Decarbonization
The Path to a Sustainable Future with Renewable Energies
The decarbonization of industrial companies and energy supply is a key component of global efforts to reduce CO2 emissions. Essentially, the goal is to take fossil fuel-based technologies and value chains that cause CO2 emissions and replace them with technologies that do not emit CO2 during operation. Decarbonization is therefore a global process of innovation and renewal, in which new technologies are used and new infrastructure is built. This creates new markets, new business segments, and capacity for growth. It is essential to shape that transformation and to recognize and exploit the related opportunities and potential.
Driven by the Paris Climate Agreement, the European Green Deal and national climate targets, companies are increasingly turning to sustainable technologies and processes. The Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy also require companies to be transparent regarding their sustainable business practices, which further underlines the importance of decarbonization and net zero planning. The requirements of the market, supply chains and investors are also drivers that need to be taken into account.
Opportunities for Companies by Reducing Greenhouse Gases
Companies that actively focus on climate protection can unlock new business opportunities to sustainably secure their future in the face of global competition. Investments in energy efficiency and climate-friendly innovations not only reduce a company’s carbon footprint to comply with legal requirements, but also offer companies the opportunity to act as pioneers in the field of sustainable products and services.
Transformation Plan Towards Net Zero
Lawmakers, financial markets and customers require companies to present their past, present and future climate protection efforts in a structured manner. Companies are therefore faced with the task of calculating their greenhouse gas (GHG) emissions, setting their climate targets, identifying measures to reduce GHG emissions and, based on this, developing specific transformation plans for realigning their business activities. The aim of this transformation is to gradually reduce GHG emissions and achieve climate neutrality by 2050.
The focus is on describing the selected technologies and measures, the required investments and the timeframe for their implementation, so that the company stays on its intended path towards net zero.
Steps Towards a Climate Strategy and Fichtner’s Services
With our expertise in technologies and business cases, we support you on your path to a sustainable future. We have been active in the key areas of decarbonization for over 30 years. We have carried out numerous strategy consulting projects, prepared studies, drawn up plans and supported projects during implementation. From our day-to-day project work, we are very familiar with the technologies used in decarbonization.
Fichtner can therefore offer a wide range of services in the field of decarbonization for companies in the industrial and energy supply sectors. We support our clients in identifying and analyzing measures to reduce their greenhouse gas emissions and in developing strategies and roadmaps for decarbonization. Our services are divided into the following three blocks:
1. Compiling a Carbon Footprint
We help our clients to assess their greenhouse gas (GHG) emissions, and we calculate their carbon footprint. This includes compiling a comprehensive GHG inventory that covers Scopes 1 and 2 and, if required, Scope 3. Scope 1 covers direct GHG emissions, i.e. those emitted directly by a company on site, for example by operating natural gas-fired boilers. Scope 2 covers indirect GHG emissions that are produced, for example, by the generation of externally purchased electricity or heat, and therefore by third parties. Scope 3 covers all other indirect GHG emissions that occur in a company’s value chain, e.g. due to business trips or the use of products.
By conducting a materiality analysis, we work with our clients to define the system boundaries as well as the emission scopes and sources to be considered for decarbonization. The GHG inventory forms the basis for reporting GHG emissions and serves as a starting point for the subsequent steps towards decarbonization.
2. Setting Emission Targets
Based on the company’s carbon footprint, we support our clients in setting emission targets that are both realistic and meet the requirements of national climate targets. Both medium-term targets for a period of 5-10 years and long-term targets up to 2050 are developed. We also help to formulate targets for climate neutrality (net zero) by 2050. The Science Based Targets initiative (SBTi), for example, provides a framework for setting ambitious climate targets in various sectors. These are aimed at limiting global warming to 1.5 °C to mitigate the consequences of the greenhouse effect.
3. Developing a Strategy and Roadmap for Decarbonization
The starting point for decarbonization and the transformation path to climate neutrality are different for each company and each location. Based on a broad portfolio of possible measures, we develop tailor-made decarbonization strategies and roadmaps with steps and milestones to achieve the strategic goals.
The investigation covers the following key areas:
- analysis of external requirements and drivers,
- identification of specific measures for GHG reduction and review of the extent to which regulatory and other requirements are met by these,
- research into funding programs,
- evaluation of the techno-economic aspects of the measures,
- categorization of the measures according to whether they avoid, reduce, eliminate or offset GHG emissions, e.g. through CO2 certificates.
Based on the preceding studies, CO2 avoidance cost curves are prepared, investment cycles in the companies are assessed, and the costs of the measures are compared with the companies’ investment budgets. This enables measures to be prioritized, decarbonization paths to be developed and the timing of the measures to be derived.
The studies conducted provide companies with a comprehensive overview of their path to a decarbonized future. They show which direction things are heading in, which tasks need to be completed, by when they should be implemented and what costs are involved. This enables the implementation of the measures to be prepared, planned and executed in a forward-looking and long-term manner, so that companies can operate CO2-free from 2045/50.
Implementing Decarbonization
From our day-to-day project work, we are very familiar with the technologies used for decarbonization. We have in-house experts for those technologies who work together in interdisciplinary teams to drive projects forward. We support our clients worldwide in implementing the measures defined in the strategies and roadmaps. This support covers all project phases such as design, permitting, tendering, bid evaluation, contract award, construction and commissioning. In doing so, we contribute to the development of a sustainable infrastructure that does not cause any CO2 emissions during operation. Our expertise in the key aspects of decarbonization makes us a reliable partner for companies on their path to a future based on renewable energy and zero GHG emissions.
Measures for a CO2-Free Future
The use of renewable energies such as wind, solar, hydro, geothermal energy and bioenergy is essential for a CO2-free future. This avoids the burning of fossil fuels such as coal, oil and natural gas. Examples of decarbonization are as follows:
- Buildings and industrial operations are increasingly being supplied with electricity, heating and cooling from renewable energies or sustainable fuels produced from renewable energies, such as hydrogen or hydrogen derivatives. The importance of energy system integration and energy storage will increase in order to counter the volatility of renewable energy supply.
- Energy-efficient refurbishment, e.g. of buildings, also plays an important role by raising energy efficiency and reducing energy consumption.
- Sustainable chemicals such as ammonia or methanol are being produced on the basis of green hydrogen.
- In the transport sector, electrification or a switch to fuels based on renewable energies, such as hydrogen or its derivatives, is gradually taking place. This will gradually reduce the use of gasoline, diesel, kerosene and heavy fuel oil.
- Carbon Capture Utilization and Storage (CCUS) technology is used when carbon dioxide emissions can only be avoided at very high cost or cannot be avoided at all – for example because they are a by-product of the process, such as in the production of cement. With CCUS, the CO2 emissions are separated from the flue gas and then either recycled or stored underground.
Decarbonization Boosts the Economy
The examples presented illustrate that we are undergoing a comprehensive transformation process, moving away from fossil fuels and towards an energy supply based on renewable energies. New supply structures are being created, while new business relationships and supply chains are emerging, and with them a new energy economy. Companies that see decarbonization not only as an obligation but also as an opportunity can use their products and services to help shape the transformation that is already taking place and not only actively contribute to sustainable development, but also benefit from it themselves.
Based on our know-how in technologies, regulatory frameworks and energy markets, we develop technically and economically optimized solutions for a CO2-free future for our clients, support them in opening up new business segments, and develop or evaluate their business cases.
We would be happy to accompany you too on your path towards net zero and would be pleased to hear from you at the following address:
NetZero@fichtner.de
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