What role should the supply chain play?

The European petrochemical sector faces a challenging outlook with weak margins due to overcapacity and high energy costs, impacting its competitiveness on the global stage. The situation is further impacted by the continent’s largely aging sector infrastructure, with market intelligence experts ICIS stating that European crackers are, on average, 45 years old.

This figure is twice that of the Middle East and three times that of China, which ably demonstrates the pressure on refinery managers to find a way to compete with more limited resources and higher production costs. In this situation, the importance of effective turnarounds is clear, as upgrade and maintenance works become increasingly pivotal for Europe’s petrochemical industry.

The turnaround process is undoubtedly complex, requiring a mix of strategic, ongoing and short- and long-range planning, as well as the ability to adapt during the pre-turnaround phase and while executing the turnaround itself. This difficulty is exacerbated by the fact the global chemical industry is facing acute labour shortages, with a study by Accenture suggesting that 30% of the sector’s employees are over 50 years of age and likely to retire in the next decade or so.

Aggreko, for instance, aims for a consultative and holistic approach through its Aggreko Process Services (APS) team that begins at the initial planning stage, and continues on throughout the turnaround and into a post-project review. With extensive end-to-end experience across thousands of successful projects, the APS team can provide invaluable insight into opportunities for proactive improvement at all stages of the turnaround. By advising earlier on in planning phases on how best energy and other utilities can be procured in line with turnaround schedules, they can also reduce workloads for stretched, under-pressure refinery managers.

This can be seen in choices such as opting for transformers over generators when powering critical equipment during the turnaround. This preference – based on extensive petrochemical and refining experience – is driven by the fact that transformers can be used to increase or decrease voltage to match varying system requirements. Whether an islanded package to load test or power provision as a distribution transformer, such models are often large enough to replace the need for a generator, minimising carbon emissions and allowing for greater cost savings.

The same extends to leverage expertise around rightsizing generator fleets to match specific plant power demands or implementing automated load-on-demand systems to accommodate fluctuating demand, switching engines on and off depending on energy requirements. Alongside making pronounced cost and emissions savings, efficient use of these power solutions could reduce overall turnaround times, saving millions while freeing up valuable time to complete other turnaround processes.

Sustainability is another key aspect that must be addressed during planned turnaround periods. As European industries transition away from fossil fuels in line with 2050 net zero targets, it is crucial that greener practices are implemented wherever possible. However, balancing decarbonisation and commercial concerns remains a pressing topic. For example, a recent Aggreko report, ‘Rebalancing the Energy Transition,’ which surveyed 400 European CEOs working in high-energy industries including the petrochemical sector, found that 95% of respondents had changed their timescales for net zero in light of recent energy supply and pricing issues. This demonstrates a difficult situation which has persisted over the past few years, with a 2023 Accenture survey showing that 60% of chemical industry executives could not afford investment in decarbonisation in the current economic climate.

With the sector’s economic climate remaining similarly rocky, it is incumbent on the supply chain to demonstrate that sustainability and commercial viability are not mutually exclusive – especially during expensive and time-consuming turnarounds. Indeed, Aggreko’s investment in Stage V generators and battery energy storage systems through its Greener Upgrades initiative complements its consultative approach to turnaround projects, allowing the APS team to demonstrate how emission and cost reductions can be made simultaneously. The company’s generators can also run on a range of biofuels including HVO and B100, which can be used as drop-in fuels to significantly reduce emissions while powering the turnaround process.

In a petrochemical plant environment where identifying improvements is vital, ingraining the possibilities of greener technologies from the start is more likely to result in a virtuous circle of best practice and best results. But for this to truly be effective, a change of mindset must occur, with turnaround planning times measured in much longer timescales and supported by supply chain expertise.