Nov-2024

Navigating the transition to a sustainable future

As the oil and gas industry grapples with the urgent need to reduce carbon emissions, electrification of process heating is emerging as a key strategy.

Volker Metzger
Watlow

Article Summary

This transition is not just about replacing fuel-burning systems with electric ones; it involves a comprehensive shift in technology, operational practices, and energy management. This article explores the complexities and opportunities associated with electrifying industrial processes, focusing on the technological, economic, and environmental impacts of this transition.

The push for electrification in the oil and gas sector is multifaceted, driven by regulatory mandates, market pressures, and corporate sustainability commitments.

Regulatory and market pressures
The global effort to combat climate change has intensified regulatory pressures on industries to reduce greenhouse gas emissions. The Paris Agreement, signed in 2015, has been a pivotal catalyst, with countries committing to keep global temperature rise well below 2°C above pre-industrial levels. This agreement has propelled industries to adopt low-carbon technologies and practices.

In addition to international agreements, local regulations are increasingly stringent. For example, various U.S. states have enacted laws to reduce emissions from oil and gas facilities. Wyoming, California, and New Mexico have all introduced regulations targeting emissions reductions in the energy sector.

Market pressures also play a significant role. Financial institutions are urging faster divestment from fossil fuels, warning of potential financial risks associated with continued investments in high-emission technologies. For instance, BlackRock, the world’s largest asset manager, has led the charge by divesting from companies that fail to address climate change.

Corporate Commitments
Many leading companies in the oil and gas and broader energy sectors have committed to significant carbon reduction targets. Indeed, more than 700 companies, including major players in the industry, have made far-reaching climate commitments, driving innovation and investment in electrification technologies. These commitments are not only responses to regulatory and market pressures but also reflect a strategic shift toward sustainable business practices.

Technological innovations
The transition to electric process heating systems has been facilitated by significant technological advancements. Modern electric heat exchangers offer several advantages over traditional gas-fired systems, enhancing efficiency, safety, and control.

Enhanced efficiency and control
One of the most notable advancements is in heat exchanger design. Technologies like Continuous Helical Flow Technology™ and advanced fluid dynamics enable more uniform heat distribution, higher heat transfer rates, and improved safety. These innovations reduce thermal lag and hot spots, which are common issues in traditional systems.

For example, modern electric heaters can achieve higher watt densities, making processes more efficient and cost-effective. This is particularly important for applications with stringent temperature control requirements, such as in chemical processing and refining.

The incorporation of advanced control systems further enhances efficiency. PID-type process temperature controllers provide stable control and faster response times compared to traditional ON/ OFF switching controls. This precision is crucial in maintaining consistent process conditions and ensuring product quality.

Medium voltage solutions
Innovations in medium voltage electric heating systems have also contributed significantly to the feasibility of electrification. These systems, such as Watlow’s POWERSAFE™ solution, can tap directly into mediumvoltage lines (up to 7,200 volts), reducing the need for large transformers and extensive cabling. This not only lowers installation and maintenance costs but also enhances operational reliability.

Medium voltage solutions are especially beneficial for applications requiring high power levels but limited space. By eliminating the need for step-down transformers and reducing the number of connection cables, these systems offer a more compact and efficient solution.

Demand flexibility and predictive load management (PLM)
Demand flexibility and PLM are critical technologies for managing energy consumption in electrified processes. Demand flexibility refers to the ability of industrial facilities to adjust their energy use in response to grid conditions, helping to balance supply and demand.

PLM takes this a step further by enabling precise control over energy distribution. PLM systems can balance loads across multiple processes, reducing peak load charges and enhancing grid stability. For instance, if a plant has several processes with varying energy demands, PLM can optimize the power usage to avoid exceeding grid capacity during peak times.

An illustrative example is a plant with 10 process lines, each drawing significant power. Without PLM, the plant might face hefty charges if all lines operate simultaneously during peak hours. With PLM, power controllers can synchronize across the network, ensuring that total power consumption stays within manageable limits, thereby avoiding additional tariffs and enhancing overall efficiency.

Economic and environmental benefits
The shift to electric process heating systems supports decarbonization and offers substantial economic benefits.

Cost savings
Despite higher initial costs, electric systems can lead to longterm savings through reduced energy consumption, lower maintenance costs, and avoidance of carbon taxes. Electric heaters typically have fewer moving parts and lower maintenance requirements compared to their gas-fired counterparts, resulting in lower operational costs over time.

Additionally, the ability to manage and optimize energy use through PLM and demand flexibility can lead to significant cost savings. For example, a plant that effectively manages its energy demand can avoid peak tariffs and reduce its overall energy bill, providing a quick return on investment for the electrification project.

A practical example of cost savings can be seen in a case where a customer exceeded their demand threshold in the first 10 minutes of the billing period, triggering a kilowatt-hour surcharge that doubled their energy costs for the entire month. By implementing PLM, they were able to monitor and manage power accurately, avoiding these surcharges and saving substantial amounts on their energy bills.

Smaller footprint
Electric heaters eliminate the need for fuel storage and transportation, leading to more compact and safer installations. This reduction in infrastructure requirements not only lowers costs but also minimizes environmental risks associated with fuel handling and storage.