Yr her fwyaf
The biggest challenge
90% of industry’s GHG emissions consists of CO2. Half of their total CO2 emissions result from the manufacture of four industrial commodities - ammonia, cement, ethylene, and steel.
Economic factors add to the challenge of abating emissions. Ammonia, cement, ethylene, and steel are commodities, so cost is the decisive consideration in purchase decisions. Companies that increase their costs by adopting low-emission processes and technologies will find themselves at a price disadvantage to rivals that do not.
Nawr yw'r amser i weithredu
Now is the time for action
The time to transition is now. Joint planning and timely action can accelerate the development of low-carbon technologies for industrial sectors.
Irrespective of which decarbonisation option industry chooses - except for energy-efficiency improvements - decarbonisation leads to an increase in demand for electricity. Achieving the dual transformation of the energy and industrial sectors will require coordinated efforts across the South Wales.
Lowering industrial GHG emissions won’t be easy, but it is possible. A new report from McKinsey, Decarbonisation of Industrial Sectors: The Next Frontier, concludes that ammonia, cement, ethylene, and steel companies can reduce their carbon- dioxide (CO2) emissions to almost zero with energy-efficiency improvements such as the electric production of heat, use of hydrogen and biomass as feedstock or fuel and carbon capture.
Mynd i'r afael â'r her
Addressing the challenge
We are optimistic that, despite the challenges, industry in South Wales could bring their CO2 emissions close to zero with a combination of approaches. We are currently exploring all possibilities.
The most promising solutions are energy-efficiency improvements, the electrification of heat, the use of hydrogen made with zero-carbon electricity as a feedstock or fuel, the use of biomass as a feedstock or fuel, and carbon capture and storage (CCS) or usage (CCU). We are currently researching 30 industries to evaluate their options on a site-specific basis by closely examining these factors.
Industries in all regions should be preparing for decarbonisation by conducting a detailed review of all their facilities and looking at the availability of low-carbon practices.
They should also engage other stakeholders to find opportunities for collaboration. For example, co-investing in a shared carbon-storage infrastructure or supporting the research and development of promising decarbonisation technologies.
Progress is currently limited by the availability and cost of low-carbon energy sources. Specifically, the availability of zero-carbon renewable electricity and sustainably produced biomass. Access to storage for captured CO2, along with public and regulatory support for carbon storage will also affect the possibility of implementing CCS.