Engineering the Future: Data-Centric Approaches for Sustainable Capital Projects

The High Stakes of Capital Projects

Consider this: According to Accenture, a staggering 95% of major projects with budgets over $1 billion experience delays or cost overruns. These delays aren't just minor hiccups—they often result from incomplete engineering data, poor communication, and a lack of transparency among project teams. In a sector where every day lost can mean millions of dollars, these inefficiencies add up quickly.

So, what’s the solution? It's about moving from traditional project management to a data-centric approach. By embracing digital twins, EPCs and owner-operators can transform how they collaborate, execute, and sustain their projects.

Digital Twins: The New Standard in Project Management

A digital twin is essentially a virtual representation of a physical asset, updated in real-time and accessible to all stakeholders. Whether during the design phase or after construction, digital twins provide a single, unified view of the project, ensuring everyone is on the same page—literally.

Key Benefits of Digital Twins:

• Enhanced Collaboration: By providing a centralized platform, digital twins eliminate the guesswork. EPCs and owner-operators can collaborate more effectively, reducing errors and rework, which currently accounts for 30% of design and construction activity.
• Real-Time Data: Digital twins feed on real-time data, improving decision-making from design to operations. This ensures that projects not only meet their deadlines but also perform optimally once completed.
• Sustainability and Cost Efficiency: Digital twins allow for the simulation of various scenarios, helping teams optimize designs for both performance and environmental impact. This is crucial as industries face increasing pressure to reduce carbon footprints and build more resilient supply chains.

Case Studies: Success Stories in the Making

1. bp’s Azeri Central East (ACE) Platform: bp's ACE project, with over $6 billion in development costs, faced the challenge of coordinating vast amounts of data across different stages. By leveraging AVEVA’s digital twin technology, bp and their EPC partner KBR were able to integrate laser scanning and 3D modeling into a single, connected environment. This not only improved the accuracy of the data but also allowed remote teams to collaborate seamlessly, ensuring safety and operational efficiency before the plant was even functional.

2. Wood’s Lifecycle Approach: Wood, a global leader in EPC for the energy and materials sectors, implemented digital twins to bridge the gap between capital projects and operations. By creating a comprehensive life cycle representation of assets, Wood ensured that their clients could maximize ROI while improving sustainability and performance. This approach is particularly valuable for managing greenfield and brownfield projects, where the integration of real-time data and predictive analytics is key.

3. Evonik’s Data-Driven Asset Management: For Evonik, a specialty chemicals company, the challenge was to manage complex manufacturing processes with scattered data. By adopting AVEVA’s computer-aided engineering system, Evonik integrated various data sources into a unified model, ensuring that critical information was readily accessible throughout the plant’s life cycle. This move not only boosted engineering efficiency but also secured the asset’s operational data for future use.

The Future of Capital Projects: Collaboration Beyond Handover

The true power of digital twins lies in their ability to transform the relationship between EPCs and owner-operators from a transactional one to a strategic partnership. By continuously sharing engineering data, EPCs can open new revenue streams post-handover, while owner-operators benefit from up-to-date, validated information that drives operational excellence.

As we move into an era where sustainability is non-negotiable and efficiency is king, the adoption of digital twins is no longer just an option—it’s a necessity. The question is, are you ready to embrace this change and unlock the full potential of your capital projects?