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How Chemical Companies Can Benefit Through ERP?

IMTS Solutions
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How Chemical Companies Can Benefit Through ERP?

Introduction

Across all sectors and industries, today’s business environment doesn’t leave any room for stagnation and staleness. In fact, businesses not in a state of constant growth and expansion are all arguably considered failing or, at best, old-fashioned and too conservative. Therefore, being successful in such an environment necessitates a will for growth and a practical plan and infrastructure enabling it to realize that will.

In this article, we’ll discuss why chemical businesses in particular may not grow as they should and how ERP helps keep check on raw materials, finished goods and inventory. Listing down the challenges and the possible solutions extended by ERP for the same.

1. Units of Measures: In any chemical company , the raw material used can be measured in various units such as Kilograms, litres, numbers & even Bars. It is quite often that they are purchased in one unit of measurement and consumed in another (eg: formulation of a tablet) Hence the accounting of materials needs to be done in more than one unit of measure. The conversion between different units of measures had to be considered.

The right ERP solution will record the total material used and required for that process with the built in conversion calculator. The intelligent software will also predict the amount of material required to be fed in.

2. Batch tracking and Shelf Life: Mostly chemical industries produce products in the batches. The batches are required from the point of purchase to production and consumption. The inventory evaluation is also based on the batches. Further the batches would be associated with the attributes like the expiry date of the products.

ERP Solution – The tool will track the inventory expiry date since it is a regulatory requirement since there will be manufacturing date and expiry date already mentioned at the time of production.

3. Pricing: Pricing of the finished / semi finished products in not always based upon the cost of materials or market determined. Often additional processing is required to achieve materials of higher quality and associated costs very. Multiple end items may require that the cost of the entire process to be split based upon a percentage split of cost. The production of all items – (intermediates, semi finished goods, finished goods etc) is taken up batch wise. Hence the costs for various activities need to be consolidated batch wise.

4. Multiple versions of Formulations: It is possible that the finished material is produced according to the different rations of raw materials or some different raw materials are used in the process. The formulation definition has to be flexible to accommodate multiple versions.

5. Damaged Stocks Management: For the sake of profitability, the management of the damaged stocks plays a critical both in terms or value as well in terms or logistics. The organization needs to manage & monitor the quantity & value of it’s damaged stock. The ERP system needs to track the damaged stocks at the various ware houses, locations etc.

6. Warehousing and processing: The logistic requirements of the industry require stocks to be maintained at various locations (ware houses, stock points etc). This obviously puts additional pressure on the supply chain as well as on Working capital management. Further, the need to maintain the stocks as semi finished goods adds that extra work on the ERP & Supply Chain planning engine. Management & control of stocks across the value chain is an essential.

ERP automates and mechanics these day-to-day tasks and missions, freeing up valuable time for the workforce to be in a position to more efficiently contribute to the growth and expansion of the organization. They’ll be doing what they should be undertaking – focusing on the core pillars of the business toward generating maximum revenue.

Legacy Infrastructure

It’s been decades since the advent of ERP (Enterprise Resource Planning) systems in businesses as tools that help companies efficiently manage resources and access helpful insight and information on overall performance and direction. However, being fixated on one or a couple of aspects of their functions has led their users into treating them as mundane and routine parts of their day-to-day work.

Most companies have some form of legacy automation or ERP system in place. Some of these systems are still being used and updated regularly for the benefit of the organization’s requirements. But many of them have slow and unnecessary trouble-making software that’s near useless, if not completely obsolete.

The fact of the matter is, if companies were to continue utilizing their legacy ERP systems without any changes, their future would be more of the same, ho-hum business as usual, without any prospect for growth or any new development. In order to achieve meaningful advancement in any industry, it’s vital to truly comprehend the requirements of the day in your sector and act compliant with those needs. Replacing the old system with an agile ERP capable of solving problems forthwith is critical to reaching sustainable business growth.

Assimilation & Synergy Among Departments

An ERP solution’s primary task is to create a shared space where all departments inside the business can work together as an efficient unit. Timely and well-directed access to the flow of tasks and information at all times helps all the components of an organization to function seamlessly towards the clear-cut objectives obvious to all members.

This objective connection and assimilation of tasks on a unified and comprehensive platform will also help executives to acquire a more transparent view of their organization at all times, providing them with a valuable standpoint from which decision-making can become significantly less challenging.

Helpful Insights in Real-Time

Working with a reliable ERP that covers all aspects of a business provides decision makers with the opportunity to accumulate valuable information. This data will then, in turn, help assess and understand not only the status of ones own business but also the requirements of clients and the areas where one needs to put more work.

