What actions need to be taken to ensure a successful industrial - - PowerPoint PPT Presentation

What actions need to be taken to ensure a successful industrial transformation process?

Sascha Samadi, Wuppertal Institute

15 May 2018 | Brussels | EEAC workshop

1. Increasing energy efficiency E.g. by utilizing waste heat 2. Increasing emission efficiency E.g. by substituting coal with gas; higher electrification; CCS 3. Increasing material efficiency

• In production, e.g. by reducing material loss during production
• In use phase, e.g. by increasing recycling rates

4. Increasing product use efficiency E.g. through more intensive use, as in the case of car sharing 5. Making consumption patterns more sustainable E.g. by travelling less or switching from car use to public transport Five key options for reducing GHG emissions in the industrial sector

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demand side (should not be neglected)

Ø Identification and (multi-criteria) assessment of potential “breakthrough” technologies/processes capable of contributing to deep decarbonisation Ø Identification and implementation of adequate economic, infrastructural and institutional framework conditions required for developing innovative technologies, processes and products Ø Identification and implementation of adequate market structures for creating investment dynamics, while ensuring a level playing field across countries Ø Support for the development of individual mitigation roadmaps for companies and industrial clusters, based on broad stakeholder participation à Roadmaps for NRW and for the Port of Rotterdam as examples Further research as well as intelligent policy mix needed to enable industrial sector decarbonization

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Phase 2: Specification/ Networking (800 stakeholders)

Regional Workshops

Networking Events

• Public
• Municipalities
• Enterprises

Draft Climate Action Plan

Start

Adaptation to Climate Change

Kick-off Event Workshops

Steering Committee Climate Protection

6 working groups

Interim results

2012 2012/2013 2014 2015 3/2015 6/2015

Impact analysis

• f scenarios

Online consul- ta4on (1500 replies)

Plan submitted to parliament

Phase 1: Conceptualisation (400 stakeholders)

Structure of the participatory process for the preparation of NRW’s climate protection plan

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Study for the Port of Rotterdam industrial cluster: Stepwise approach to scenario definition

Global

• Global GHG mitigation effort level

I 4° I 2° I

EU

• EU GHG emission reduction target & policy

I BAU I -80 % I -90 to -95 % I

Port economy

• Economic strategy of the port’s industrial cluster

I BAU I Technological Progress I Bio & CCS I Closed Carbon Cycle I

Development of scenarios and discussion of scenarios with stakeholders

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Ø Support for the build-up of new infrastructure (e.g. for hydrogen, power- to-x and – if necessary – CO2) Ø Strengthening the cooperation between industry and science for advancing the knowledge about ambitious transformation pathways Ø Intensifying the debate and the exchange with civil society to help obtain the required support for investments and infrastructure build-up Further research as well as intelligent policy mix needed to enable industrial sector decarbonization

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At the WI we focus on the basic materials processing industries due to their high shares in overall GHG emissions Five basic materials are responsible for 20 % of global GHG emissions

Source: Own figure based on ETP 2017 (IEA 2017)

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steel 25% cement 19%

plastics 5% paper 4% aluminium 3%

• ther

44% Global industrial sector carbon emissions: ≈10 Gt CO2/a

Thank you for your attention

More information about our work on industry decarbonization can be found at: https://wupperinst.org/en/topics/economy/energyintensive-industry/ and https://www.researchgate.net/project/Low-Carbon-Basic-Industry Sascha Samadi | sascha.samadi@wupperinst.org

Back-up slides

NRW (2012/2013): Broad actor engagement for climate protection with focus on processing industries Port of Rotterdam (2017): Ambition to become European Front Runner Region

Examples of long-term mitigation roadmaps prepared in recent years for two industrial regions in Europe

Some of the roughly 400 stakeholders involved...

