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Future-proof industrial assets with circular strategies
The webinar on future-proofing industrial assets focuses on decarbonization and circular strategies to address energy transition and critical material shortages. Presenters from Stork discuss the significance of a circular economy in reducing greenhouse gas emissions and optimizing material usage, along with various case studies showcasing successful applications. The discussion also emphasizes the need for a roadmap to achieve carbon neutrality and the potential benefits of implementing circular solutions in industrial operations.
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Future-proof industrial assets with circular strategies
- 1. FUTURE-PROOF INDUSTRIAL ASSETS Webinar8 June 2022 WITH CIRCULAR STRATEGIES ‒ The webinar will start at 12.00h PM ‒ During the webinar you can ask questions via the Q&A button in the Zoom menu. ‒ All participants will be muted during the webinar.
- 2. Energy transition Circular economy Decarbonize existingassets STORK PROVIDES OPERATIONS & MAINTENANCE SERVICES ACROSS MULTIPLE INDUSTRIES
- 3. PRESENTERS Page 3 Dr. Ir.Jack Doomernik MM Principal Consultant @ Stork Erika Ming Kuo MSc Consultant @ Stork
- 4. AGENDA Page 4 1. Decarbonisationand Critical materials 2. Circular strategies 3. Circular case studies 4. Managing the road to carbon-zero
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- 6. EMITTING INDUSTRIES ONE-THIRD OFEU-27 GHG EMISSIONS 12% 30% 13% 21% 24% Emissions by sub-sector for EU-27, 2017, MtCO2e Source: Net-Zero Europe, Decarbonization pathways and socioeconomic implications, McKinsey&Company, November 2020
- 7. MAIN LEVERS INDECARBONIZATION NOT ONLY ENERGY, BUT ALSO THE CIRCULARITY OF FEEDSTOCK AND MATERIALS Source: Ellen MacArthur Foundation, Completing the Picture: How the Circular Economy Tackles Climate Change (2019) *AFOLU refers to Agriculture, Forestry, and Other Land Use Minimal emissions Minimal waste Industries account for 21%; other comes from AFOLU* Page 7
- 8. SHIFTING TO AGREEN ENERGY FUTURE LOOMING SUPPLY GAP FOR CRITICAL RAW MATERIAL DEMAND Source: Reuter (April 2022) Climate pledge, energy security, energy transition Predicted severe shortfalls in “copper, cobalt, lithium, nickel, and rare earths” Volatile price and disrupted supply Geopolitical problems Can recycling ease the shortage…?
- 9. CRITICAL RAW MATERIALS ECONOMICIMPORTANCE AND SUPPLY RISK Page 9 Source: European Commission. Study on the EU's list of Critical Raw Materials (2020)
- 10. CRITICAL RAW MATERIALS GLOBALSUPPLIERS MAPPING Page 10 Source: European Commission. Study on the EU's list of Critical Raw Materials (2020)
- 11. SHIFTING TO AGREEN ENERGY FUTURE RISING WASTE STREAM = RISING MATERIAL RECOVERY OPPORTUNITIES 2030 scenario Source: European Environment Agency Page 11
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- 13. LOOKING AT THECIRCULAR ECONOMY THROUGH THE AM LENSE Page 13 Circular economy refers to a regenerative system where material, products, and components are kept at their highest utility and value at all times by slowing, closing, and narrowing material loops. Resource productivity indicators (1) circularity & (2) longevity 1. Design out waste Eliminating waste to reduce GHG emission across value chain 2. Keep material & product in use Retaining embodied energy in products and materials 3. Regenerative natural systems Sequestering carbon in soil and products Core Principles Reduce waste and optimize material use Longevity and resource circulation Choosing renewable
- 14. BUSINESS DRIVERS FOR ASSETOWNERS IN A CIRCULAR ECONOMY OF TOMORROW EU Green Deal, CE Action Plan, Climate Agreement, ETS system, Industrial Emission Directive GHG emission, waste stream, waste disposal, pollution Material price, waste disposal fee, replacement costs, carbon price Green recovery, geopolitical security in material supply, business competitiveness and explore new source of wealth Ecodesign, functional or service economy, lifetime extension, EoL management Material depletion, sustainable procurement, responsible consumption, industrial symbiosis Page 14
- 15. Page 15 Useful application R8 Recycle R9Recover Smarter use & manufacturing R0 Refuse R1 Rethink R2 Reduce Extending lifespan R3 Reuse R4 Repair R5 Refurbishment R6 Remanufacture R7 Repurpose Increasing circularity THE R-LADDER FRAMEWORK PRIORITIZING CIRCULAR SOLUTIONS
