Decarbonization 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 characterized by growing awareness of the need for environmental sustainability, decarbonization is a key economic, ethical and social goal.
In the face of growing awareness of the consequences of industrial activities and of the importance of limiting our environmental impact, companies and institutions are re-evaluating their energy strategies. In view of the ambitious goals outlined in the principles of the Green Deal, decarbonization becomes a fundamental factor for ensuring 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 critical opportunity to make the economy more sustainable and resilient. Key benefits include a significant reduction in carbon dioxide emissions, already partially achieved in Italy, where the year 2022 saw a 2.8% drop. Investments in renewable energy sources such as solar, wind and biomass not only mitigate the environmental impact, but also create new green jobs. In addition, the transition to a circular economy promotes efficient use of resources, reduces waste and stimulates technological innovation.
But the energy transition also presents significant challenges. One critical aspect is the high initial investment needed to develop sustainable infrastructure and technologies, which can weigh heavily on governments and businesses, especially in particularly fragile economies. Changes in the energy landscape can lead to unemployment in traditional sectors, leading to social tension and requiring retraining programmes. Finally, sustainability policies need to address cultural and structural resistance in order to ensure that the transition is accomplished 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, representing one of the most promising ways of reducing greenhouse gas emissions and promoting a sustainable future. Unlike fossil energy sources, these resources are naturally renewed through processes such as sunlight, wind, water and geothermal heat, avoiding the risk of depletion. We have a number of options for reducing emissions from fossil fuels:
Replace coal and oil with natural gas and biogas;
Use renewable sources for sustainable energy production.
What is decarbonization: meaning
Decarbonization is the process of progressively reducing the use of carbon, especially in the form of fossil fuels, in human activities. This process involves a transition to clean, renewable energy sources such as solar, wind and hydropower. To achieve the goal of decarbonization, it will 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 emissions compensation systems.
A key aspect of decarbonization is acceleration of the use of biofuels and decarbonized fuels, capable of at least partially replacing fossil fuels. These new fuels are compatible with existing cogeneration systems. Not only does this transition help comply with regulations, it also provides opportunities for industries to develop partially decarbonized products.
Why decarbonization is important
Human-generated greenhouse gas emissions have increased dramatically over the past two centuries, contributing to a global temperature increase of about 1.1°C compared to the pre-industrial period. 1.1° may not seem like a lot, but the consequences are clear, and increasingly serious. The most worrying effects of climate change include:
Melting of glaciers, ice sheets and permafrost;
Extreme heat and more frequent heatwaves;
Extreme rainfall;
Extreme storms and tropical cyclones (hurricanes).
The impact of climate change is pervasive, and includes water shortages, rising sea levels, acidification of the oceans and loss of biodiversity. Such problems not only threaten ecosystems, but also have serious implications for human health and the economy. Vulnerable communities are the most seriously affected, even though they are often the communities that contribute the least to global emissions: developing countries and low-lying island nations are in fact suffering the devastating effects of extreme weather events.
What are the pillars of decarbonization?
Decarbonization means reducing the extraction of fossil fuels such as oil, coal and natural gas and their use in key sectors of the economy such as energy production, transportation, industry, and domestic and industrial heating. Organizations have different options for formulating a decarbonization strategy, depending on which solution is best suited to their business model, the opportunities available and the practicality of implementation. Key technologies that can be adopted include:
Transitioning toward use of renewable energy: Decarbonization begins with a fundamental overhaul of the energy system, shifting the focus from fossil fuels to a total commitment to clean, renewable sources. This includes technologies such as photovoltaics, wind, hydro power, tidal power, geothermal and biomass. This transition can take place through the installation of renewable energy generation systems in plants, or through signature of energy supply contracts with renewable energy suppliers;
Improving energy efficiency: A key element of the energy transition is optimization of the use of energy, reducing energy requirements to achieve the same goals. Adoptable strategies include improving building insulation, choosing energy-efficient appliances, adopting innovative heating technologies, and smart building management through digital systems. 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;
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 use of electric vehicles ranging from electric cars to e-bikes and battery-powered buses;
Creating energy communities: Energy communities represent a new collaborative approach in which a group of people or entities joins 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 decreased 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. Italy already had 54 energy communities as of the year 2023, with an additional hundred under development;
Investing in the circular economy: To support the decarbonization process, it is crucial to minimize waste and maximize the use of resources. The principles of the circular economy offer a fundamental approach to reducing pollution and promoting sustainability;
Implementation of a residual emissions management procedure: it is necessary to implement strategies for removal of carbon emissions, using both natural processes and innovative technologies. These include the capture and storage of carbon dioxide (CCS), allowing emissions generated by various processes to be trapped before they reach the atmosphere and 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 decarbonization?
