Energy Efficiency in Global Oil Refining Industry

The oil refining industry is composed of several small refineries scattered around the country. The average refinery capacity in the country is about 950,000 barrels per day (BPD).

In 2006, South Africa's total oil production stood at 2.1 million BPD, making up 34% of total global exports. However, crude oil refining accounted for only 3% of domestic output and less than 1% of GDP. Despite this, oil refining is one of South Africa's key industrial sectors and accounts for a significant portion of exports and jobs downstream.

The industry faces fuel shortages, escalating energy prices, increased environmental awareness, and aging infrastructure. The initiative will need to invest in new technologies and increase collaboration among members to improve efficiency.

The following are some of the critical challenges faced by the oil refining industry:

Fuel shortages: The country is currently facing a fuel shortage crisis, leading to escalating energy prices and affecting almost every sector in the economy. This fuel shortage crisis has reduced production and increased inventories within the oil refining sector. To solve this issue, the industry will need to invest in new technologies that can help minimize disruptions. Elevated energy prices: High level of oil production has made it a target for price manipulation, resulting in increased costs and challenging the industry's competitiveness. To improve its profitability, the sector will need to find cost-effective ways of extracting more value from each barrel of oil.

Environmental awareness: The environmental challenges posed by refining are growing due to public awareness and increasing regulations, including air pollution and waste disposal. To meet this public awareness and increasing regulations challenges, the industry will need to collaborate more with other sectors and develop environmentally-friendly technologies.

The oil refining sector is one of Global's most critical industrial sectors, responsible for a significant portion of exports and jobs downstream. 

Energy Efficiency Improvement Drivers

There are several drivers for energy efficiency improvement.

First, the country is facing a fuel shortages crisis that impacts almost every sector of the economy. This fuel shortages crisis has forced companies to reduce production and increase inventories, which has led to increased costs and brutal competition. To improve their profitability, oil refineries will need to find cost-effective ways of extracting more value from each barrel of oil while minimizing disruptions. Secondly, the world is racing to meet the targets of the Paris Agreement. This agreement aims to limit global warming emissions by imposing stringent emission reductions on countries worldwide. To achieve these ambitious goals, all sectors of society will need to play their role in reducing energy consumption and greenhouse gas emissions. The oil refining sector is no exception – if it wants to remain competitive and sustainable in a future with ever-tightening environmental restrictions, it will need to find ways to improve its energy efficiency.

There are several potential areas for improvement in the oil refining sector. Some of these include:

• Reducing production costs by optimizing plant operations and equipment;

• Improving waste management practices, including reducing emissions from wastewater treatment;

• Increasing use of renewable energy sources, such as solar and wind power; and

• Developing more efficient technologies, such as aspiration, fuel cells, and advanced engines.

• There are also several potential initiatives that the government could take to encourage energy efficiency in the oil refining sector. Some of these include:

• Providing tax breaks or grants for investments in energy-efficient technologies;

• Encouraging disruptive innovation by setting targets for improved performance;

• Promoting green procurement policies and practices, including requiring refineries to source at least 30% of their inputs from green energy sources by 2030; and

• Improving access to reliable, affordable data on energy consumption and efficiency.

Barriers to Energy Efficiency Improvement

Several barriers have been identified in the oil refining sector as impediments to energy efficiency improvement. These include:

• A lack of knowledge and understanding about how to optimize plant operations for maximum energy efficiency;

• Low levels of investment in technology upgrades or replacement, particularly in older refineries;

• Lack of commitment from senior management to improve energy performance; and

• Poor coordination among various departments and divisions within a refinery.

Policy Options to Address Energy Efficiency in the Oil Refining Sector

The government may consider several policy options to improve energy efficiency in the oil refining sector. Some of these include:

• Implementing mandatory retrofitting programs for refineries that need to upgrade their facilities;

• Encouraging cooperation and joint research among different industry groups, as well as between academia and industry; - Providing financial support for R&D projects that focus on energy efficiency improvements;

• Developing specifications for new equipment and technologies that are more energy-efficient, including in areas such as chillers, boilers, and gas turbines;

• Introducing regulations mandating specific levels of energy efficiency for refineries; and

• Promoting green infrastructure initiatives in refining districts. Policy options to improve energy efficiency in the oil refining sector should be tailored to the specific needs of this industry and include a mix of incentives (such as financial support for R&D projects) and regulations (mandating specific levels of energy efficiency). 

