Decarbonisation Technology - August 2024 Issue

Resiliency in decarbonisation pathways It is important to systematically incorporate an array of considerations when it comes to developing a carbon reduction plan

Marina Barta and Paul Cannizzo Solomon Associates

T he world has entered a new era with a focus on sustainability strategies in almost every industry globally. Ambitious carbon reduction goals have been announced by numerous industries, corporations, countries, and regions. Companies have an obligation to evaluate their carbon emissions footprint responsibly and consider carbon reduction steps towards achieving the worldwide challenge of limiting the temperature rise to 1.5°C by 2100. Sustainability exponentially increased the need for innovation and amplified the need to surpass business-as-usual technologies. We have seen the genesis of great ideas blossoming into technology layers that multiple industries can utilise to achieve the goal of net zero. Industry commitments through 2030, 2040, and 2050 are vital in making any decarbonisation pathway successful. One needs to ensure a credible basis is used in making strong commitments, as credibility is important when publicly making bold statements. This article will explore the factors that make a pathway resilient enough to withstand change in this multivariable and complex challenge and how to develop strategic decarbonisation pathways during the world’s energy transition. Questions to ask when putting together a decarbonisation plan include: How resilient is the pathway to net zero? How feasible is the pathway to net zero? Is the pathway robust enough to withstand policy change, technology shift, and various pressure test scenarios, among other things? The fundamentals A strong foundation for any pathway to net

zero starts with understanding the company’s carbon footprint, then completing the following elements: • Define the basis and reference year. • Calculate Scope 1 and 2 emissions, and as the industry evolves, this can also extend to Scope 3 emissions. • Establish decarbonisation capability through the company’s marginal CO₂ cost abatement curve. • Incorporate current energy and margin project opportunities. • Incorporate and align with planned turnarounds and downtimes and major investments in refinery configurations that may be required. Equally important is ensuring that these plans and steps are kept evergreen and that there is a process for keeping the pathway to net zero up to date to hold the organisation accountable and responsible. The organisation should implement a stage gate process where the plan is periodically reviewed to ensure it is on track and that critical assumptions remain valid. Ideally, the timing and review criteria should be part of the original plan, not based on some arbitrary period that fits into a traditional planning horizon. Establishing decarbonisation capability may extend to but is not limited to: Energy optimisation and efficiency • Energy optimisation is about operational optimisation around key energy equipment (furnace efficiencies, tower pressures, boiler efficiencies, steam system management, compressor recycle). It can also involve • Integrate the impact of asset growth, divestment, and acquisition decisions.