The economic benefits of industrial decarbonisation: beyond emissions reduction

The main benefits of industrial decarbonisation are the reduction of energy costs, greater competitiveness of industries, access to sustainable financing, the strengthening of the ESG strategy and less dependence on fossil fuels, among others. Therefore, in addition to reducing CO2 emissions, decarbonization allows improving the profitability and resilience of companies. 

What you need to know about the return of decarbonization:

• The first economic return is consolidated by optimizing the demands of continuous heat and steam, drastically reducing losses per enthalpy.
• Replacing natural gas and fossil fuels with local bioenergy eradicates the company’s vulnerability to the geopolitical crises of fossil fuels.
• Through contractual models such as the one proposed by an ESE (energy services company), the industry can update or renew its thermal power plants without compromising its treasury or bank indebtedness.
• Decarbonize abolishes at the root of the fixed costs linked to carbon taxes and the mandatory purchase of emissions rights (ETS).

What economic benefits does industrial decarbonization bring?

The economic benefits of industrial decarbonisation consist of the structural reduction of operating energy costs, the elimination of liabilities related to taxes for CO2 emissions and the stabilization of profit margins against external fluctuations of the hydrocarbon market. 

Implementing low-carbon technological solutions allows optimizing the cost of goods sold (COGS), improving productivity ratios per megawatt-hour consumed and raising the patrimonial value of the industrial assets of the factory.

• Reduction of energy costs: Immediate reduction of economic expenditure per thermal or electrical unit generated thanks to the use of high-efficiency and proximity energy resources.
• Greater stability versus price volatility: Financial shielding against unpredictable peaks of fossil gas through the provisioning of stable solid biofuels with long-term contracts.
• Less dependence on fossil fuels: Operational autonomy against external hydrocarbon networks, reducing exposure to tariffs or punitive climate regulations.
• Optimization of production processes: Renewal or hybridization of power plants that correct pressure drops and improve the thermodynamic performance of manufacturing lines.
• Increase in productivity: Lower number of unforeseen technical stops and optimization of the energy intensity index per metric ton of finished product.

Energy savings: the first return on investment

Energy saving represents the central pillar of the return on investment in decarbonisation, manifesting immediately through the drastic reduction of the primary fuel consumption necessary to sustain the industrial manufacturing cycles.

Energy efficiency in thermal processes

It consists of the modernization of the combustion systems and fluid networks to increase the global energy performance. Optimizing heat transfer reduces energy waste in processes that concentrate 70% of the plant’s demand.

Energy recovery

Capture of residual thermal flows in chimneys, purges or condensates through advanced exchangers. This remaining low-enthalpy energy is reintroduced directly into the production cycle, reducing the need to generate new heat.

Replacements of fuels

Strategic replacement of assets powered by natural gas, diesel or coal by clean generation technologies. Changing the energy vector is the fastest action to clean up industrial operating accounts and cancel the environmental footprint.

Consumption optimization

Implementation of predictive analytics and automation software to accurately measure the energy supply with the actual load diagrams of the different production lines of the factory.

How to measure energy savings

It is carried out by systematic comparison of the consumption data against the energy baseline (LBE) adjusted to the operating conditions of each year, using variables such as  Energy intensity index and other significant application parameters Under the international protocols of measurement and verification as the IPMVP of the EVO Organization (Efficiency Valuation Organization):

Decarbonization and industrial competitiveness

Integrating a clean energy matrix provides commercial advantages that have a direct impact on the market positioning of the organization:

• Production cost reduction: Decrease in the energy cost passed on each batch of manufactured product, widening the net business margin of the business.
• Greater energy resilience: Guaranteed and armored operational continuity in the face of international shortages or logistics restrictions of hydrocarbons.
• Advantage versus competitors: Preferred positioning against lagging industries that operate with fixed costs inflated by CO2 taxes.
• Adaptation to market requirements: Total alignment with the European Union’s climate directives, avoiding future economic penalties.
• Access to new clients: Opening of exclusive export channels by complying in a certified manner with the decarbonization requirements of the supply chain of large corporations.

Technologies that generate a greater economic return

The selection of the appropriate technology must respond to criteria of maturity of engineering, local availability of the resource and, as a priority, to its capacity to cover continuous high temperature thermal demands economically.

• Industrial biomass: The most profitable and efficient solution on the market for industries with severe steam and heat regimes (24/7). The substitution of natural gas by biomass eliminates up to 100% of direct emissions of scope 1 of thermal origin, guaranteeing a cost per megawatt-hour highly competitive and predictable.
• Heat recovery: Systems with fast amortization periods that capture exhaust waste heat to preheat process fluids, reducing the workload of the central boilers.
• Electrification: Deployment of electric boilers or advanced industrial heat pumps, suitable for meeting low and medium intensity thermal demands with high performance coefficients (COP).
• Solar Thermal: Integration of solar capture fields for the secondary supply of domestic hot water or pre-processing fluids during daytime radiation hours.
• Hybrid solutions: Engineering configuration that combines multiple renewable technologies to maximize the plant’s operating savings. design specific solutions Industrial decarbonisation Based on the combination of these technologies, it is the most robust strategy to ensure the economic viability of the project.

