Decarbonisation Technology May 2022 Issue

May 2022 Decarbonisati n Technolo gy Powering the Transition to Sustainable Fuels & Energy

decarbonisationtechnologysummit.com VIEW THE AGENDA & REGISTER HERE

In the lead up to the event, we’re asking leading experts to provide us with first insights into the discussions we can expect on 18-19 May in London. Watch the previews

Watch Miguel A. Calderón , Carbon Cycle Director Division – ESG, Cepsa and Joachim von Schéele , Director Global Commercialization, Linde discuss the path of energy transition and the impact of recent events on setting a realistic roadmap.

Watch Maurits van Tol , CTO, Johnson Matthey discuss the opportunities presented by hydrogen technologies.

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Speakers include:

Maurits van Tol Johnson Matthey

Matthew Williamson BP

Jean-Marc Sohier Concawe

Angus Gillespie Global CCS Institute

Joachim von Scheele Linde

Lara Young Costain

Jesse Scott Agora Energiewende

Miguel A. Calderón Cepsa

John Davies Derwent London

André Faaij TNO

Daniel Carter Wood

Miguel Ángel García Carreño Repsol

Attend in person or online!

Jim Heverin Zaha Hadid Architects

Chris Manson Whitton Progressive Energy

Syrie Crouch Shell

Concetto Fischetti IOGP

There’s a lot more information that we’d be happy to share. If you have a question about the programme or would like to find out about opportunities to make an impact, please get in touch! Our team is here for you Christina Wood, Event Development Director E: christina.wood@emap.com Paul Mason, Business Development Director E: info@decarbonisationtechnology.com

Tim Chapman ARUP

Fred van Beuningen Chrysalix

Claude Loréa Global Cement and Concrete Association (GCCA)

If your organisation is part of an industry association or looking to send a bigger team you may qualify for a special rate. Get in touch to find out more, email: info@decarbonisationtechnologysummit.com Are you looking for a discount?

Where energies make tomorrow

Accelerating the energy transition for a better tomorrow

Technip Energies is a leading engineering and technology company for the energy transition. We offer leadership positions in LNG, ethylene and hydrogen, as well as growing market positions in sustainable chemistry, CO2 management and carbon-free energy solutions. Through an extensive technology, products and services offering, we bring our clients’ innovative projects to life while breaking boundaries to accelerate the energy transition to a low-carbon society.

L N G

LNG and Low-Carbon LNG

Sustainable Chemistry

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Biofuels, biochemicals, circular economy

H 2

Green hydrogen, offshore wind, nuclear Carbon-free energy solutions

Energy efficiency, blue hydrogen, CCUS Decarbonization

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1CCUS : Carbon Capture, Utilization and Storage

Contents

May 2022

What is your Decarbonisation SCORE? Dan Carter Wood

CORALIS: industrial symbiosis in energy-intensive industries Danai Antonaki White Research Manuel Gomez CIRCE Decarbonisation transformation of Shell’s Pernis refinery Andy Gosse Shell Catalysts & Technologies Value of investment, partnerships and policy in growing CCS market Guloren Turan Global CCS Institute

IN FOCUS Delivering the Global Methane Pledge Robin Nelson Consulting Editor Hydrogen pathways for a clean energy future Gary Schubak Ekona Power Inc.

Distributed hydrogen hubs Gabriel Olson BayoTech

Economic viability of biomass to liquid via Fisher-Tropsch Lorenzo Micucci Siirtec Nigi SpA All roads leading to sustainable aviation fuel Yvon Bernard, Dave Schwalje and Carine Leclercq Axens Carbon capture application to ethylene plants Myrian Schenk and Jim Middleton Technip Energies Flue gas analysers for safe combustion of high hydrogen fuels Tim Tallon AMETEK Process Instruments Repurposing existing process units to reduce CO 2 emissions Stephen Sims New Gas Technologies Synthesis (NGTS) Meritxell Vila MERYT Catalyst and Innovation Fuel gas hydrocarbon recovery as carbon abatement strategy Justin Stark Chevron Corporation

Geothermal sulphur removal David Jackson Merichem Company Mark Kolar Coso Operating Company

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ACCELERATING DECARBONISATION TOGETHER

The world’s energy system is changing. To solve the challenges those changes present, Shell Catalysts & Technologies is developing its Decarbonisation Solutions portfolio — to provide services and integrated value chains of technologies, designed to help industries navigate their path through the energy transition. Our experienced teams of consultants and engineers apply our diverse, unique owner-operator expertise to co-create pathways and technology solutions to address your specific Decarbonisation ambitions — creating a cleaner way forward together. Learn more at catalysts.shell.com/decarbonisation

