As the global community intensifies efforts to combat climate change, achieving net-zero emissions has become an urgent priority. Yet, the path to decarbonisation is complex and multifaceted, especially for industries that are inherently carbon-intensive.
Sectors such as cement and steel are the backbone of modern infrastructure but are among the most challenging to decarbonise due to their high energy consumption and reliance on carbon-intensive raw materials. Cement, for instance, is responsible for about 8% of the world’s total CO₂ emissions, according to the World Economic Forum.
Given the essential nature of these industries, how can we realistically reduce their environmental impact while maintaining their output? The answer lies in a balanced and collaborative approach that combines the most effective technologies, innovative digital solutions and pragmatic policies such as transition credits.
Carbon capture and carbon removal technologies
Carbon capture is central to decarbonisation of heavy industries, but it comes with challenges, particularly in terms of cost, energy consumption and selection of the most optimal technology.
These industries rely on methods such as point-source carbon capture, which involves capturing emissions at the site of production. This method captures CO₂ directly from industrial flue gases before they enter the atmosphere. As flue gas compositions and characteristics vary with the industry source, companies are developing more efficient solvents and solvent mixtures to maximise the capture and minimise the energy use.
However, hard-to-decarbonise industries cannot reach net-zero without tackling residual emissions. “Engineered removals” such as direct air capture with carbon storage (DACCS) have garnered attention as a method that extracts CO₂ directly from the atmosphere. But DACCS is a large consumer of energy and costs $600–1,200/t of CO₂ captured, as consultancy Wood Mackenzie reports.
The role of transition credits
While point source capture is critically important, transition credits may offer a pragmatic solution as a complementary way to achieve full decarbonisation. These credits allow companies to offset their emissions by investing in carbon reduction projects elsewhere. Transition credits provide a pathway for high-emission industries to contribute to global climate goals when their own operations cannot easily reach zero emissions.
Transition credits acknowledge the realities of sectors such as cement and steel, which cannot feasibly decarbonise at the same pace as other industries. By taking advantage of this, companies can take meaningful steps towards carbon neutrality, while continuing to invest in the technological innovations needed to further reduce their emissions in the future.
Harnessing the power of digital innovation
While carbon capture and transition credits are crucial, technological innovation is equally important. Advanced modelling tools and digital technologies enable the development of efficient processes and technologies, helping industries to enhance energy efficiency and optimise operations, even in traditionally high-emission sectors.
We are seeing increasing growth in the use of software solutions to improve energy efficiency and lower emissions. Process modelling software can assess thousands of design variations, allowing companies to select configurations that optimise both capex and opex. This accelerates the development and implementation of carbon-capture technologies by shortening the R&D cycle and facilitating faster scale-up.
With the large amounts of data generated, industrial AI applications that use engineering first principles as guardrails help to make more informed decisions to help drive decarbonisation in operations. For example, a steel manufacturer can use digital twin technology to model their production processes, identifying inefficiencies and opportunities for energy savings. By simulating different operational scenarios, they can make decisions that reduce emissions and operational costs.
A collaborative approach across industries
Just as ecosystems rely on the interdependence of diverse species, the path to decarbonisation depends on industries working together to leverage their strengths. Not all sectors can decarbonise at the same speed or through the same methods. Harder-to-abate industries, such as cement and steel, face unique challenges that call for a different strategy compared with other industries with more straightforward paths to reducing emissions.
A collaborative approach that acknowledges these differences can lead to a more effective global decarbonisation strategy. For instance, industries that are more advanced in their decarbonisation efforts can share knowledge and resources with those facing steeper challenges. Governments and regulatory bodies can support this collaboration through policies that promote innovation and encourage investment in decarbonisation and emission reduction technologies.
Finding a balanced solution
The road to decarbonisation is complex and requires balancing the environmental goals of reducing CO₂ emissions with the operational realities faced by industries.
Carbon capture technologies provide a viable path for reducing emissions in heavy industries, while carbon removal offers a pragmatic solution for offsetting emissions that are harder to eliminate. Meanwhile, digital technologies play a critical role in enhancing energy efficiency, reducing emissions and accelerating the development and adoption of decarbonisation solutions.
Ultimately, achieving global decarbonisation will require industries to work together, sharing both the burden and the benefits of reducing their carbon footprints. By recognising that different sectors face different challenges, we can develop a more collaborative and nuanced approach that ensures long-term environmental sustainability while maintaining the critical infrastructure that modern society depends on.
Gerardo Munoz is senior sustainability solutions manager at AspenTech.
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