- 16. MANAGEMENT OF MATERIALS IMPLEMENTINGCIRCULAR STRATEGIES Smart Maintenance Lean maintenance Digitalisation APM 4.0 Online inspection Prolong Asset Lifetime Maintenance Optimization Overhaul and retrofits 3D scanning & reverse engineering Less Resource & Waste Optimal and wear-resistant design Prevent leakage and emissions New Life For Resource Waste valorization Reuse, recycle, and repurpose of scaffolding and PPE CIRCULARITY TOOLBOX Assessment tools to identify circular performance, to set the baseline for objectives setup and to monitor results of circular strategies R1 Rethink R2 Reduce R9 Recover R1 Rethink R2 Reduce R4 Repair R5 Refurbishment R3 Reuse R8 Recycle R7 Repurpose Page 16
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- 18. CIRCULAR PERFORMANCE THE CASEOF REBLADING THE GEOTHERMAL TURBINE Page 18 SITUATION Identify the material circularity in a refurbishment project of a Geothermal HIP turbine. ASSESSMENT Stork AMT develops the Circularity Toolbox to assess the material flows under the scope of one refurbishment project, incl. removing blades, machining rotor body, manufacturing blades, and reassembling blades.
- 19. SITUATION Common design adoptsbrass (copper-zinc/ copper-nickel) bundle pipes and steel-clad pipe plates -> easily corroded with a short lifespan and difficulties in maintenance SOLUTIONS Stork Thermeq replaces brass with titanium, and adopts rubber coating to the pipe plate. BENEFITS (1) 2 X lifespan (2) Lowering maintenance cost (3) Higher maintainability (4) ½ X material use Page 19 CIRCULAR CASE - AN OPTIONAL HEAT EXCHANGER DESIGN
- 20. CHOOSING RENEWABLES (GLT+) KOKOWALL– THE NOISE BARRIER WALL Page 20 SITUATION Primarily the chosen noise barrier would be a type of concrete “Lego” blocks. SOLUTIONS: R1 Rethink + R2 Reduce An alternative noise barrier – “Kokowall” was proposed. This noise barrier is composed of coconut fiber. BENEFITS (1) High insulation and absorption; (2) fully recyclable; (3) lightweight construction; (4) maintenance free Source: ModuBar B.V. Concrete “Lego” blocks
- 21. REVERSED ENGINEERING (GLT+) DETECTINGTHE RISKS OF BRITTLE FRACTURE Page 21 SITUATION The toughness of the material in the installed valve was unknown. Therefore, it would have to be replaced with a new valve. SOLUTIONS Reversed engineering was conducted to test out the risks of brittle fracture with 3 factors: toughness, tension & defect size. The result proved that the valve was fit for operation. BENEFITS R2 Reduce (1) Avoiding the new purchase; (2) Extending the lifespan of the discarded valve (3) Reducing carbon emission (4) Saving € 25,000 Maximum stress Defect size before breakage
- 22. MANAGING THE ROAD TOCARBON-ZERO
- 23. ROADMAP TO CARBONREDUCTION 2020 2030 2040 2050 80% 20-30% 0% Industry standard in place Basics in place Best Available Techniques in place Process Redesign BUILT THE “PLANT OF THE FUTURE”: • New processes • New technologies • New raw materials • New products INVEST IN BEST AVAILABLE TECHNOLOGIES: • Upgrade existing plants • Install in new plants IMPROVE CURRENT OPERATION: • Optimized operation • Optimum control • Dismantle inefficient equipment BETTER HOUSE KEEPING: • Monitoring material and energy efficiency • Raise awareness • Good maintenance
- 24. Establishing the Baseline andTO-BE situation Identifying and prioritizing improvement measures Implementation of improvements Monitoring and reviewing the result 1 2 3 4 • Material value stream mapping • CE project management system evaluation (XP X30-901 & ISO/TC 323) • Circularity Toolbox performance score • Organisational objectives • Target setting • Compliance check • Criticality and risk analysis • Carbon reduction tactics • Technical assessment • LCC and business case analysis • Asset Investment Portfolio • Decarbonization roadmap • Better material housekeeping • Renewable/non-virgin materials • Material-efficient technologies • Process and installation redesign • Circularity Performance Indicators • Monitoring indicators • Material Flow Management System • Benchmarking • GRI reporting (306 - Waste) DECARBONISATION MASTER PLANNING CREATE A SUSTAINABILITY ROADMAP
- 25. TO SUMMARIZE Page 25 •The decarbonization challenge requires the Energy Transition and the Circular Economy • 45% of global emission comes from product-related emissions • The energy transition requires increasingly scarce metals and will bring waste stream grow to 30-fold • Rising material prices and unstable supply chain poses threats to the industries • Frameworks for managing circular solutions are available • AM can incorporate circularity into objectives and enable a sustainable business