Even though many organizations are more than prepared to spend significant chunks of their development budget on studies to obtain insights into their business, with an efficient ERP, one will have at one’s disposal all the requisite information for growth. The ERP will also assist in monitoring and evaluating the degree of success (or lack thereof) of plans and objectives throughout the process.

In fact, probably the most valuable takeaway of an ERP system implementation is the organization’s leaders will likely have a more holistic understanding of their company and how it works, where it’s headed, and how to plan and execute based on its roadmap.

Keeping In Touch At All Times

A significant takeaway from the global COVID-19 pandemic for all business leaders has been to understand the need for a comprehensive system enabling them to keep track of how each task is being handled. ERPs solve this issue by providing executives with the means to be in the know at all times, empowering them to make informed and timely decisions to enhance the growth of their business.

Implement ERP & Start Your Growth Now!

It’s safe to state growth for any organization is only achievable through practical planning, efficient management and systemic monitoring. ERP helps businesses grow by freeing up their time, resources, etc., allowing them to focus on the core aspects of their business toward generating maximum revenue.

Article credit – www.imtssolutions.com

India’s Advantages in Specialty Chemicals Manufacturing, Both for the Domestic Market and Globally

Anil H. Gupta
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India’s Advantages in Specialty Chemicals Manufacturing, Both for the Domestic Market and Globally

Introduction

Chemicals are essential for the production of myriad consumer and industrial products. The industry greatly influences our safe water supply, food, shelter, clothing, health care, computer technology, transportation, etc. And more than 96% of all manufactured goods are directly dependent on the chemical industry for raw materials, additives and finished formulations to sustain almost every facet of modern life.

In India, the chemical industry occupies a pivotal position in meeting basic needs and improving the quality of life. The Indian chemical industry is the mainstay of industrial and agricultural development and provides building blocks for several downstream sectors such as textiles, papers, paints, soaps, detergents, and pharmaceuticals, among 80,000 other consumer products. The supply of these chemicals is directly proportional to the demand for the products. For eg: The agrochemical sector ensures food security, the synthetic fibre industry is crucial to providing affordable clothing and the pharmaceutical industry gives the country’s vast population access to low-cost and effective drugs. Even construction, automobile and other manufacturing operations require the use of chemicals or chemical components.

India is currently the 6th largest manufacturer of chemicals and owing to its roots, it has been one of the leading producers in segments like dyes, polymers, agrochemicals, and pigments globally. Local as well as global investors and stakeholders have prioritised the specialty chemicals industry, bringing in large amounts of funds into the sector. This sector has grown at a steady rate of 15% p.a. for the past decade wherein its role as the key enabler of economic growth has been well-established worldwide.

The sector is expected to double from $30 billion to $60 billion by 2025. Agrochemicals, textile chemicals, dyes, and specialty polymers are among the top segments and are expected to maintain their lead and grow as the market demand broadens over the next 5 years. Flavours and fragrances, food additives, cosmetic chemicals, and water management chemicals are expected to emerge as fast-growing segments globally with its demand experiencing an upward curve.

Segmental Analysis

The agrochemicals market in India is expected to grow at 8% CAGR reaching $3.7 billion by FY22 and $4.7 billion by FY25. Agriculture is one of the oldest occupations in India, the utilisation of pesticides and fertilisers is significantly increasing owing to population growth and adoption of advanced farming practices in the region. Farmers are focusing on investing in crop-protecting and growth-boosting chemicals. India, along with China and Japan, has the largest agrochemical markets in the Asia Pacific region.

The global textile chemicals market size is projected to reach USD 26.40 billion by 2027, indicating a CAGR of 3.2%. India ranks 2nd in producing and exporting textiles and is likely to register the fastest textile chemical market growth during the next 5 years.

The petrochemical market in India, in terms of volume, stood at 42.50 million tons and is estimated to reach 49.62 million tons by 2025. It will expand at a compound annual growth rate (CAGR) of ~6.14% between FY 2021 and FY 2025. The petrochemical market in India can be broadly divided into 3 distinct areas – basic petrochemicals, intermediates, and other petro-based chemicals. The basic petrochemical segments, consist of synthetic rubber, synthetic detergent intermediates, performance plastics, and polymers. They dominate the market, accounting for ~45.53% of the share of the market volume last year. Intermediates came next followed by other petro-based chemicals.

The specialty chemical sector witnessed healthy revenue growth in the past few decades owing to growth in domestic demand as well as increasing exports. Asia’s share in the total demand for specialty chemicals is expected to grow 50% by 2025.

