Industry 4.0, with its suite of digital technologies, is creating unprecedented buzz in the industry. Industrial Internet of Things (IIoT), Data Analytics, Machine Learning, Artificial Learning and quite a few more, all have implication to disrupt existing manufacturing and business models, drive productivities and profitabilities beyond what was thought possible earlier and open up entirely new opportunities. Process activation companies have been in the forefront of providing such technologies. Chemical Industry Digest sought these views from Sajiv Nath, Managing Director of Yokogawa India- a leading electrical engineering and software company, which are reproduced below.

Sajiv Nath is Managing Director of Yokogawa India Ltd. Prior to Yokogawa, he has worked as Managing Director at Endress+Hauser, India. He completed his engineering in Industrial Electronics from College of Engineering, Pravaranagar and then pursued Masters in Financial Management from K.J. Somaiya Institute of Management Studies and Research.

Chemical Industry Digest (CID): As you know the suite of digital technologies comprising of IIOT, AI, Machine Learning, Data Analytics, Advanced Robotics is expected to take the oil & gas, hydrocarbon and rest of chemical industries to the next paradigm. In what all ways is it going to impact these industries? What in brief are the benefits to these industries? Would this be disruptive as it is made out or would the incorporation bring in changes only incrementally?
Sajiv Nath (SN) : The industry is going through a paradigm shift. Not only the ones mentioned above but all industries and even our personal lives will be greatly impacted with Digital Technologies, rather Digital Transformation, if we can say so.
Digital transformation will enable to monitor the performance rate of the assets continuously and analyse Big Data by using latest AI in devices and platforms and thereby providing instant and accurate information that supports and accelerates the decision making process.
In today’s highly competitive world, each company has to strive to increase productivity with increased level of compliance. Quick and right decision making is the key to sustain in such regime. Digital Technology offers companies the right tools to deal with these challenges.
In Industry perspective, Digitalization means convergence of Operational technologies with Information Technologies. At present the decision support at centre of excellence or decision making at Business Head Quarters are not necessarily connected with plant-level reality on real-time basis. Digital transformation aims to connect the entire business process. Silos have been big deterrent in productivity. In a connected process, silos are bound to disappear, making decisions more accurate and effective.
Digital transformation will encompass the entire business process -right from automation of more processes to realizing SMART manufacturing to optimizing supply-chain leading to improved decision making, creating new business models and greater revenues.
Answering to the question whether there will be any disruption, we feel it will be incremental. Apart from technology , successful Digital Transformation, like any other transformation processes need the buy-in from the people. It needs cultural change and mindset change. First is willingness to change which will be followed by capacity to change.
We also need to understand that it will not be a replacement of the assets you have , rather it will be aimed to extract more values from what you have , by de-bottle necking the process and through change of culture of people. Data and quality of Data is also a challenge which will slow down the process of Digitalization.

CID: Are these technologies more suited for asset-intensive and complex industries like oil & gas, refineries, petrochemicals, etc. or also for mid-sized industries like drugs & pharma and other fine chemicals?
SN:The same or similar questions came to everybody’s mind whenever a paradigm shift has been around the corner. The benefits of Digitalization are for every industry to grab – scale will of course be different. For large industries, it is more essential, simply because of distributed activities. Complexity of the projects are being addressed by the OT side of the equation . That will be continued, however will be supported by the Big Data , Data Analytics and IIoT.
However, the areas of impact and improvement can differ. For example, for Pharmaceutical industries , supply-chain , R&D can be immensely benefited from Digital Transformation.

CID: How should hydrocarbon and other chemical companies go about implementing the digital transformation of their companies through these technologies? Where should they start and how should they sequence the digitalization? What are the challenges according to you in its implementation?
SN: Not an easy question to answer. Challenges are many and more company specific than industry-specific.
All parties need to work very closely with each other – user, financier , decision-makers, solution -providers need to understand the challenges and opportunities. I would think co-innovation is the only way to be successful in such projects.
Industry has crossed the level “whether to go for Digitalization or not”. Industry headwinds like volatility and cost pressure have forced Industry to think beyond process de-bottle necking. Capital efficiency, Resource Efficiency as well as Asset Efficiency have been of utmost importance to tide over such volatility, and Digital implementation is the answer. Industry has understood.
Now challenges are in terms of quality and large varieties of existing assets, availability and quality of data , fear of loss of investment, mindset , data security and many other. Investment and profitability are also significant consideration. Establishing ROI is making the things little more difficult for decision makers.
Maturity level are at different levels across the industries across demography.

CID: What functional areas would it benefit the most: process optimization & production, maintenance, environment & safety, supply chain, R&D…?
SN: Entire business process will make a positive impact with co-innovation. Aim is to achieve Resilient Operation ,Optimized Production and Business Innovation.