Decarbonisation Solutions

©2022. The entire content of this publication is protected by copyright. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means – electronic, mechanical, photocopying, recording or otherwise – without the prior permission of the copyright owner. The opinions and views expressed by the authors in this publication are not necessarily those of the editor or publisher and while every care has been taken in the preparation of all material included the publisher cannot be held responsible for any statements, opinions or views or for any inaccuracies. Earlier this year, the IPCC issued a stark warning that it is now highly probable the average temperature rise will exceed the 1.5°C target set by the Paris Climate Agreement. They stress that we have the knowledge and technology to limit the increase and eventually bring temperatures back down, providing we accelerate actions now. The Decarbonisation Summit intends to add to the momentum for change through a forum where private and public entities can share experiences and build networks, contributing to ‘industrial symbiosis’. operations. Refineries are adapting to renewable hydrocarbon feedstocks and overcoming the challenges of a much more variable feedstock composition. Articles on biomass to liquids, technologies for sustainable aviation fuels, increasing energy efficiency, reducing fugitive and flue gas emissions, and in- process carbon capture illustrate the transformation underway in our industry even as we continue to deliver specification (lower-carbon) fuels for transport and petrochemical feedstocks. This issue coincides with our first Decarbonisation Summit in London on 18-19 May. In the lead-up, we asked for relevant questions online, and where appropriate these will be raised during the debates at the Summit. See the questions: W elcome to the fourth edition of Decarbonisation Technology , which starts with a question, “What is your decarbonisation score?” and goes on to explore industrial symbiosis projects in Sweden, Spain, and Italy. We also focus on the changes underway at the Shell Chemicals and Energy hub in Rotterdam. Carbon capture and storage is one of the drivers for developing new industrial networks, as clearly demonstrated in the US and Europe, where public/private partnerships and supportive policy all play a role in recently announced projects. Carrying on the theme of new ways of doing things, we take an in-depth look at delivering the Global Methane Pledge. We consider emerging opportunities to use biomethane and waste-to-fuels to reduce methane emissions from agriculture and municipal waste before focusing on initiatives to reduce methane from oil and gas operations. Reducing methane emissions represents low hanging fruit from both an economic and technology maturity perspective. The potential to convert methane into natural gas to produce turquoise hydrogen is an emerging technology alongside green hydrogen in developing the hydrogen economy. Hydrocarbon chemistry is at the heart of all refining

Managing Editor Rachel Storry rachel.storry@emap.com tel +44 (0)7786 136440

Consulting Editor Robin Nelson robin.nelson@ decarbonisationtechnology.com

Graphics Peter Harper

Digital Editorial Assistant Ciaran Nerval US Operations Mark Peters mark.peters@emap.com tel +1 832 656 5341

Business Development Director Paul Mason info@decarbonisationtechnology.com tel +44 844 5888 771

Managing Director Richard Watts richard.watts@emap.com

EMAP, 10th Floor Southern House Wellesley Grove, Croydon CR0 1XG

Cover Story Shell Pernis refinery, Rotterdam, Netherlands Credit: Photographic Services, Shell International Limited

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Optimizing combustion for a greener tomorrow.

AMETEK process analyzers and sensor technologies have been the industry standard for more than 50 years. Today, our industry faces more environmentally responsible emissions mandates and greater demand for the use of clean energy. That’s why decarbonizing through optimized combustion and enhanced predictive analytics is essential for reducing plant emissions and ensuring equipment uptime. Our Thermox® WDG-V combustion analyzer is field-serviceable and monitors and controls combustion with unparalleled precision. As facilities strive to operate more efficiently and accept more variable fuels at their burners, AMETEK provides solutions for tighter emission control.

Learn more about optimized combustion by watching our decarbonization webinar.

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What is your Decarbonisation SCORE? To simplify your journey to decarbonisation, our Decarbonisation SCORE methodology provides a roadmap to setting and delivering emissions reduction targets

Dan Carter Wood

The challenge today to create a better tomorrow In the Paris Agreement in 2015, governments acknowledged that their national climate targets at the time would not meet the goal of limiting global warming to 1.5˚C. 2020 was the target year to submit long-term strategies and for emissions to reach a peak. COP26 reaffirmed commitments to global carbon reduction goals, with individual countries now asked to adopt more ambitious and stringent targets in order to achieve a scenario of less than 1.5˚C global temperature rise, and to report on these targets by the end of 2022. The recent UN Intergovernmental Panel on Climate Change (IPCC) report also stated that carbon reduction commitments made prior to COP26 were not enough to reduce the impacts of climate change to less than a 1.5˚C average temperature rise, and would also make it harder post-2030 to limit the overall average temperature increase to less than 2˚C (IPCC, 2022). However, the report also recognised that the costs of several low emissions technologies, which have seen significant investment over the last decade, including solar, wind and battery technology, have fallen and continue to fall. Drivers to decarbonise Scientific efforts to quantify the scale of the challenge have helped us to better understand the need for decarbonisation, whilst the urgency for action is now sharply in the minds of policy makers, shapers, and governments. This has led to pressure on organisations to build from multiple angles to create a more sustainable

