Framework for a Post COVID-19 Energy Transition Plan
Introduction
Energy is an essential input for improvement of the quality of life in modern times. Apart from unequal distribution across regions, today, we understand that the current mode of energy production, distribution and usage are no longer sustainable on account of its huge carbon intensity and consequential environmental and climate related hazards. UN SDG 7 aims to address the issue by ensuring that everyone has access to affordable, reliable, and modern energy services by the year 2030 and at the same time enhance energy efficiency and develop more and more renewable energy resources. Now-a days, over three quarters of the increase in energy consumption come from developing regions. According to the latest BP Statistical Review of World Energy, in 2019, renewable resources which include wind, water, solar, biomass and geothermal energy constituted 5 percent of the global primary energy consumption- an increase of 0.5 percent from 2018.
Both the 2030 Agenda for Sustainable Development and the Paris Agreement on Climate Change recognise that the world is currently not on track to meet the Sustainable Development Goals including SDG 7 on energy or to keep global temperature rise this century below 1.5°C above pre-industrial levels and therefore, the global energy transformation must be accelerated to achieve the goals. At the same time, there is also a deep concern that over three billionpeople still lack access to clean energy. In order to overcome these problems, the power sector needs a whole lot of decarbonization. The traditional centralized organization of the power system has to be transformed to distributed and renewable generation. Smart grids, distributed photovoltaic (PV) and other renewable sources and digital technologies will be at the centre of this transformation.
Trends in Energy Consumption
The International Renewable Energy Agency (IRENA) defines the pathway to energy transition through a transformation of the global energy consumption from fossil-based to zero- carbon by the second half of this century. At the heart of the transition are the need to reduce energy-related CO2 emissions to limit climate change, decarbonisation of the energy sector incorporating more and more renewable resourcesto it and increasing energy efficiency measures across all usersegments.
The history of energy consumption of people clearly indicates a change in energy mix with time-wood to charcoal and coal to oil and gas to renewables. The approach towards change in energy mix depends mostly on the political ideology of nations. Some are for a transition from fossil fuels to low carbon resources at a slow pace citing the need to manage the
transition and further establish the credibility of renewables. Others are more liberal and progressive advocating for a faster transition on account of the advancing climate impacts. At the policy level, both propose to invigorate the slow pace and clamp down the fast pace by setting time bound targets for the transition counting on the historical experiences and deliver adequate, cost effective, safe and environment friendly energy solutions for future. Truly, we need a pragmatic policy and approach for energy transition quickly enough so as not to inflict heavy damages to the environment or too slow so that the consequencesare irreversible.
From Fossil Fuels to Cleaner Sources of Energy
The unsustainability of present-day energy production emphasizes the need for a gradual decline in the use of fossil fuels,naturalgasto occupy the interim stage and pave the way for a carbon neutral energy mix. Though it is accepted well among mainstream scientists that the climate is changing all over the globe, there is no consensus that it is mostly contributed by anthropogenic emissions. Rather than emissions some regard it due to growing population and its energy and other resources related pressure and hold that the variations are nothing alarming and they are only a natural variation or average when considered in totality. Due to certain industrial accidents occurred in the past, public sentiment is against nuclear energy and favour solar and other renewables over fossil fuels. The gradual reduction in the cost of generation of solar power and countries like India going for massive solar power projects indeed, is encouraging. There are certain concerns in promoting biofuels for reducing emission of greenhouse gases even as a transition alternative. The socio-economic and environmental dimensions of climate change are to be clearly unearthed and well brought out before narrowing down on a select fuel or energy resource.
While the COP21: Paris climate agreement depends mostly on commitment from national governments, the Trump administration’s negative approach citing US interests have slowed down the momentum of advancement towards sustainable use of energy. With the US retracting on the environmental agenda being pursued by the previous presidency, it is clear that business interests prevail over everything. The incoming Biden administration in the US is believed to have a perception to positively contribute to the global sustainability agenda. Here we also shall not forget the collaborative efforts under the Oil & Gas Climate Initiative (OGCI) of the oil and gas industry majors. Fast tracking e-mobility, producing green ammonia from water and renewable power, increasing digitization of manufacturing sectors, harnessing utmost energy efficiency, full scale recycle and reuse -all now-a-days, have seen a renewed effort and accelerated thrust.
