.svg)
Industrial enterprises are a cornerstone of the global economy, contributing significantly to both GDP and employment, while also being the largest consumer of energy, accounting for a third of global energy usage. The decade from 2010 to 2020 saw a 9% increase in industrial energy use, propelled by a demand surge in energy-intensive sectors such as iron, steel, and chemicals, which alone accounted for a third of this demand. Despite the challenges posed by the COVID-19 pandemic, these sectors' energy consumption patterns underscore the critical role they play in both economic activity and environmental impact.
The transition towards more sustainable energy sources within the industry has been gradual but noticeable, with the share of fossil fuel usage decreasing slightly, thanks to the adoption of electrification and renewable energy sources. This shift is particularly evident in biomass-based industries like pulp and paper, where bioenergy from waste products significantly contributes to energy consumption. The recent energy crisis, exacerbated by geopolitical tensions, has further fueled the interest in renewables and energy efficiency as means to mitigate costs and enhance energy security, marking a pivotal moment for industries worldwide to accelerate their transition towards cleaner energy solutions.
Increasingly, companies are committing to net-zero targets to enhance their corporate image and comply with regulatory pressures from entities like the EU, Canada, and the US. While detailed action plans are often lacking, some have pledged to use 100% renewable energy and improve efficiency through heat recovery and recycling. Innovations in sectors like cement and glass manufacturing are reducing emissions by altering materials and processes, with notable advancements in using solar either as their primary energy source, or to finance solar plants to offset their emissions, offering potential for decarbonizing energy-intensive industries. This shift represents a growing momentum towards sustainable industrial practices.
As an example, By June 2022, over a third of the world's largest publicly traded companies had set net zero carbon emission targets, marking a 60% increase from December 2020. Despite this progress, 65% of these targets fall short of meeting basic procedural reporting standards. In the cement industry, reducing the clinker-to-cement ratio is a key strategy for lowering both energy use and CO2 emissions, as clinker production is highly energy-intensive. Additionally, the industry's use of waste as alternative fuel, although partially renewable, further contributes to sustainability efforts.
Electrification through renewable sources is emerging as a pivotal strategy for industries, particularly those requiring low- to medium-temperature heat. Sectors like food, beverage, and paper are leading in adopting renewable electrification, with significant potential in chemicals and textiles via heat pumps. High-temperature processes, found in cement and steel production, pose challenges but innovations like electric arc furnaces are making inroads, contributing to about a quarter of global steel output. Companies across various sectors, motivated by net-zero goals, are increasingly securing renewable energy through Power Purchase Agreements (PPAs) and net-metering highlighting a shift towards cleaner operations.
Our team is committed to safety, health and environmental stewardship. We feel it is important to uphold our company values with every project we take on. Send us a message to get started.
You might also like
this related posts