Introduction
The UK chemical manufacturing industry faces a balancing act. While many plants adopt an ‘always on’ model to production to maximise yields, these sites are confronted with high energy prices and a need to decarbonise.
These objectives may seem diametrically opposed in a sector that has faced strong headwinds since 2020, contracting by almost 10% in 2023 alone.1 The sector’s recovery has travelled a rocky road, with the Chemical Industries Association (CIA) stating that the industry’s output is 23.2% below pre-COVID levels.2 The CIA are similarly gloomy about the future, suggesting that further contractions should be expected this year and only marginal improvements in 2025.
Considering that the UK’s industrial energy prices are 60% higher than their EU competitors British chemical firms are at a continuous disadvantage that must be mitigated.3
This is clearly a difficult situation, but it is a challenge chemical plant managers must overcome if they are to remain competitive while reducing emissions in line with net zero legislation. To the industry’s credit, it is highly aware of its key role in helping the UK decarbonise. For example, the Chemical Industries Association (CIA) has previously commented on how chemicals are essential components to the energy-saving products required to reach carbon neutrality.4
As the CIA has also pointed out, a transition to net zero chemical production could have a huge impact on global decarbonisation efforts. The question, therefore, is how this can be best achieved while energy prices remain stubbornly high. More efficient generation technologies may offer a way forward.
Skills for Recovery
The use of backup generators and UPS power supplies suits a sector where the ‘always on’ approach is key. However, the use of fossil fuels to power a wide range of equipment – including industrial chillers – can lead to a correspondingly large carbon footprint.
Greater expertise around manufacturing HVAC and backup power equipment will be required to reduce emissions. However, skills shortages also continue to dominate sector discourse, with the Chief Executive of the Chemical Business Association (CBA) citing them as a major issue impacting the sector’s long-term sustainability.5In such circumstances, it is easy to see how knowledge gaps may begin to appear in the industry workforce. To mitigate this, it is vital that sector stakeholders leverage expertise within their existing supply chains. The technology behind the generators and HVAC equipment used in chemical plants is evolving at a rapid pace, and plant stakeholders must remain aware of what is available if they are to effectively decarbonise.Sourcing Suppliers
Yet awareness of the latest product designs and technological expertise only solves part of the issue. In a sector experiencing a downturn, capital expenditure budgets may not be sufficient to purchase the required solutions.
But while the need to do more with less may limit movement in some areas, it can open up opportunities in others. Specifically, strategies based around generator hire and the temporary procurement of HVAC systems can remove the financial barriers associated with permanent installations. Access to the latest power generator and chiller system technologies and processes on a hired basis can help these decisionmakers reduce plant energy consumption, costs and emissions.
But for this to be as effective as possible, it is essential that petrochemical companies source suppliers that can offer a wide range of power and temperature control solutions, and easily accessible expertise. Supported by its various sector experts and skilled engineers, Aggreko can provide sector stakeholders with flexible and scalable power and manufacturing HVAC solutions.
Greener Upgrades
The company’s investment in its fleet and new technologies means it can deliver sustainable, bespoke solutions to the chemical sector. Combined with the consultative approach and specialist knowledge of its personnel, Aggreko supply high efficiency temporary equipment to supplement onsite power and temperature control, keeping operations running during shutdowns and peaks and troughs in demand and production.
This can be most clearly seen in the company’s Greener Upgrades portfolio, which includes a new fleet of Stage V generators and Battery Energy Storage System (BESS) solutions. As these generators run on Hydrotreated Vegetable Oil (HVO), carbon emissions can be further reduced without compromising on energy efficiency.
Aggreko Remote Monitoring (ARM) offers another way for petrochemical plant stakeholders to do more with less. Through ARM, Aggreko experts can monitor the health of specified equipment from a central operation centre and take remote action to improve overall energy efficiency while reducing emissions and fuel costs.
Initiatives such as ARM and Greener Upgrades have been developed to provide chemical manufacturers with peace of mind in a complex and challenging business landscape. In order to improve competitiveness in a contracting market, existing processes and power sources must be made more efficient. Aggreko is well-placed to assist the chemicals industry achieve these goals.
Learn more
For more information on Aggreko’s temporary power, temperature control and energy solutions offering for chemical manufacturers, click here.
References