In the fight to mitigate climate change, major industries across the world will need to make significant changes to reduce their carbon emissions. However, new findings from the Economist Intelligence Unit (EIU), the research and analysis division of the Economist Group, reveal not enough is being done. The investigative team examined 160 of the largest publicly listed firms from four sectors (Energy, Manufacturing, Retail, and Financial Services) across North America, Europe, Asia, and Latin America to determine if companies were making progress.
Their overall conclusions gave an underwhelming score of 37 out of 100 when benchmarking corporate progress toward decarbonization. This is especially eye-opening for the global production sectors, which are responsible for one-fifth of carbon emissions, consuming 54% of the world’s energy sources.
When it comes to manufacturing in America, inflation and lack of easy access to renewable alternatives have indeed slowed the decarbonization progress. But what many manufacturers don’t realize is that thermal decarbonization is not only practical but attainable, particularly in industrial plants using low-grade heat. Even if we forget about the growing number of regulatory incentives that are becoming available—that’s icing on the cake—the fact is we already have the technology, processes and capabilities to decarbonize plants affordably and efficiently.
Even if we Forget about the Growing Number Of Regulatory Incentives that are Becoming Available—That’s Icing On The Cake—The fact is we Already have the Technology, Processes and Capabilities To Decarbonize Plants Affordably and Efficiently
What do I mean? For starters, much of our emissions problems have less to do with the source of our energy than how we utilize that energy or, more precisely, how we waste it, particularly in the low-grade heat found in industries such as food, pharma and consumer goods. The U.S. Department of Energy recently released its Industrial Decarbonization Roadmap—a comprehensive report identifying four key pathways to reduce industrial emissions in American manufacturing. The report identifies energy efficiency as “the most cost-effective option for near-term reductions of greenhouse gas emissions,” singling out the significance of systems management and optimization of thermal heat from manufacturing process heating, boiler, and combined heat and power sources.
Energy efficiency is key, but not simply from the obvious perspective of creating efficiencies in existing utilities, steam loops and hot water loops. This is an important step and can reduce energy and emissions by five to 10 percent, but the real savings can be found from an overall process perspective to not only minimize energy use but also optimize and ultimately decarbonize for a net-zero outcome.
But before any decarbonization plan begins, organizations must ask important questions, like “Why is this energy needed?” “Where is it going?” Or, “How is it going to be used?” By focusing on the process, manufacturers can pinpoint the energy lifecycle, allowing for the recovery of much of the waste heat. For example, most of the energy consumed within nearly all light industry manufacturing plants is not going into the product. According to studies conducted by our team at Armstrong International, between 50 and 80 percent of the primary energy input used in light manufacturing leaves the plant as waste heat—in the form of hot exhaust gases and radiating heat from hot equipment surfaces and heated products. This can be illustrated by looking at how we process many of today’s food products, which require a lot of energy for cold storage and sterilization that, in turn, produces waste heat that’s lost into the atmosphere. Meanwhile, the factory simultaneously needs heat at relatively low temperatures (below 250 degrees Fahrenheit) to operate effectively—heat that could be pulled from the waste heat emitted during the cooling process.
There is a problem, however. Most light industry facilities operating today were built more than 50 years ago, during a time when energy efficiency was not as high a priority as it is today. Therefore, these plants are not equipped to pull in this waste heat and utilize it in a circular thermal approach. But if that waste heat could be captured as usable energy, it would not only reduce most of the plant’s CO2 emissions but improve the organization’s bottom line and ensure a clear and sustainable path to net-zero emissions. As Armstrong’s President of the Americas, I have overseen numerous audits of the thermal demands of Fortune 500 processing plants and have found that food plants, for example, can achieve up to 50% total carbon reduction by applying this circular thermal methodology.
The process includes de-steaming (conversion to hot water loops) for all applications below 250°F, recovering direct heat when a positive differential temperature is available, and using industrial high-temperature heat pumps for raising the temperature of low-grade heat to the temperature that is useful for the process. In some cases, where higher temperature applications exist, the system cannot be completely de-steamed and will still require localized steam generation, which can be produced with a high-temperature heat pump.
We’re simply optimizing a well-working system to reuse rather than allow waste to escape. It’s a no-regret first step to net zero and the best place to start the decarbonization process— even if the goal is not complete decarbonization because capturing and reusing waste heat provides a positive return on investment.
Conclusion
The EIU’s sobering report makes it clear that not enough is being done to fight the climate crisis, especially when there are solutions on the table that offer a practical pathway to decarbonization. By optimizing energy use, recovering waste heat, and embracing a circular thermal methodology, industries can not only reduce emissions but also bolster their bottom line. It’s a no-regret first step that promises a sustainable path towards net-zero emissions—a critical imperative for a better future.
