What is decarbonisation?

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Decarbonisation is a key priority in the fight against climate change, representing a strategic approach aimed at reducing greenhouse gas emissions and limiting their concentration in the atmosphere. In a global context characterised by a growing sensitivity towards environmental sustainability, decarbonisation is seen as an economic, ethical and social objective. 

With increasing awareness of the consequences of industrial activities and the importance of limiting environmental impact, companies and institutions are re-evaluating their energy strategies. With ambitious goals outlined in the principles of the Green Deal, decarbonisation becomes a fundamental element to ensure a sustainable future, positioning Europe and Italy at the forefront of the ecological transition.

Pros and cons of the energy transition

The energy transition offers a key opportunity to make the economy more sustainable and resilient. The main advantages of the energy transition include a significant reduction in carbon dioxide emissions, already partially achieved in Italy, where in 2022 a 2.8% drop was seen. Investments in renewable sources such as solar, wind and biomass not only mitigate the environmental impact, but also create new jobs in the green sectors. In addition, the transition to a circular economy promotes efficient use of resources, reduces waste and stimulates technological innovation.

However, the energy transition also presents significant challenges. A critical aspect is the high initial investment needed to develop sustainable infrastructure and technologies, which can weigh heavily on governments and businesses, particularly in more fragile economies. Changes in the energy landscape can cause unemployment in traditional sectors, leading to social tensions and necessitating retraining programmes. Finally, sustainability policies need to address cultural and structural barriers, to ensure that the transition takes place in a fair and inclusive way.

The role of renewable energy in the ecological transition

Renewable energy plays a key role in the ecological transition, being one of the most promising ways to reduce greenhouse gas emissions and promote a sustainable future. Unlike fossil sources, these resources are naturally renewed through processes such as sunlight, wind, water and geothermal heat, avoiding the risk of depletion. Several options are available to reduce emissions from fossil fuels:

  • Replace coal and oil with natural gas and biogas;

  • Use renewable sources for sustainable energy production.

What is decarbonisation: the meaning

Decarbonisation is a process aimed at progressively reducing the use of carbon in human activities, particularly in the form of fossil fuels. This process involves a transition to renewable and clean energy sources, such as solar, wind and hydropower. To achieve the goal of decarbonisation, it is necessary to adopt various methods and strategies that progressively reduce emissions. Each entity can embark on different paths, with an emphasis on activities such as energy redevelopment, the use of renewable energy sources and emission compensation systems. 

A key aspect of decarbonisation is the acceleration in the use of biofuels and decarbonised fuels, which can replace fossil fuels at least partially. These new fuels are compatible with existing cogeneration systems. Not only does this transition help comply with regulations in force, but it also provides opportunities for industries to develop partially decarbonised products.

Why decarbonisation is important

Over the past two centuries, human-generated greenhouse gas emissions have increased dramatically, contributing to a global temperature rise of about 1.1 °C compared to the pre-industrial period. Although this change seems minimal, the consequences are obvious and increasingly serious. The most worrying effects of climate change include:

  • Loss of glaciers, ice sheets and permafrost;

  • Extreme heat and increased heatwaves;

  • Extreme rain;

  • Extreme storms and tropical cyclones (hurricanes).

The impacts of climate change are pervasive and include water scarcity, a rise in the sea level, ocean acidification and the loss of biodiversity. These problems not only threaten ecosystems, but also have serious implications for human health and for the economy. Vulnerable communities – often those that contribute the least to global emissions –, are the most affected: developing countries and low-lying island nations are in fact suffering the devastating effects of extreme weather events.

What are the pillars of decarbonisation?

Decarbonising means reducing the extraction and use of fossil fuels – such as oil, coal and natural gas – in key sectors such as energy production, transport, industry and domestic and industrial heating. Organisations have different options for defining a decarbonisation strategy, depending on which solution is best suited to their business model, the opportunities available and the feasibility of implementing the strategy. The main technologies that can be adopted include:

  1. Renewable energy transition: Decarbonisation begins with a fundamental overhaul of the energy system, shifting the focus from fossil fuels to a full commitment to clean, renewable sources. This includes technologies such as photovoltaics, wind, hydropower, tidal power, geothermal and biomass. This transition can take place through the installation of renewable energy generation systems in existing plants or through energy supply contracts with renewable energy suppliers;

  2. Improving energy efficiency: A key element of the energy transition is the optimisation of energy use, reducing energy needs to achieve the same goals. Strategies that can be adopted include improving building insulation, choosing energy-efficient appliances, as well as adopting innovative technologies for heating and smart building management through digital systems. The use of advanced performance monitoring software allows inefficiencies to be detected. In addition, during equipment upgrades, it is crucial to choose technologies that consume less energy;

  3. Electrification of mobility: Electrification involves replacing fossil fuel technologies with solutions that use electricity, which is considered cleaner and more sustainable. This transition covers various areas, including heating, cooling, ventilation, transport and industrial production promoting electric vehicles, from electric cars to e-bikes and battery-powered buses;

  4. Creating energy communities: Energy communities are a new collaborative approach in which a group of people or entities join forces to produce, manage and consume energy from renewable sources. These communities are configured as legal entities, allowing participants to share economic advantages, such as the decrease in energy costs and the possibility of selling surplus energy, as well as social and environmental benefits, thus contributing to sustainability and the fight against climate change. In Italy, in 2023, a total of 54 energy communities have already been started, with an additional 100 currently under development;

  5. Investing in the circular economy: To support the decarbonisation process, it is crucial to minimise waste and maximise the use of resources. The principles of the circular economy offer a fundamental approach to reduce pollution and promote sustainability;

  6. Implementation of a residual emissions management procedure: It is necessary to implement strategies for their removal, using both natural processes and innovative technologies. Among these, the capture and storage of carbon dioxide (CCS) allows emissions generated by various processes to be trapped before they reach the atmosphere, and then stored safely underground. Another promising technology is direct air capture (DAC), which uses equipment to suck carbon dioxide from the air and remove it from the atmosphere.