Global trends that have been shaping the Industry

• Technological advancement has given rise to tools that not only enhance employee efficiency & productivity but also scale up production and analyze consumer behaviour to target the right audience.
• The focus on sustainability, wherein green chemistry is incorporated into the value chain as part of the innovation goal to improve existing products and formulate new products that are environmentally friendly, creates growth opportunities for the industry.
• Stringent regulatory policies also play a vital role in ensuring personnel health and environmental safety as they aim to minimize hazards to both.
• In recent months, escalating global trade tensions emerging from the Covid-19 pandemic situation has led to further tightening of environmental compliance norms and purchase managers feeling uncomfortable with extremely high dependence on a single source. This has become a rallying cry for investors to look elsewhere.

The limitations for the Indian chemical industry so far have been the small or unorganised players who could not meet the rapidly increasing demand. The industry is now headed towards consolidation owing to the implementation of GST and demonetisation. Environmental threats have been and are a concern that has driven plants in countries across the globe to either closures or huge challenges but with larger chemical companies implementing more and more sustainable methods, this threat is only limited to smaller companies.

Specialty chemicals have myriad uses across a broad range of industries, such as polymers and plastics, adhesives, paints and coatings, lubricants, cleaning materials and many more. Any disruption in this industry has a cascading effect on various other sectors that are dependent on it. Uneven demand for specialty chemicals has been observed across different segments since the COVID-19 outbreak.

Global speciality chemical production witnessed a decline of nearly 6% in March 2020 due to raw material and labour shortages, coronavirus-induced lockdowns, government-mandated plant shutdowns and production declines. These disruptions brought about by the pandemic highlight the importance of resilient infrastructures, smart supply chains, logistics and diversified markets. Manufacturers will need to make well-informed strategic changes and restructure their businesses to navigate this uneven demand scenario until the threat of the pandemic is over and industry dynamics return to pre-outbreak levels.

Key growth drivers of the industry in India

India’s specialty chemicals potential is increasingly being recognised at the global level.
• India can play a dominant role in the global specialty chemicals industry as it has got the advantage of skilled human resources and a big consumer market.
• It stands out as far as demography and availability of technical manpower are concerned.
• With major refineries and petrochemical plants located over India’s coastline, the country’s position in the global chemical industry is unique as it has easy access to petrochemical feedstocks and major demand centres, both catered through ports.
• Increasing income levels and a young population have led to a consumption-driven economy with a strong demand for construction, automotive, packaging, water treatment, home and personal care, food processing, nutraceuticals and other sectors.
• The government focuses on improving ease of business through flagship programmes such as Make in India and the Aatmanirbhar Bharat Abhiyan to provide much-needed support to this sector and create an environment that attracts further investments.
• The government plans to implement a production-link incentive system with 10-20% output incentives for the agrochemical sector; to create an end-to-end manufacturing ecosystem through the growth of clusters.
• Trained workforce, manufacturing expertise and cost-effective margins
• The capability to provide product/application development at a favourable price-performance ratio is a critical success factor for the ever-evolving Indian economy.

Thus, the specialty chemicals industry, just like IT and pharma, stands to gain rich dividends from its skilled human resources and a big consumer market. The focus on improving products, increasing the production capacity and rise in the number of end-use domestic markets specialty chemicals is expected to facilitate strong economic growth in India clocking 12-13% CAGR in the next five years leading to India’s emergence as a global chemical and petrochemical manufacturing hub.

National Science Day – Women Scientist, Dr. Radha Pujari

Chemical Industry Digest
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National Science Day – Women Scientist, Dr. Radha Pujari

Dr. Radha Pujari – Research Scientist – Cell Biology, Nutritional Science Department, Tata Chemicals

The motivating forces that led you to take to your educational and professional careers. What drove you to take up these respective fields?

I had always been intrigued with the mysteries of life and living beings. The urge to know how our body functions and response to various stimuli is something that I had always wanted to understand. The thirst for this knowledge had propelled me to study biology: the science of living. I completed my PhD in cell biology from the National Centre for Cell Science and then went on to do post-doctoral research on a grant supported by the University Grant Commission (UGC).

What were the challenges you faced from your educational career to your working life and how did you overcome them?

A career in science has its share of challenges and hardships. For me these challenges began from finding the right course and the right institute. During that time very few institutes offered Biotechnology as a choice of subject. I had grown up in a remote part of West Bengal and had moved to Hyderabad and then eventually to Pune to complete my higher studies. After completing masters, PhD and post-doctoral research there was a struggle to find the right job opportunities and to set a career goal. Over the years I realised that struggle is a part and parcel of anything and everything good coming your way and hence, I now perceive it as more of an opportunity than a challenge.

Any stories/anecdotes/instances that occurred in your life that merits retelling.