Future Composition of Energy Mix
Post COVID-19, our ways of doing things and our outlook towards global issues and concerns are undergoing changes more than ever before. We have to define our future energy needs and decide on the kind of energy mix that is capable of meeting the needs with a positive impact on the environment. The current technologies supporting this requirement are low-carbon energy sources (wind, solar power, hydropower, biomass, nuclear, and geothermal), electricity storage solutions, smart grids, network interconnections, sector coupling, demand-side management and carbon capture sequestration and storage.
The energy transition of any society is a long-drawn-out process involving multiple stakeholders. During anytime the energy mix changed in the past, the interplay of such forces is evident. A gradual, but, time bound shift from fossil fuels to natural gas and hydrogen as transition fuels and to commercial nuclear fusion by the latter half of this century may be acceptable to all. This prescription looks very encouraging, but technologies for super grid power handling, construction of natural gas pipeline and other related infrastructure, establishment of techno-economic viability of hydrogen as a fuel and technology development of nuclear fusion have to be hastened.
India is currently using only 6 per cent of the world’s primary energy and the country’s per- capita consumption of energy is still one-third of the global average. Globally, India is the third largest consumer of energy resources, next only to China and the US . It is also the third largest crude oil importer and the fourth largest liquified natural gas importer in the world. India’s energy consumption is projected to grow at 2.5 to 3 percent per annum up to 2050, faster than all major economies and its share of total global primary energy demand is said to more than double by 2050 driven by economic growth. In this respect the Modi government has charted out an action plan to shift energy consumption mostly towards natural gas so that by 2040 the share of natural gas in the country’s primary energy mix to go up to 15 percent from the current 6 percent. According to BP Energy outlook 2020, under a business-as-usual scenario, the share of coal in India’s primary energy consumption is to decline to 40 percent from 56 percent, oil to drop to 22 percent from 30 percent, natural gas to increase to 10 percent from 6.2 percent, nuclear to increase to 3.2 percent from 1 percent and renewables to increase to22 percent from
3.4 percent from the consumption recorded in 2018. All the above, together with the efforts of the government and industry towards a higher order of energy use efficiency indicate substantial reduction in emissions from the present and a gradual transition to a low carbon future for the country.
*formerly Secretary to Chief Minister, Kerala and Chairman, Public Sector Restructuring & Audit Board, Kerala State. India + 91 9447154540, www.drmpsukumarannair.com
METTLER TOLEDO Launches New Top-Performing Balances to Fulfill Exacting Requirements and Extend Weighing Ranges
METTLER TOLEDO has announced a new top-performing and improved line of XPR analytical and micro-analytical balances, as well as launched the XPR106DUH. Proving its uniqueness in the market, the XPR106DUH allows weighing of smallest samples into heavier tare containers to promote ease, enhance throughput, and increase accuracy.
METTLER TOLEDO takes the next step in weighing evolution with the introduction of five new analytical balances, three new high-performance balances, and the unique XPR106DUH. These portfolio enhancements continue the METTLER TOLEDO tradition of imagining new weighing horizons that enable limit-busting laboratory applications.
Each new model extends METTLER TOLEDO’s flagship line. High-performance balance models XPR36C, XPR56C, and XPR226CDR bring improvements such as better repeatability at nominal loads, lower minimum weights, heavier capacities, and a larger fine range. Replacement models XPR36, XPR36DR, XPR226DR, XPR225DR and XPR225DU provide higher top-load performance at price points nearly identical to their predecessors.
While high-performance models push limits, the brand-new XPR106DUH closes the gap: Positioned to inhabit the space between analytical and micro-analytical weighing, this versatile balance offers a maximum capacity of 120 grams (41 grams in fine range) and a readability of 5 micrograms (2 micrograms in fine range). The ability to use less sample means a faster ROI, especially when substances are rare or costly.
New XPR models offer the hardware, software and feature highlights that operators have come to expect including statistical quality control. The significant change in these reliable five- and six-place balances is an increased maximum load at the same or better repeatability to provide the utmost in compliant, high-resolution weighing for industries such as pharma, biotech, and food.
Ultimately, improvements in the XPR portfolio mean a smaller number of weighing instruments can cover a wider range of analytical tasks. Discover how the new and improved 2020 XPR balance series can make your lab processes leaner, more accurate, and more innovative today.
