This is an exciting time for AspenTech as our portfolio of sustainability-related solutions for customers has broadened. On May 16th, we closed the transaction with Emerson, including the addition of its OSI, Inc. and Geological Simulation Software (GSS) businesses.
AspenTech has a 40-year history of innovation, building on our deep expertise in process industries worldwide to develop new solutions to meet increasingly complex industry challenges. We also have a successful track record of integrating acquisitions to augment our existing capabilities, further enabling our customers continued profitability and sustainability success in their regional and end-use markets.
With the addition of these two businesses, AspenTech enhances its role in helping customers address today’s challenges. In particular, the complexity of the dual challenge -- with the need to support the growing demand for resources to meet the needs of an expanding population in a fair and equitable manner, while also addressing critical sustainability issues such as decarbonization and waste reduction impacting the health of our planet.
Building upon our sustainability solutions from Performance Engineering, Manufacturing & Supply Chain and Asset Performance Management, the additions of GSS, which has been renamed Subsurface Science & Engineering (SSE), and OSI’s Digital Grid Management provide a deeper portfolio of digitalization solutions for our customers. We have also expanded our partnership with Emerson to create a stronger platform to scale digital solutions and increase our capacity to invest in new solutions, both through organic growth and external acquisitions.
I am particularly excited about this expansion of the AspenTech portfolio and its relevance for sustainability progress for our customers. Subsurface Science & Engineering, provides end-to-end optimization in geologic formations. These solutions particularly complement the current AspenTech offerings for carbon capture technology development, expanding from innovation for process, design and scale-up to add insight on CO2 storage site selection and optimization. The SSE portfolio includes subsurface solutions to better characterize the reservoir storage capacity and containment, and to optimize injection capabilities and regulatory compliance.
The portfolio has a long history of optimization for the development of oil & gas fields and for geothermal projects, as reflected in a project by Belgian company HITA NV to enable risk reduction in its deep thermal projects using seismic modeling.
OSI provides electrification solutions for a robust electrical grid that can better manage renewable sources – with digital-enabling control for better reliability, more effective use of existing transmission lines and better optimization across the system. Recent success stories include the Salt River Project – the third largest U.S. public utility, that uses advanced distribution and transmission management systems to modernize its electrical grids, delivering sustainable power to millions of customers; and the upgrading of operational capability and reliability with a cloud-based outage management system by the Grand Island Utility District.
The depth of solutions now means more options to help reduce emissions across customer portfolios. Scope 1 emissions are reduced with digitalization solutions to boost efficiency, so less energy is used to drive the production process, and for better decision support on feedstock selection and supply chain options to target these reductions. OSI grid management solutions help companies better integrate renewable energy options into demanding operational environments to reduce Scope 2 emissions, complementing the utility sourcing options available with existing AspenTech products. Subsurface Science & Engineering can help to efficiently develop geothermal projects that cut Scope 2 emissions.
Carbon capture and storage options help companies address all emissions from direct operations, Scope 1, to those associated with product use, Scope 3 for direct air capture, such as that being developed by innovative company Carbon Capture, Inc. Scope 3 emissions can account for as much as 70% of the total carbon footprint and companies are increasingly working to identify, measure and reduce these emissions.
Operating companies are increasingly looking for a broad range of solutions to target sustainability goals and address stakeholders demands in all regions. AspenTech has a deep portfolio to enable progress with our customers, particularly to address improved efficiency and process redesign, and to help avoid operational disruptions that can lead to environmental or safety incidents. We are fully committed to addressing sustainability priorities with our customers and are growing to enable further progress.