I had been pursuing a position for some time; I attended a number of rounds of interviews and for the final interview had to travel to Delhi. I was residing in Pune and was in a big dilemma as my daughter was only a month old. After a lot of thinking and deliberation I decided that I had to go and took my little baby with me to attend the interview. The organisers were quite sensitive and they provided me with a room for my convenience. Sadly, I did not get selected for the position and that was quite disheartening at that time, but today when I reflect I marvel at the courage that I had gathered that propelled me towards achieving my dream.

As a woman have you faced any difficulties in your career from a male-dominated world?

I have been bestowed with very good male friends, colleagues and mentors who have helped me in my endeavours.

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Chemical Industry Digest
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National Science Day – Women Scientist, Dr. Priyali Shah

Chemical Industry Digest
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National Science Day – Women Scientist, Dr. Priyali Shah

Dr. Priyali Shah – Lead Scientist, Nutrition and Claims, Tata Chemicals Innovation Center, Pune

The motivating forces that led you to take to your educational and professional careers. What drove you to take up these respective fields?

I realized my passion for nutrition in communities for health and well-being while working on various projects during my masters. While I did not always know it, growing deeper into the field, I realized we are only viewing the tip of the iceberg and need to do a lot more than what is being done till now on scaling up nutrition. I believe that Public-Private Partnerships has potential to play a large role towards this goal and it is not a single organisation’s job.

What were the challenges you faced from your educational career to your working life and how did you overcome them?

During my career developmental years, in one of the projects, I was required to look at nutrition perspectives of reproductive age group women and how it may have an impact on the foetal growth. In India, particularly in resource poor families. Interaction of pregnant lady in the said families with an external person was a big no, in particularly when it was about the health of the baby-to-be-born. No one was forthcoming to interact with me for the same, making it extremely challenging. So, I figured out a way to overcome this. I initiated engaging discussions with the head of the villages (Sarpanch) followed by the head of the households, convincing them how nutrition was very important across all life stages, pregnancy being very critical. And the concepts of DOHAD (Developmental Origins of Health and Disease), emphasizing the role of prenatal and perinatal exposure to environmental factors, such as undernutrition, in determining the development of human diseases in adulthood was helpful. All this was communicated in a very friendly, local language that was easily understood by all. This resulted in a snowball effect from one village to another that made my project successful. I learnt that challenges shall come at every stage; how we deal with them and pave through is what we learn as we grow. It is imperative to understand the challenging situations very carefully and look forward to the influential perspectives that will help us succeed. Running away or forcing to get things done may never be a sustainable way to deliver end goals

Any stories/anecdotes/instances that occurred in your life that merits retelling.

While working on a project way back between 2006–2011, I got an opportunity to look at scaling up nutrition through lifestyle management. This project involved engaging school management to conduct workshops to drive awareness among students about lifestyle diseases like obesity, diabetes, hypertension and heart problems along with their parents as well as the school faculties. Working along with my team, we secured corporate endorsements, engaged government policy makers and reached out to more than 120 schools spread across eight states, touching over a hundred thousand stakeholders. As it was a very successfully running project in India, our team was invited to present the same at the 7th Global Conference on Health Promotion, Nairobi, Kenya in 2009, and I got an opportunity to present the work and get it replicated across other resource poor nations. It was a moment of pride for me and my team.

As a woman have you faced any difficulties in your career from a male-dominated world?
Yes, in the early years of my career at one of the previous organizations, working late hours was a trend expected from female employees, indicating if men could why wouldn’t women employees. Maintaining a work life balance under such challenging circumstances was difficult, resulting in a grade (or two) below for career progression.

Role of Membrane Technology in Sustainable ‘Green’ Bio-Methanation Projects

Chemical Industry Digest
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Abstract

Biogas, mainly methane, from municipal and other organic wastes, can be converted into a usable transportation and industrial fuels and as technological feasibility establishes, into a variety of chemicals. However, the raw biogas needs to be cleaned up, the impurities removed, prior to such uses. This article outlines the role of membrane technology as a superior purifying process to obtain high purity methane.

Introduction

It is a widely acknowledged that climate change is a pressing issue, and it is already threatening weather conditions worldwide. Keeping it in check is a universal challenge, and countries worldwide are scrambling to do their bit to arrest global warming.

With its population of approximately 1.40 billion and burgeoning economy, India is a fast-growing global powerhouse. In a bid to contribute towards slowing down climate change, our Prime Minister has made several ambitious commitments at the recently concluded COP26 Climate Conference, the most noteworthy being the goal of achieving net-zero carbon emissions for India by 2070.

To help achieve this vision, he also declared that by 2030, 50% of the country’s energy requirements would be met through renewable energy, bringing down the estimated carbon emissions by 1 billion tonnes.

