Energy transition is not easy
Today, almost nine years after 195 countries signed the historic 2015 Paris agreement, more than 70 countries have net zero targets enshrined in law. 66 % of Fortune 500 companies have made climate commitments and need to work even harder to achieve those targets. The sensitivity of ESG topics amongst investors and stakeholders is continuously important in taking portfolio decisions. But time is running and many technologies have been developed but are by far not yet cost-competitive for consumers. Often, there is also a lack of at-scale manufacturing capacity.
Two examples from the automotive and chemical industries make it very transparent what it means to develop a competitive, economic, affordable and yet effective technology. The first Diesel engine was developed 1897 and still today, engineers are able to further develop this outstanding technology. The first e-vehicle that went into series was 1992 and still today the ideal battery system has not been developed. In 1891, Schuchow built the first industrial Cracker – today, in Europe only 20 companies operate 50 steam crackers while oil is the main feedstock to many industries. So, the industrial landscape and the day-to-day mobility is driven by technologies that are highly developed and effective.
So, companies need to put in place a trajectory of accelerated adoptions to meet 2030 and even 2050 targets. While many facts underscore the need for more a broader trend toward cleaner energy and reduced carbon emissions become mandatory.
That is applicable to most industries and for all regions – but, however, some sectors are, by their nature, hard to decarbonize. The chemical industry is one of those: 60 % of GHG emissions are from burning fuel to produce steam heat and pressure used in processes. The other 40 % come from CO2, NOx and other gases with a high greenhouse warming potential (GWP). Carbon capture, utilization and storage (CCUS) are the key lever, but far away from a broad and technical sustainable application. Alternative energy from hydrogen, SAF or electrical energy is increasing, but will not substitute fossile-based energy within the coming 6 or even 26 years completely.
An emission-free chemical industry will be hard to envisage and even when all fossile-based feedstocks are exchanged by renewables, gases and emissions have to be handled to reduce the carbon footprint or at least reduce the greenhouse warming potentials of substances. Flexible equipment like mobile vapor combustion units (VCUs) that can be used at the source of emission at any place are an option for optimization and emission reduction. Furthermore, the compact technology allows a perfect measurement and calculation of CO2 impact which will get more and more important to quantify measures.