Implemented Energy Efficiency Opportunities to improve Energy Efficiency in oil refinery

Several factors to improve every efficiency in oil refinery.

• Chiller retrofits

• Boiler reconditioning/upgrades

• Turbine retrofits -Ultraviolet light treatment of hydrocarbons - Integrated Gasification Combined Cycle (IGCC) technology

• Energy Storage

Policy Options to Address Energy Efficiency in the Oil Refining Sector may includes

Mandatory retrofitting programs for refineries could include upgrades such as replacing fossil-fueled boilers and chillers with more energy-efficient ones. Regulations may mandate specific levels of efficiency for new equipment, such as boilers or turbines. 

Incentives for energy efficiency improvements could include financial support for R&D projects or tax breaks for companies that install more energy-efficient equipment. Regulations may require refiners to purchase more environmentally friendly sources, such as solar and wind power. Promoting green infrastructure initiatives in refining districts can also be an important way to reduce emissions from oil refining facilities.

Implemented Energy Efficiency Opportunities to improve Power Recovery

-Consideration of new technologies, such as gas-fired combined cycle (CCGT) plants

Policy Options to Address Energy Efficiency in the Power Generation Sector - Examples

Mandatory retrofitting programs for power generation facilities could include upgrades such as replacing fossil-fueled boilers and turbines with more energy-efficient ones. Regulations may mandate specific levels of efficiency for new equipment, such as boilers or turbines. 

Incentives for energy efficiency improvements could include financial support for R&D projects or tax breaks for companies that install more energy-efficient equipment. Regulations may require power generators to purchase more environmentally friendly sources, such as solar and wind power. Promoting green infrastructure initiatives in power generation districts can also be an important way to reduce emissions from these facilities. Implemented Energy Efficiency Opportunities to improve Power Recovery.

Implemented Energy Efficiency Opportunities for Heat Integration and Fouling Mitigation

-Consideration of new technologies, such as combined heat and power

Policy Options to Address Energy Efficiency in the Commercial Sector - Examples

A mandatory program for commercial buildings could include energy audits and retrofits such as insulation, air sealing, window replacement, etc. Regulations may mandate specific levels of efficiency for new equipment or appliances. Cooperation among different industry groups is also essential to promote green infrastructure initiatives in commercial districts. Incentives for energy efficiency improvements could include financial support for R&D projects or tax breaks for companies that install more energy-efficient equipment. Policy Options to Address Energy Efficiency in the Non-Commercial Sector –

For instance incentives for energy efficiency improvements could include financial support for R&D projects or tax breaks for companies that install more energy-efficient equipment. Cooperation among different industry groups is also essential to promote green infrastructure initiatives in non-commercial districts. Incentives for energy efficiency improvements could include financial support for R&D projects or tax breaks for companies that install more.

Summary of Savings and Benefits from Energy Efficiency Measures in Boilers Savings from reduced emissions:

Reduced emissions can save the facility money on fuel costs, which can lead to increased profits. Additionally, when the nitrogen oxides and odors produced as a byproduct of combustion cannot escape the atmosphere, they can cause serious health problems for employees and residents close to these facilities. Reducing your boiler's emissions can prevent some or all of these adverse impacts.

Examples of Opportunities for Combustion Efficiency in Process Heaters/Boilers

• Measurements of boiler performance can be used to maximize plant efficiency and produce less heat, water vapor, CO2, and other pollutants. That means that more oil or gas is burned to make the same amount of hot air or steam, lower operating costs.

• Control systems for boilers can optimize combustion conditions to reduce fuel use (and associated emissions).