Of course, these targets can be met by transitioning from fossil fuels like coal and oil to cleaner-burning fuels such as biofuels, especially biogas. In fact, biogas makes more sense from India perspective because it is the proverbial one stone that kills two birds.

Biogas

With such a large population, India is faced with a growing problem of disposing of its organic waste. Farmers burn the chaff and agricultural waste in their fields which causes thick smog that smothers the cities in the north every winter. Copious quantities of Municipal Solid Waste (MSW) overwhelm treatment plants, and significant amounts of it enter untreated into our oceans and rivers, causing severe water pollution. Substantial quantities of other organic waste get dumped into landfills, where it decomposes and releases methane –a harmful greenhouse gas – into the atmosphere, which has been attributed to be a leading contributor to global warming.

Biogas is produced through the anaerobic decomposition of organic waste. Feedstock for its production can consist of all and any organic waste, ranging from agricultural waste to Municipal Solid Waste (MSW). Thus, biogas can help solve the issue of organic waste disposal while simultaneously harnessing it as a biofuel that otherwise would have been wasted and released into the atmosphere. Harnessing biogas aligns perfectly with the other goal set by our Prime Minister at COP26, which is of reducing India’s greenhouse gas emissions by 1 billion MT by 2030.

Methods to Upgrade Raw Biogas

Steel Cased Membrane Cartridge

However, this raw biogas contains impurities like moisture, carbon dioxide, and other trace gases in addition to methane, which reduces its calorific value. To enhance efficiency and convert biogas into an adequate transportation and industrial fuel, the contaminants are removed through biogas upgradation to obtain methane-rich gas called Biomethane or Compressed Biogas (CBG).

Today, many methods exist to purify raw biogas into biomethane. Of the lot, Water Scrubbing, Amine Scrubbing, and Pressure Swing Adsorption are the most popular because of the perceived lower operational costs associated with them. However, these methods all utilize water and other substances, which cause the creation of effluents that need to be disposed of responsibly and safely. All of these factors also substantially add to the overall costs. Because of the production of hazardous by-products through their operation, these are far from being eco-friendly in the truest sense.

Membrane Technology

Dissected image of a Membrane Cartridge

Although several manufacturers are currently working on creating new, more efficient, and greener methods of biogas upgradation, membrane technology has been the one that has gained the most prominence of the lot. This is because membrane purification systems, with their inherent high CO2/CH4 selectivity, provide methane with a purity of more than 90% (which can go up to 99%) from the raw biogas.

The permeation rate of every gas depends on its solubility within the membrane material and the diffusion rate. Gases with higher solubility and smaller molecular size permeate the membrane faster than larger, less soluble gases. The ratio of the transport speeds of two gases is termed selectivity—the greater the selectivity, the greater the energy efficiency of the resulting membrane process. Different membrane materials have different separation properties.

How it Works

Membrane-based technology for biogas upgradation is an advanced and innovative alternative to traditional technologies. Biogas is produced by fermenting biomass- an organic substance from waste such as liquid manure and sewage sludge or renewable raw materials. Different gas molecules are of various sizes and have different solubilities in polymers. The biogas to be cleaned is introduced under high-pressure at one end of the membrane. As the CO2 molecules are smaller than the methane molecules and more soluble in the polymers, the CO2 molecules pass through the membrane’s micropores much faster and are separated from the methane. CO2, vapor, and traces of ammonia and sulfide are drawn off at the low-pressure side while the methane collects at the opposite end of the membrane. The driving force required for the separation is obtained through a partial pressure gradient. During this case, the permeate gas, methane, will be recirculated through 2 or 3 stages to get methane purity of up to 99%. In the past few years, the membrane technology manufacturers have created innovations to improve the quality, selectivity, and overall methane concentration recovery, resulting in improved system performance anda better cost of ownership for the investors.

*There are many advancements taken place in membrane technology such as the hollow-fiber to efficiently upgrade biogas to high purity biomethane. Membrane cartridges consist of several thousand hollow fibers manufactured from high-performance polymers and wrapped with a stainless-steel casing. The ends are embedded in a resin. The membrane cartridge is contained in a stainless-steel pressure vessel. The cartridge and housing together comprise the membrane module which can now withstand a gas mixture under pressure. Multiple modules can be piped together—the simple, easy-to-handle setup results in a compact upgrading plant. Green membranes and cartridge systems for upgrading biogas in various sizes are available to address plants of all sizes.

*The polymer-based hollow-fiber membranes are made from high-performance polymer polyamides. The properties of the membranes can be adjusted as early as in the development stage of the starting material, the high-performance plastic, to produce particularly selective and robust membranes that can withstand extreme pressures and temperatures.