- 26. THANK YOU FOR YOURATTENTION Page 26 Consultant @ Stork Erika Kuo Principal Consultant @ Stork Dr. Ir. Jack Doomernik MM jack.doomernik@stork.com +31 6 2025 1131
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Editor's Notes
- #3 Stork is an international industrial service provider. We continually improve the performance of clients’ assets through a wide range of integrated, innovative and data-driven solutions, from operations and maintenance to turnarounds , modifications and asset integrity solutions. So, we’re not an asset owner, but we feel absolutely committed to keep assets running at peak performance during all phases of the asset life cycle. We are committed to growing our clients’ business successfully and sustainably by setting new standards of excellence in asset management. With the energy and materials transition in the background and the changes in the geopolitical landscape we are looking for opportunities to decarbonize our clients’ existing asset base.
- #4 Today’s presentation is a joint venture. Jack Doomernik, currently works as a principal consultant for Stork, in the Asset Management Technology department, focusing on the decarbonization of industry. Besides his activities at Stork, he is a professor responsible for the Smart Energy research program at Avans University of Applied Sciences in the Netherlands. And the other presenter is Erika Kuo, Asset Management Consultant at Stork Asset Management Technology. Her background is in environmental engineering, focusing on managing resource circularity and waste elimination. She has obtained her master’s degree in the energy transition with the multidisciplinary focus on solving hurdles in the sociotechnical regime shift. Currently, they are both helping industrial asset owners to identify and implement decarbonization solutions.
- #5 Thank you very much for the introduction and all very welcome to this presentation “Future-proof industrial assets with Circular Strategies”. As we all experience, we are recovering from the COVID 19 crisis that has have a huge impact on society. But, on the background, the energy and materials transition is unfolding and our geopolitical situation is forcing us to move away from fossil fuels and rare materials. There is an urgent need to move towards a more sustainable circular economy, aiming for a CO2-free society in 2050. Today, we would like to share some thoughts about the way circular strategies can help asset owners and managers to become more sustainable. To save our planet we have re-assess our economic activities and manage our physical assets in a professional way. The industries play an important role in this transition and can use the momentum to rethink the future and adjust their plans. There are several dishes we have put on the menu for you. As an appetizer we will discuss the challenge of decarbonisation and the role of critical materials. Next we will make you familiar with some strategies to improve circularity and to move away from the "take-make-dispose" economy. Application of the 10R Strategy Framework and using the Circularity Toolbox can support asset owners to identify, implement, and monitor circular strategies. After that, with some case studies we will illustrate how circular strategies can be applied in practice. These are real-live examples. Three cases will be highlighted to illustrate the benefits of circular strategies to the asset owner. Finally, we will have a closer look at what tactics and solutions are available now and in the future for decarbonization and give you some guidance how to plan and start the journey towards sustainability. But let’s first start with topic number one: decarbonisation and critical materials.
- #6 Trends in society affect all economic areas including industry. Digitalization reforms all information processes and the way we work. But also, other technological developments like robotization, drones, mixed reality and new materials will have their effect Assets build decades ago are reaching the end of their economical and technical life-time. Decisions need to be made for replacement or life–time extension. Oil and gas are finite and will become scarce and expensive over the coming decades. We need to move towards more renewable sources. Climate change is forcing us to decarbonize our products and processes. We need to make an effort to reshape the current linear product model of take-make-dispose towards a more circular one. The challenge is to build a future-proof industry that is carbon neutral by 2050.
