Industrial AI innovations provide agility, automation, and guidance, helping energy companies adapt to fluctuating market demands, address supply chain complexities, and make data-driven decisions faster.
Industrial AI and digital technologies are revolutionizing energy infrastructure, helping companies across asset-intensive sectors achieve operational excellence while meeting sustainability goals.
These technologies are already delivering tangible value by optimizing asset performance, reducing emissions, and driving sustainable practices across the oil, gas, and chemical sectors.
During ADIPEC 2024, an exhibition and conference taking place from 4-7 November in Abu Dhabi, exploring the power of energy in accelerating an economy-wide transformation, Trends interviewed Vikas Dhole, SVP of Product Management at AspenTech, a leading industrial software and service provider with more than 60 locations worldwide. Vikas addressed issues related to renewable energy versus conventional practices, the role of AI and tech in the sector, and much more.
Q: Is the rising cost of conventional energy the best argument in favor of renewable and green energy?
The rising costs of conventional energy provide a strong argument for investing in energy efficiency. As energy prices increase, the return on investment (ROI) for energy efficiency measures—whether in design or operational improvements—becomes more attractive. This reduces the payback period on capital investments aimed at energy efficiency, allowing companies to reap returns faster. Improved energy efficiency also lessens the need for additional capital expenditures to achieve net-zero goals, making it a valuable strategy for companies. In essence, higher energy costs drive companies to squeeze out more efficiency, which lowers the capital burden for future sustainability projects.
Q: What are the latest innovations in the energy sector aimed at reducing carbon emissions?
The global focus is on energy efficiency improvements, especially those that optimize capital expenditure (CAPEX) through advanced technologies. For example, AspenTech offers advanced process control and dynamic optimization, which play a crucial role in driving efficiency across entire facilities. This strategic approach allows companies to identify holistic improvements that enhance overall energy use.
Another major area of innovation is carbon capture. It’s recognized as a definitive decarbonization solution, although it requires substantial capital and energy to operate effectively. We can support this through precise modeling solutions and economic analyses to help companies optimize their capital and operational expenditure (OPEX) for carbon capture.
Q: How are investors adjusting their strategies to leverage AI-driven technology in the energy sector?
There’s a shift in how investors approach capital projects, particularly in areas like sustainability and AI-driven technology. Many of these investments come with high uncertainty and risk, especially as companies explore new technologies like green hydrogen. We assist investors in evaluating high-level strategic options and assessing potential risks before committing to specific pathways.
As energy costs rise and global attention to sustainability grows, innovations like advanced process optimization and carbon capture are becoming integral to corporate strategies. At the same time, investors rely on advanced analytics and risk assessment tools to navigate the uncertainties of green investments.