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How Automation is Changing the Chemical Industry: Trends, Insights, and Case Studies

Mar 20th 2023

How Automation is Changing the Chemical Industry: Trends, Insights, and Case Studies

IoT in the Chemical industry was valued at USD 48.9 billion in 2019 and is expected to grow at a CAGR of 9.7% to USD 77.9 Billion by 2024. This rapid growth can be attributed to the popularity of implementing Industry 4.0 to tackle increasing emphasis on regulatory and safety compliance. The drive has brought together digitalization, automation, and data analytics to redefine the chemical industry, which promises better optimization of processes, higher plant output, cost reductions, and improved safety standards.

Though the global acceptance of IoT and Automation in Chemical industries is high, APAC countries account for the majority of automation inclusions and lead the race in adopting and standardizing automation in chemicals, mainly due to the growth of industrial chemical production. North America and Europe are also following a similar trend in adoption. 

In this article, we will discuss the Chemical industry verticals, the need for industrial automation, the industry's traditional challenges, how automation can help mitigate them, and the survey of Automation technologies available for the chemical industry. 

Chemical Industry - Verticals: 

The chemical industry is diverse and complex - from textile and agrochemicals to pharmaceuticals and petrochemicals, including a wide range of industries that produce or use chemicals in their production processes. Based on IoT adoption in the chemical industry, the market can be categorized as follows:

  1. Mining & Metals
  2. Food & Beverage
  3. Chemicals:
    • Petrochemicals 
    • Polymers
    • Fertilizers and Agro
    • Miscellaneous (Consumer chemicals, industrial gas, and water management)
  1. Pharmaceuticals
  2. Paper and pulp

Overall, the chemical industry is an integral part of many other industries, and its products and processes significantly impact our daily lives.

Industrial Automation - Need for Chemical Industries Automation:

Chemical manufacturing plant

Irrespective of the vertical categorization, every Chemical industry deals with a set of critical processes mentioned below, which are essential for quality, profits, and sustained growth:

  • Safety and Regulatory Compliance
  • Resource Optimization (Raw Material & Personnel)
  • Process Control/Monitoring 
  • Data Acquisition, Analysis, and Storage 
  • Product Quality Management 
  • Energy Savings

Automation can help in all these areas, making it a necessary technology for the Chemical industry. Automation brings accuracy and consistency to processes, allowing them to improve resource utilization while ensuring safety standards are met without sacrificing production quality. It also provides scalability - with the ability to control multiple processes simultaneously, automation can help increase production output or reduce operational costs.

However, challenges from traditional chemical production methods are difficult to mitigate, such as:

  1. Economic volatility and sustained competition: The chemical industry is vulnerable to economic fluctuations and highly competitive, with changes in demand, pricing, and currency exchange rates having a significant impact on profitability. 
  2. Supply chain irregularities and management: The complex supply chains that  involve raw materials, intermediate products, and finished goods. Managing these supply chains can be challenging, particularly when faced with unexpected events due to wars, geopolitical tensions, pandemics, and major weather events.
  3. Regulatory compliance: The chemical industry is subject to various regulatory requirements, including safety, environmental, and quality standards. Compliance can be complex and time-consuming, requiring significant resources and expertise.
  4. Quality control: The chemical industry has strict quality control requirements to ensure the safety and efficacy of products. With technology advancements, improving consistency and accuracy in production processes is paramount, in addition to reducing the risk of errors and deviations.
  5. Operational and Process control challenges: Chemical production involves complex and hazardous manufacturing processes from start to finish, which can give rise to safety risks and difficulty in monitoring critical parameters. Often monitoring the operation running at inaccessible areas, such as underground pipelines, high temperature, and pressure zones to maintain quality involves using robust equipment to ensure that they are safe and efficient for producing high-quality products.
  6. Maintenance and repair: The equipment and systems used in chemical production processes require regular maintenance and repair, primarily due to chemical reactions, corrosion, and erosion. Ensuring maintenance is carried out at the right time and in the right way can be challenging, mainly when dealing with complex systems and processes.

In addition to these, industry-specific challenges also need to be addressed. For example, operating a series of complex chemical machines for color customization and scaling production is a challenge in the production of textiles and leather. In the agro-processing industry, the treatment of effluents is critical, while strict pharmaceutical regulations and quality control standards are essential. 

Therefore, chemical companies increasingly rely on automation solutions to assist or overcome these challenges. Automation optimizes resource utilization with data-driven decision-making, boosts production quantity and quality with real-time monitoring and control, and lowers energy expenses with control systems while ensuring safety and regulatory adherence. 