What technologies can be used for decarbonisation?

To date, cogeneration has proven itself as an efficient solution which, thanks to the use of natural gas, allows higher energy efficiency than the separate production of electricity and heat, thus reducing emissions. With the progressive integration of biofuels – such as biogas, biomethane and hydrogen – its environmental impact will be even more limited, making it an increasingly sustainable solution. 

In addition to photovoltaics, many other solutions can be adopted to achieve this goal. For example, wind energy harnesses wind power to generate CO2-free electricity, while geothermal uses terrestrial heat to produce clean energy. Energy efficiency solutions, such as smart grids and heat pumps, also contribute to decarbonisation by reducing dependence on fossil fuels.

In addition, carbon capture and storage (CCS) and green hydrogen are emerging solutions that could play a key role in reducing industrial emissions and decarbonising hard-to-electrify sectors. While all of these technologies have significant advantages, it is important to note that some have limitations, such as the need for adequate infrastructure, high upfront costs and, in some cases, environmental impacts related to the production and disposal of the technologies themselves.

Cogeneration or photovoltaic?

The growing sensitivity to decarbonisation related issues is transforming the energy market. Today, the energy solutions needed are no longer only aimed at efficiency and the consequent economic and competitive advantage, as in the past, but are increasingly focused on reducing environmental impact and carbon footprint. 

In this context, cogeneration continues to play a strategic role: the key to success lies in integrating it into a hybrid energy system, which maximises the contribution of different renewable energy sources. Cogeneration cannot be completely replaced by any other technology currently available and addresses many of the problems posed by other renewable energy sources: 

  • Photovoltaic, for example, has limitations due to intermittent production, which can only be partially mitigated by storage batteries, as well as not responding to thermal needs except in combination with other technologies such as heat pumps; 

  • Fuel cells, on the other hand, necessitate continuous operation with stable power and at high temperatures and are therefore not suitable for flexible operation, with variable power or with frequent switching on and off.    

In terms of decarbonisation, it is also important to accelerate the use of biofuels and decarbonised fuels instead of fossil fuels. AB’s cogeneration systems, already designed to be powered by biofuels, are ready to take advantage of this opportunity in a pervasive way, as soon as the new generation of fuels is distributed and available on a large scale. In this way it will be possible not only to respond to constraints such as those imposed by the Emission Trading System, but also to allow the industry to make partially or fully decarbonised products. 

The complexity of energy solutions requires an integrated approach, like the one we decided to adopt. Thanks to an advanced system of optimisation of programmable energy resources, we can maximise the benefit of different technologies such as cogeneration, trigeneration, photovoltaic, batteries, fuel cells and heat pumps, giving priority to non-programmable renewable sources, managing energy storage in a way that is compatible with users and ensuring efficiency and flexibility. 

For example, the photovoltaic panels integrated with the ECOMAX® cogenerator make energy production even more efficient: thanks to the ABptimizer software, it is possible to cover a company’s electricity needs using the renewable energy of photovoltaics, when available, by modulating the cogenerator for the production of thermal energy only. When, on the other hand, the production of photovoltaic energy is not possible, the cogenerator can operate at full capacity, producing both electricity and thermal energy. In addition, a photovoltaic system is a zero-impact technology with an expected operation over a period of more than 30 years at almost zero maintenance costs. 

In summary, AB’s current strategy does not only focus on the cogeneration unit, but integrates a portfolio of solutions that allow customers to reduce energy costs, through “Primary Energy Saving”, and decarbonise their processes.  This holistic approach makes it possible to seize new opportunities in the field of energy transition, reducing the use of primary energy and reducing climate-altering emissions.  

Decarbonisation agreements in place

In recent years, international efforts for decarbonisation have gained momentum, supported by initiatives such as the UN’s 2030 Agenda for Sustainable Development. Through international climate summits and concrete actions, a significant drop in carbon dioxide emissions has been seen. However, to achieve ambitious targets such as net-zero emissions by 2040, it is crucial to increase efforts.

The Paris Agreement, signed in 2015 by 196 parties, represents a crucial collective commitment in the fight against climate change, with the aim of keeping global warming below 1.5 °C compared to pre-industrial levels. According to the Intergovernmental Panel on Climate Change (IPCC), achieving this goal is still possible, but requires coordinated and decisive action. Experts warn that global greenhouse gas emissions will have to decrease drastically over the next eight years and that the reduction measures currently in place are not enough.

In addition, on July 14, 2021, the European Commission officially launched the Green Deal, an agreement involving all EU Member States with two main objectives:

1. Reduce CO2 emissions by 55% by 2030;

2. Achieve carbon neutrality by 2050.

This agreement aims to achieve ambitious but highly desirable goals, such as zero greenhouse gas emissions and economic growth independent of the use of fossil energy sources. The secondary objectives are equally significant, as they are expected to create new jobs, decrease energy dependence on countries outside the EU and increase biodiversity, while contributing to improving the health and well-being of citizens.

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