Find out more on XPR balance portfolio and request for today.
For More Details, Contact:
Email– sales.sales@mt.com
Toll-Free– 1800 22 8884 & 1800 1028 460
Chemingineering – Suprahuman Operator
This month’s column examines how robots are being deployed in the chemical industry to ensure the health and safety of their workers. Robots not only eliminate exposure to hazardous situations but also deliver superior performance in tasks like inspection, cleaning, leak detection, and surveillance. The pandemic may have hastened the adoption of robotics, but the industry should wake up to the threat of job losses.
Robots are getting deployed increasingly in the chemical industry to perform a wide range of chores. They are used to enter confined spaces even when they are hot and filled with hazardous material. They are used for inspection and imaging in difficult to access areas. They are used for heavy-duty cleaning in highly toxic and corrosive environments. They are used for detecting leaks in harsh environments. They are used for patrolling difficult terrains. They are used to take the boredom out of routine and repetitive tasks. Robots can go where humans cannot. The chemical industry has started to exploit this suprahuman ability of robots to carry out difficult operations in unsafe conditions at a fraction of cost
and time. This also reduces plant downtime and prevents exposing plant personnel to unsafe and hazardous working conditions.
Catalyst Unloading
Robots have been developed to remotely remove catalysts and adsorbents from vessels in the chemical process industry. Catalysts are widely used in refineries and petrochemical units. Catalysts have a fixed life and need to be periodically replaced. As per one estimate, the industry spends 10,000 hours annually to unload catalysts. Many catalysts are pyrophoric and ignite easily when brought in contact with air. The conventional method of unloading is to send an operator inside the vessel to vacuum-up the catalyst using a hose. Since an inert atmosphere has to be maintained inside the vessel, the operator carries a breathing air apparatus along with him. Manoeuvring the heavy vacuum hose inside the hot confined space of a vessel, while wearing a protective suit and breathing apparatus is a challenge for the operator. Quite a few process safety incidents have been reported, some of them fatal.
An Australian-American company has developed a robotic catalyst unloading system. The device sits atop the catalyst bed and can be manipulated by the operator using a joystick and video camera. The robot has made catalyst unloading from fixed beds faster and safer by eliminating the need for an operator to enter a confined space under inert conditions.
Inspection
Robots are being used increasingly for inspection in the chemical process industry, as they offer significant benefits. Robots can have any form factor and thus go where humans cannot reach. They can crawl up tall stacks and columns even while they are in operation. They can be deployed for inspection in remote locations with harsh environments. For example – gas pipelines and valve stations. They can be equipped with sensors and cameras which can beam out information to experts located thousands of kilometres away.
Robots can be programmed to carry out repeated inspections continuously, thereby eliminating the inconsistencies arising from having multiple sets of human inspectors. Condition monitoring of assets that require inspection at specified intervals is best done by robots, as this will do away with human bias. Robots can stay anchored at a point for a long and this allows for multiple inspections and their comparison over a spread of time. Inspection robots will continue to improve with advances in sensor technology, motion control, and machine intelligence. An early column in this series (Eye in the Sky, February 2017) discussed how drones are being deployed for high-quality inspection. Robotic inspections are safer, faster, and are more precise.
Cleaning
Robots are revolutionising cleaning operations in the chemical industry. Robots needed mere 2 weeks to clean up a storage tank, a task that took 2 months for a human crew. The robots used remotely operated hydraulic jets to cut through the sludge and deposits built up on the tank floor and walls. Robots used lances that were far too heavier for humans to handle. The jet pressure was more intense and the toxic debris that were blasted out of the tank surface had no impact on the robots. Not only was the cleaning accomplished in a much shorter time, but it also consumed much less water and cleaning chemicals. Also, the debris and effluent were vacuumed out and discharged in a more environment- friendly manner. The robots did not have to wear elaborate PPE, nor did they require extensive training. Also, the robots did not require exiting the confined space of the tank every shift and cleaning themselves up.
Leak Detection
Gas leaks can happen in many industrial facilities and it is important to spot them early to protect people and assets. Fixed gas sensors can detect a leak but cannot precisely pinpoint the source. They also suffer due to the vagaries of the wind. A large number
of detectors would have to be spread over the geographical area to catch all leaks. A robotic gas leak detector solves all these problems. Fitted with smart sensors it prowls around the facility and can detect gas leaks soon after its onset. Robotic leak detectors are perfectly suited for cross-country gas pipelines that traverse through difficult terrain. Various kinds of sensors using multiple measurement principles have been fitted on the roving robots. Once they detect a leak, they will communicate their whereabouts wirelessly to the central control room. This obviates the need for human patrolling under harsh weather conditions.