Advantages of Membrane Technology

Membrane technology is also superior to other systems in use because it consumes less energy and has a modular containerized construction that allows for a more straightforward setup and lower overall costs of operation. Another significant benefit of membrane technology is that the methane produced can be directly injected into the gas grid. Furthermore, the upgradation of biogas using membrane technology does not require water or any other additives and thus, does not generate any effluents. Because of this crucial factor, this technology is green, and the resulting biomethane can qualify as sustainable in every sense.

Enables India’s Energy Transition

The government is keen to see India transition to a gas-rich economy, from 6.5% to 15% by 2030. To drive the adoption of gas as a fuel for India’s transportation sector, the Government of India has initiated the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, which is projected to create 75,000 direct jobs and lakhs of indirect ones in rural parts of the country.

Through such ingenious technologies like the membrane technology-based biomethane upgradation, India can meet its desired goals, which will make it a global doyen in its movement towards achieving its energy independence, along with leading from the front in the battle towards arresting climate change.

Editor’s Note:
*Evonik is a leader in introducing new membrane technologies for highly efficient biogas upgradation. Marketed under their brand SEPURAN®, membrane cartridges are made from high performance polymers, principally polyamides manufactured by Evonik inhouse, which ensures production of methane of purity as high as 99%.

Chemingineering – Flying Sustainably

K. Sahasranaman (Independent Industry Consultant)
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Chemingineering – Flying Sustainably

Pledges on net-zero emissions and sustainability are compelling the aviation industry also, which accounts for approximately three percent of global emissions, to cut emissions. But this is easier said than done due to specific characteristics of planes, which make alternatives, like battery, hydrogen, etc difficult to consider as of today. However, aviation fuel made from renewables is showing promise. This month’s column examines this in detail.

The Indigo A320 flight from Toulouse, France to New Delhi on 17th/18th February was special because it used a blend of Sustainable Aviation Fuel (SAF) and conventional jet fuel. It was the first international flight using SAF by an Indian carrier. Earlier on 1st December last year, United Airlines had created aviation history by operating its 737 MAX8 flight from Chicago to Washington DC, with 115 passengers on board, by using 100 percent SAF for one of its two engines. As required by regulation, the other engine used conventional jet fuel and in the process the airline was able to demonstrate that there are no operational differences between the two types of fuel. Welcome to the era of sustainable flying.

Sustainability

SAFs are made from renewable feedstocks. These include food waste, animal waste, agricultural waste and municipal solid waste. Wood waste and plastic waste are also being proposed as feedstocks to produce SAF. They have also been synthesised from carbon dioxide and hydrogen. Because no modifications are permitted on proven and tested jet engines, SAFs have to be chemically identical to conventional jet fuels regardless of the feedstock. Hence the amount of carbon dioxide released in the combustion process during the flight is exactly the same. The sustainability dimension comes from the life cycle of the SAF. Since the carbon dioxide released is the same as that sequestered during the growth of the biomass feedstocks, the net release is close to zero. Similarly, synthetic SAF produced from carbon dioxide using only renewable energy will have net emission close to zero. The actual benefit accrued from the use of SAF depends on the feedstock used and how it is processed.

HEFA

The most commonly used method for production of SAF is the Hydroprocessed Esters and Fatty Acids (HEFA) process, in which vegetable oil or animal fat is reacted with hydrogen in the presence of a catalyst. HEFA-based fuel was approved by ASTM in 2011 and can be blended up to 50 percent with conventional jet fuel. Over 95 percent of all SAF based flights so far have used fuel produced by HEFA process. Neste Oil of Finland and UOP are the two major licensors of this process. The reaction is carried out at temperature of around 400 degrees C and 100 bar pressure. The catalyst is typically palladium supported on alumina. Essentially three reactions take place during the process. In the first, the unsaturated triglycerides are saturated using hydrogen. In the second step, a propane molecule is cleaved off from the hydrogenated product leaving behind free fatty acids. The third step is the decarboxylation of the fatty acids to yield straight chain paraffin. The paraffin is next hydrocracked and hydroisomerised to produce Synthetic Paraffinic Kerosene (SPK) of the required specifications.

Fischer Tropsch Synthesis

Another technology for the production of SAF that is gaining ground is the nearly 100-year-old Fischer Tropsch (FT) synthesis. The process gasifies solid biomass, typically wood waste, at high temperatures to generate “syngas”, a mixture of carbon monoxide and hydrogen, which after purification are catalytically combined to yield hydrocarbon chains of different lengths. Johnson Matthey has developed a reverse water gas shift process in which green hydrogen is catalytically reacted with captured carbon dioxide to form carbon monoxide. This carbon monoxide along with additional hydrogen forms the “syngas”, the building block for fuels by FT synthesis.