Positive

• Highly productive discussion culture achieved in working groups
• Stakeholders gained awareness for different perspectives
• Confidence built between stakeholders and ministries
• Policymakers learnt about the different positions of stakeholders
• Probably higher chances for successful implementation of mitigation measures
• Starting point for further dialogue with stakeholders

Negative

• Process is time-consuming and requires plenty of resources and expertise
• Stakeholders generally opposed to climate protection may be uncooperative

Lessons learned from the participatory process

Preconditions for a successful participatory process

• Government needs to provide a clear framework for the process
• Enough time is needed for thorough discussions
• Scientific expertise important before, during and after the process

Lessons learned from the participatory process (II)

Petrochemical cluster NRW/Flanders/NL

• There are five

petrochemical clusters within the region of Rotterdam/Flanders/ NRW

• The clusters are self-

sufficient in regard to

• lefins but can

interchange ethylene (and propylene to some extent)

Gelsenkirchen/ Ruhr Cologne Geleen Antwerp Rotterdam

(Participatory process with key stakeholders) Recommendations State Government Science

studies

recommen- dations

plan

Draft Climate Protection Plan Participatory process with key stakeholders But: Iterative Process Science State government

Aim: Explore an open, iterative process that empowers stakeholders, science & policy to co-create a new position

Idea of co-creation of long-term climate policy

plan

Steps taken in developing the scenarios for the port’s industrial cluster

Energy and CO2 emission scenarios for the Port of Rotterdam industrial cluster

Bottom-up modelling of sectors’ energy demands and CO2 emissions

Decarbonisation framework for scenario development

Global GHG mi4ga4on efforts EU emission reduc4on strategy PoR industrial cluster development Mi4ga4on technology strategy

Scenario literature, expert judgement, results of stakeholder feedback

Stakeholder feedback

Questionnaires and two workshops

electricity( genera,on( CHP(

• ther(steam(gen.(

steam(cracking( high(temp.(heat( hydrogen( produc,on( FCC(catalyst( regenera,on( 0( 10( 20( 30( 40(

Main mitigation

• ptions

CCS electrolysis, CCS/CCU electric ovens, synfuel fired ovens CCS or electric ovens electric boilers, geothermal heat renewable electricity (partly from outside the port area), CCS

The challenge of decarbonisation for the Port of Rotterdam industrial cluster

* modelled values, 2016 Source: WI (2016) Mt/a

Today’s CO2 emissions* of the port’s industrial cluster Additional key strategy in all areas:

• energy efficiency

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Pathways and opportunities for the Port of Rotterdam industrial cluster

Comparison of cumulative CO2 emissions of the port’s industrial cluster in the four scenarios

What does deep electrification mean for the port’s electricity balance?

0" 10" 20" 30" 40" 50" 60" BAU"demand" BAU"supply" TP"demand" TP"supply" BIO"demand" BIO"supply" CYC"demand" CYC"supply" BAU"demand" BAU"supply" TP"demand" TP"supply" BIO"demand" BIO"supply" CYC"demand" CYC"supply" 2015" 2030" 2050" TWh/a& net"import" net"export" wind"and"PV"

• ther"thermal"electricity"

generaFon" CHP"electricity"generaFon" electricity"demand"of"P2H" electricity"demand"of" water"electrolysis" final"energy"demand"

Where could net electricity imports come from?

Electricity generation in the Netherlands and the port area in different scenarios

0" 20" 40" 60" 80" 100" 120" 140" 160" 180" 200" Trends"to"2050" Energy" [R]evolu:on";" Reference" Energy" [R]evolu:on";" Policy" BaU" TP" BIO" CYC" 2014";"NL" 2015";"PoR" 2050";"NL" 2050";"PoR" Electricity)genera-on)/)demand)in)TWh) Coal"with"CCS" Coal"(including"oil"and"others)" Gas"with"CCS" Gas" Nuclear" Other"renewables" Biomass" PV" Wind" Wind"offshore" Wind"onshore" Electricity"demand" 2050 – Port 2015 – Port

Identified potential for new economic activity at the port in a decarbonising world