- #7 Is carbon reduction a problem for the industry or is it somebody else's problem like the agriculture? No, not really. The biggest contributors to GHG emissions are the Industry and Power, together accounting for more than half of the GHG emissions in Europe, as indicated by a study from McKinsey&Company. When we look at the industry sector, we see that it accounts for almost one-third of the EU GHG emissions. This comes from different sectors with major contributions from the cement, iron and steel, chemicals, oil and gas industry and waste management. In fact, many energy-intensive industries need to take action to reduce GHG emissions to zero towards 2050. So, let's just take a closer look. (click) As can be seen from the diagram. This is not one specific industry, but a lot of different industries. Every single one of them is playing their part in producing CO2, which has given rise to all these high impact and high-risk challenges we are facing. In fact many energy-intensive industries need to take action to reduce GHG emissions to zero towards 2050. So, it's not that one industry has to go do it. We really have to look at this collectively.
- #8 And it is not only energy that is important regarding carbon emmisions, as illustrated by a study from the Ellen MacArthur Foundation. This study shows that energy accounts for 55% of greenhouse gas emissions. The other 45% is embodied in everyday products such as our cars, clothes, buildings, and food. Industry is accountable of 21% of the product-related emissions. The rest comes from Agriculture, Forestry and Other Land use. And both for energy and materials a three-step approach can be applied: For the Circular Economy the 3R principle (Reduce, Reuse, Recycle) is commonly used For the ET the triangle presented is better known as the Trias Energetica. Working on the energy transition on one side will minimize emmissions and on the circular economy on the other side will minimize waste, both contributing to CO2 reduction. So now over to Erika, who will tell you a bit more about critical materials.
- #9 To overcome the challenge of climate change, Europe has a new growth strategy, the European Green Deal, that transforms our economy into a modern, resource-efficient, and climate neutral competitive economy. Besides, the urgent need to develop energy security has also been raised, especially given the current war situation. European countries pledge to cut down on the demand for imported gas. All these drivers accelerates the progress of the ET. Since RE technologies have a vast amount of material requirements, which creates an increasing demand for so-called critical raw materials. These CRM are irreplaceable in Solar PV, electric vehicle, wind turbines. Predicted severe shortfalls in copper, cobalt, lithium, nickel, and rare earths, and the surge in costs Geopolitical problems caused by the material dependency
- #10 To determine the criticality of the material for the economy, the economic importance and the supply risks are assessed. In this mapping, the upper right corner shows the lists of CRM with the red dots. Concern continues to grow regarding the availability of critical metals. Such scarce metals, like rare earth, lithium or cobalt, are not only vital to the world’s major economies but also the progress of the ET.
- #11 When looking at the source of these CRM, Chinese and Indonesian metal production could dominate global refining capacity growth for battery metals and rare earths, In recent years, China has taken dominant positions in the supply chains of several critical metals, both in mining and in refining capacity. While Europe also relies on Russia for aluminum, nickel and copper
- #12 But despite the challenges, the opportunity is there. 95 % of the materials in solar PV cells can be recycled (e.g. glass, copper, aluminium, etc.), versus 90% in wind turbines and 100% in batteries for mobility. Waste flows from the three energy infrastructure types are currently rather low, since the installations are relatively new and, generally, have not yet exhausted their life span. In 2030, the waste arising from end-of-life clean energy infrastructure is projected to grow up to 30-fold, presenting significant opportunities to reduce consumption of raw materials by recycling metals and other valuable resources back into production systems. Recycling will help ease shortages, but only from about 2040, when there is enough material from scrapped equipment Recovery problems: - The fast pace of technological development means that equipment can be subject to relatively rapid obsolescence and can generate complex waste streams, thus presenting technical and logistical challenges for managing this infrastructure at the end-of-life stage. - Recovering materials and reintroducing them into the production cycle faces challenges: complex logistics (high volumes and material often needing to be recovered from remote locations); design that does not consider end of life or recyclability; and the presence of hazardous substances.
