South American Refiner Sets Ambitious Goal to Improve Energy Efficiency, Lower Costs, and Reduce Carbon Emissions

AN AMBITIOUS AND PUBLIC GOAL OF ATTAINING AN 89 EII BY 2025

A large South American petroleum refiner approached Solomon for help in achieving an ambitious energy improvement goal. The company had set a specific and aggressive target of joining the top quartile in Energy Intensity Index (EII^®) performance by achieving an EII^® of 89 at five of its refineries, thereby becoming one of the world’s best refiners overall. The client recognized the distinct advantage it could gain by leveraging Solomon’s proprietary database, deep experience, and understanding of high performing refinery operations, attributes that would enable a quick start toward an accelerated achievement of the refinery’s objectives. In addition, the refiner trusted Solomon’s metrics for comparing performance at refineries worldwide and knew that achievement of its goals could be verified through Solomon’s benchmarking.

A PROJECT WITH A QUICK START

The project began with on-site assessments in 2021 and early 2022. Solomon used these assessments to gain front-line and executive alignment for the journey ahead. At the client’s request, Solomon next developed a comprehensive plan that would enable the refiner to sustain its performance improvement over several years, and in doing so reach its goal of joining the world’s best operators.

A detailed energy analysis was used to determine the causes of numerous energy-related gaps and identify where to focus improvement efforts. Solomon conducted a Deep Drill-Down (3D) Energy Analysis using the data resulting from the refiner’s participation in Solomon’s Worldwide Fuels Refinery Performance Analysis (Fuels Study). This data was then supplemented with current operational data that allowed Solomon to perform diagnostic analysis of key energy consumption parameters (e.g., amine systems operating variables, temperatures of feeds to units, stripping steam usage, etc.).

WORKSHOPS AND COMMUNICATIONS FACILITATED THE IMPROVEMENT JOURNEY

Solomon facilitated alignment workshops with the extended leadership teams at each of the five participating refineries. The refineries’ leadership teams gained detailed insight into what success looks like, what approach would lead to successfully reaching its objectives, and the timing of the improvement journey. Solomon facilitated a “barriers to change” engagement session that focused on both individual and organizational dynamics. The session prepared the workers and management for what to expect along the journey and provided guidance on how to navigate the process successfully.

Next, Solomon conducted an energy-focused Best Practices Assessment that included numerous one-onone interviews with key Operations and Technical staff at each of the five client refineries. Through this process, Solomon learned that, although the refiner had participated in many studies in the past, it had rarely used the data that resulted to implement substantial improvements.

KEYS TO SUCCESS

Notable elements made the work successful. Solomon’s proprietary database enabled a quick start to the project, and the on-site visits and walk-throughs helped build on the momentum previously generated through the client’s executive sponsorship.

Solomon established a monthly governance process with the operator, alternating between Operational and Executive engagement. This monthly cadence helped the refiner and Solomon establish and maintain transparency on the progress of the project. This was a key element in ensuring organizational alignment, in escalating items requiring leadership awareness and involvement, and in highlighting success stories.

The second notable key to success was the formal role Solomon took in reviewing and reporting on opportunity implementation progress. This phase of engagement provided the client leadership with assurances that the action plans for the prioritized opportunities remained on track.

VIEWING THINGS IN A NEW LIGHT CREATED SYNERGIES FOR IMPROVEMENT

With added insight and results from the 3D Energy Analysis, the refiner realized new and different ways of thinking about and addressing energy efficiencies. The analysis also caused the operator to think differently about its relationship with Solomon. As one client executive commented, “Solomon showed up differently than we’ve seen them show up before.” At that point, both companies had begun to see the relationship as a partnership for improvement rather than as a single engagement. In addition, the alignment workshops and energy-focused Best Practices Assessments allowed Solomon to share its improvement opportunity ideas while gathering additional ideas that the client had been considering.

One of the company’s Directors commented that, through its partnership with Solomon, the refiner had “added a lot of value to the business…by evolving in terms of energy performance, lower atmospheric emissions, and lower operating and maintenance costs.”

THE FUTURE HOLDS CONTINUOUS IMPROVEMENT

By mid-decade, the project foresees the development and implementation of 100+ new energy intensity improvement opportunities. Data from 2020 indicates that these new projects will lead to a total reduction of approximately 21% in energy consumption by the refineries covered by the project. The refiner commented on the project’s results at one refinery, stating that, “We started at 105 [EII] points, and we are now running at about 100 points. We’ve implemented other opportunities … [leading to] a 20% reduction, which is very significant. With all these opportunities implemented, we will be able to shut down two conventional boilers at these sites and increase recovered energy usage.”

Solomon’s work alongside the client transformed how the refiner thought about driving energy efficiency improvements. One impact of this culture change is that the front-line Operations teams are now organically identifying and implementing energy-saving operational improvements without sacrificing yields or reliability.

The refiner’s teams and Solomon will continue working closely together in establishing implementation roadmap plans for each opportunity identified. Key attributes of these plans include specific actions, defined timing, and the clear definition of responsibilities through use of RACI (Responsible, Accountable, Consulted, Informed) matrices. Regular implementation status reviews and status reporting will continue for at least another year. Plans exist to extend the relationship to allow Solomon to provide further guidance with implementation and improvement.