An international chemicals manufacturer set itself the goal of making a major production plant carbon neutral (Scopes 1 & 2) by 2030. This objective is part of their long-term mission to reduce carbon emissions while decreasing their dependence on energy markets, particularly natural gas.
Given the factory's intensive thermal energy needs, the company acquired a biomass digester to produce biogas. They then joined forces with ENGIE Impact to draw up tailor-made, integrated roadmaps for reaching carbon neutrality. Finding a least-cost pathway was a priority, as a critical consideration was reaching the carbon targets without compromising the bottom line.
Solution
ENGIE Impact conducted a Net Zero Factory to investigate the best pathway to reach zero carbon emissions by 2030. The method considered efficiency measures for plant optimization, such as increasing heat recovery to reduce thermal losses and electricity consumption, followed by defining a realistic baseline. With a baseline established, ENGIE Impact tapped into its extensive playbook of solutions to assess the assorted options and potential pathways to start co-constructing a solution with the client.
Several decarbonization pathways were considered initially and measured against a business-as-usual (BaU) scenario that limits solutions to existing technologies. The scenario-building exercise identified key risks and opportunities (technology, renewable energy sourcing, carbon tariffs, etc.) and made financial projections (TCO/total cost of ownership, CAPEX, OPEX, cost with commodities) across the designated timeframe.
After investigating the pros and cons of various scenarios, the preferred decarbonization pathway was determined. In the first phase, the focus would be installing onsite PV, supplying hot water with high-efficiency electricity-based assets, and increasing heat recovery to harness its full potential. The second phase would involve electrifying steam using a high-temperature heat pump and replacing natural gas with cleaned biogas (biomethane) to cover the remaining thermal production. Any remaining commodities that would need to be bought from the grid would be decarbonized using a green electricity supply contract or energy attribute certificates (EACs).
Results
The Net Zero Factory approach, featuring advanced data analytics and modeling, successfully identified a pathway that would enable the chemical company to reach its target of zero carbon emissions by 2030 at one of its plants. The process concluded with the following:
23 decarbonization technologies, out of 29 identified, qualified as satisfying technical and economic requirements (regulations, commodity availability, physical and technical fit)
3 decarbonization scenarios developed and analyzed for cost-optimized sequencing of low-carbon technologies, compared to BaU scenarios
9% reduction of total cost from 2024-2044 using the preferred pathway compared to a BaU scenario. Attaining carbon neutrality while maintaining the technical status quo (i.e., not investing in new assets, relying only on green commodities supply) would be 16% more expensive than BaU.
Collaboration and stakeholder engagement ensured alignment with the company’s decarbonization goals, fostered buy-in to the process, and increased the likelihood of follow-through on the preferred pathway.
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