SAP platform powers new alternative energy sources
By Manufacturing Business Technology Staff -- Manufacturing Business Technology, 9/13/2007 12:32:00 PM
Producers of biofuels and renewable energy sources have selected SAP solutions as the platform upon which to build their IT and business process infrastructure, as they work to meet sharply escalating global demand for alternative energy sources.
Agri Energy, FutureFuel Chemical Co., Imperium Renewables, Natural Fuel Limited, Riverina Biofuels, and US Canadian Biofuels will use SAP solutions, citing the expertise of SAP in process industry practices and management, accelerators for adoption and deployment, and platform flexibility to enable companies to adapt and grow amid ongoing industry transformation.
"SAP solutions were a natural selection for us as we focus on developing and delivering alternative fuel sources to a demanding global marketplace," says Jerry Goade, VP of finance, Imperium Renewables. "SAP's dominant footprint among the world's leading chemical and oil and gas companies—coupled with the flexibility of SAP solutions to integrate with partner solutions and connect with suppliers and distributors—will enable us to focus on our mission without concern for how our IT systems will scale as growth and consolidation occur in our industry."
Concerns over long-term energy independence and security, and increased demand due to the economic growth in emerging markets, are shaping regulatory policies around the world and promoting the search for alternatives to petroleum-based fuels. This boom is driving R&D and yields a rapidly emerging biofuel industry on a global scale.
Biofuels are alcohols and esters processed from biomass such as plants, new and waste vegetable oils, and animal waste. Biofuels are blended with petroleum-based fuels and fed into the downstream distribution process to the consumer. Owners and operators of the emerging industry value chain, including growers, harvesters, processors and distributors, are turning to SAP for proven solutions to support these processes that are rooted in the mill, chemicals, and oil and gas industries. SAP provides an IT infrastructure that enables optimized business processes, scalability for growth and ease of integration for the expected industry consolidation.
"A variety of factors are driving the development of alternative fuels," according to Cambridge Energy Research Associates in CERAWeek 2007: Focus on Energy. "Increased demand in emerging markets, concerns about the future availability of oil supplies, consumer awareness regarding environmental impact and governmental regulations around the world are all major factors influencing the industry. These factors, coupled with the converging technological innovation in the industry, will result in a global acceptance of and demand for biofuels and renewable energy sources by 2020."
Manufacturers and distributors of biofuels and renewable energy sources are selecting industry-specific solutions according to their needs for regulatory compliance, integrated business management, manufacturing and sales and distribution processes. In particular, SAP solutions enable manufacturers to realize real-time manufacturing management to secure continuous product quality or by using environmental health and safety solutions for the responsible care of resources across the value chain, from agricultural production to secondary distribution.
"For more than 30 years, SAP has been delivering solutions that support the needs of process manufacturing companies of all industries and sizes," said Peter Maier, senior vice president, Process Industries, SAP. "SAP's reputation as the solutions provider of choice to process industries has led us to continued leadership in the emerging industry of biofuels and alternative fuel sources. Meeting the complex and varying needs of our customers is our focus, and delivering a platform that will support the growth of our customers as they deliver environmentally friendly products to the market is a source of pride for SAP."