Approvals

Safety is top priority in aviation and hence all new fuels are put through rigorous trials. To avoid redesign or modification of existing engines, regulators demand that SAF has the exact same chemical characteristics as convention fuel. Tests are carried out both in laboratory and air and also includes simulating unusual conditions. Presently, SAF is allowed to be blended with conventional fuels up to a maximum of 50 percent. The limit is expected to be withdrawn in the foreseeable future. Eight different processes for the production of SAF have been currently approved by the ASTM D7566 standard. The HEFA process and Fischer Tropsch synthesis are among them. Other processes include Synthetic Iso-Paraffin (SIP) by fermentation of sugar and Alcohol to Jet Fuel (ATJ) conversion process starting from isobutanol.

Decarbonisation

Aviation industry currently emits 1.2 billion tons of carbon dioxide annually, accounting for approximately 3 percent of global emissions. With more and more people flying for business and leisure this is only bound to go northwards. Aviation industry aims to cut emissions by 50 percent by 2050 compared to its 2005 level. Unlike surface transportation, decarbonisation of aviation is not easy. Planes need to be lighter to be able to fly and also to carry enough energy for the entire duration of their flight. The high energy densities of liquid fuels cannot be matched by hydrogen or batteries. A Boeing 737 weighing 90 tonnes at takeoff would need 600 tons of lithium battery to match the energy content of jet fuel. Similarly, a 737 would need to fill half its volume with liquid hydrogen to be able to complete its journey. Electrical and hydrogen propulsion, though technically feasible, are decades away from commercialisation. The industry thus pins its hopes on SAF to meet its 2050 target.

Economics

The economics of SAF is currently very unfavourable. Depending on the feedstock, SAF can be between two and four times more expensive than conventional jet fuel. More importantly, there isn’t enough feedstock available for the accelerated adoption of SAF. The present SAF production is able to meet just 0.05 percent of the global demand. A working paper from International Council on Clean Transportation estimates that the feedstock availability would be able to support only 5.5 percent of the projected demand for jet fuel in 2030. Some experts are cautioning against SAF competing for agricultural land that is presently being used for food and surface transportation biofuels. In the near term, SAF’s share will increase only by government intervention through subsidies, tax incentives and mandating a certain minimum blend.

Epilogue

Decarbonising aviation is difficult and the industry has set for itself a very ambitious target. So far, the industry’s success has been in conducting trials to demonstrate the performance of SAF and establish its integration into existing fuel supply chains. Much needs to be done before SAF really takes off.

Readers’ responses may be sent to:
k.sahasranaman@gmail.com or
chemindigest@gmail.com

Indian Solvents Market is Expected to Reach Nearly 3,000,000 Tons

Chemical Industry Digest
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Indian Solvents Market is Expected to Reach Nearly 3,000,000 Tons

Moderate growth is estimated for India solvents market during the forecast period 2016 to 2027, according to a report by Persistence Market Research (PMR). In terms of volume, sales of solvents in India reached 2,019,743.5 tons in 2016; by 2027 this number is expected to reach nearly 3,000,000 tons, expanding at 4.7% CAGR. Robust adoption of solvents across various applications such as paints & coatings, plastic & polymer, adhesives & sealants, and pharmaceutical is a prominent factor driving growth of the market.

Industrial cleaning forms a primary application area for solvents, with variety of solvents utilized for cleaning applications across various industries including manufacturing, and healthcare. Market for industrial cleaning chemicals in India is expected to witness a significant growth. In addition, soaring manufacturing sector in the country is estimated to drive growth of domestic, institutional, and industrial cleaning chemicals market, which in turn is expected to fuel demand for solvents in India. Solvent polymerization is the most commonly used technique for polymer production in the country. Rapid consumption of solvents in rubber and polymer applications is further expected to drive demand for  olvents in India.

In addition, government of India has taken several initiatives for encouraging growth of chemicals industry, channeling efforts toward enhancing future growth prospects. Government has allowed 100% FDI in chemicals industry. This collaborative work of Industry and the government is projected to boost the industrial growth, thereby propelling the growth of solvents market in India. However, factors such as surging demand for bio-based ecofriendly alternatives, and soaring adoption of water-based paints & coating and powder coatings are expected to impede growth of India solvents market.

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Chemical Industry Digest
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Facing the Challenges from Covid and Running a Company

Chemical Industry Digest
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Facing the Challenges from Covid and Running a Company

Covid burst on the scene from end 2019 onwards as a great disruptor, upsetting every activity of human lives from personal to business & industry and more. Living and working have changed; its not going to be the same again. It has inflicted heavy damages in terms of lives lost, children orphaned and business revenues hit, including many SME businesses closed.