The upcoming section details the different Automation and IIoT Tools usable by the chemical industry and the selection criteria.  

Industrial Automation Technologies for the Chemical Industry:

Automation technologies for the chemicals industry include Programmable Logic Controllers (PLCs), Human Machine Interface (HMI) solutions, Distributed Control Systems (DCS), Supervisory Control and Data Acquisition (SCADA) systems, AI, IoT, Industrial Robotics, Smart Sensors, and Actuators. These technologies are used to automate critical processes in manufacturing, process control, and product quality management. 

IoT and Automation in the Chemical industry can be grouped as follows:

  1. Automation Technology to replace existing manufacturing/process lines
  2. Automation technology to improve operational control
  3. Automation technology to assist in decision-making, planning, and management

1. Automation Technology to replace existing manufacturing/process lines:

Automation technology in chemical industry

Several automation technologies can be used to assist or replace existing manufacturing/process lines in the chemical industry, such as:

  1. Robotics: Robotic systems can be used to automate repetitive or dangerous tasks in the manufacturing process, such as mixing or moving materials. Robots can work 24/7, increasing efficiency and reducing the risk of accidents.
  2. Artificial intelligence (AI) and machine learning (ML): AI and ML technologies can be used to optimize production processes, monitor and control the quality of products, and predict equipment failures. These technologies can also help to identify patterns and trends that can be used to improve process efficiency and product quality.
  3. Internet of Things (IoT) sensors: IoT sensors can be used to monitor and control various aspects of the manufacturing process, such as temperature, pressure, and chemical composition. This data can be used to optimize the process and ensure that products meet quality standards.
  4. Process automation software: Process automation software can be used to automate various aspects of the manufacturing process, such as scheduling, monitoring, and reporting. This can improve process efficiency and reduce errors.
  5. Augmented reality (AR) and virtual reality (VR): AR and VR technologies can be used to simulate manufacturing processes and train workers. This can reduce the risk of accidents and improve worker efficiency.
  6. 3D printing: 3D printing can be used to manufacture parts and components for the manufacturing process. This can reduce costs and lead times and enable the production of complex shapes and designs.

With these automation technologies, chemical companies can improve Process/Manufacturing efficiency, reduce costs, and ensure consistent product quality.

2. Automation technology to improve operational control:

Automating control systems will yield increased efficiency, consistency, real-time data, safety, and optimization compared to manual operation control. Following are a few Operation control technologies to assist in the chemical industry:

  1. Programmable Logic Controllers (PLCs): PLCs are computer-based control systems that are used to automate the operation of machinery and equipment in the manufacturing process, such as solenoid controlled valves. They can be used to monitor and control various aspects of the production process, such as temperature, pressure, and flow rate.
  2. Supervisory Control and Data Acquisition (SCADA) systems: SCADA systems are used to monitor and control large-scale industrial processes on an interactive display. Often these are used to monitor and control various aspects of the manufacturing process, such as temperature, pressure, and chemical composition. SCADA systems provide real-time data to operators, enabling them to make informed decisions about the production process.
  3. Distributed Control Systems (DCS): DCS is a computerized control system used to control industrial processes such as manufacturing plants. DCS enables operators to control and monitor various aspects of the manufacturing process, such as temperature, pressure, and chemical composition. DCS systems also provide real-time data to operators, enabling them to make informed decisions about the production process.
  4. Human Machine Interface (HMI): HMI is an interface between a human operator and a machine or equipment. These are rugged to withstand harsh working conditions and enable operators to interact with devices and equipment and make informed decisions about the production process.
  5. Advanced Process Control (APC): APC is a software-based control system used to optimize the performance of the manufacturing process. APC uses advanced algorithms and models to control various aspects of the manufacturing process, such as temperature, pressure, and chemical composition.

By implementing the appropriate design of control systems and technologies, chemical companies can not only maintain regulatory compliance but also uphold operational support, safety norms, and positive ratings from audits.

