Will decarbonization cut into profits?
Rockwell Automation’s Bill Roberts explained how meeting that decarbonization goal doesn’t need to come at the expense of profitability. This is a persistent comment that we hear from executives in the industry. Roberts outlined some key strategic initiatives to consider when planning a company’s carbon reduction journey. Waiting for cap-and-trade programs to force the issue and become almost punitive in how they approach the issue will mean extra costs for companies.
Instead, look at identifying your company’s carbon footprint; where is energy used, where does the energy come from, what emissions are put out from production, for example. Based on the size of the footprint, consider investing in emission reduction projects to demonstrate an early commitment to the market and government. As part of the emission reduction projects, establish yearly goals and report on those goals, showing progress towards 2050 or your own goals.
Practical steps
For example, shift from Scope 1 to Scope 2 emissions by moving from field power generation to purchased power, which then gives the option of sourcing cleaner energy to power the facility. You could shift away from high carbon intensity fuels such as diesel, propane or bunker fuel sources to hydrogen, or a combination of solar, wind and hydroelectric.
Other ways to tackle some of those emission reduction projects are tied to the ongoing digital transformation taking place across industries, including oil and gas. This is where Rockwell Automation can help facilitate the shift to digital with smart devices that can help build a digital infrastructure, reducing energy needs. Moving data out of silos and into the cloud can optimize business processes to help meet targets.
Hydrogen, carbon sequestration, direct capture
The media likes to tout hydrogen as the golden ticket, but to establish an active hydrogen powered economy requires infrastructure along with cost-effective green production options. While updating brownfield facilities to the current digital standards and protocols – or starting fully digital with scalable greenfield builds – we’re advocating for a digital infrastructure that securely connects all elements of the facility.
To apply direct capture of carbon emissions and then sequester those emissions requires a different infrastructure but will still benefit from being digitally controlled.
Partnering for success
Rockwell Automation understands the importance of partnering with others to provide the solutions our customers need. One such partnership is with SLB. Together we created a JV called Sensia, a core business around integrating measurement and control solutions for point source emission capture and sequestration.
The right tools help ensure that profitability is maintained because data is accessible in near real time creating a leaner more agile production process.
Our next blog in this series will discuss “Creating sustainable oilfields with intelligent action from edge to enterprise.”
In the meantime, if you’re interested in learning more about our digital solutions and Sensia offerings, take a look at:
Digital Transformation | Rockwell Automation
www.sensiaglobal.com
