniques into optimal maintenance scheduling

Sustainability has become a dominant driving force, a game changer for business and industry, and more particularly so, for all hydrocarbon to downstream industries. it is also leading to discover new business opportunities. This is also driving innovation.
To understand the scope and importance of sustainability and the various transitions taking place, how these are driving technological and attitudinal changes in industry, Chemical Industry Digest quizzed CEOs of top companies.

Their views are reproduced here. We start off with Dr. Richard Lobo of Tata Chemicals.

Q 1. Chemical Industry Digest (CID): From global warming to it’s ill effects to decarbonisation to sustainability pressures, what, according to you, are the range of challenges facing the chemical and allied industries? Could you enlist them and the areas that are very crucial?

Dr. Richard Lobo (RL): Global warming is a truth of the present times. NASA estimates that, overall, the Earth was around 1.36 degrees Celsius (or about 2.45 degrees Fahrenheit) warmer in 2023 than in the late 19th-century. As responsible global citizens, it becomes our collective duty to ensure every step is taken to decarbonise and make sustainability our topmost priority. As part of decarbonisation efforts, governments are imposing environmental regulations in order to strengthen the carbon reduction initiatives.
Chemical industry, a critical segment of the global economy and supply chain network, will play a key role as the world transitions towards decarbonisation. According to a report released earlier this year, the industry will have to reduce overall emissions by around 60% within 2030 if global warming is to be reduced in accordance with the 1.5° pathway.
The industry is slowly, but surely,transitioning towards more sustainable practices, with the use of renewable feedstocks, energy-efficient processes, and circular economy principles. Stakeholders, including investors, consumers, and regulators, are increasingly gravitating towards transparency and accountability regarding environmental and social performance, which is promising for the industry.

Q 2. CID: Would these challenges retard the growth of the chemical industry, or can each of these be converted into opportunities?

RL: Every challenge is an opportunity. The time has come for the industry to innovate, grow and transform. For instance, the imperative to mitigate climate change presents an opportunity for chemical companies to develop low-carbon alternatives. Investments in renewable energy sources, such as solar and wind power, can help reduce carbon emissions from manufacturing processes while also lowering operational costs.
Companies addressing environmental pollution can develop eco-friendly products and technologies, such as biodegradable polymers and cleaner production processes, to enhance sustainability. Resource scarcity drives innovation in recycling and resource recovery technologies. Chemical companies can adopt circular economy principles like closed-loop systems and waste-to-energy technologies to maximize resource efficiency. Compliance with regulations demonstrates commitment to sustainability. Supply chain disruptions require resilience through localized production, redundancy measures, and strong supplier relationships. Growing demand for sustainable products offers market differentiation opportunities. Technological innovation can improve efficiency, reduce costs, and unlock new revenue streams. By responding to changing consumer preferences, companies can innovate, engage with consumers, and build brand loyalty, turning challenges into opportunities for value creation and a sustainable future.

Q3. CID: The chemical industry, is driven by R&D and innovation, though in India, the overall chemical industry spending on R&D is very low. How can the Indian chemical industry change over and use innovation as a driver of growth?

RL: Tata Chemicals values R&D and innovati-on’s crucial role in fuelling growth in the chemical industry. Despite India’s private sector trailing in R&D spends globally, we view this as an opportunity. Through strategic investments in innovation, we aim to unlock substantial growth not only for Tata Chemicals but also for the entire industry.
With India’s robust chemical sector valued at $170 billion (2021), we see particular promise in specialty chemicals, where we boast a trade surplus and strong growth prospects. By focusing R&D on thriving areas like the $5.5 billion agrochemical market (CAGR 8.3%) , we aim to solidify India’s position as a global leader in specialty chemicals.
Sustainability is a core priority, not just a trend. Our R&D prioritizes bio-based and recycled feedstocks. Recognizing the vast potential of digital transformation, we’re pioneering AI-powered process optimization to achieve industry leading efficiency and competitiveness. We are committed to fostering collaboration by partnering with research institutions and universities accelerating innovation across the value chain. Even a slight increase in R&D spend can yield substantial dividends. By prioritizing targeted R&D investments, Tata Chemicals is poised to play a pivotal role in driving the Indian chemical industry’s transformation into a global innovation hub.

Q4. CID: If so, how should chemical industries go about building an innovation culture in their companies, an innovative infrastructure that is result oriented. What skill set should be inculcated/brought to the fore by the industry’s manpower?

RL: As we stand on the brink of remarkable possibilities, driven by the unexplored potential of AI & ML, we are also deep in the throes of ever transforming to stay relevant – with the reimagination of products, services and business models, the shifting of consumer patterns, urgent call to action on sustainability, the essential commitment to human rights and heralding change through corporate citizenship. The chemical industry, the backbone of our economy, needs to strengthen their purpose by nurturing the culture for experimentation among their people. Transformation needs to be the fuel that powers our manpower in the journey of radical innovations. Another key factor here is how we view crisis. The mindset towards insurmountable challenges and disruptions need to change – they are only opportunities to innovate and transform, especially through strategic collaborations and open innovations. The organisations need to formulate business models and spirit of innovation to impact humanity, philanthropy and ethics beyond profits.