Surveillance
Another area where robots have started to make inroads is in the surveillance and security of the perimeter of industrial facilities. Watchtowers with guards and cameras are giving way to patrolling robots. Robots are present 24×7 without getting exhausted or distracted and their unflagging attention to the task can never be matched by humans. Surveillance robots are equipped with thermal cameras and LIDAR and programmed to distinguish suspicious objects.
Epilogue
The COVID-19 pandemic has raised the general awareness of health and safety among people. In the post-pandemic world, businesses will be mandated to do more to ensure the physical and emotional wellbeing of their employees and robotics are likely to play an ever-increasing role in this.
Robots eliminate or limit exposure of the workforce to hazardous situations. Robotised operations are also efficient. They perform faster and their performance is distinctly superior to humans in operations like cleaning, inspection, surveillance, leak detection, etc. But robots have a serious flip side; they are taking away jobs. Experts predict that 20 million manufacturing jobs will be lost to robots by 2030.
Readers’ responses may be sent to:
k.sahasranaman@gmail.com or
chemindigest@gmail.com
Chemingineering- Virtual Commissioning
During the pandemic, dozens of chemical and allied plants have been started up remotely. One of the exciting tools that make this possible is the AI-based “Digital Twin”. This promises to become the new normal in the complex process of commissioning chemical plants.
The coronavirus exploited our natural propensity to socialise and wreaked havoc on our lives and livelihoods. Forced to stay apart and isolated from one another, we found ingenious means to collaborate and develop vaccines that will neutralise the virus. It is a triumph of the doughty human spirit over debilitating adversity.
The pandemic has destroyed time. Many activities of economic importance have been rudely grounded to a standstill. Some of these activities have resumed in fits and starts with many caveats and restrictions in place. On the other hand, human beings have displayed remarkable agility and adaptability to move many interactions to virtual platforms. We have become adroit in working, learning, and shopping while remaining confined within our homes. The pandemic has shrunk space and distance in ways that we have not imagined. Some of these tectonic shifts in behaviours are likely to be permanent as we have spotted huge economic benefits in them.
Plant Commissioning
Commissioning is the culminating step in a series of complex and interrelated tasks that constitute the establishment of a chemical plant. It is the event in a project that is most eagerly anticipated by the many stakeholders, none more than the investors who have risked their money and time in the endeavour. The enduring patience with which the different stakeholders have been expecting the products and profits suddenly appears to crumble on the eve of commissioning. It is replaced by anxieties and misgivings on the outcomes. Will the plant deliver the promised performance? A delay in commissioning has serious consequences, besides the mental health of the stakeholders. The altered cash flow adversely impacts ROI. The idling may shorten the plant life. There is a threat of a competitor grabbing the market share. The enterprise could suffer a loss of reputation.
Pre-commissioning
Commissioning, on the other hand, is not a process that can be rushed through because of external pressures. Before the commencement of commissioning, the plant is put through a series of rigorous pre-commissioning checks. These checks carried out by multidisciplinary
teams ensure that the start-up is safe. The pre-commissioning checks establish that the plant has been constructed and installed as per the design intent. The compliance with the design has to be near 100% and discrepancies, if any, have to be documented and accepted by all the concerned parties. This is an extremely tedious and time-consuming procedure. The plant’s innards have to be next flushed clean. Remnants of construction inside equipment and piping can lead to choking and interrupt the start-up process. Depending on the process, certain sections of the plant would have to be dried next. Moisture beyond the permissible limit will accelerate corrosion during the start-up and may even lead to catastroph- ic failure of hardware. Certain other sections of the plant will have to be inert to avoid an explosive atmosphere once hydrocarbons are introduced. There are many other preparatory steps – calibration of instruments, tuning of controllers, mechanical run of rotating equipment – to name a few, that need to be completed before the actual start-up can begin.
