As per the Paris Agreement, all nations worldwide are committed to reducing greenhouse gas (GHG) emissions by 45% by 2030 and reaching net zero by 2050. In this regard, reducing emissions from various industries is a great challenge. This is especially challenging for hard-to-abate industries like steel, cement, and chemicals. These industries are crucial for economic development. Yet, they account for about 30% of the world’s greenhouse gas emissions. The CCUS technology (carbon capture, utilization, and storage) is a possible solution. Let’s understand how CCUS is an ideal investment for Indian CEOs of hard-to-abate industries to tackle GHG emissions effectively. 

What is CCUS? 

CCUS represents a series of processes to capture CO2 directly from fossil, biomass stations, industries, or air and convert it for various applications. Once captured, the CO2 is transported by ship or pipeline to the point of storage or application. There, it gets processed for various applications. Majorly, it is used for enhanced oil recovery (EOR) or the production of low-carbon fuels like methanol. The same can be used as an input or feedstock to create products or services. Otherwise, the CO2 is securely stored in geological formations so that it does not enter the atmosphere and harm the climate balance.  .php?post=24032&action=editCCUS represents a series of processes to capture CO2 directly from fossil, biomass stations, industries, or air and convert it for various applications. Once captured, the CO2 is transported by ship or pipeline to the point of storage or application. There, it gets processed for various applications. Majorly, it is used for enhanced oil recovery (EOR) or the production of low-carbon fuels like methanol. The same can be used as an input or feedstock to create products or services. Otherwise, the CO2 is securely stored in geological formations so that it does not enter the atmosphere and harm the climate balance.  

What CCUS Technologies Are Available Today? 

Some major CCUS technologies are available today to handle carbon emissions easily. Let’s understand how CO2 is processed under these CCUS technologies. 

• Direct Air Capture (DAC): Collected directly from the using air filters  
• Carbon Capture at Power Plants: CO2 is captured from power plants and processed for storage or enhanced oil recovery.  
• Enhanced Rock Weathering (ERW): Crushed silicate minerals like basalt and glauconite increase the soil’s CO2 capture capacity. 
• Aqueous Amine-Based CO2 Capture: Using amines to absorb CO2 for storage or reuse 
• Membrane Gas Separation: Using permeable materials to separate carbon dioxide and other gasses at low temperatures and pressures 
• Carbon Capture and Conversion: Converting the captured CO2 into usable products such as fuels, industrial chemicals, and polymers. 
• Chemical looping: Using metal-based particles to separate CO2 from the fuel for storage and further reuse  

• Cryogenic Carbon Capture (CCC): Leveraging cryogenic cooling to capture and remove CO2 from gas streams 
• Carbon Capture Using Nanotechnology: Carbon nanotubes capture CO2 at a very low pressure  

CCUS Global Application and Potential in India 

CCUS has been gaining popularity for its effectiveness in handling carbon footprints from the environment. As per the IEA report, around 40 commercial facilities have benefited from applying CCUS to their industrial processes. It has been used as one of the primary ways of carbon capture and utility storage. Though CCUS deployment slowed down in the past, in recent years, it’s been under development for over 500 projects across the CCUS value chain.  

How will Implementing CCUS Benefit Industries? 

CEOs in India can leverage CCUS to:  

• Meet Net-Zero Goals: India has committed to achieving net-zero emissions by 2070. In this regard, CEOs of hard-to-abate industries can use CCUS, which has already been a proven and effective method worldwide, to contribute significantly to achieving this ambitious green transition. 
• Improve Energy Security: Companies can utilize the captured CO2 for EOR, like in the Ankleshwar oil field CO2-EOR project in Cambay Basin, India. This can enhance India’s energy security by extracting more oil from existing fields. As a result, it can reduce dependence on imported fuels and strengthen energy independence. 
• Creating Economic Opportunities: The application of CCUS in Industries will unlock new job opportunities in India. Companies would require manpower to construct, operate, and maintain CCUS technologies, which will indeed create a positive economic impact. 
• Have a Competitive Edge: As the global market increasingly focuses on low-carbon products, adopting CCUS allows Indian industries to remain competitive and adapt to changing market demands. 