- #14 The circular economy is a bold vision for tomorrow, empowering leaders across industries to increase resilience, mitigate climate risk and unlock new business opportunities. In a well-designed circular economy, resource productivity is valued and improved by circulation and better longevity There are several guidance in designing a CE, (1) Reduce production waste and optimize material use, so adopting lean-driven solutions are needed; (2) Maximize the equipment utilization and lifetime, so that the maintenance needs are translated and shared; (3) make the system regenerative, so that non-renewable materials are replaced by renewable ones.
- #15 Besides the dependency on critical raw materials, when you look at the business drivers in these 6 dimension, you may see many questions arise: - compliance is only getting stringent – ISO is under construction, and the ETS system – How are asset owners going to do with evolving compliance? - How to treat the waste stream properly or how to prevent the waste stream? - All the costs related to the asset activities, operational costs incl. feedstock, waste disposal, and carbon tax. – How to reduce these costs? - How to source material in a sustainable way and secure a stable and economical material supply? Asset lifespan, how to prolong the utilization period? and how to continuously improvement and explore new business opportunities -> These all call for more innovative ways of managing materials, components, and equipment
- #16 When it comes to prioritizing different circular strategies, the R-ladder framework is widely embraced. In this framework, it displays 10 different strategies with their hierarchical level of circularity. The most effective means would be the optimal use from the design and manufacturing phase. Followed by strategies that retain the values of material and extend the utilization phase. The lowest level illustrates the last resorts, which are recycling and recovering the material values in the end-of-life phase. This framework list out the hierarchical significance of circular strategies, and the importance of upstream innovation in the design of a circular economy where waste management shall be the final resort.
- #17 Production and Operation: (1) Optimize design for resource productivity; (2) design to be long lasting and modularized; (3) discover and reduce waste through detection and analytics; (4) monetize the waste through partnership and industrial symbiosis In Service: (1) Predictive maintenance to maximize the utilization and lifetime, (2) monitor the equipment and parts to enable reuse/refurbishment/remanufacturing; (3) connect across value networks and share information for better stock management Circulate materials: recycling and recovery (heat,energy,feedstock) To support these solutions, we are now developing a Circularity Toolbox.
- #19 “removing the old blades” With removing the old blades we disassemble the used blades and typically “scrap” them. With scrapping these blades we have made an important decision as this will determine that the blades became “raw materials”. Vice versa we could for instance “partially” scrap them whereas the blade root would be used for instance for the fabrication of other (smaller) parts (thus serving as “intermediate” raw material, whereas the vane section would be scrapped to “raw materials”). Would we proceed with scrapping the blade what options would we then have in terms of sustainability. For instance, If we would neatly “separate” our materials by mettalurgy, the sustainability increase would only be captured if there is a raw materials processor that can handle these separated raw materials (as all sustainability I ofcourse lost when all materials ar brought together right before the melting furnace at the steel factory). Etc. etc. “machining the rotor body to facilitate the new blades” Here we produce waste by milling down some faces – what is done with this waste? Can we prevent? “Manufacturing the blades” Are our input materials sustainable Are all the heat treatments of this metal required? Are our machines powered through sustainable (and energetically optimized) sources? Is our waste (scrap metal) optimized? How much material is typically scraped until a finished blade from the raw material size? Is it required to “saw” the bar material in block or would it also be possible to machine directly from bar stock? “reassembling the blades” We often grind down faces prior to “mating” them, is this the most sustainable option or could we prevent this by paying more interest in the detail engineering and 3d scanning?
- #20 The application of less reactive material (titanium) doubles the lifespan of the cooler, improves the durability, and reduces the maintenance cost. Besides, the use of material is reduced to half.