economic, environmental, and social pathway. We are a world in transition. The momentum behind energy transition is accelerating. Many nations are setting out their ambitions, targets, and policies, and over 100 countries committed to cutting CO2 to net zero by 2050, representing 70% of the world economy (UN, 2020). Organisations and governments are responding to the need to change as well as pressure from global governments, investors, clients, and end users. The consensus at COP26 was that the progress made since 2015 has not been enough, and an unprecedented effort is required by countries to cut the level of emissions and get back on track. However, emissions are increasingly impacting the balance sheet with the growing development of carbon pricing, whether through emissions trading systems or carbon taxes. Energy, heat production, and industrial processes account for more than half of global greenhouse gas emissions. The pathway to reducing the carbon emissions of extractive and process industries will need to leverage a breadth of solutions, but the applicable solution set will also differ, depending on geographies, enterprise portfolios, and the characteristics of individual assets. Innovative solutions need to be secure, scalable, and reliable, leaning on product and industry expertise to deliver a better world for the future. Although these are drivers mostly affecting your bottom line, it is imperative to mention that these are not the only reasons why immediate action is recommended, but also the real threats climate change has on our world, cities, houses, families, and even our own lives. What is at

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Advise

Assess

Deliver

Substitute

Design

Market analysis

Capture

Objectives/ TOR

Baseline audit

Target setting

Cost estimates

Economic and nancial analysis

Decarbonisation roadmap

Implement

Oset

Monitor

Corporate strategy

Reduce

Cross check and recycle

Policy impacts

Insight / advisory (recycle)

Figure 1 Wood’s Decarbonisation SCORE methodology

stake cannot be understated. Climate change has the potential to bring about spiked prices in our food and a global rise in catastrophic storms, causing devastation to daily life. This problem is much bigger than business; it is also personal. How to navigate your decarbonisation journey The journey to decarbonisation is complex, and knowing where to start can be difficult. It is important to apply a structured process to be able to map out how your goals will be achieved and ultimately realise them. To simplify this complex process, our experts created the Decarbonisation SCORE methodology, which provides a roadmap to setting and delivering emissions reduction targets. Using this methodology, our team can assess where clients are in their journey, then devise an actionable and implementable plan complete with progress reporting on how to make your objectives achievable. Wood’s structured and dynamic process, as seen in Figure 1 , brings together the breadth of our technical advisory, specialist domain knowledge, project and operations expertise, with a deep understanding of innovative technology solutions, as well as wide sector and global experience as a trusted thinking and delivery partner. Our team are also able to

design your solution, help you implement the necessary changes, and monitor performance with real-time insight. Where should you start? Advise - g et started, baseline your programme, and set targets Knowing where to start can often be the biggest challenge. Understanding your drivers, changing policy, and subsidy landscapes, and baselining your current emissions are keys to success. A strong foundation for any carbon reduction programme will consider the carbon life cycle of the feedstocks consumed, products produced, and quantification of individual emissions sources to identify and maximise the opportunities to reduce carbon emissions at the most efficient cost. Working across a variety of sectors from upstream oil and gas through to refining, petrochemicals, and life sciences enables Wood’s experienced engineers within each sector to apply their knowledge to both carbon footprinting and life cycle analysis, as well as forming a sound basis for identification of carbon abatement opportunities. Understanding your carbon footprint, corporate objectives, and how the markets you operate in may evolve is key to setting

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achievable carbon reduction goals. This could be against a series of interim milestones and time horizons as you approach the overall goal of meeting a net-zero objective. What do you need? Assess - informed decision-making to pick the right projects When considering the technologies, projects, or asset modifications that can be adopted to achieve decarbonisation goals, the range of opportunities can be bewildering. From automation or advanced process control technologies to help improve operational performance and reduce energy consumption through to large-scale capital projects in carbon capture or hydrogen production, how do you decide which opportunities are the right ones for your business or asset? The Decarbonisation SCORE methodology can be applied to single or multiple assets, to a client’s full asset portfolio, or across a specific geography or region using an evaluation assessment of opportunities to: Substitute - substitution of fuel or feedstocks (raw material to supply or fuel a machine or industrial process) consumed for renewable or less intensive sources. Substitution can include solutions such as switching electricity provision to a renewable source or considering the use of renewable and biofeedstocks in the production of fuels and chemical products. In some sectors, for example aviation fuels, bio-alternatives represent the biggest opportunity to meet carbon reduction goals, while next-generation technologies (such as hydrogen-fuelled aircraft) are being developed as potential longer-term solutions. Capture - employing carbon capture technologies, or emissions control technologies, to substantially reduce or eliminate harmful emissions to the atmosphere. There is a wide range of carbon capture technologies available, from traditional post-combustion absorption through to pre- combustion or oxy-fuelled technologies. Many technology providers are starting to commercialise proprietary amine solutions,

