Evolving Dynamics of EPC in the Global Chemical Industry

In an exclusive interaction with Thiruamuthan, Assistant Editor of Industry Outlook, A.K. Tyagi, Chairman & Managing Director of Nuberg Engineering, discusses how the global chemical and energy sectors’ pivot toward sustainability is driving EPC contractors to redefine their roles through digital innovation, localization, and circular economy models. From green hydrogen projects to modular manufacturing, this transformation is shaping a more resilient, technology-driven, and future-ready EPC landscape.

Anil Tyagi, a distinguished engineering entrepreneur with over three decades of global EPC experience, is renowned for his expertise in chemical process engineering, project management, and technology innovation, and is credited with pioneering in-house process technologies while leading large-scale industrial solutions worldwide.

With the global chemical industry rapidly shifting towards green hydrogen and ammonia, how are EPC contractors adapting their technical expertise and project execution strategies?

The global shift to green hydrogen and ammonia is forcing EPC contractors to expand beyond hydrocarbon process skills into electrolysis, renewable integration and water-management systems, effectively broadening the EPC scope from single-asset delivery to integrated green-value-chain projects.

EPC firms are increasingly adopting digital engineering, modular plant configurations, and technology-agnostic process integration to accelerate deployment and enhance project flexibility. Partnerships with global technology licensors, electrolyzer manufacturers, and renewable developers are becoming a core strategy to bridge technical gaps and deliver turnkey green solutions. Moreover, hybrid project models combine green hydrogen with downstream applications like ammonia, methanol, and sustainable aviation fuels, and are gaining momentum as clients seek scalable decarbonization pathways.

These developments are driving EPC contractors to invest in new domain expertise across electrochemistry, renewable integration, and water treatment, while embedding digital twins, AI-driven design tools, and advanced automation into project lifecycles. The result is a new generation of EPC players capable of managing the entire green energy value chain from concept to commissioning to positioning themselves at the forefront of the global decarbonization drive.

Facing persistent global material and equipment shortages, what supply chain localization strategies are Indian chemical EPC contractors implementing to safeguard project timelines and costs?

Persistent global shortages of materials, equipment, and logistics capacity have underscored the need for supply chain localization across the EPC sector. Indian EPC contractors, in particular, are responding by building regional manufacturing ecosystems and local supplier networks that enhance agility, reduce lead times, and stabilize costs. For instance, Nuberg EPC has strengthened its localization strategy through its in-house fabrication arm, Nuberg Heavy Fabrication, which enables modular manufacturing and customized equipment production within India, minimizing import dependency and ensures faster project delivery.

This localization strategy is underpinned by investments in indigenous fabrication and modular manufacturing facilities, enabling faster turnaround for critical process equipment such as reactors, pressure vessels, and heat exchangers. Vendor development programs are also expanding under India’s “Make in India” and “Atmanirbhar Bharat” initiatives, fostering collaboration between EPCs, MSMEs, and technology providers.

To strengthen predictability and cost control, firms are leveraging data-driven procurement analytics, diversified sourcing models, and regional strategic alliances. Such measures mitigate exposure to international market volatility while enhancing project execution resilience.

By aligning local manufacturing capacity with global engineering standards, Indian EPC contractors are not only safeguarding project timelines and budgets but also positioning themselves as globally competitive, export-ready partners in the evolving chemical and green energy sectors.

Beyond BIM adoption, digital twin technologies and advanced analytics are transforming EPC execution. How are firms leveraging these tools to enhance efficiency and control costs?

Digital twin technologies are transforming modern EPC execution by enabling smarter planning, faster decision-making, and greater cost efficiency. Each core element of this approach delivers tangible value throughout the project lifecycle.​

Simulation and Risk Mitigation: Digital twins allow engineers to virtually test and simulate an entire project before ground is broken. This helps identify constructability issues, design clashes, and potential risks early on, minimizing costly delays or change orders during execution. By running real-time simulations, teams can plan sequences, optimize layouts, and increase predictability in project outcomes. ​

Real-Time Data and Predictive Control: These virtual replicas integrate information from BIM, IoT sensors, and engineering systems to reflect actual site conditions. Real-time data allows for instant checks on progress, resource use, and deviations from plan. Predictive analytics built into the system help managers preempt equipment failures or cost overruns rather than reacting after losses occur. ​

Collaboration and Transparency: Digital twins create a single platform where designers, engineers, contractors, and clients can view live project data. This eliminates silos and miscommunication by ensuring all stakeholders operate from a common set of insights. Studies indicate that projects using digital industry practitioners report improvements up to 30% in coordination efficiency.