• In some cases, upgrading an existing boiler with particular combustion control technologies may be worthwhile rather than purchasing a new boiler geared towards reduced emissions. -In other cases, it may be necessary to retrofit an existing boiler to reduce emissions.

• Installation of afterburners on a boiler can help reduce NOx emissions.

• Examples of Opportunities for Energy Efficiency Improvements in Heating and Cooling Systems Savings from reduced energy usage:

• Thousands of kilowatt-hours (kWh) are wasted each year due to inefficient heating and cooling systems. This wastes money both on the utility bills and on the resources used to generate the heat or cool air.

• One study showed that even minor improvements in energy efficiency could significantly reduce petroleum use, greenhouse gas emissions, and plant operating costs.

• Examples of Opportunities for Comfort/Efficiency Improvements in Heating Systems

• It is possible to improve heating system performance by increasing insulation levels, controlling duct leakage, adding louvers or decants, and installing low-emitting blowers and heat pumps.

• It is also possible to improve comfort by adding thermostats with Scheduled Mode Operation (SMO) or Dynamic Comfort Control, controlling room temperature using weather data, and installing insulation in the attic or crawlspace.

Examples of Opportunities for Efficiency Improvements in Cooling Systems

1. Improve cooling system performance by improving air infiltration rates, selecting high-performance windows and doors, and installing low-flow showers and faucets.

2. Improve comfort by adding Thermostatic Control of Air Conditioning (TCCA) devices, controlling room temperature using weather data, and installing insulation in the attic or crawlspace.

Energy Efficiency Measures for Distillation

1. There are many opportunities to improve distillation efficiency by modifying equipment and operations. Some standard measures include:

2. Improving boiler operation, including adjusting water temperature, using a more efficient heat source, or improving steam distribution

3. Reducing evaporation rates from cooling towers by installing seals and reducing leakage

4. Optimizing NMR boilers with improved fuel mix ratios and reduced NOx emissions

5. Optimizing distillation columns with higher liquid to vapor ratios and improved thermal efficiency -Installing low-flow pumps and filters

Example of Identified Energy Efficiency Opportunities in Distillation

1. Improve boiler operation, including adjusting water temperature, using a more efficient heat source, or improving steam distribution

2. Reduce evaporation rates from cooling towers by installing seals and reducing leakage

3. Optimize NMR boilers with improved fuel mix ratios and reduced NOx emissions

4. Optimize distillation columns with higher liquid to vapor ratios and improved thermal efficiency Install low-flow pumps and filters. Example of a Completed Project :

5. The organization implemented a boiler upgrade with an improved heat source, reduced evaporation rates from cooling towers, and optimized NMR boilers. This resulted in overall environmental benefits, including lower emissions of NOx and reduced electricity costs.

Efficiencies of Natural Gas Fired CHP Systems

It is vital to understand fundamental principles related to these technologies. Gas Fired CHP systems use a fuel (natural gas) burned in an engine or boiler as an oxidizer to produce hot combustion air and steam. The steam from the engine/boiler then turns turbines which generate electricity. In most cases, this process coincides with mechanical operations such as heating and cooling.

There are a few essential things to understand about gas-fired CHP systems to make accurate estimates of their efficiencies:

-Gas Fired CHP Systems Use Non-Consumptive Energy

First and foremost, gas-fired combined heat and power systems use non-consumptive energy – that is, the system does not consume any additional resources other than what's required for its regular operation. This makes gas-fired CHP systems a very sustainable option, as they eliminate the need to generate electricity from fossil fuels such as coal or oil.

-Gas Fired CHP Systems Are Highly Efficient

secondly, gas-fired combined heat and power systems are highly efficient. Almost all of the energy in the fuel input (in this case, natural gas) is converted into proper output heat and mechanical work. This makes these systems ideal for high-efficiency applications, such as industrial processes or district heating systems.

-Gas Fired CHP Systems Can Easily Meet Fuel Requirements

Another essential consideration for gas-fired combined heat and power systems is easily meeting fuel requirements. This means that the system can efficiently use a variety of fuels, including natural gas and biomass (a type of plant-derived fuel).