What is industrial decarbonization?

The Industrial decarbonisation It is the comprehensive strategy aimed at reducing and eliminating emissions of CO2 gases and other greenhouse gases (GHG) associated with the energy consumption of the industry’s production processes, replacing the use of fossil fuels with efficient and renewable alternatives such as biomass. 

What you need to know about industrial decarbonization:

• The real challenge of decarbonisation in the productive fabric is in thermal processes, which represent about 70% of the energy consumption of industries.
• For industries with high demand for continuous heat, bioenergy is the most mature, competitive technology with the ability to mitigate up to 100% of direct scope 1 emissions.
• Through contractual models such as Energy Services Company (ESE), industries can outsource 100% of the investment and technical risk of their decarbonization projects.
• Detaching from fossil fuels, not only eliminates the carbon footprint and reduces environmental impact, but also protects operating margins from volatile CO2 and emission rights.

What is decarbonization?

Decarbonisation is the process of progressive reduction or total elimination of greenhouse gas emissions resulting from economic and productive activity. In the corporate environment, it consists of redesigning the energy matrix of companies to replace fossil fuels with clean and carbon neutral energy sources, definitively decoupling the industrial growth of the negative environmental impact.

Objectives of decarbonization

the objectives of the Industrial decarbonisation They focus on mitigating climate change by transforming energy production models to achieve a net zero emission balance. At the business and institutional level, these goals are broken down into the following priorities:

1. Reach the Net Zero: Balance GHG emissions released with those absorbed or removed from the atmosphere before 2050.
2. Reduce carbon footprint: Replace boiler and furnace fuels (direct emissions) and clean the origin of consumed electricity (indirect emissions) and other emissions generated throughout the entire supply hip of industries.
3. Meet the FIT-FOR-55 objectives: Reduce European Union emissions by at least 55% by 2030 compared to 1990 levels.
4. Mitigate financial risks: Eliminate exposure to the increase in emission rights and ensure compliance with international environmental regulations.

What is the carbon footprint and why is it the starting point?

The carbon footprint is the environmental indicator that measures the total amount of greenhouse gases emitted directly or indirectly by an organization, process or product, serving as the mandatory initial diagnosis of any sustainability strategy. Without this truthful calculation, it is impossible to identify the inefficiencies of the factory or prioritize investments towards technologies that offer a greater ecological and economic return.

What does the carbon footprint measure?

It measures the total mass of released greenhouse gases, expressed under the homogeneous unit of tons of CO2 equivalent. Evaluates the overall impact of the full operating cycle of a manufacturing infrastructure over a given period of time.

Calculation methodology

The GHG Protocol International Protocol is the most internationally used standard for carbon footprint measurement, classifying industrial emissions into three levels of analysis:

• Scope 1 (Direct): Gases released by company-owned sources, such as natural gas boilers, process ovens and corporate vehicles.
• Scope 2 (Energy Indirect): Emissions linked to the generation of electrical or thermal energy that the factory buys from the commercial network for daily consumption.
• Scope 3 (other hints): Impact generated on the external value chain, including logistics, raw material suppliers and end-of-life management of the product.

Why is decarbonization a priority for the industry?

Decarbonisation is a priority for the industry because financial viability, regulatory compliance and the capacity of permanence in the international markets of manufacturing companies depend directly on it. 

The combination of legal tightening, trade pressures and public incentives such as the industrial decarbonisation part force the manufacturing sector to accelerate its energy transition to eradicate its vulnerability to traditional fuels.

Growing cost of fossil fuels

The high volatility of hydrocarbons such as natural gas exposes the cost structures of factories to unforeseen market peaks. Migrating to a local renewable supply model brings long-term stability and predictability to the operating accounts of industrial organizations.

CO2 emission rights

The European Union’s emissions trading regime (RCDE) progressively increases the price per tonne of carbon emitted. This factor converts unmitigated CO2 emissions into an unsustainable fixed cost that directly destroys the profit margins of the business.

