Refineries have long been significant contributors to global greenhouse gas (GHG) emissions. Today, however, they are also emerging as indispensable players in the energy transition. As a result, decarbonization has become both an environmental imperative and a strategic business priority. Refinery operators are increasingly investing in technologies to reduce on-site emissions—but emissions accounting in this sector is rarely straightforward.
Moving from rough emissions estimates to methodology-conform life cycle assessment (LCA) is a critical step. It provides the foundation for informed decarbonization decisions, regulatory compliance and the transition toward more sustainable products.
Decarbonization challanges
Refineries are inherently complex systems, comprising multiple highly interconnected units for distillation, cracking, upgrading, hydrotreatment and other functions. Operations are shaped by feedstock type—whether light or heavy crude, bio-based or circular—and by the required product slate and product properties, including fuels, chemicals, base oils and bitumen.
In addition, refineries use internal and external energy carriers for on-site energy conversion (utilities), further increasing operational complexity.
Layered on top of this is an evolving regulatory landscape and increasing pressure for climate action. Refineries must continuously adapt to their processes, feedstocks and products to reduce their carbon footprint.
Emission reductions can be achieved through a combination of strategies, including improving energy efficiency, integrating renewable energy sources, electrification, green hydrogen, and carbon capture and storage (CCS). However, these solutions must be evaluated holistically to avoid shifting emissions rather than reducing them.
LCA of complex systems
LCAs are essential to effectively quantify and evaluate decarbonization efforts—such as electrification or fuel switching. They provide a scientifically grounded framework for assessing environmental impacts across the entire value chain of a product or process.
This enables refinery operators to:
- Identify emissions hotspots
- Quantify reduction opportunities
- Compare decarbonization pathways
- Avoid unintended environmental trade-offs
However, conducting an LCA for refineries is far from simple. Key challenges include:
- Attributional vs. a consequential LCA approach: Should the analysis reflect the current average environmental burden of a fuel (attributional), or model the marginal system change resulting from a specific intervention (consequential).
- Black-box vs. unit-process models: Data may be available only at the site level or at detailed process levels. The level of granularity significantly impacts results but is often limited.
- Allocation choices: Whether based on energy, mass, economic value or system expansion, allocation decisions can significantly influence outcomes. Each product must carry its fair share of upstream impacts from each unit process that has been passed through the life cycle within the refinery, including utilities and losses (backpack).
- Mass balancing challenges: With product tanks mixing streams and metering gaps, input-output process data rarely closes in refinery operations.
- Compliance: Diverse standards and regulations introduce additional layers of complexity and methodological requirements.
Simplifying complexity
Sphera supports refinery operators throughout the LCA process with integrated data, software and consulting expertise. By developing new and enhancing existing decarbonization strategies, Sphera’s sustainability experts help ensure that refinery operators remain competitive as they transition into sustainable fuel producers.
The next blog of this series will explore how refinery operators can navigate complex regulatory frameworks and apply LCA in practice to enable compliant and effective decarbonization strategies.
