One core logistics centre

Jani Hautaluoma, Valmet, Finland, describes how innovative technologies can make small scale virtual pipelines a profitable reality.

Alternative fuels that are becoming increasingly popular today, such as LNG and other methane-based renewable energy sources, typically require an organisation to have its own complete truck-based logistics system for transporting fuel, as gas pipelines do not connect all producers and end users. This is called a virtual pipeline that consists of CNG or LNG transported by truck, rail, or sea.

The virtual pipeline makes it possible to distribute gas to remote destinations cost effectively. The management of storage throughout the pipeline, both physical and virtual, is part of the concept.

Until today, managing this virtual pipeline has been highly complex. That is why such small scale supply chains for LNG or other alternative fuels have had difficulties being profitable. It requires greater efficiency throughout the entire supply chain and more accurate, real-time communication among multiple parties to ensure profitable business performance.

Building a bridge

Now Valmet is helping to provide a bridge between biogas production and efficient LNG distribution with its DNA Integrated Operations solution to make LNG even greener. This solution has made profitable business a reality for small scale virtual LNG and biogas pipelines, but Valmet is also in the process of expanding the offering for other renewable gases, including green hydrogen. This concept offers the flexibility needed for each virtual pipeline with its own complexity, while allowing customers to pursue their own long-term LNG strategy to increase sustainability within their business operations.

The solution combines innovative technologies to manage the entire logistics value chain of virtual pipelines. It increases the efficiency of logistics by making each action easier to track, adding value for all stakeholders involved. The control system is scalable and grows as the customer’s business evolves.

DNA Integrated Operations is a Cloud-based application developed to support energy transmission customers to manage their supply chains more efficiently. It works with the Valmet DNA Historian as a bridge between the production plant and the virtual pipeline. Historian plays a key role in collecting information for the virtual pipeline. Then DNA Integrated Operations has the expertise to pick the right information needed by the specific party in the supply chain.

The DNA Integrated Operations solution is built from various automation levels. Valmet’s distributed control system (DCS) is the base for all process control and information. Used

in different types of processes often requiring a scalable multi-user environment, Valmet’s DCS gives complete control of all processes and provides user experience and transparency that goes far beyond traditional automation systems. Information management is an integrated part of the platform.

Valmet DNA Historian is a tool that collects all metering and process data, such as tank levels and temperature. It helps connect information on the history and analysis, so that everyone knows what is going on at any given time. With the help of Historian, the information collected becomes a valuable asset for the customer.

The top layer is the Valmet Industrial Internet (VII) solution, which connects terminal operators with terminal users and other stakeholders and offers limitless developmental possibilities for the entire alternative fuel ecosystem in the future. The VII combines advanced monitoring and prediction applications, advanced process controls (APCs), dynamic process simulators, and remote services from Valmet’s eight Performance Centres into comprehensive solutions. Using the capabilities of the VII, process operations can be optimised based on the vast amount of data gathered together.

How it works

Instead of having several points where all activities are documented, such as receiving LNG from the vessels, metering LNG, storing it, or putting it into tanks, now just one single system does it all. Most operations today have several programs collecting the data to manage all transactions. This requires manual work to transfer the data from one system to another. It jeopardises the flow of information and increases the chance of mistakes.

In reality, the actual management work is transferred from the terminals or production plants to the terminal users and logistics companies. This creates a win-win situation. The terminal operators no longer need to be responsible for logistics planning and rather can focus on their core task of making terminal operations more efficient.

The terminal users and logistics companies, instead, can make decisions that affect their work, making operations more well timed for demand.

Throughout the entire supply chain, each party receives more accurate information. Truck drivers can pick up their loads or deliver them without wasting time waiting. All data entered into the system then automatically proceeds to speed up invoicing, making it more accurate and timelier.

Figure 1. When visiting the terminal, drivers from transport companies load their trucks with LNG easily using Valmet’s Cloud-based DNA Integrated Operations and local DCS automation from loading panels.

Figure 2. In the control room service hatch, drivers receive automatically printed waybills.

One holistic view

Unlike other solutions on the market, DNA Integrated Operations runs in the Cloud and not as part of the terminal automation system. This enables the system to collect real-time information from several databases and use that data for energy and logistics planning. The user gets a single holistic view.

The Valmet DNA Integrated Operations automation and software application was created specifically from the bottom up to make LNG and biogas operations more efficient. The experts behind the solution have years of experience working in this specific area and have the knowledge regarding the challenges that automation can address. The multiple award-winning solution helps users better manage data, optimise sourcing, and plan logistics efficiently, thereby saving time and costs. The comprehensive software monitors and masters all the information between these parties with independent layers that are targeted to specific users.

A unique feature is that monitoring and logistics are seamlessly integrated together. There is no other tool available that can independently monitor both the loading points and the various end-point locations. The virtual pipeline then can take advantage of having all plant data and infrastructure data in one single place, building a single virtual pipeline view. Another exclusive feature is forecasting. The system provides two forecasts as part of its functionality – one for the loading point and one for the end points. This gives valuable information on the energy, volumes, origins, and emissions that is needed to run a seamless business as well as is an authority requirement.