Commissioning Skills
The actual process of commissioning consists of introducing the raw materials into the plant and carefully increasing the pressure, temperature, and concentration to the prescribed levels to get the desired product. Depending upon the process this may occur in a matter of a few hours or few days. It is usually a step-by-step procedure fraught with risk. The parameters have to be scrupulously observed with hawkish attention to detail. The increase in pressure and temperature has to be ever so gradual because this would be the first instance of the plant hardware experiencing such a severity. This is also usually the moment when there is a high probability of the equipment failing catastrophically. A heightened sense of alertness is required to spot any abnormal behaviour and correct or reverse the course of action in the shortest possible time. At this juncture, the controls would not yet be in place and manual intervention would be required.
Commissioning supervisors must possess abundant experience in managing such situations. Also, they need two important skills – the presence of mind and communication.
Remote Commissioning
It is hence a matter of great astonishment that plants have been commissioned remotely during the pandemic lockdown. These are not one-off incidents. There are dozens of stories of remotely supervised plant start-ups across the world spanning the entire spectrum of the industry. A seawater RO desalination plant was commissioned in Saudi Arabia by a specialist team sitting in Madrid, Spain. The large turbomachinery train of a Nitric Acid plant in Uzbekistan was remotely started up from Germany. A Polylactic Acid plant was remotely commissioned in China by Sulzer. This is particularly interesting because it is not run-of-the-mill technology. An Australian company in the Food & Beverage sector has provided remote assistance for commissioning and operator training for a plant in the USA. A Bromine plant was commissioned in India by remote supervision from Germany. Remote supervision has been used to commission cement plants in Africa and Latin America. The list is quite impressive. What is even more interesting is that these technology providers plan to incorporate remote supervision of commissioning as the “new normal” in future.
Digital Twin
Remote supervision of plant start-up was achieved through a combination of hardware and software. Additional CCTVs were installed in the plant and hooked up to large screens in a virtual control room located thousands of kilometres away from the plant site. In some instances, the remote supervisors were even given access to operate and control the plants from their virtual stations. An interesting innovation is providing cameras on helmets which allow the remote supervisor to virtually view and listen to what the operator in the field does. But the most exciting development is the use of Digital Twin technology. A “digital twin” is an exact virtual replica of the real plant. Data from the real plant is captured in real-time and used for simulation in the virtual twin, located oceans away. It is still a work-in-progress, but a mindboggling prospect.
Silver Lining
The exigency of the pandemic has given birth to many new practices. Some of them will take roots and not go away even when the pandemic does. Virtual Commissioning could be one of them because it has several advantages.
The Commissioning specialists are a relatively rare breed and many a time plant start-ups have been delayed due to their unavailability. Other times they are summoned too early to the site because of faulty planning and the customer incurs their high per-diem charges. This will be history when Virtual Commissioning becomes the norm. Also, the experts, who
are older people, need not be away from home for long times and expose themselves to risks. This could be one of the many slivers from the silver lining of the pandemic.
Readers’ responses may be sent to:
k.sahasranaman@gmail.com or
chemindigest@gmail.com
Chemical Industry Digest – November 2020
Plant Decommissioning – How to Decontaminate, Dismantle and Decommission Process Plants
There could be many reasons for decommissioning a plant. Safe precautions have to be followed and also what to salvage from the plant studied. This article describes the 3D’s –
Decontaminate, Dismantle and Decommissioning of process plants and describes a step-by-step method.
Cybersecurity Implementation in Process Industry Automation System
– Hemant Kumar J. Patel, Senior Design Engineer, Fluor Daniel India Pvt. Ltd
Highly automated and digitalised chemical plants are operated and controlled by automation systems. Being software driven these systems are vulnerable to cyber attacks. Hence cybersecurity systems need to be installed to protect the plant operations. Read all about such cybersecurity systems.
Innovations in the Heat Resistant Coatings Industry to Drive Accelerated Growth
– Muralidhara K Shenoy – Country & Commercial Director, Huntsman Advanced Materials Europe, Middle East, Africa & India Region
Heat resistant coatings have wide ranging applications and hence find use in a wide range of industries. As the name indicates these are ideal for equipment exposed to high heat. The author describes different types of heat resistant coatings and their innovations in this article.
Out of the Box – Solutions to Industrial Problems
– S Raghava Chari, Industry Consultant
The author has provided various solutions related to real-life industry problems he found in his 45 years of operational experience in process plants. In this feature, problems related to butterfly valves, flowmeters, pumps, etc. are covered.