3. Automation technologies to assist in decision-making, planning, and management:

Automation technologies can also be used to assist in decision-making, planning, and management in the chemical industry. Here are some examples of such technologies:

  1. Manufacturing Execution Systems (MES): MES is a software system used to manage and monitor the production process. MES provides real-time data on the production process, including inventory levels, equipment performance, and quality control, enabling managers to make informed decisions about the production process.
  2. Enterprise Resource Planning (ERP): ERP is a software system used to manage and integrate various business processes, including production planning, inventory management, and financial management. ERP provides a centralized system for managing all aspects of the business, enabling managers to make informed decisions about the production process.
  3. Predictive Analytics with Machine Learning (ML): Predictive analytics is a software system used to analyze data and make predictions about future events. In the chemical industry, predictive analytics can be used to predict equipment failures, identify quality issues, and optimize production processes.
  4. Artificial Intelligence (AI): AI is a software system that can learn from data and make predictions based on that data. In the chemical industry, AI can be used to optimize production processes, identify potential quality issues, and reduce downtime.
  5. Digital Twin: Digital twin is a digital replica of a physical object or system. In the chemical industry, digital twins can be used to simulate and optimize production processes, identify potential quality issues, and reduce downtime.

Successful Case studies of Automation in the Chemical Industry:

Case Study 1: Multi-plant control system upgrade in Chemical Manufacturing plant

MFG Chemical embarked on a major three-plant upgrade of its manufacturing facilities in Dalton, Georgia. Instead of a programmable logic controller (PLC) or relay logic system, they installed a full distributed control system (DCS), for better scalability, flexibility and control. The DCS sensors connected to the latest distributed I/O cards enabled MFG Chemical to get real-time readings from multiple plants and also automated many of their manual processes. This resulted in a reduction in production costs, an increase in efficiency and improved safety.

Furthermore, the DCS system allowed for full integration with other applications such as predictive maintenance, energy management and performance monitoring. This allowed MFG Chemical to make informed decisions based on real-time data and respond quickly to changing conditions. The DCS system has proven invaluable in helping MFG Chemical remain competitive in today's market while continuing to meet their high standards of quality control.

Case Study 2: Real-time Oil Condition Monitoring using IOT sensors in a Paper mill, Texas

The Texas based paper mill plant is highly automated and operates 24/7, processing over 4 million tons annually. However, unexpected water contamination of the lubrication oil in drying and press equipment (caused by humidity), was going undetected. This resulted in expensive oil sampling and analysis, breakdowns, maintenance disruption and accelerated equipment wear. The Analysis showed that 10% of the system lubrication points represented 90% of breakdown origins.

To monitor the oil quality in real-time, Tan Delta installed OQSx-G2 sensors at strategic points across the mill to provide real-time continuous oil analysis. Result was that 6 unexpected contamination incidents which the company believed would have resulted in a breakdown were detected in advance, leading to substantial 35% reduction in maintenance costs, as well as a verifiable contribution towards the group’s ESG targets through reduced oil use.

Advantages of Automation in Chemical Industry:

The advantages of automation in the chemical industry are numerous and include:

  1. Improved safety: Automation can help reduce the risk of accidents and injuries by eliminating the need for workers to perform dangerous tasks.
  2. Increased productivity and quality control: Automation can help increase productivity by reducing downtime, optimizing production processes, and improving quality control by providing real-time data on production processes and identifying potential quality issues before they occur.
  3. Optimal resource utilization and Cost savings: Automation can help reduce labor costs, minimize waste, and optimize energy usage, resulting in significant cost savings.
  4. Scaling and Flexibility: Automation can help increase flexibility by allowing for rapid changes in production processes, reducing the need for retooling or reconfiguring equipment.
  5. Regulatory compliance: Automation can help ensure compliance with regulatory requirements by providing real-time data on production processes and facilitating the tracking of materials and products.
  6. Improved decision-making: Automation can help improve decision-making by providing real-time data on production processes and enabling managers to make informed decisions about the production process.

Overall, automation can help the chemical industry with improved safety, productivity, product quality, and optimize costs, making it an essential tool for the industry to remain competitive and meet regulatory requirements.

Summary and the Future of Automation in Chemical Industry:

Automation technologies have revolutionized the chemical industry, improving safety, productivity, quality control, and cost savings. The implementation of these technologies has also brought challenges such as the need for skilled workers and cybersecurity concerns. However, the benefits outweigh the challenges, and automation has become an essential tool for the industry to remain competitive and meet regulatory requirements.

The future of automation in the chemical industry looks promising, with continued advancements in machine learning, artificial intelligence, and the Industrial Internet of Things (IIoT). These technologies will enable real-time decision-making, optimize production processes, and further increase safety and quality control. Automation will also allow for more sustainable production processes and the use of renewable resources.

Additional Resources

Material and Chemical Compatibility Charts