or novel technology concepts, to help drive down the cost of implementing carbon capture projects. In any technology evaluation, it is important to consider technology evolution as well as the full CO 2 value chain from capture through transportation to ultimate end use or sequestration options. Offset - considering assets or product portfolios across a country or company-wide scale to achieve decarbonisation/clean air goals, alongside the potential for offsetting investments or potentially carbon credit trading. Offsetting is a topic discussed frequently within industry and environmental groups, and it is very important to consider that any actions taken in this regard cannot be identified as ‘greenwashing’. Offsetting is an opportunity that should be addressed as a solution for residual carbon emissions once technically and commercially feasible solutions have been implemented. Often assumed to be related only to carbon credit trading, offsetting can take many forms. It can include investment in natural climate solutions (for example, afforestation) or technologies like direct air capture (DAC), as well as the potential for carbon credit purchases or trading. Reduce - looking at holistic asset optimisation, considering areas around energy efficiency, digitalisation, and operations and maintenance best practice. Often the best place to start a decarbonisation journey is to consider opportunities to improve the performance of your existing assets. A review of energy optimisation opportunities across an asset can identify additional benefits, such as yield improvement, which can not only reduce operating costs but also have a positive impact on margins. Solutions for reducing energy consumption and, therefore, CO 2 emissions can vary from identifying best practice operational practices, deploying the latest control or automation technologies, and low-cost projects to make the most of heat integration opportunities (and many other potential solutions). Evaluate - whatever your decarbonisation journey, it is important to apply a structured

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evaluation process to be able to map and meet goals and lead to a successful outcome. Typical techno-economic metrics, such as return on investment (ROI) or net present value (NPV), do not justify the implementation of many carbon reduction projects. We can consider what the carbon price would need to be to underpin each opportunity on the basis of an economic return (internal rate of return [IRR] or NPV). While government funding and incentives are available in many countries to underpin investment in alternative fuels, the same is not necessarily the case for projects purely aimed at reducing carbon emissions from existing industry. Wherever your assets are located, it is imperative to understand the incentives and funding mechanisms that you can take advantage of to achieve your decarbonisation goals. However, it is equally important to consider other drivers within the evaluation of your carbon reduction opportunities. For example, the impact on your overall company ESG goals, the drive from your shareholders to decarbonise, or the effect that realising your carbon reduction goals will have on company reputation and, ultimately, shareholder value. All these levers can be built into an overall evaluation methodology specific to your organisation or asset, reflecting your particular drivers and goals of the overall decarbonisation masterplan. This will enable you to identify the optimum project or section of projects to achieve the carbon reduction targets put in place. How will you succeed? Deliver - end-to-end execution, realising emission goals The SCORE roadmap allows each asset to develop its own robust decarbonisation plan, providing implementable solutions with the ability to be delivered into operation according to each asset’s development timeline. Decarbonisation SCORE in action Wood’s Decarbonisation SCORE methodology was created in-house in 2020 and is now being used globally by our clients and even our own company. For example, one of our industrial process clients aimed to develop a decarbonisation masterplan for a cluster of

energy-intensive industries. By leveraging a range of technology solutions such as carbon capture, renewable power integration, and clean hydrogen production, Wood developed the concept selection and early design for the project. This project aims to abate more than 8 million tonnes per year of CO2 emissions and ultimately create a zero-carbon industrial cluster. Established combined heat and power production and refining industrial sites will be integrated using state-of-the-art technology to create a platform for industrial growth and economic development while meeting decarbonisation targets. It is one of several industrial clusters that we have seen developing across the globe, the aims of which are to leverage shared infrastructure costs and access government funding and incentives to deliver carbon reduction commitments most cost-effectively. Making the journey more efficient Accelerate sustainability through data- driven insights and smart tools While ambitious emissions targets are announced, the capacity to collect auditable data is immature, and your key decisions must be based on accurate and verifiable data. Wood offers a range of operations services, from asset performance technology solutions through to duty holdership, giving our clients an overview of asset performance against decarbonisation targets. This includes our ENVision real-time carbon footprinting software, shown in Figure 2 , which provides visibility of carbon and other emissions to ensure reduction targets are achieved. ENVision manages carbon and emissions data, and performs regulatory calculations and reporting, allowing KPI management, an auditable record of data and optimisation. By accessing quality, high-frequency data in combination with external data sources, ENVision allows organisations to set strategic, realistic goals, define their roadmap, and track progress. With a Microsoft Azure backbone, this tool collates emissions data across a portfolio of assets to track an organisation’s real-time footprint and performance metrics. The open structure also allows the addition of scope 1, 2 and 3 emissions.

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was to analyse the GHG baseline for a major coastal infrastructure that will attract regional investment for several industrial process facilities. The purpose of the study was to develop a baseline estimate of the GHG emissions for the construction and 50-year operational life of the infrastructure. The outcome was that the baseline estimate supported the roadmap required for reducing GHG emissions during both the construction and operational phases in the development of

Figure 2 Screen shot of ENVision

the infrastructure. Carbon Column (see Figure 3 ) provides a focussed approach that offers technical insights and solutions recognising the Taskforce for Climate-related Financial Disclosures (TCFD), GHG Protocol, and ISO standards. The delivery is through a Tiered Reporting Process with four internationally recognised Tiers: Tier 1 – Default factors based upon knowledge of project parameters, such as fuels, materials, services, and product types. Tier 2 – Application of benchmark factors for equipment type, characterisation of fuels, and estimate of consumption. Materials, services, and product types and estimates of quantities and transport type and distances. Tier 3 – Application of defined factors for specific equipment and details of final fuel types and rates of consumption. Specific material quantities and regional or source factors and transport type and distances. Feedstocks and product quantities, mode of transport, and distance to markets. Tier 4 – Measurement – Fuel quality and quantity, power consumption, and leak detection. The application of Wood’s ENVision