Chemingineering – Virtual Commissioning
– K Sahasranaman, Independent Consultant
COVID-19 has led to find ways to work digitally and remotely. Commissioning of chemical plants is one such important function that is benefiting from digital technologies. Employing AI based tools like Digital Twin make it possible to commission plants, virtually and remotely, which is fast becoming the new normal. Our columnist elaborates on virtual and remote operated plant commissioning with many actual examples.
Indian Speciality Chemistry is Poised for Prominence at a Global Stage
Introduction
The ability to create new and specialized forms of chemistries to address a wide range of applications through frugal engineering, strong consumer understanding, and world-class R&D, backed by a large pool of highly skilled engineers and scientists of high calibre, India is very well poised to play an important and bigger role in the global specialty chemicals industry.
The $800 billion global specialty chemical market that has been growing at a CAGR of around 5.7% over the last five years is expected to keep the growth momentum at around 6% and become a $1 trillion market by 2025. Specialty chemical is a part of the larger global chemical sector that is today valued at around $4 trillion, which has grown at a CAGR of around 4% between 2004 and 2018.
Today, the global chemical sector is dominated by China with a market share of around 35% followed by Europe and the US with a share of around 20% and 15%, respectively. So far India has been an emerging player in this global chemical sector with a market share of around 3%. However, within the global chemical industry, specialty chemicals are emerging as a major vehicle for growth, particularly for Indian manufacturers that are expanding both products and capacities over the last few years.
What are the specialty chemicals?
The world of chemicals can be broadly classified into two large categories — basic and special. Basic chemicals are essentially commodities that are manufactured at a large scale to cater to a wide range of applications and/or global demands. These are generally considered relatively lower in the value chain and find use in everyday life such as fertilizers or base detergents etc. Specialty chemicals on the other hand are compounds that are low volume but very high-value chemicals, created by a combination of two or more chemicals or value extracted from one of the commodity chemicals, and these address specific needs such as agrochemistry, personal care ingredients, water chemicals, construction chemicals, pharma intermediates or enhancing the bio-availability of nutrients in food ingredients, etc.
On a gram to gram comparison, specialty chemicals deliver more value for the producer and consumer. For example, zinc oxide in its basic or commodity form has multiple applications such as paints, cosmetics, foods, etc. The same compound produced in its micronized form becomes nano zinc oxide that has special applications with its antiviral and anti-fungal properties and therefore fetches much higher value. While zinc oxide is sold in the market for anywhere between Rs 250 and Rs 500 a kilogram, in its nano form (nZnO) its value can go up to Rs 3500 to Rs 5000 a kilogram, given the sharp differentiation that Science and nano-
Technology delivers, depending on its application.
Globally, specialty chemical has been growing at 5.7% CAGR over the last five years and is an $800 billion industry and is expected to grow at around 6% and become a $1 trillion industry by 2025. Today China, backed by technology, innovation, and massive production capacity is the leader in this sector. For the last two decades or so, China has grown in the specialty chemical industry from a global market share of just 6% in 2000 to 35% in 2019.
India, the rising star
With a total value of around $32 billion in turnover, specialty chemicals constitute around a fifth of the larger Indian chemical industry that valued at around $163 billion as of FY18.
According to recent market research, this segment of the Indian chemical industry is expected to double to around $65 billion over the next five years by growing at around 12% against mid-single-digit growth of the global market around the same period.
A recent research report by ICICI Direct, the growth from the domestic specialty chemical industry would largely be addressed by sub-sectors like agrochemical, surfactants, aroma chemicals, plastic additives, water treatment chemicals, etc.
The optimism around the growth potential of the Indian specialty chemical sector is grounded on several tangible factors:
a) Low-cost manufacturing base
The lower manufacturing cost, impressive process engineering skills, and the abundance of killed engineers are now propelling India to emerge as a major player in the specialty chemical industry. That apart, India is also an export-oriented country and is growing faster than other countries in this space.
b) Strong domestic market
As the world’s second most populated country, the domestic market itself is a strong growth driver for specialty chemicals in India, both in terms of volume and value. In many ways this is very similar to what China had experienced over the past two decades thanks to the growing disposable income, rapidly increasing urbanization, and growth in consumer sectors such as paints, textiles, adhesives, and homecare products.
