The State Oil Company of Azerbaijan Republic (SOCAR) announced that its SOCAR Carbamide facility has been recognized as a World Economic Forum (WEF) Digital Lighthouse, becoming the first industrial site in Azerbaijan and the wider Central Asia region to receive the distinction, News.Az reports, citing McKinsey.
The recognition follows a 2.5-year digital transformation program launched in 2023 in partnership with McKinsey and its AI division, QuantumBlack. The initiative focused on integrating artificial intelligence into plant operations, maintenance, and energy management while training employees to work with digital technologies.
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According to SOCAR, the transformation increased plant throughput by 21%, improved energy efficiency by 24%, and reduced carbon dioxide emissions by 19%.
The company said the modernization is part of its broader 2035 strategy to strengthen competitiveness beyond traditional hydrocarbon production by investing in digital technologies and industrial innovation.
Rather than relying solely on commercially available software, SOCAR and its partners developed 42 in-house AI and digital solutions tailored to the plant’s specific operational needs.
Among the key innovations is an AI-powered energy optimization platform that analyzes hundreds of operating variables in real time and performs millions of simulations to recommend the most efficient plant settings, helping reduce natural gas consumption.
The company also introduced an AI system that continuously monitors production conditions and automatically adjusts more than 150 control parameters to improve stability and increase output.
To reduce unexpected equipment failures, SOCAR deployed predictive maintenance tools supported by a generative AI assistant capable of reviewing approximately 20,000 technical manuals and helping engineers identify the root causes of mechanical problems. The company said the system has reduced unplanned maintenance by 66%.
Alongside the technological upgrades, SOCAR launched the Digital Academy, a workforce training initiative designed to improve employees’ digital skills. Within 2.5 years, around 70% of plant workers acquired new digital capabilities, with frontline teams contributing more than 40 AI-driven use cases.
Building on the project’s success, SOCAR established the Caspian AI Institute, a regional center dedicated to developing industrial AI solutions for the energy sector. The institute now employs more than 60 AI and digital specialists, has developed over 30 AI products, and holds 15 AI research patents, according to the company.
The WEF’s Global Lighthouse Network recognizes manufacturing facilities that successfully combine advanced technologies with measurable improvements in productivity, sustainability, workforce development, and operational resilience.
SOCAR said the Carbamide plant is now the first urea fertilizer facility in the world to receive the Digital Lighthouse designation.
The company added that the plant currently exports around 90% of its production, meets Azerbaijan’s entire domestic demand for nitrogen fertilizer, and contributes to the country’s non-oil export revenues.