European and Spanish regulations

Laws such as the European Directive on Industrial Emissions (DEI) and the Law on Climate Change and Energy Transition in Spain set strict restrictions on emissions. The legal framework imposes compulsory audits, sustainability reports and direct penalties to the most lagging facilities.

ESG requirements and corporate sustainability

The environmental, social and governance criteria (ESG) today dictate the selection of suppliers in the global value chains. Industries unable to certify low carbon production are excluded from commercial contracts with large multinational corporations.

Competitive advantage and access to financing

Industries aligned with the European Green Taxonomy have a priority access to investment funds and bank credit lines with reduced interest rates. Likewise, having a green factory has become a differentiating commercial advantage compared to international non-decarbonised competitors.

Profitability and direct economic benefits 

It transforms a variable operating cost and normatively penalized into a high-yielding asset. It decreases the cost per megawatt-hour generated, reduces the weight of energy in the cost of goods sold and increases the value of the company’s industrial assets. 

Sectors with the greatest potential for reduction

The industrial sectors with the greatest potential for emission reduction are those that concentrate their demand on medium and high temperature process heat through the widespread use of traditional fossil fuel boilers and thermal generators. In these markets, technological substitution generates an immediate ecological return by radically transforming its main energy vectors:

• Food and drinks: Great thermal mitigation potential in pasteurization, sterilization, distillation and drying processes that operate continuously.
• Paper: Very high optimization capacity by replacing natural gas boilers with renewable thermal plants for the massive drying of pasta and cellulose.
• Ceramic: Key sector with critical improvement margin through the integration of clean fuels in their high-temperature furnaces.
• Chemistry: Substantial decarbonisation potential through the use of renewable energy to power chemical reactors and industrial steam distribution networks.
• Pharmaceutical: High transformation capacity by demanding clean, stable and efficient energy systems in their technical rooms and purification facilities.

 Why is industrial biomass the most effective solution?

Industrial biomass is the most effective solution for the energy transition because it is the only mature renewable technology capable of generating heat and steam at high temperature continuously, manageable and uninterrupted (24/7), adapting without critical modifications to the pre-existing thermal infrastructure of the factories.

• Direct replacement of natural gas: It provides the same power curves, flows and high pressures required by boiler rooms and heavy industrial machinery, without penalizing productivity.
• Elimination of scope 1 emissions: Being a neutral fuel according to EU regulations, its combustion immediately reduces up to 100% of direct CO2 emissions associated with process heat.
• Long-term economic stability: As it is an indigenous and proximity resource, it shields the company from geopolitical crises and the volatility of prices in the fossil gas markets.
• Versatility in critical thermal processes: It is successfully integrated in industries with highly demanding continuous (24/7) regimens such as the paper, food, chemical or pharmaceutical sector.

Economic benefits of industrial decarbonization 

face a Industrial Decarbonization Plan it provides substantial advantages that strengthen the profitability of corporations and improve their financial position. Far from being an expense, tangible monetary returns are structured in the following key points:

• Reduction of energy costs: Direct reduction of the cost per megawatt-hour thermal or electric generated with respect to the scenarios based on traditional fuels.
• Less exposure to the price of gas: Total financial shielding against unforeseen fluctuations in global hydrocarbon markets.
• Enhanced competitiveness: Reduction of the energy cost passed on per unit of manufactured product, allowing more competitive sales prices.
• Regulatory compliance without sanctions: Total elimination of payment for CO2 emission rights and fines arising from severe environmental audits.
• Increase in the value of the company: Revaluation of industrial assets and improvement of corporate credit rating to institutional investors and banking entities.

How much does a decarbonization project cost?

An industrial decarbonisation project does not have a standardized fixed cost, but is budgeted according to the technological maturity of the plant, usually estimating that the cost of implementing the transformation is notably less than the economic impact derived from inaction and penalties for emissions medium term.

Factors influencing investment

The final engineering budget depends critically on the temperature required by the process, the need for redesign of fluid distribution networks, and the level of digitization and automation demanded by the plant.

Installation size

Total thermal power (measured in megawatts) determines the size of the equipment. However, large facilities benefit from significant economies of scale, reducing the investment cost per kilowatt significantly installed.