c) Strong depth in R&D
Success in the specialty chemical industry is largely dependent on R&D (leading to innovation). A lot of this is happening in Europe and the US, but at a very high cost. The ability of India’s frugal engineering, combined with the amazing mind of scientists here and in no small measure linked to the government-funded institutions of national importance like CSIR labs has created a broad-based skill pool in the country which we can tap into to able deliver better and sharper value in R&D and innovation.
d) Sustainable chemistry
This is another unique strength that India has and can be the magic sauce that can differentiate us in the global specialty chemical industry. While the world is jogging in this direction, India has the skills and capabilities for the marathon to deliver ‘green chemicals’ capable of delivering value in the form of long-term sustainable chemistry solutions.
Success within the specialty chemicals segment which is directly tied to finding new applications largely depends on the R&D spend of key players in the market. In fact, the success of China that has seen it emerge as the world’s largest source of specialty chemicals is also due to its massive investment in R&D. Between 2008 and 2018, the annual R&D spend by China jumped nearly fivefold from Euro 2.5 billion to Euro 11.8 billion, that led to its higher share in exports from 8 to 13%, while exports from other major markets like EU, US and Japan dropped. Between 2008 and 2018, the R&D spend by Indian chemical companies also doubled from around Euro 700 billion to Euro 1.4 billion, though the share of global exports remained stagnant at 2%.
Driven by application
The growth and diversification opportunities of specialty chemicals are mainly driven by increasing applications in daily lives both for industrial and consumer sectors. Specialty chemicals are finding vital applications in primary sectors including agriculture and animal nutrition and also in construction, food & nutrition, glass, high-performance rubber, metals, oral care, cosmetics, paints, inks and adhesives, pharmaceuticals, soaps & detergents, textiles & leather, lithium-ion, dry cell, and other batteries.
Within the larger chemical sector, and in terms of volume, specialty chemicals (compared to commodity or basic chemicals) account for a relatively smaller share of the pie. The wide range of possible applications is what makes specialty chemicals a much-sought segment by large manufacturers across the world. This is also the reason why chemical manufacturers are willing to invest a significant part of their budgets in research and development, which again focuses on new and exciting applications across both agricultural, industrial, and consumer markets.
The role of specialty chemicals in agriculture addresses two basic needs which are higher productivity or yield and better and more effective crop protection. In traditional agrarian economies like India, due to the indiscriminate use of irrigation water and fertilizers, a large part of the country’s agricultural land has become degraded. The use of micro-irrigation techniques and fertigation is the only way to manage these resources efficiently. Chemical manufacturers today can offer a range of specialist solutions which provide micronutrients and growth inputs for a healthy crop.
Similarly, refined sodium bicarbonate is ideally suited for poultry feed and diet for dairy animals. It is of particular value as a non-chloride source of sodium in poultry diets.
Bicarbonate is also essential for strengthening eggshell quality under intensive production systems. When added to diets for dairy animals, sodium bicarbonate effectively counters the acidity of silage and cereal-based concentrates, maintaining feed pH at its optimum level.
India is also a large market with high growth potential in the crop protection industry that is backed by its diverse agro-climatic conditions and impetus to grow agricultural productivity.
India’s capability in low-cost manufacturing, availability of technically trained resources, seasonal domestic demand, overcapacity, better price realization, and a strong presence in generic pesticide manufacturing are the major factors that are boosting the growth of crop-care chemicals.
A decade ago there was a growing demand to replace organic UV blockers which are widely used in paints, cosmetics, and various applications. However, organic UV blockers suffer from harmful side effects and poor durability when applied to other materials. Developing zinc oxide as an effective alternative came out of this inheritance and emerging demand. Out of this came the need to create a version of zinc oxide which retains its primary properties but can be used in applications like paints, polymer, cosmetics, etc. This led to the creation of nano zinc oxide (nZnO), which is today finding critical applications as an effective coat on face masks and other personal protection equipment in the global fight against COVID-19. The demand for nZnO is also rapidly expanding into new applications including textiles that come with a pre-coated protective layer of this specialty chemical.
Today we also have specialty grade silica that can be used in coating applications with improved rheology control and high-performance properties such as matting effect, improved surface finish, abrasion-resistant. It can be used in epoxy resins and adhesive application as thickening agent & rheology modifiers, and also help improve abrasion resistance and mechanical strength of end applications. Silica works as an excellent reinforcement filler for paper pulp, coating additive for surface smoothness which imparts stability of printing inks on papers.
