Pioneering the path to decarbonisation

The world is facing a climate emergency, and every sector must play its part in reducing greenhouse gas emissions. However, some sectors are harder to decarbonise than others, especially heavy industries such as steel, cement, and chemicals, owing to technical factors like the need for extremely high heat and process emissions of carbon dioxide.

While central to our modern way of life, these industries are responsible for nearly 40% of global carbon dioxide (CO₂) emissions. Moreover, the industrial sector provides various essential materials required for a sustainable energy sector transition – steel, plastics and cement are used for various clean energy technologies and infrastructure, including electric vehicles, wind turbines and solar panels. Therefore, these sectors need innovative and alternative solutions to achieve net-zero goals.

One such solution is Waste Heat Recovery (WHR), which converts the thermal energy that is otherwise wasted in industrial processes into useful electricity. WHR not only reduces a plant’s fuel consumption, emissions, and electricity demand from the grid but is also a sustainable and profitable solution, enhancing operational efficiency and lowering energy costs.

An example of WHR in action is Holcim UAE’s LEC cement plant, which implemented with ENGIE a 9MW WHR project based on the Organic Rankine Cycle (ORC) technology. ORC uses an organic fluid instead of water as the working fluid, which allows it to operate with low-temperature waste heat and without water. The project, expected to be completed early next year, will help LEC avoid 29 kilotons of CO2 emissions per year, representing a 28% reduction in power-related emissions.

The project also aligns with the UAE’s sustainability goals, including the 2050 Net Zero vision, which aims to achieve net-zero emissions by 2050. The UAE has set ambitious targets in adopting renewable energy, energy efficiency, and low-carbon technologies, such as solar, hydrogen, and carbon capture and storage. Such goals have gained renewed focus as the UAE hosts COP28 this year.

The project is based on a 10-year BOOT (Build Own Operate Transfer) contract, where ENGIE Solutions designs, finances, constructs, and manages the operations of the WHR system and provides LEC with clean electricity at a competitive price. This “energy-as-a-service” financing model allows LEC to benefit from guaranteed energy savings, enhanced reliability, and resiliency without significant capital investment or additional staffing requirements. Under a BOOT structure, off-takers such as LEC only need to provide ENGIE with a nearby site, accept the connection to ENGIE’s energy system, and purchase the electricity produced by this system, similar to any utility arrangement.

Power decarbonisation and maximise business value with distributed solar PV

Solar energy serves as a potent instrument in the effort to decarbonise industry by supplying clean and cost-effective electricity for industrial processes. This enhances the operational efficiency and profitability of industrial facilities and positively influences their environmental and social impact. By facilitating the transition to a net-zero future, solar energy emerges as a pivotal player in global climate action, contributing significantly to a sustainable and responsible industrial landscape.

Distributed solar, characterised by its proximity to the point of consumption, whether on rooftops or ground-mounted systems, provides electricity to factories and reduces their dependence on carbon-heavy, expensive energy sources such as diesel fuel. The result is a substantial reduction in emissions tied to electricity consumption within industrial facilities.

The writer is Managing Director, Africa, Middle East and Asia, ENGIE Energy Solutions

• Business