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Managing Complexity to Decarbonize Pharmaceutical Sites

Case Study
See All Insights
Decarbonization
Net Zero
Emission Reduction
September 5, 2024

Challenge

A pharmaceutical multinational has committed to achieving ambitious decarbonization objectives, aiming to reduce its Scope 1 and 2 emissions by 50% by 2030 and achieve carbon neutrality by 2040. The challenge of meeting these goals on schedule is exacerbated by the complexities inherent to the industry, which has highly demanding standards for its products and production processes. Both are subject to extensive quality control, auditing, and validation. Changing equipment, for instance, is not as simple as purchasing and installing a machine. A detailed design for how that machine will fit in the existing system must be validated. It is a meticulous process that requires mindfulness of the challenges, internal and external expertise, and close collaboration.

Solution

ENGIE Impact conducted a Net Zero Factory to obtain a holistic view of the facilities and their energy needs, analyzing several decarbonization scenarios to determine the best solutions to meet the targeted emission-reduction goals for the site. The first step involved engaging with site engineers to understand the complexities and needs of pharmaceutical-specific processes. Given the demanding manufacturing standards involved, a detailed analysis of the technical parameters and the feasibility of integrating renewable energy sources was required.

By leveraging stakeholder engagement, ENGIE Impact assessed their needs and provided a list of decarbonization opportunities as well as an economic assessment of the various options based on the total cost of ownership (TCO). To cover most of the factory’s thermal needs, we recommended transitioning from natural gas to electrification. This involves the use of renewable electricity-powered heat pumps combined with a heat recovery solution. We compared multiple technologies (e.g., mechanical vapor recuperation, low-temperature and high-temperature heat pumps, electric boilers, and gas options) and presented various scenarios for each.

In addition to modeling the optimal pathway to meet the site’s decarbonization needs at the lowest TCO, we recommended different contracting models to fund the solutions – self-financing, as-a-service, and other tailored solutions to meet their specific objectives.

Results

By comparing the combinations of energy solutions based on TCO, ENGIE Impact was able to create a plan that would reduce the site’s emissions despite forecasted energy demand growth. The Net Zero Factory projected:

  • 50% reduction of Scope 1 and Scope 2 emissions by 2030, using combined solutions, exceeding the desired target
  • 7% reduction of TCO from decarbonization pathway despite anticipated growth
  • Detailed plan to upgrade assets for cooling systems, and hot water/steam systems

The company could feasibly attain carbon neutrality by 2040 at the site if the recommended scenarios are implemented across all on-site facilities. A Net Zero Factory that ENGIE Impact conducted at another of the company’s sites in an island country could achieve a similar outcome despite much more challenging conditions, demonstrating the adaptability of the Net Zero Factory approach.

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