End Game: Accelerating Clean Energy Transition in India  

For CEOs of hard-to-abate industries in India, CCUS is not just an option but a strategic necessity. CCUS application can promise industries long-term sustainability, contribute significantly to India’s green transition goals, and create a cleaner and brighter future for the nation. As the world moves towards a low-carbon future, adopting CCUS allows Indian industries to have a competitive edge in the market and attract new investors. 

Are you looking forward to stepping up your industry’s strategy to reduce carbon emissions? 

Visit our website to learn how Moglix Business custom fabrication solutions can accelerate your clean energy transition

Imagine you’re a confident project manager, all set to complete the project on time and within the budget. Your team starts working tirelessly to meet the deadlines – and then an unexpected risk that you never saw coming halts your project. Now, you have no idea how to get back on track and complete the project. However, you might have prepared to overcome the challenge only if you had assessed its probability through a risk incident matrix.  

What is an Incident Matrix? 

Regarding project management, the incident matrix is a structured framework that clubs potential hazards into different groups based on their severity and likelihood. That’s why it serves as a roadmap for COOs of EPC infrastructure project developers to create predefined response plans with necessary actions for each scenario. When COOs use the incident matrix with advanced AI technologies, they develop robust, agile responses to handle downtime, keeping workforce safety and ideal project momentum as priorities. 

How to Use the Incident Matrix to Create Agile Responses 

1. Alert Comes In: Predictive AI 

The first step is to detect potential issues well in advance through predictive AI accurately. AI can analyze vast data to identify patterns in this initial stage. By continuously monitoring various project parameters, such as equipment sensor readings, weather forecasts, and historical incident data, predictive AI can anticipate potential issues before they escalate into full-blown incidents. 

For instance, the predictive AI system monitoring bridge construction might detect abnormal sensor readings in line with a potential structural issue to raise early warnings. This can help the COO to be proactive and initiate additional inspections to prevent a more serious incident. 

2. Diagnose: Generative AI 

Once an alert is triggered, the next step is to understand the nature and root cause of the incident. Traditionally, this diagnosis relied on human expertise and experience. However, being trained on vast datasets of such incident scenarios, generative AI can suggest an ideal course of action backed with real-time insights. For example, it can highlight potential causes of a rotor malfunction in a rotating shaft based on past sensor data analysis to help maintenance teams save time.   

3. Repair: Operations & Maintenance Procurement 

With the correct diagnosis, COOs use the incident matrix to decide on an appropriate repair strategy. Depending on the class of severity and degree of urgency, the COO might initiate the procurement of safety goods, spare parts, or specialized repair services. 

Here, maintaining an efficient infrastructure supply chain becomes crucial to promptly collecting all necessary resources, minimizing downtime, and easily reducing potential safety risks. 

For example, suppose a faulty safety harness needs to be replaced on a construction site. In that case, the COO can utilize pre-established procurement channels to expedite the acquisition of a new harness without compromising worker safety at any cost. 

4. Correct Behavior: FMEA Analysis 

As per the PMI, analyzing risks is extremely important in project management.  By incorporating FMEA principles (Failure Mode and Effect Analysis) into the incident matrix, COOs can use past incidents as valuable learning experiences. FMEA is a systematic approach to identifying potential failure modes within a system, analyzing their effects, and implementing corrective actions to mitigate those risks. Siemens uses FEMA to detect failure modes in components by starting with functional requirements analysis of the parts, which includes warping, electrical short circuits, oxidation, and fracture.  

5. Replace: Project Procurement 

Sometimes, the incident might necessitate replacing a faulty component or system. Under such a scenario, COOs use efficient project procurement practices for the timely acquisition of replacement parts or equipment with minimal disruption to the project schedule. With procurement automation, it’s possible to reduce the purchase order cycle by 75% and invoice processing costs by up to 90%.  

End Game: Enabling Agile Responses for Safety 

When combined with AI and efficient procurement practices, the incident matrix empowers COOs of EPC infrastructure project developers to craft agile and effective responses to unforeseen incidents. Using this framework, COOs can minimize downtime and project delays through prompt detection. It can also help in enhancing safety by proactively addressing potential hazards. To summarize, the incident matrix is the key for COOs to reduce project costs by preventing recurring incidents with an efficient procurement process in place. 