- #21 The Kokowall Noise Barrier has been specially developed for placement around machines and installations in which a beautiful natural look is created on the outside by means of vegetation. Ideal for locations where you, local residents or others look at the wall. The panel is finished on the inside with a layer of mineral wool finished with a wind cloth, a plastic PE net and a galvanized steel construction steel mat. On the outside, the panel is equipped with a row of plastic tubes wrapped with coconut fibers. NAM has asked GLT-PLUS to investigate an alternative noise barrier from Modubar B.V.. Ultimately, the 'Kokosystems' noise barrier was chosen. The advantages are a lighter foundation, cheaper to purchase and a faster and cheaper implementation. Kokowall: Noise barriers with coconut fiber This type of noise barrier consists of a lightweight construction with a high insulation and absorption value. The noise barrier is provided with a layer of absorbing mineral wool, finished on the front with a PE net and mesh layers and on the back with a coated plate. The core of this 'noise reducer' sound panel is fully recyclable. These prefab panels form an ideal noise barrier to shield the noise from machines. The noise barrier can optionally be covered with climbing plants. When no climbing plants are used, the noise reducer sound panels are completely maintenance-free. The Kokowall system is a Dutch invention and is completely produced in the Netherlands.
- #22 Valve 24-UZ-101 was planned to be installed at the Grijpskerk site. However, in the middle part of the valve, there was no information of the 'Charpy impact test' which indicates the toughness of the material at low temperatures. Without this information, this valve was by definition not suitable so that it required to be replaced. Reversed engineering: the risk of a brittle fracture is determined by 3 factors: 1. Toughness of the material; 2. Tension in the material; 3. Defect size. The toughness of the material in this case is unknown. This also cannot be tested because you need material from the valve for this test and therefore the valve can no longer be used (destructive test). The idea of Mechanical Engineering: For the low temperature toughness of the material, assume it is on the lower side of what to expect Determine the maximum stress in the material by means of a calculation 3. Then calculate what the maximum defect size can be in the material before breakage occurs 4. Compare this with the actual defects found in the material. 5. If the actual defects are less than the calculated defects, then the valve is suitable for the application Benefits: R2 Reduce The actual defect size turned out to be many times smaller than the maximum acceptable defect size. The conclusion is therefore justified that this valve is suitable for use at low temperatures. A new valve is recessed; costs including removing existing valve and installing new valve: € 25,000!!!
- #23 We think these are good examples from real practice that show that Asset Management and Circularity can go hand-in-hand.
- #24 What we'd like to share is that, of course, it is useful to make a sustainability or decarbonization roadmap. This is not something that you can just do on a rainy Monday morning. First, you really need to sit down and understand what's your current situation. Where do you stand right now? Drawing up a decarbonization plan starts with performing a baseline measurement of energy consumption and CO2 emissions. It then makes sense to formulate an objective over time. In this goal setting, it is important to establish the relationship with the values that are important to your company. This dot on the horizon is used as a reference for defining improvement measures. Look at what goals, what ambitions you have in time. Look at the opportunities, understand which improvements are possible, map them out in a structured way, identify what's the impact of those measures and decide which need to be done first. For each measure, it is necessary to determine the effect as well as the time and effort required to implement the improvement. When prioritizing and choosing the projects, it makes sense to also map out the risks. With the roadmap at hand, you can monitor and review the progress, adjust the plan when needed to keep the energy going and prevent projects failing halfway. Roughly speaking, four steps can be distinguished to substantially reduce CO2 emissions: First, getting the house in order by increasing awareness in the organization, mapping energy and materials consumption and proper maintenance of the installations Second, optimizing business operations: reducing energy demand per product, taking inefficient installations out of operation Third, investments in new technology for the existing process: both for existing plants and for new construction And fourth, redesign of the primary process: build the factory of the future The first 2 steps can be used to reduce approximately 20-30% of the CO2 emissions. Step 3 and 4 are essential to achieve further reduction. (1:30 min.)
- #25 So, what we'd like to propose here is a clean industrial asset management proposition to really help you create your sustainability roadmap. It starts off again with establishing the baseline. And there are several tools available to help, as can be seen on the left. We will come back to that later. Next step is to identifying and prioritizing the improvement measures, followed by enabling and implementing the actual improvements. And very importantly, continuously monitoring and reviewing the results. Did this measure deliver what it promised, but also taking into account simply what's happening in the outside world, because there could be changes like new technologies, regulations, other market circumstances etc. Therefore, it's a circular thing. This is not a once through, as a one, two, three, four might indicate, but this is, of course, a continuous process to become better and better. To establish the baseline an assessment is needed to identify the AS-IS situation. So, let's have a closer look at this. (1:00 min)
- #27 If you have any questions, don’t hesitate to reach out to us, either in the next break or by sending us an e-mail / giving us a call.