Our team effectively deployed ENVision across a chemical complex that included 26 large chemical units in Saudi Arabia, with real- time emissions data collation, verification, and reporting. Utilising the ENVision tool, over 1.3 million individual data points are updated every 30 seconds to operators to provide the necessary information to help drive efficiency and reduce emissions. The client indicated an improvement of 10 times faster reporting methods and a better vision of plant operations, which resulted in a reduction in effort associated with emissions reporting by around 80% and a reduction in excess emission time by 40% through early identification. It is also becoming more critical to understand not just the carbon footprint of our assets, but also the carbon footprint of the activities associated with building, maintaining, and modifying them. To that end, Wood, and its project services subsidiary company rhi, developed the Carbon Column toolkit to allow us to assess the carbon emissions associated from material sourcing, transportation, and construction activities (among other scope 3 emissions). This enables ourselves and our clients to make informed decisions and minimise the carbon footprint of project delivery. One example of this tool being implemented

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320.80K

0.3M

Marine & Land Development Matrix

Level 1 + Land development infrastructure 17,678.74 Total fuel (kl)

Total t-COe Transport (t-COe)

18,174.23 65,595.16 4,882.23 255,209.58 23,056.46 320,804.73

0.2M

+ Marine infrastructure

88,115.43 105,794.17

Total

0.1M

Driver = Marine Fuel Usage

0.0M

Marine infrastructure

Land development infrastructure Level 1

Total

Detailed Carbon Metrics of Project

Project Pie Chart

Place ll 0.66%

Land development infrastructure 16.71%

Supply, Place & Compact 700mm layer ... 1.85%

Reclamation of mangrove area/cr... 7.25%

Cutter Suction Dredger 12.38%

Marine infrastructure 83.29%

Trailing Suction Hopper Dredger 66.45%

Figure 3 Screenshot of the Carbon Column toolkit

tool was used to measure, monitor, and manage direct emissions throughout the operation. The time to act is now Global climate change is arguably the most important and urgent challenge humanity has ever faced, and the onus now falls upon companies to make a difference. While 121 countries have committed to being carbon neutral by 2050, they account for less than 25% of emissions. On present policies, the world is heading for a 3˚C rise by 2050, triggering a global environmental and financial crisis. The commitments made during COP26, and to be unveiled at COP27 in Egypt, are an absolute necessity to limit the global and potentially catastrophic impacts of climate change.

At Wood, we believe every organisation has a decisive role to play in achieving sustainability for the environment and their own business. All organisations urgently need to implement sustainability measures that are data-driven, enabled by innovative real-time digital technology, and can make an immediate impact on decarbonisation and emissions monitoring. But no single company can do this on their own – who you partner with is key. The time for talk is over, and the need for change is urgent.

VIEW REFERENCES

Dan Carter daniel.carter@woodplc.com

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Renewables aren’t just a phase we’re going through.

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An EU project aims to enhance the knowledge base for industrial symbiosis to ensure data accuracy and comparability in existing and new IS initiatives CORALIS: industrial symbiosis in energy-intensive industries

Danai Antonaki White Research Manuel Gomez CIRCE

I ndustrial symbiosis (IS) is becoming increasingly necessary due to the growing awareness of the need to reduce pollution and emissions as well as increase resource and energy efficiency. These concerns have reached industrial parks around the world, leading to the promotion of IS activities. These can be defined as communities of manufacturing and service businesses seeking enhanced environmental and economic performance through collaboration in managing environmental and resource issues, including energy, water, and materials (Bellantuono et al. , 2017). By working together, the communities seek collective benefits that are greater than the sum of the individual benefits each company would accomplish independently (Domenech et al, 2018). Industrial symbiosis efforts so far Increasing interest in IS has already led to the investment of over €130 million in European research projects since 2006, which have focused on the development of methodologies, tools, software, platforms, or networks that facilitate the uptake of IS by different economic actors (Dhanorkar, et al. , 2015). In fact, due to the complex task of identifying and assessing opportunities for IS, as well as selecting the most appropriate solutions from a broad range of options, many research efforts have been directed towards the definition of the most attractive IS activities rather than their implementation, management, and follow-up. Consequently, there is a lack of knowledge in the operation of IS solutions and, as a result, issues such as capacity building or

the overcoming of non-technical barriers are major challenges in current approaches for implementing IS synergies. In addition, the results of these projects and initiatives have usually been disseminated individually and with a limited audience, which makes them insufficiently visible or accessible for managers of IS, while most of the active IS networks lack a monitoring framework or harmonised mechanisms of data collection and quantification of benefits (Domenech, 2018). For this reason, the full understanding of their practical value for specific cases is hampered, and there is not enough clarity about existing gaps for the further implementation of IS solutions. All in all, there is a need to enhance the knowledge base for IS in Europe, which must be supported by harmonised frameworks and data reporting structures that ensure data accuracy and comparability in existing and new IS initiatives. The availability of new data in IS should further promote its implementation and market uptake in the EU, shed light on the added value of facilitators, and steer the transition towards a circular economy within industrial areas. Therefore, even though examples of successful IS activities exist in Europe and enabling technologies have been around for a while, IS implementation has yet to address several barriers to its uptake in the EU. Market potential for IS in Europe The untapped potential of IS is increasingly attracting attention in the EU. In the meantime, given that the industrial sector accounts for about one-third of global energy demand,