Do you want to craft agile and effective responses to unforeseen incidents by leveraging an incident matrix powered by digital supply chain transformation? 

Explore Moglix Business procurement solutions and best practices on safety to learn more. 

Introduction

According to the J.P. Morgan research, inflation for 2024 will likely remain around 3% [1]. The economic winds are shifting, and inflation is on the rise. This presents a significant challenge for CPOs across all industries. They are facing procurement challenges with rising raw materials, transportation, and labor costs. However, amidst the turmoil lies opportunity. CPOs need strategic approaches to mitigate inflation and come out stronger for future challenges.

Understanding the Current Scenario

Before diving into strategies, it’s crucial to acknowledge the current scenario. Global events and supply chain disruptions due to the Panama Canal [2] and the Suez Canal [3] continue to fuel inflation. Geopolitical tensions across these crucial trade corridors force many companies to redraw decade-old trade maps. They are impacting MRO supplies and driving up procurement costs. This volatility makes accurate forecasting and cost management more critical than ever.

Building a Fortified Supply Chain

Optimizing eProcurement Process 

Streamlining the eProcurement process helps in informed decision-making. For instance, a company can use EDI and procurement software powered by supply chain analytics to fetch real-time data for price trends, supplier performance, and contract terms. This transparency can help the company to identify cost-saving opportunities and negotiate more effectively.

Diversifying Your Vendor Base 

As per the Deloitte report, organizations with regional supplier diversification are less likely to be impacted by disruptions. Reliance on a single supplier can induce a price monopoly. Instead, having a wide vendor network with regional diversification will foster competition and reduce costs. For instance, GM has announced a deal with Livent and LG Chem to buy lithium and cathode to mitigate the risk of building 1 million EV cars by 2025 [4].

Mastering Inventory Management 

Excess inventory ties up capital and increases vulnerability to price fluctuations. Implement lean inventory management practices like Just-in-Time (JIT) delivery and Kanban systems. For instance, big brands like Walmart and Target optimize inventory levels for specific items as per demand forecasting to minimize holding costs and ensure a steady cash flow throughout the year.

Collaborating with Suppliers 

Nearly 56% [5] of procurement teams use technology to foster strong, collaborative relationships with their suppliers. However, as per the PwC’s survey [6], more than technology, it’s about the company’s ability to adapt and change with the situation. Consider collaborative planning, forecasting, and replenishment (CPFR) to optimize your and your supplier’s operations.

Optimizing MRO Supply 

According to DXP head, digitization is the key to successful supply chain management. It starts with data and is enhanced with procurement analytics. For instance, this method of MRO optimization in the cotton industry can help the company quickly identify supply chain bottlenecks to minimize procurement error, minimize waste, and improve cotton production rate across the board. Learn more about how Moglix helped an EPC firm bring agility to the supply chain in this detailed case study. 

Bottom Line

By diligently implementing these strategies, CPOs can transform challenges into opportunities. Once you learn how to hold steady in an inflation storm, you can easily safeguard your organization’s bottom line and build a more resilient and adaptable supply chain for the future.

Looking for a robust eprocurement model to beat inflation?

Partner with Moglix Solutions! Visit our website to learn more. 

References: 

1. https://www.jpmorgan.com/insights/global-research/economy/global-inflation-forecast
2. https://www.wsj.com/business/logistics/panama-canal-to-halve-daily-sailings-this-winter-due-to-drought-3bd70c79
3. https://www.wsj.com/business/logistics/thats-two-for-two-the-worlds-other-big-canal-is-in-trouble-f9760523
4. https://energy.economictimes.indiatimes.com/news/power/gm-signs-agreements-with-suppliers-on-course-to-reach-1-million-ev-capacity-by-2025/93136038
5. https://www.kodiakhub.com/blog/top-10-stats-supplier-relationship-management-software-market
6. https://www.pwc.com/gx/en/services/consulting/digital-operations/digital-procurement-survey.html