Specialty chemicals are the new IT
For many years, the focus of manufacturing in India has largely been around manufacturing sectors like auto, steel, etc. linked to nation-building that was also largely focused on domestic consumption. For example, if real estate was booming all the applications were also focused on real estate e.g. – steel, cement, etc. Now over the last few years, we are focused on making India the hub for manufacturing for the world, born out of the Make in India mission.
We have also realized the need to broad-base our capabilities and become a manufacturing hub for a wide range of products and services. This three-decade-long trajectory has taken us from becoming a centre for manufacturing excellence in auto, steel, etc. to financial services, ITeS (IT-enabled services), etc. Today we have realized that we have reached the saturation point in these industries and therefore the need to look at new sectors like specialty chemicals that offer huge potential for reasons stated earlier.
Over the last decade or so, a few large chemical companies in India have already committed serious capital in multi-location R&D/innovation centres and capacities. New opportunities are also emerging for CRAMS (contract research and manufacturing service) for Indian companies which are backed by the desire to lower our dependency on imports, particularly chemical intermediaries. Agrochemicals, consumer durables, APIs (Active Pharmaceutical Ingredient), and pharma are some of the large consumers of specialty chemicals that will provide huge opportunities for the Indian chemical sector both within the domestic and global markets (exports). If India continues to invest in R&D/innovation and capacities at a global scale powered by a relatively lower cost of manufacturing, the specialty chemicals business is perfectly poised to deliver what the IT/ITeS sector did over the last three decades.
Chemical Industry Digest – October 2020
The Role of Catalysts in Single Pot Synthesis of Chemicals
– Dr. N. Lingaiah- Senior Principal Scientist, Co-chair of Dept. of Catalysis and Fine Chemicals, CSIR-IICT, Hyderabad
Single pot reactions are becoming more and more established, but for the success of the reactions, catalysts play a major role particularly the use of highly selective multifunctional heterogeneous catalysts, says the author. Several industrially relevant examples are described.
Modern-Day Approach to Monitor Utilities Performance Achieving Operational Excellence
– Rohit Shukla- Manager-Technical Services at Chambal Fertilisers and Chemicals Limited Utilities guzzle lot of energy- and energy costs are going up. With latest instrumentation the performance of all utilities can be continuously monitored, trend analyses made and their operations optimized for efficient energy use. This article details the steps for tracking utilities performance.
Indian Specialty Chemical Industry is Poised for Global Prominence
– Dr. Richard Lobo- Head-Innovation & CQH (Business Excellence), Tata Chemicals
Highlights the advantages India has in the manufacturing of specialty chemicals and therefore according to the author this industry is poised to double to around 65bn $ in the next five years.
Cascade Reactions and their Utility in Green Organic Synthesis
– Gayatri M. Walvekar, Prof. Dr. Shreerang Joshi
Cascade reactions or single pot reactions have significant advantages over conventional multi-step processes because they are both economically and environmentally efficient. The article illustrates these advantages with several examples.
Are You Adequately Testing Automated Valves?
– Stan Hale, Loyd Hilliard, Vince Mezzano
This article explains in detail the update on technical report pub-lished by the ISA working group in late 2017 over that of 2008 on the testing of automated valves. This update details various measurements, analyses and criteria used for testing as well as 48 different categories of common causes of failure of automated valves- all of which would help operating companies while testing.
Solids-Handling Valves
– S. L. Abhyankar
Solids-handling valves maybe a minor percentage of the overall turnover of all valves but they are crucially important in transportation of solids. They are equally challenging to design, manufacture and operate due to the diverse characteristics of solids needed to be handled. An exploratory study by the author
Out of the Box- Solutions to Industrial Problems
– Raghava Chari
The author has provided various solutions related to real-life industry problems he found in his 45 years of operational experience in process plants. In this feature, problems related to heat exchangers, transformers, TEFC motors, etc are covered.
Chemingineering – Something Special
– K Sahasranaman, Independent Consultant
This column succinctly defines, describes and analyses the specialty chemical business, particularly the role it plays in multifarious end-used consumer areas.
Advertisement
Newsletter
Subscribe to our FREE Newsletter & Stay Updated