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IP of Sweden Nordvastra Skanes Renhallning Nordvastra Skanes Vatten och Avlopp Oresundskraft Helsingborg

Kemi-Tornio

Svartsengi Resource Park

FISS

Enkoping

Harjavalta IP

Stenungsund

Eyde Network

Lidkoping

NISP Scotland

Handelo

Kalundborg IS

NISP NI

Avesta

SMILE

Biopark Terneuzen

Dy Eco Park London Sustainable Industries Park LSIP_London NISP UK

Rotterdam harbour

Zero Emission Park Bremen

Knapsack IP Z.E.P. Kaiserslautern Z.E.P. Bottrop

Ökopark Hartberg Steiermark

Kaiserbaracke Industrial Park Essenscia Brussels Symbioseplatform Werecycle.be Monceau-Fontaines Park

REPROWIS Hungary

Havre harbour IP

Green Tech Valley

Bazancourt-Pomacle Lagny-sur-Marne La Courtilière IP

INEX Orée PNSI

Styria R.N.

NISP Hungary

E-Simbioza

Chemical Valley IA

ECOERG Suceava

Ponte Rizzoli IP

Prato Industrial Macrolotto

Sagunto Parc de l’Alba

IP of Rieti-Cittaducale

Tanning Cluster (S. Croce sull’Arno)

Relvao Eco-IP

Rethink_Italy

Symbiosis.gr

ResidiRecurso/ Wasteresource.eu

ENEA Italian Network

Organised Waste Market

Padova Industrial Park

Figure 1 Main EU hotspots for exploiting IS in Europe (Domenech et al. , 2019)

many industries have been reducing their energy demand in the last years through energy efficiency measures to decrease costs and improve competitiveness. Nevertheless, there is still a high potential for further improvements, especially when considering that up to 50% of the energy consumption is wasted as heat. Moreover, the European Commission’s (EC) Roadmap to a Resource Efficient Europe points out that improving the reuse of raw materials through greater ‘industrial symbiosis’ could save €1.4 billion a year across the EU and generate €1.6 billion in sales. Therefore, the potential to tackle the challenge of providing regular supplies without fluctuations by exploiting the utilisation of waste material flows is indeed a promising venture, which can lead to the identification of business opportunities leveraging underutilised resources through IS as well as to the development of a more sustainable and integrated industrial system. Target markets vary from construction, cement, and foundries to iron, steel, chemical

and petrochemical sectors, and more. However, the types of waste streams exchanged between companies depend on the sectorial composition of the nearby companies. In terms of enhanced market opportunities, two types of waste exchange models can be identified: firms producing waste (usually large producers) and firms using waste (for both big firms and small to medium enterprises, or SMEs). In that context, besides causing a significant reduction in resource use and CO₂ emissions by industrial processes, IS should also generate new job positions. In particular, by 2030, it is projected that an expansion of circular activity could create a potential labour market impact of 1.2 million new jobs (Domenech et al. , 2018). CORALIS EU project CORALIS (Creation Of new value chain Relations through novel Approaches facilitating Long-term Industrial Symbiosis) is a four-year (October 2020-September 2024) Horizon

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2020 project funded to shed light on the implementation reality of IS solutions and on the ways to overcome related barriers. CORALIS demonstration industrial areas share the identification and deployment of enabling technologies as the main driver behind their symbiotic relationships. Likewise, the project focuses on technological innovations, while it is complemented by managerial and economic considerations of IS, which, when combined, indicate the IS readiness level; in other words, the overall feasibility of the IS solution. The analysis, design, and implementation of an IS initiative according to this triple perspective is being accompanied by an impact assessment methodology, which provides a harmonised framework for the monitoring and follow-up of results, as well as the quantification of benefits for the actors involved in the IS initiative. Execution methodology In order to achieve a significant improvement of the overall IS readiness level in real demonstration sites, thus tackling differing perspectives involved in such initiatives, CORALIS will demonstrate the deployment of novel symbiotic value chains in three demonstration sites (lighthouse demonstrators), along with three extra follower cases to validate and replicate results.