DNA Integrated Operations is the only solution available today that runs in the Cloud and not as part of the terminal’s automation system. In the Cloud, the relevant data can be easily shared between stakeholders in the supply chain. For example, logistics companies can see the loading bookings and communicate among each other to find the most accurate timing for every loading. Loading permits are transferred from the Cloud of DNA Integrated Operations to an on-premises DCS.

DNA Integrated Operations has been developed according to Valmet Automation’s certified ISASecure Security Development Lifecycle Assurance (SDLA) cybersecurity process. Additionally, a high level of

cybersecurity with Microsoft Azure ensures a safe way to transfer loading permits from the Cloud to the local Valmet DNA automation system to activate loadings.

Renewable electricity

Bio waste and other feedstock Green hydrogen / P2G production

[UNDER DEVELOPMENT]

CO2

Biogas production Part of LBG / CBG logistics

SNG

H2 Grid injection

Grid injection

CBG

Grid injection LBG LBG for transport NG pipe Process industry customer

H2 fueling stations

CBG fueling stations LBG fueling stations NG grid Natural gas compressor stations

Natural gas upstream processes

Industry customer

Case study: Measuring results at Gasum

LBG/L-SNG import

Clean water Liquefaction and LBG storages LBG/L-CNG for ships L-LCBG fueling stations

Can be existing LNG terminal LBG LBG for process industry

Green hydrogen Grid injection

[UNDER DEVELOPMENT]

DNA Integrated Operations has been used by Gasum Oy for gas truck transportation in Finland since 2018. For Gasum, Valmet’s offering is unique, as it is the only one to monitor independent locations and loading points. Forecasting happens continuously to ensure enough fuel at all times and also to provide accurate information to the master planners. Gasum uses one forecast for the loading points and another for the end points.

Valmet is the only supplier to be able to offer a holistic view, giving information about both the existing and future situation. This enables the entire supply chain to be more accurate and efficient, adding more revenue to the bottom line.

A study has been carried out to analyse the operational data and determine how the efficiency of the overall supply chain has improved. Based on operational data, the gas amount in the retrieved gas containers has significantly reduced from 7% in 2018 to 3% in 2020. The DNA Integrated Operations system has significantly improved the supply chain control accuracy, which has directly improved the profitability of Gasum’s alternative fuel business.

Already today, Gasum is able to centrally control its various biogas plants and gas filling stations, as well as monitor container logistics with GPS. Furthermore, the system enables the company to centrally calculate total biogas sales and transfer data to its enterprise resource planning (ERP) system. Such an integrated operation system is unique for the plants.

Moving toward a carbon-neutral society

Process industry Renewable customer electricity Hydrogen grid Natural gas biogas Solid material for batteries

Green hydrogen [UNDER DEVELOPMENT] Ex. steel mill CBG LBG L-SNG SNG H2 L-LCBG NG LNG Compressed biogas Liquefied biogas Liquefied synthetic natural gas Synthetic natural gas Hydrogen LBG + CBG Natural gas Liquefied natural gas

Figure 3. Alternative fuel infrastructure roadmap.

Case study: Topping up profitability at Manga

The Manga Terminal in Finland is the world’s most northern LNG import terminal. It is also the first one to offer Cloud connections for LNG trucks.

Valmet’s automation systems are connected through VII to provide load permits to trucks via Cloud services. The operators no longer make any bookings, the logistics companies are now responsible for those. The terminal operators just follow the bookings made in DNA Integrated Operations. Afterwards, information about the deliveries is transferred automatically to the terminal’s invoicing system.

The transport companies book the capacity and the loading time. The order number is directly saved in the DNA Integrated Operations tool, where truck drivers are able to see it. It allows them to plan their deliveries more effectively.

DNA Integrated Operations is also in use in the control room. Operators are able to see which truck companies are coming at what time. If necessary, the operators can book a free slot in the loading dock for service work. Additionally, more trucks can be served when they do not waste time waiting.

This terminal is the first to reverse the supply chain. Loadings do not wait for orders from the ERP system. Instead, they come directly from Valmet DNA Integrated Operations and proceed to the ERP. This has resulted in huge improvements in operational efficiency. Also, congestion peaks have been optimised.

Valmet’s service has already improved the terminal operations significantly. The fully automated Valmet DNA DCS terminal automation using the new VII application driven by DNA Integrated Operations is a modern way to put logistics companies, the terminal operator, and terminal users on the same platform.

The Valmet DNA Historian uses Valmet DNA Operate TEA – the trend and event archive, also called Time Machine – so operators can move timelines and check what has happened on the process level. Now time management is part of logistic planning, and end-point forecasts define accurate delivery timings. Time optimisation is a key element in finding the best way to control the process and operations.

Although Valmet has built a solid reputation for itself in automating the pulp and paper industry, the company has a history of over 200 years. It has been active in big oil and gas projects for decades. As a result of a deep understanding of small scale virtual pipelines, the Valmet experts have now taken the company’s automation solutions and applied them to renewable gas supply chains to improve these businesses and make operations profitable.

Today, Valmet aims to be part of the energy transformation movement, enhancing sustainability and enabling a carbonneutral society.

Conclusion

It is clear that the alternative fuel market is moving along a solid path toward long-term success. Companies such as Valmet that can help remove some of the existing barricades for small scale virtual pipelines can speed up this development.

The overall goal is to make sustainable energy solutions more efficient, reduce emissions, and help businesses become more profitable through optimisation.