How to calculate the return on a decarbonization investment

The financial analysis of the energy transition requires a detailed assessment of the operating cash flows that transparently compares the capital invested against the structural savings achieved in the long term.

• Initial costs (capex): Total engineering budget, acquisition of main equipment, civil works, mechanical assembly, hydraulic interconnection and start-up of the new energy asset.
• Operating costs (OPEX): Continued operating expenses encompassing predictive maintenance, technical management, auxiliary consumption and logistics of supplying the renewable energy vector.
• Energy savings: Annual economic differential obtained by replacing expensive and penalized fossil fuels with local clean energy, adding to the elimination of the purchase of CO2 emission rights.
• Recovery period (Payback): Temporary indicator that determines the number of years necessary for the accumulated net savings to equal the initial cost of the technical investment.
• Return on investment (ROI): Financial percentage that evaluates the net profitability of the project over its estimated useful life through the ratio of its discounted cash flows.
• Key Indicators: Technical control ratios that include the net present value (NPV), the internal rate of return (IRR), and the cost of despondency expressed in euros invested per ton of CO2 avoided.

Practical case: economic impact of a decarbonisation project

We present you a real case of the economic impact of industrial decarbonisation in a project

Initial situation and diagnosis

A large plant in the continuously operating agri-food sector (24/7) had a high dependence on natural gas to feed its high-pressure steam boilers. The technical diagnosis revealed a strong exposure to the volatility of energy market prices, a sustained increase in its regulatory liabilities for emission rights and a high direct carbon footprint.

Implanted solution

Through our sustainability-oriented strategic alliance, Enso and García Carrión promote industrial decarbonization in Spain executing the definitive substitution of the main fossil asset of its Villanueva plant. We design and install an advanced renewable thermal generation plant fed by regionally sourced industrial biomass, integrated directly into the pre-existing steam collectors under our Energy Services Company (ESE) modality. 

Energy results, savings and reduction of emissions

The new renewable plant guarantees total safety of thermal supply and the stability of the pressures required by the manufacturing machinery. This comprehensive project allows to cut more than 80% of the direct emissions from the plant (Scope 1), dramatically improving its environmental impact corporate. When detaching from the fossil gas through the ESE model without initial investment (Capex Zero), the client gets a Direct economic savings of up to 30% in their thermal costs From the first year and a Payback estimated between 3 and 5 years for installation. All this under an officially supported efficiency model through the resolution of the Industrial Decarbonization for Biothermica Villanueva SL. 

How do we help you at ENSO to turn decarbonization into a competitive advantage?

On ENSO We are your integral industrial and technological partner. We take care of all the technical and financial development of your energy transition to transform an environmental imperative into a profitable business opportunity.

• Diagnostic and custom design: We carry out process audits and material and energy balances to design engineering solutions adapted to your plant’s consumption profiles.
• Turnkey Engineering: We execute the complete technical development of your bioenergy projects and cogeneration plants, integrating them without altering the daily activity of your production lines.
• Financing (ESE model): We structure your projects under contracts of energy services Assuming 100% of the initial investment, allowing you to decarbonize your factory at a cost of ZERO CAPEX.
• Operation and maintenance: We take care of the specialized operational management and the global supply of certified solid biofuel to maximize your thermal yields in the long term.

Industrial decarbonisation represents the best financial optimization strategy to shield your manufacturing company’s income statement from global energy uncertainty. Transforming your main thermal power plants through mature and manageable technologies such as industrial biomass not only eradicates the corporate carbon footprint immediately, but also structurally stabilizes your production costs.

Frequently asked questions about economic benefits

Does decarbonization actually reduce energy costs?

Yes. By optimizing processes through efficiency measures and replacing hydrocarbons subject to expensive and/or volatile international supplies with local and stable renewable energies such as biomass, we achieve a direct and predictable reduction of the cost per megawatt-hour generated in your TU factory.

Which industries get the highest return?

Those classified as thermointensive with continuous operating regimes (chemical, paper, food, pharmaceutical or ceramic), since they accumulate the highest fuel consumption and the highest penalties for CO2 emission rights.

How long does it take for a project to be amortized?

Process energy optimization projects in intensive environments have fast amortization deadlines, usually located in a window of between 3 and 6 years according to the size and the technology implemented.

Is it possible to decarbonize without a large initial investment?

Yes, it is totally viable through our energy services company model (ESE). Under this contract format, ENSO Finance and build the clean power plant in your facility and we only sell you the energy you consume at a competitive and stable rate in the long term through our contracts. energy services.

How does decarbonization affect the ESG strategy?

Dramatically cleans the environmental pillar of your corporate criteria, which immediately elevates your rating of sustainability, facilitating access to international investment funds and reducing interest rates on bank financing.