However, the never say die attitude of people, the indomitable spirit and human resilience to fight back has led to great efforts in combating the consequences of this pestilence, creating new normals in our living and working. Companies in India responded with a series of measures, rising up to the challenges and managing their business activities from services to manufacturing successfully.

Here is one account of how a leading company in the field of biotech and renewables coped with the situation. Chemical Industry Digest had an email interaction with Dr Sangeeta Srivastava, Executive Director of Godavari Biorefineries Ltd on how they faced the onslaught of covid.

Views of Dr Sangeeta Srivastava are presented here.

Chemical Industry Digest (CID): How did you cope and continue managing your business operations during the long periods of lockdown during covid? What are some of the key steps you took or new procedures you laid out that helped in facing up to the challenges during this period? Were you adversely impacted during the lockdown? Were business revenues hit?

Dr Sangeeta Srivastava (SS): AAs a manufacturing company we quickly adopted safety protocols and continued the production at both our sites. We managed the back-office operations through Work from Home (WFH) Mode. During the initial stage, we did not have a laptop for everyone. Thus, the first few laptops were purchased and distributed on a priority basis. Later, we provided laptops to all the employees who were working from home in a phase-wise manner. Business was affected when the pandemic hit, but we adapted to the new normal and continued to deliver our best.

CID: How did you manage your supply chain particularly in your manufacturing?
SS: For our sugar manufacturing we use locally procured sugarcane which is our main raw material. With help from farmers and our cane department, we retained the supply. With regards to other goods and machinery, we planned things ahead of time and had also looked into using the best resources available at our disposal. We also initiated weekly review meetings to track planning and production movements.

However, for the chemical business, we do use imported raw materials and that was disturbed for some time and at the end we could manage the operation with little more effort in coordination at the port and with transporters.

CID: Covid struck suddenly and out of the blue. It created huge uncertainties in overall management of business and industry. What were the key learnings in uncertainty management, and overall, from this pandemic? What has this pandemic taught you? What steps have you taken to meet such sudden massive eventualities like the pandemic, in case such disruptions happen in future?

SS: Yes, Covid struck suddenly and out of the blue. The key learnings from the pandemic range from personal and professional hygiene to personal and professional readiness. As a manufacturing company for essential goods, we had to run the manufacturing and manage the supply chain for smooth running. During the first wave, we stopped the chemical plant only for 7 days due to locals at the site and after convincing, we started the factory with the support of all the workers and the staff, some of whom stayed in the plant.

From a hygiene perspective, the learnings are in maintaining the Covid protocol of washing hands regularly, wearing masks, using sanitizer, maintaining social distancing. From a work perspective, we moved to a virtual working environment where all employees were working from home. We learned more about the technology and accepted the digital workspace. At our Research Lab at Mahape, Navi Mumbai – we continued working with segregated working hrs and maintaining the Covid protocol.

The importance of making quick decisions and planning came into action when the pandemic hit, and we had to adapt to a whole new different working normally for business. Things have been more systematic and traveling time has been reduced to a great length. We have also helped employees maintain a work-life balance when everyone is working from home.

CID: Two other major areas of business activity, include handling of one’s human resources (staff/manpower) and customers during the pandemic. Many of one’s staff could have been afflicted with covid; there was downsizing, loss of salaries, etc leading to depression, etc in staff. What communication and other strategies did you deploy to reassure your staff and customers? And how did your people respond in terms of support and cooperation?

SS: When the pandemic hit, we did not know how bad it’s going to affect the business and how long it’s going to stay. We had weekly meetings with employees to ensure they were doing fine. We did not have to downsize or cut down salaries. We as a company support our employees to the best we can, and we will continue to help in the future.

CID: It’s reported that digital technologies came as a great enabler during covid lockdown. How was the digital transformation in your company including the skilling required to handle digital technologies for your manpower? How much were you digitized prior to the pandemic and then during the pandemic and now? To what extent has it helped you?

SS: With work from home, we took the initiative to automate various processes and provide a safe working digital space for our employees. This has led to the initiation of Technology / Software enhancement as a strategic move for 25 to 30 projects across verticals. We plan to continue using these advancements and expand our digital footprint.

CID: How satisfying and productive were work from home (WFH) strategies for your company? Are your staff on WFH mode or hybrid model or are you back to total office working? What do you feel is the optimum strategy now?

SS: In case of exigency, Work from Home is the best way to move forward. However physical meetings and interactions are more efficient and productive. The optimum strategy is to enforce the hybrid model. It helps maintain the work-life balance and is flexible and interactive. The hybrid model will be seen as an alternative style of work.

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