It will also demonstrate the deployment of novel symbiotic value chains in its demonstration sites by the development and implementation of instrumental technologies for IS. The overall objective of the identified technologies is to contribute to the decarbonisation of the industrial areas and the transition to a circular economy. In particular, four different approaches have been considered in the implementation of technological innovations to IS initiatives: • CO₂ capture and valorisation for the creation of zero direct emissions industrial areas : At Escombreras industrial area, the implementation of a symbiotic process for KNO 3 will require the consumption of CO₂, provided by different industries within the park after its capture. In the industrial area in Sweden, a capture unit will be installed at the steel company to provide CO₂ to a nearby greenhouse. • Reduction in raw materials consumption by the implementation of circular economy approaches : At Escombreras, calcium from the industrial area wastewater management system will be recovered to substitute the current consumption of CaCO 3 and CaSO 4 at QSr. Also, HCl byproduct will be recycled as raw material for the existing processes. At Brescia, industrial

Symbiotic value chain demonstration

Technological

Key enabling technologies for IS Decarbonisation of industrial parks Circular economy principles at industrial level Process redesign for adaptation to IS Business models and distribution of benets Contractual issues (IS facilitator gure) Infrastructure ownership models Uncertainty and risk mitigation Investment needs and funding sources available Awareness creation among stakeholders Secure data exchange protocols and channels Creation of joint management structures Condentiality and trustful communication Creation of local/regional/national synergies Standardised framework for measuring IS bents Generation of a knowledge based on IS Transfer of results to increase awareness

9 8 7 6 5 4 3 2 1 0

Economical

Managerial

IS initiative monitoring and impact assessment

KRIs and KPAs for real-time monitoring of the IS interaction Techno- and thermo-economic assessment of IS solutions Life cycle approach for impacts analysis

Figure 2 CORALIS project concept and approach

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Horizon 2020 and Horizon Europe

waste from four different industries will be shared to reduce the demand for raw materials like iron ore for metal production. In addition, the lighthouse in Sweden will assess different circular economy approaches, including the valorisation of slags and the transformation of organic industrial wastes into fertilisers. • Energy consumption optimisation through waste heat recovery and valorisation: In Sweden, low-grade waste heat will be recovered so it can be used in the operation of a greenhouse. At Brescia, novel technologies for industrial waste treatment will incorporate waste heat recovery techniques, so different alternatives for its use, including the supply to nearby district heating systems, will be analysed. • Integration of renewable energy sources at an industrial level : At Escombreras industrial area, a thermo-economic study will be conducted to create a design of a CSP plant operating at an industrial area level to maximise the production of renewable energy and the substitution of natural gas for steam production in order to get zero CO₂ direct emissions. At Brescia, the substitution of fossil sources (carbon) with biogenic materials (biochar) will be performed. Impact assessment and monitoring of IS interaction The development of new methods and metrics facilitates the monitoring, management, and Horizon 2020 was the EU Research and Innovation programme with nearly $80 billion of funding over the period 2014- 2020. Many of the projects funded by Horizon 2020 are ongoing. Horizon Europe is the latest EU funding programme for research and innovation, with a budget of €95.5 billion over the period 2021-2027. It tackles climate change, helps to achieve the UN’s Sustainable Development Goals,

improvement of IS opportunities. Moreover, the use of a standardised assessment approach enables the comparison between IS solutions as well as the sharing of results to create awareness and replicate best practices and benefits among industrial areas. For this reason, CORALIS has developed a set of indicators – key performance indicators and key performance areas (KPIs and KPAs) that will support the technical, environmental, and economic evaluation of IS and will allow for better decision making. Based on those, a methodology for the joint techno- and thermo-economic analysis of the IS solutions will be deployed, enabling the transformation of the IS analysis process into a mono-criteria assessment using energy as a homogenising agent. A methodology for measuring emissions, benefits, and consumption between involved actors in the industrial areas is being developed to verify the flow exchanges and the implications for the different parties. On top of this approach, life cycle and life cycle cost analysis (LCA and LCC) are being implemented to obtain a wider approach to the impact of the IS solutions. This generates a life cycle inventory (LCI) for IS and provides useful information for identifying best practices that minimise the economic and environmental impacts, taking into consideration future operational and replacement needs. There will be a monitoring period of the implanted IS solutions, in which further learning will be obtained. and boosts the EU’s competitiveness and growth. The programme facilitates collaboration and strengthens the impact of research and innovation in developing, supporting, and implementing EU policies while tackling global challenges. It supports creating and better dispersing of excellent knowledge and technologies. Legal entities from the EU and associated countries can participate.

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Beyond the technological scope The success in the implementation and long- term operation of these technologies by the lighthouse demonstrators does not only rely on the readiness level and effectiveness of the technological innovations but also heavily depends on the awareness level of the involved industries and the willingness and trust of companies to engage in such cooperation. For this reason, CORALIS uses IS facilitators, neutral actors that provide partners with tools and procedures that allow the mobilisation of stakeholders, the creation of joint management structures, and the establishment of fluid communication channels between industries. CORALIS is also fostering trust among the parties through the development of data sharing modules and channels that enable a secure exchange of information between companies. In addition, CORALIS aims to define the main business model elements that facilitate the creation

of win-win relationships and a fair share of benefits between parties. These include the settlement of price schemes for the products/ services exchange; the definition of ownership models for common infrastructure and services such as logistics, water, and electricity supply; schemes for risk management plans and compensation clauses between parties to minimise the uncertainty of the symbiosis case; and support in attracting private and public funding to ensure the continuity or implementation of new IS options.