Chosen technology

While the energy efficiency and automation measures require moderate initial outlays, the implementation of complete biomass thermal power plants or hydrogen plants requires a superior initial capex, agilely amortized thanks to its high operating savings (Opex).

Return on investment

Energy substitution projects in intensive operating environments (24/7) offer fast amortization periods, usually between 3 and 6 years, a period that decreases drastically if institutional public aid is used.

Cost of not decarbonizing

This is the most critical financial factor. Maintaining assets based on natural gas involves taking on a steady increase in carbon taxes, accelerated factory depreciation, loss of commercial contracts with ESG clients, and total exposure to operational technical bankruptcies due to energy crises.

Practical case: how an industry can reduce more than 80% of its thermal emissions

The analysis of a real project shows that the planned technological substitution allows large factory plants to immediately eradicate practically all of their direct environmental footprint while keeping their demanding production rates intact.

Initial situation

A large plant in the agri-food sector with a continuous operating regime consumed massive volumes of natural gas annually to feed its process steam boilers, which generated a carbon footprint of more than 10,000 tons of CO2 per year and a high financial vulnerability to the gas price increases.

Implanted solution

A turnkey integral project was executed under the ESE model by replacing the fossil boilers with an advanced thermal generation plant fed by certified industrial biomass of local origin, hydraulically integrated directly into the pre-existing distribution network of the factory.

Energy results and CO2 reduction obtained

The facility ensured full continuity of the steam supply at the pressures required by the factory 24 hours a day. This substitution made it possible to directly and immediately cut more than 80% of the company’s global thermal emissions (Scope 1), achieving a notable improvement in its environmental impact corporate.

Economic savings generated

By decoupling the cost of its thermal energy from natural gas markets and carbon taxes, the company stabilized its operating costs. The ESE model implemented secured fixed economic savings from the first year of operation without the manufacturer having to commit its financial resources to the initial investment of the asset.

Why have a partner specialized in industrial decarbonisation?

Having a partner specialized in industrial decarbonisation is essential to mitigate technical engineering risks, guarantee the security of supplying the plant and ensure the maximum profitability of the long-term renewable energy installation.

• Solution design: Development of custom engineering adapted with precision to the consumption profiles, pressures and operational particularities of each production process.
• Engineering and construction: Execution of the turnkey project strictly complying with the technical deadlines and integrating the new assets without altering the daily activity of the factory.
• OPERATION AND MAINTENANCE: Continuous technical management of the installation by qualified personnel, optimizing yields and preventing unforeseen technical stops.
• Guarantee of energy supply: Comprehensive management of the logistics supply chain of the solid biofuel, ensuring the uninterrupted supply of the boilers.
• Results monitoring: Digitized control and transparent reporting of the economic savings and the tons of CO2 actually avoided for official sustainability audits.

On ENSO we are specialists in industrial decarbonisation, we accompany you from the first moment to ensure a simple and effective process.

The Industrial decarbonisation It is no longer an environmental option, but an urgent economic necessity. The biggest challenge of factories lies in their thermal processes of continuous operation; Addressing it through mature and stable technologies such as biomass is the fastest and safest way to eliminate the costs of CO2 emissions and shield the long-term profitability of the business. 

Frequently asked questions about decarbonization

What technology allows you to reduce more emissions?

For processes that demand massive industrial heat and continuous steam, the high-efficiency industrial biomass plant is the technology that achieves the highest rate of immediate direct reduction (up to 100% scope 1).

Does biomass help reduce CO2?

Yes, radically. It is internationally qualified as a carbon neutral fuel; By replacing natural gas, it eliminates the impact of the factory’s operational thermal emissions.

Is there aid to decarbonize an industry?

Yes, the European Funds Next Generation, the Autonomous Efficiency Aids and the Government-powered Industrial Decarbonisation Fund stand out.

Is it mandatory to reduce emissions?

Yes, the European Union’s regulatory framework and national directives progressively impose corporate sustainability reporting obligations (CSRD) and severe economic penalties on issuing companies.