Decarbonisation Technology May 2022 Issue

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.