Q 5. CID: What are the opportunities for the chemical industry in the emerging situation? Is it in scaling up their core competencies in a greener manner and /or in bringing new and differentiated technologies and products?

RL: The chemical industry can align its core competencies with an environmentally friendly approach, leveraging initiatives like ‘Make in India’ and ‘Atmanirbhar Bharat.’ The Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIR) policy aims to attract investments of Rs. 20 lakh crore (US$ 276.46 billion) by 2035, fostering technological innovation, job creation, and sustainable development. The government’s allowance of 100% FDI in chemicals and production incentive schemes creates a favorable regulatory environment. With the global shift from China, India is emerging as a preferred destination for specialty chemicals, supported by robust domestic consumption and improved exports. Improvements in the US margin situation also provide optimism, with long-term global margins projected at 20% and 40% in India.

Q 6. CID: Today there is a huge convergence of digital technologies, commonly stated as Industry 4.0 including digital twins, VR, and Augmented VR, and the one that is swamping the media world-AI. What could be some of the transformative impacts of these technologies on the chemical industry, in particular-AI. How would it enable R&D and Innovation and is the chemical industry alive to the paradigm changing potential of these technologies?

RL: AI stands as a beacon of transformative potential, particularly within R&D and innovation in the chemical industry. Predictive analytics offers unparalleled opportunities to expedite product development while simultaneously reducing costs and improving quality. By analysing vast volumes of process data, AI and ML extract valuable insights to optimise reactions and process variables such as temperature, pressure and yields, thus facilitating faster scale-up. Furthermore, AI-based predictive modelling and simulations accelerate chemical product development, significantly reducing R&D time and costs.
Innovative technologies such as high-throughput automated workflow systems enable swift product screening, facilitating agile innovation by swiftly testing reactions. Moreover, the implementation of the digital twin technology creates virtual replicas of physical assets, allowing for simulations of products and processes, thereby minimising the need for risky physical trials. Augmented Reality (AR) and Virtual Reality (VR) also play pivotal roles in enhancing production monitoring, safety training, and remote expert support, fostering a culture of real-time awareness and continuous improvement.
By harnessing AI alongside other Industry 4.0 capabilities, the chemical industry unlocks the potential for transformative innovations, simultaneously enhancing productivity, compliance, safety and sustainability. This convergence of advanced technologies not only accelerates the pace of innovation but also ensures that industry practices align with evolving regulatory standards and sustainability goals, positioning the chemical industry as a frontrunner in the era of digital transformation.

Q 7. CID: Summing up, how are all these, i.e., innovation, digitalization, etc., taken up in Tata Chemicals, and what outcomes are you looking at?

RL: We have deeply integrated innovation and digitalisation into our business approach to drive growth and advancement. Our comprehensive strategy encompasses various initiatives aimed at leveraging external expertise, nurturing internal innovation, and harnessing cutting-edge technologies. We have implemented business process re-engineering across business operations and are embedding digitalisation across offices/plants to address process inefficiencies.
Our three state-of-the-art R&D centres, located in Pune and Bengaluru, serve as incubators for cutting-edge innovation and enable us to remain at the forefront of technological advancements. The Pune Innovation Centre has successfuly developed specialty silica products through strategic R&D partnerships with prominent silicone rubber customers. Additionally, our Rallis Innovation/Chemical Hub and Agri BioTech Lab are dedicated to driving innovations in crop care and seed technologies, supported by multi-location seed research stations.
Looking ahead, we are committed to increase the deployment of advanced technologies across manufacturing and business processes.
Through these efforts we aim to deliver impactful outcomes and sustain our position as a leader in the chemical industry.

Source Links:

• https://www.mckinsey.com/industries/chemicals/our-insights/the-chemicals-industry-of-tomorrow-collaborate-to-innovate
• https://www.tatachemicals.com/upload/content_pdf/integrated-annual-report-under-regulation-01-june-2023.pdf
• https://www.tatachemicals.com/upload/content_pdf/integrated-annual-report-fy-2022-23.pdf
• https://www.pwc.in/assets/pdfs/consulting/esg/sustainability-and-the-chemical-industry.pdf
• https://www.iea.org/energy-system/industry/chemicals
• https://cio.economictimes.indiatimes.com/news/next-gen-technologies/industry-4-0-the-fuel-that-can-lift-india-to-global-manufacturing-standards/102030388
• https://www.tatachemicals.com/upload/content_pdf/integrated-annual-report-under-regulation-01-june-2023.pdf