To date, cogeneration represents an efficient solution which makes use of natural gas to permit more efficient use of energy compared to separate production of electricity and heat, thus reducing emissions. With the progressive integration of biofuels, such as biogas, RNG 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 power may be harnessed to generate carbon-free electricity, while geothermal power uses terrestrial heat to produce clean energy. Energy efficiency solutions, such as smart grids and heat pumps, also contribute to decarbonization by reducing dependence on fossil fuels.
In addition, carbon capture and storage (CCS) and green hydrogen represent emerging solutions that could play a key role in reducing industrial emissions and decarbonizing hard-to-electrify sectors. While all of these technologies have significant advantages to offer, it is important to note that some present limitations, such as the need for adequate infrastructure, high upfront costs, and, in some cases, the environmental impact of production and disposal of the technologies themselves.
Cogeneration or photovoltaic?
Growing awareness of decarbonization issues is transforming the energy market. Today, we require energy solutions that no longer aim only at achieving efficiency and the consequent economic and competitive advantage, as in the past, but are increasingly focused on reducing environmental impact and our carbon footprint.
In this context, cogeneration continues to play a strategic role: the key to its success lies in integrating it into a hybrid energy system maximizing the contribution of different renewable energy sources . Cogeneration cannot be completely replaced by any other technology currently available, and addresses many of the problems of other renewable energy sources:
Photovoltaic energy, for example, is limited due to intermittent production, only partially mitigated using storage batteries, and fails to provide the heat we require unless it is used in combination with other technologies such as heat pumps;
Fuel cells, on the other hand, are best used in continuous operation with stable power and at high temperatures, and so they are not suitable for flexible operation, for use with variable power or with frequent switching on and off.
With a view to achieving decarbonization, it is also important to accelerate the use of biofuels and decarbonized fuels in place of fossil fuels. AB's cogeneration systems, already set up 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 widespread. In this way it will be possible not only to respond to constraints such as those imposed by the Emissions Trading System, but also to allow the industry to produce partially or totally decarbonized products.
The complexity of energy solutions requires an integrated approach such as the one we have decided to adopt. Thanks to an advanced system for optimization of programmable energy resources, we can maximize the benefits of different technologies such as cogeneration, trigeneration, photovoltaic, batteries, fuel cells and heat pumps, giving priority to non-programmable renewable sources while managing energy storage compatibly with utilities 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 now possible to cover a company's electricity requirements using renewable energy from photovoltaics, when available, by modulating the cogenerator for the production of thermal energy only. And when 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 with practically no maintenance costs.
In summary, AB's current strategy does not focus on the cogeneration unit alone, but integrates a portfolio of solutions allowing customers to cut their energy costs through "Primary Energy Saving" and decarbonization of their processes. This holistic approach makes it possible to seize new opportunities in the context of the energy transition, reducing the use of primary energy and cutting climate-altering emissions.
Decarbonization agreements in place
International efforts aimed at decarbonization have gained momentum in recent years, supported by initiatives such as the UN's 2030 Agenda for Sustainable Development. International climate summits and concrete actions have brought about a significant drop in carbon dioxide emissions. However, it is crucial to increase our efforts if we wish to achieve ambitious targets such as net-zero emissions by 2040.
The Paris Agreement signed by 196 parties in 2015 represents a crucial collective commitment in the fight against climate change, with the aim of keeping global warming below 1.5 degrees Celsius 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 must decrease drastically over the next eight years, and that the emissions reduction measures in place today are not enough.
In addition, on 14 July 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 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 improvement of citizens’ health and well-being.