CID: Can these technologies be retrofitted on existing IT and automation platforms? Or would it need a total to revamp? What about the investment and payback period?
SN: The target is to get maximum out of existing assets and protect the investment. In certain cases or for certain assets , mainly on OT side , retrofitting to a limited scale will be possible. Payback period will largely vary on the present plant condition, scale and digitization proposal – at elementary level or at enterprise level.

CID: With the enormous amount of data being collected due to IIoT, machine learning etc and the need for data analytics, can such data be managed internally (within the companies) or externally through the cloud? And if so, what about cybersecurity issues?
SN: Cloud is an essential part of the Digital Ecosystem. And yes, cybersecurity is also a big challenge. Many companies , including Yokogawa are constantly providing solutions to ensure data security. Even without Digitization, cybersecurity has been a concern. It may lead to market manipulation , device sabotage and even plant destruction. There are quite a few such incidents across the globe. So with or without Digitization and irrespective of industry segments, companies need to follow certain guidelines like isolate the web-facing system from OT/ICS , establish and enforce a “least privilege” culture across IT systems and many others.

CID: How can one allay fears that AI and large scale digital transformation would lead to many unintended consequences as well as make a lot of human resources redundant? And also how can the need for skilled manpower for digital transformation be addressed? Would reskilling of existing manpower help?
SN: Like for any transformation, some skills will be outdated with Digital transformation as well . So, I would state it as an “outdated skill” than “redundant manpower”. As long as reskilling initiatives are taken by industries and people show motivation to learn on the go , it will be a smooth transition without any unintended consequences. Good part is that the skills required for Digitization are related skills . I would like to add that it will cause much less disruption than what was caused by the advent of computers. Change of mindset and action on time – both at decision-making level as well as working level are the keys for smooth transition. Digitization is here to stay and faster we accept the reality, better it is for the industry ,as a whole.

There is worldwide condemnation of plastics due to the accumulation of used and discarded plastics materials in our seas, oceans, rivers, on land- in fact everywhere- choking our ecosystem. The situation is worse in countries like India where the ‘throwaway anywhere’ nature is widespread among people and therefore in India too there is virtually a powerful movement against plastics- mainly single use plastics. From the Central government to State governments legislative actions are being taken to phase out single use plastics.
In this very timely interview, the Founder and Managing Director of Nova Institute who himself is a strong advocate of bio-based and CO2 based economy clears many misinformation on plastics.
Svenja Geerken, Editor, Biobased News interviewed Michael Carus, who says that there are no other materials as of now that offers the kind of versatile properties that plastics provide. The problems associated with plastics are real, he says, but can be solved. The solution is to make plastics sustainable, which is possible. The interview reproduced here, tells you a different story on plastics.

Michael Carus (MSc) (Germany) physicist is founder and managing director of the Nova- Institute. He is working for over 20 years in the field of Bio- and CO2-based economy. He is actively involved in building networks in the fields of agricultural and forestry resources, bio-based chemicals and materials (bio-based polymers, plastics and biocomposites) and industrial biotechnology and biorefinery. He is a member of many societies, associations and international organisations. Carus is consultant on policy in different countries in Europe, Asia and America.

