SK Ulsan Complex, home to Korea’s largest refinery and chemical plants, transforms with AI and digital transformation

■ SK Innovation, in collaboration with local AI firms, has developed the world's first "AI IRIS Non-Destructive Testing Automatic Evaluation Solution," applicable across various industries including refining and petrochemicals

■ The first in the domestic petrochemical industry to commercialize smart plants, with rapid progress in expanding into overseas markets

■ Strengthening competitiveness of SK Ulsan Complex centered around smart plants technologies, driving tangible outcomes

SK Innovation, Korea's first and largest energy corporation, has developed and expanded solutions integrating artificial intelligence (AI) and digital transformation (DT) technologies into refining and petrochemical processes, positioning these innovations as key drivers for future growth.

Leveraging over 60 years of operational expertise in refining and petrochemical plants, SK Innovation has independently developed optimal solutions by incorporating AI and DT. Furthermore, the company is collaborating with local AI enterprises to develop new systems, enhancing its technological advancements. Through this, SK Innovation and local AI companies plan to leverage AI and DT solutions as new growth drivers for future expansion into international markets. Concurrently, they aim to establish a foundation for Ulsan, Korea's leading industrial city, to advance into an AI-centric industrial hub.

SK Innovation has been integrating AI and DT into the smart plant initiatives at SK Ulsan CLX since 2016, evolving these efforts into Smart Plant 2.0. The company is committed to continually delivering tangible results moving forward.

◈ Driving the Development of the World's First AI Model for Equipment Inspection and Diagnosis - Expanding from Ulsan CLX

SK Innovation and the local AI firm DEEP-AI have developed the world's first "AI Internal Rotary Inspection System (IRIS) Non-Destructive Testing (NDT) Automatic Evaluation Solution" and are moving towards commercialization.

Refining and petrochemical processes, which operate 365 days a year, undergo periodic inspections to ensure safe operation, with engineers determining the need for maintenance. A representative method is NDT using ultrasound to detect defects like IRIS, primarily used for inspecting heat exchanger defects.

Heat exchangers, composed of thousands of tubes used for temperature regulation during product manufacturing, are critical components within refining and petrochemical processes. SK Ulsan Complex ("SK Ulsan CLX") alone houses approximately 7,000 units, with around 30,000 units in the entire Ulsan petrochemical industrial complex. These units are prone to cracks, corrosion, and wear due to aging and harsh operational environments. More than 80% of equipment failures stem from tube damage within heat exchangers, posing significant safety risks.

Conventional inspection methods involve ultrasound imaging followed by expert visual analysis to identify flaws, a process limited by human expertise, accuracy, and time. The decline in industry experts further exacerbates these limitations.

The AI IRIS technology developed by SK Innovation and DEEP-AI leverages AI to identify defects from ultrasound images with over 95% accuracy, reducing inspection times by more than 90%. This solution exemplifies the synergy between large enterprises' extensive data and technical knowledge with small enterprises' AI innovations. Moreover, the collaboration underscores the potential of nurturing industrial AI tailored to the characteristics of Ulsan, an industrial city.

SK Ulsan CLX contributed its accumulated knowledge and data, while DEEP-AI implemented the solution with its AI technology. Further support came from Ulsan City's designation of the project as part of the government's national R&D funded "AI Convergence Foundation for Manufacturing Industry" initiative.

Following field validation, SK Ulsan CLX plans to fully implement the solution within its operations and expand its application across the Ulsan refining and petrochemical complex, driving commercialization efforts.

"We plan to further enhance the AI NDT IRIS automatic evaluation solution with DEEP AI and expand its market to include pipelines, boilers, tanks, automotive, and aviation parts where the same technology applies," said a representative from SK Ulsan CLX. "Furthermore, we are considering entering the overseas market," he added.

◈ First in Korea to Commercialize Smart Plant Systems - SK Innovation's Drive to Make Ulsan an Industrial AI Hub

SK Innovation has successfully commercialized its proprietary equipment asset management system, OCEAN-H (Optimized & Connected Enterprise Asset Network Hub). OCEAN-H is tailored to the needs of the refining and petrochemical industries, utilizing data accumulated over 60 years to address various operational scenarios. The system is designed to systematically accumulate maintenance data for energy and chemical industry facilities, enabling its utilization in accordance with real-time changes in field conditions.

Since its market debut early last year, OCEAN-H has been competing with overseas solutions and has secured five major refining and petrochemical companies in Ulsan as clients, generating approximately KRW 3.5 billion in revenue. The system, optimized for domestic conditions and designed to address existing challenges, has garnered significant interest and partnerships from various industries including power generation, steel, and batteries.

An SK representative highlighted, "Overseas solutions often grapple with issues like convenience, usability, scalability, and high costs due to differences in operational environments. Our improvements in these areas have been well-received in the market."

SK Innovation continues to enhance OCEAN-H by incorporating intelligent features and developing an expanded range of proprietary products like the Smart Scaffolding System and Smart Work Permit, integrating AI to improve convenience and accuracy. The Smart Scaffolding System, for instance, is an augmented reality system applied to scaffolding installed at construction sites for worker safety. It uses floor recognition technology to virtually stack and measure scaffolding, enabling accurate estimation of work volume and costs.

In November 2023, the company signed a business agreement with TATA Group's TCS (TATA Consultancy Service), a global IT service and software company based in India, paving the way for ventures into global markets including Indonesia, Thailand, Vietnam, and India.

A company official stated, "Leveraging SK Ulsan CLX's specialization in refining and petrochemicals, we are enhancing our competitiveness through various digital technologies including AI. As Korea's first refinery and now the first to establish a smart plant in the country, SK Ulsan CLX is committed to achieving definitive results in this new endeavor."

[Photos]

(Photo 1) SK Innovation and local AI firm DEEP-AI are conducting a heat exchanger defect inspection using the world's first "AI IRIS Non-Destructive Testing Automatic Evaluation Solution" developed by the companies

(Photo 2) Deep-AI CEO Kim Ki-soo is explaining the "AI IRIS Non-Destructive Testing Automatic Evaluation Solution"

(Photo 3) SK Energy members are holding a meeting using SK Innovation's proprietary equipment asset management system "OCEAN-H"

(Photo 4) SK Energy members are working using SK Innovation's proprietary equipment asset management system "OCEAN-H"

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