Cost Optimization and Sustainability: The ability to visualize asset performance before construction begins reduces material waste, shortens project cycles, and improves procurement decisions. With digital visibility across the lifecycle, firms can adopt proactive maintenance and track energy efficiencies, driving lower lifecycle costs and supporting sustainability targets.​

In essence, digital twin and analytics integration moves EPC operations from drawing-based execution to intelligence-driven delivery, where decisions are guided by data, not assumptions.

In India, regulatory and environmental clearance bottlenecks continue to stall large-scale private-sector chemical projects. What are the most critical hurdles and their impact on execution?

At Nuberg EPC, our extensive global experience and decades of project execution empower us to manage even the most complex regulatory and environmental contexts with precision and agility. Our integrated approach ensures multi-agency clearances, environmental assessments, and permits are handled in parallel, significantly reducing delays and costs. For example, during the TCI Sanmar Caustic Soda and Calcium Chloride project in Port Said, Egypt, we ran EIA, permitting, and stakeholder engagement alongside FEED and procurement, saving months of coordination.

The same parallel workflow approach powers timely execution for India’s largest Chlor-Alkali project with Adani Mundra Petrochemical in Gujarat, where regulatory processes and engineering milestones advance together.

Through early-stage stakeholder engagement, detailed environmental planning, and in-house regulatory specialists, every phase of project development is aligned with evolving standards. Our EHS and green energy teams rely on digital tools for real-time compliance tracking, and advanced design automation, digital twins, and modular construction techniques deliver transparency, speed, and safety. This process-driven strategy allows Nuberg EPC to complete large chemical and greenfield projects efficiently, consistently balancing renewable, safety and performance even within India’s dynamic regulatory landscape.

Also Read: Reimagining Self-Reliance: India’s Push for Homegrown Tech

As geopolitical risks and trade policy shifts reshape global markets, how are EPC firms redesigning procurement practices and project risk management frameworks to maintain resilience?

From my experience as a founder, the evolving global landscape has made it essential for EPC companies to rethink how we manage procurement and risk. With shifting trade policies and geopolitical uncertainties, resilience has become the foundation of how we operate.

We’ve moved toward diversifying our supplier networks, building long-term relationships across multiple regions, and relying on digital procurement systems that give us real-time visibility. This helps us respond faster to disruptions and maintain project timelines even in unpredictable conditions.

Risk management has also become far more dynamic. Instead of static frameworks, we now rely on data-driven models and scenario simulations to anticipate challenges early. Political risk coverage, adaptive contracts, and frequent reviews are all part of ensuring that projects remain stable and investors stay confident.

We also see technology and collaboration as critical enablers. Digital tools now allow seamless coordination across borders, while local partnerships help us navigate regional regulations more effectively. With a proud record of zero accidents since our inception in 1996 and over 65+ turnkey projects delivered across 32+ countries, we have built a strong reputation for safety, longevity, and leadership, particularly in hydrogen solutions.

In essence, our focus is on combining foresight, agility and engineering strength to deliver eco-friendly in a world that’s constantly changing. That’s what resilience in today’s EPC industry truly means.

With circular economy principles gaining traction worldwide, how are EPC companies transition to innovative process technologies over traditional capacity expansion, and what challenges might they face?

In today’s evolving landscape, EPC companies are shifting focus from traditional capacity expansion to circular economy driven innovation. Modular and skid-mounted plant designs, enhanced by digital integration and AI-enabled systems, are transforming operations by boosting efficiency, minimizing waste, and supporting renewable resource utilization across every phase of a project.

However, this transition comes with its own challenges. High upfront investments and uncertain short term returns can slow progress. Managing complex supply chains, ensuring steady recyclable material flows, and aligning with varied global regulations demand robust systems and strong collaboration. The shortage of expertise in circular engineering and data-driven process design also remains a key hurdle.