Svenja Geerken, Editor, Bio-based News (SG): Currently, plastics are under great pressure. But you still seem to like plastics?
Michael Carus, Managing Director-Nova Institute (MC): Absolutely. There are no other materials that have such a broad spectrum of properties and can be brought into any conceivable form with the greatest efficiency. In addition, plastics perform better than other materials under most sustainability criteria. This is due on the one hand to the high production efficiency already mentioned and, for example, to their low density with which they can score points in transport. In addition, product properties can often be achieved with much less material input.
SG: So everything is actually good and the current plastic hysteria lacks any basis?
MC: Not at all! There are significant problems, but all of them can be solved and must be solved urgently. It is estimated that around 20% of the plastics produced worldwide end up in the environment uncontrolled, that is 60 million tonnes per year, of which around 8 million tonnes end up in the sea. The rest remains on land in soils, lakes and rivers. This is completely unacceptable. The other problem is the use of fossil carbon as a raw material that escapes into the atmosphere as CO2 at the end of life. This also has no future, the entire chemical industry must switch to renewable carbon – which can come from recycling, biomass or CO2.
SG: According to a recent survey, almost 80% of Germans consider plastics to be harmful rather than indispensable. Can we really solve these problems or should we not switch to other materials?
MC: But to which ones? The reserves of metals are limited and mining often takes place under inhumane conditions. And minerals? Sand for cement is already becoming a scarce commodity worldwide. In the future, we will no longer be able to build our houses from reinforced concrete, as we do today, but rather from plastics. Because their raw material carbon is practically unlimited: As CO2 in the atmosphere, which we can be made usable with the help of renewable energies or as biomass. That is enough raw material for the next millennia. This is the reason why plastics will gain importance and the age of plastics has only just begun. And this is precisely why plastics must become sustainable as quickly as possible and regain a good image.
SG: And who bears the main blame for the whole dilemma?
MC: The chemical and plastics industry, which has systematically tried to sweep problems under the carpet and sit out instead of actively pointing out and solving the problems. As one should expect from a crucial future industry!
SG: What are the mistakes that were made?
MC: The microplastic problem has been well known for at least ten years, which was when the Austrian documentary film “Plastic Planet” was first shown. But the industry acts according to the motto: ignore it, do not talk or write about it, just sit out the problem. The considerable quantities of plastic waste, which are also released into the environment in an uncontrolled manner in the European Union, are systematically missing from the plastic statistics. For decades, bans on hormone-active plasticizers were prevented. Eyes were closed on the large-volume plastic waste exports to developing countries, which count as material recycling. Every expert knew what really happened to the plastics. In the European Union, less than 10% of waste plastics are recycled into new plastics. Thermoplastics can be recycled very well if collected in their pure form, better than most other materials. Instead of tackling the actual problems, it was perceived only as “communication problems”.
And when the plastics industry is asleep, they should not be surprised if the EU Commission and the national environment ministries now take matters into their own hands. The recently adopted plastics strategy, including restrictions and bans on certain disposable plastic products, is the consequence of this behaviour.
SG: And are politics doing better than the industry now in tackling the problem?
MC: I’m afraid not. Of course, there are some sensible measures being taken, such as the ban on oxo-degradable plastics, which decompose particularly quickly into microplastics. However, the “single-use ban” is a purely symbolic policy and a bad one at that, which will have little effect, but will heat up the plastic hysteria, pronounce unnecessary product bans and leave the field to worse materials – without affecting the real problems at all!
There would be a number of measures that would make a real difference on a large scale: Plastic waste export bans, landfill bans, mandatory deposit for all plastic bottles for all types of beverages, a ban on the intentional use of microplastics and increased use of high-quality polymers instead of composite systems, as these are easier to recycle (Design for Recycling). Plastic waste could be systematically collected and recycled worldwide. A global standard for the biodegradation of certain polymers could reduce risks in case that leakage into the environment is unavoidable. And finally, a clear concept is needed on how to move from fossil to renewable carbon by 2050. Or would the plastics industry like to be pilloried in 2050 as one of the largest and last emitters of fossil carbon? As an industry of the future? A photovoltaic area of only 1% of that of the Sahara would suffice to supply the entire chemical industry with renewable carbon – via solar hydrogen and CO2 from the air.
SG: What is so bad about the single-use ban, aren’t many products really pointless or can they be better substituted by other materials?
MC: What is worse about a coffee plastic stirrer than a wooden stirrer if it is properly rinsed or disposed of? Nothing. On the contrary. Due to its efficient production, the plastic stirrer should have a lower carbon footprint and can be materially recycled. The plastic stirrer can thus be turned into a plastic stirrer again. This will not be possible with the wood stirrer – unless plastic helps to bind the wood particles. This is just one example among many.
If one does not want to switch to ecologically worse materials, the single-use ban of plastics is practically equivalent to product bans. Do we want an eco-dictatorship? A race for bans? One person thinks straws, the other balloon holder or coffee capsules are unnecessary – in the end we will all miss many products. Wouldn’t it make more sense to respect the needs of the people and find the best materials and end-of-life options that have the least environmental impact? In many cases, these are already plastics today – whether PET bottles, shopping bags or packaging that protect food – and all the more this will be the case for future plastics based on renewable carbon, either from mechanical and chemical recycling, biomass or direct CO2 use.
The single-use ban fuels the plastic hysteria, but it’s not plastics we should do without. The aim is to quickly turn plastics into a truly sustainable material solution and set up comprehensive disposal and recycling systems that minimise the risk of plastics entering the environment and causing microparticles. Given the raw material situation, we have no other option. And consumers will learn that more sustainable plastics will be more expensive, but already today almost half of German consumers are willing to spend more money on sustainable products.
SG: And this will succeed?
MC: I’m an optimist. The plastics industry can emerge from the current crisis new and strengthened like the Phoenix from the ashes – if it now does its homework and consistently tackles and solves the problems, and finally understands that they are not communication problems!
In the meantime, the first, long overdue steps have been taken: around 30 leading chemical companies that operate along the value chain worldwide have organized themselves in the “Alliance to End Plastic Waste (AEPW)” and intend to invest around 1.5 billion dollars over the next five years to promote projects for waste management, the circular economy and new recycling technologies.
Manufacturers of consumer products are finally beginning to produce their packaging from 100% recycled material and make it fully recyclable. The targeted collection of plastic waste is also starting with its first projects. In Haiti, for example, the inhabitants collect plastic waste, and this year the amount is expected to reach 300 tonnes. In return, Henkel provides benefits in kind such as charcoal for cooking, vouchers for children attending school and the opportunity to recharge their mobile phones, or simply cash. A good idea to buy collected plastic waste as a raw material. That should set a precedent all over the world.
SG: Thank you for the enlightening conversation.

– Republished with permission from Nova- Institute. All rights reserved