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Danai Antonaki dantonaki@white-research.eu

Manuel Gomez magomez@fcirce.es

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Decarbonisation transformation of Shell’s Pernis refinery Pernis refinery will play a key role in Shell’s transition to net-zero emissions by 2050 through a number of strategies involving biofuels, green hydrogen, and CCS

Andy Gosse Shell Catalysts & Technologies

T he decarbonisation of a refinery goes well beyond seeking out energy efficiency savings. Many refineries are already very energy efficient, but most of the greenhouse gas (GHG) emissions associated with their energy products come from the products’ end use: 85% of these emissions, in fact. Consequently, decarbonising a refinery also means making lower-carbon energy products. One of Shell’s largest facilities is Pernis refinery in Rotterdam. In this article, I will describe the major transformations that are under way to see it become Shell Energy and Chemicals Park Rotterdam, equipped to supply customers with lower-carbon products. Need for more and cleaner energy solutions Shell’s purpose for many years has been to provide more and cleaner energy solutions. It is clear that the world of the future will need more energy. Its population is growing, and people will use even more energy as living standards improve. Climate change is very real, and there are many examples in the form of extreme weather events, so cleaner energy is essential. Powering Progress is Shell’s strategy setting out how the organisation will accelerate its transition to net-zero emissions by 2050. This ambitious process will be achieved in a purposeful and profitable manner. There are four pillars to this strategy, as shown in Figure 1 . The Powering Lives pillar is about providing cleaner solutions to customers to support an inclusive society. The Respecting Nature pillar sees an increased focus on sustainability and reducing waste.

Generating Shareholder value

Powering Progress

Powering lives

Respecting Nature

Achieving Net-zero emissions

Figure 1 Shell’s Powering Progress strategy

Another pillar, Generating Shareholder Value, is about remaining profitable through the energy transition. Significant investment is required to facilitate the energy transition so that the future energy state can be achieved. This means keeping the core business healthy today to generate income and shareholder value. Capital discipline is key to this strategy. The fourth pillar, Achieving Net-Zero Emissions, sets out how Shell aims to work with its customers to accelerate the change towards the widespread use of low-carbon products. Most of the carbon emissions associated with Shell’s businesses are those produced when customers use our products. Only 10-15% of the total associated emissions directly emanate from our own operations. The remaining 85-

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Future of refining at Pernis: an integrated energy and chemicals park One piece of the solutions jigsaw puzzle is Pernis refinery. One of the largest in Europe, Pernis refinery has a 400,000 b/d capacity and a complexity enabling the processing of many different crude types. The site is already deeply integrated with chemicals production. We are transforming Pernis refinery into an integrated energy and chemicals park that will deliver low-carbon products. This transformation is already under way. Whereas the traditional feed has been crude oil, in the future, biomass, waste oil and gas, hydrogen and plastic and municipal solid waste will become significant feedstocks, with renewables providing a principal energy source, as seen in Figure 2 . The shift in feedstocks aims to broaden the site’s product slate to include, for example, sustainable aviation fuels (SAF) and biofuels. This represents a move away from the petrochemicals and transport fuels currently produced. The production of performance chemicals and bitumen will continue, as will waste process heat capture to provide district heating for buildings. Carbon capture has been in operation at Pernis refinery for several years, with the carbon dioxide (CO₂) being fed to local horticultural sites to encourage plant growth. In the future,

90% of GHG emissions come from product end uses, for example, when vehicles burn our fuels. We will help to empower the transition of our customers’ businesses to net zero by providing them with lower-carbon fuels and alternative energy sources. In the short, medium and longer terms, Shell has set goals and targets that will help to enable the transition to net zero by 2050. Some examples of milestones for 2030 involve eliminating routine flaring and a shift away from oil production. Oil production peaked in 2019 and is expected to decline at 1-2% per annum. Natural gas is seen as a key fuel in the energy transition and is likely to account for 55% of hydrocarbon production in coming years. Shell also aims to double the amount of low-carbon electricity it sells to customers to provide the equivalent of 50 million homes with renewable electricity by 2030. For the transport sector, Shell, already one of the biggest producers of biofuels, will grow its low-carbon fuel production by eight times. Where direct product decarbonisation is not possible or not enough, Shell is targeting 25 Mt/y of CCS by 2035 and planning, in the longer term, about 120 Mt/y of nature-based solutions, including reforestation programmes.

Road and aviation fuels

Resilient products

Performance chemicals

Bitumen

Other

SAF Biofuels

Margin optimisation

Heating

Raw materials

Carbon capture and storage

Biomass and waste oil gas

Crude oil

Renewable energy

Plastic waste and municipal solid waste

Figure 2 The emerging product portfolio at Shell Energy and Chemicals Park Rotterdam

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