Abstract
Rising energy costs have had a global impact and the Dutch chemical industry, in particular, has felt the effects. Due to higher production costs, the profit margin of the Dutch chemical industry became negative in 2022, and companies based in the EU are facing fierce competition from overseas, predominantly the US and Asia, where energy costs are comparatively lower. Huntsman, a prominent player in the industry, has not been immune and is faced with the same challenges in its polyurethane business. It is, therefore, imperative that Huntsman improves profit margins by decreasing variable costs.
The aim of this project was to reduce caustic soda consumption and related costs in one of Huntsman’s polyurethane precursor processes in Rotterdam. Caustic soda was of particular interest because its market price has increased by 550 % in the last two years. The first goal was a caustic soda reduction in the order of 2 to 5 %.
This project goal was met by identifying minor process improvements, which reduce caustic soda consumption, through a review of the production process and an analysis of plant data. Huntsman can quickly and easily implement these improvements to gain immediate caustic soda savings of up to 5 %. These solutions require a management of change plan to ensure that plant personnel adjust their procedures accordingly.
A number of long-term solutions that could further reduce caustic consumption were compared. Recommendations for these were made based on Huntsman’s current strategy for deciding which new projects to implement. Additional recommendations for the long-term solutions were made considering implementation strategies that prioritise other factors, such as environmental sustainability and possible legislation changes.
Completion of the recommended minor process improvements will result in significant variable cost savings for Huntsman, thereby improving profitability. Implementation of the long-term solutions could result in additional variable cost savings and offer other benefits, such as improved sustainability.
The aim of this project was to reduce caustic soda consumption and related costs in one of Huntsman’s polyurethane precursor processes in Rotterdam. Caustic soda was of particular interest because its market price has increased by 550 % in the last two years. The first goal was a caustic soda reduction in the order of 2 to 5 %.
This project goal was met by identifying minor process improvements, which reduce caustic soda consumption, through a review of the production process and an analysis of plant data. Huntsman can quickly and easily implement these improvements to gain immediate caustic soda savings of up to 5 %. These solutions require a management of change plan to ensure that plant personnel adjust their procedures accordingly.
A number of long-term solutions that could further reduce caustic consumption were compared. Recommendations for these were made based on Huntsman’s current strategy for deciding which new projects to implement. Additional recommendations for the long-term solutions were made considering implementation strategies that prioritise other factors, such as environmental sustainability and possible legislation changes.
Completion of the recommended minor process improvements will result in significant variable cost savings for Huntsman, thereby improving profitability. Implementation of the long-term solutions could result in additional variable cost savings and offer other benefits, such as improved sustainability.
Original language | English |
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Place of Publication | Eindhoven |
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Publication status | Published - 22 Mar 2024 |