Decarbonization is a fundamental 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 an increasing sensitivity towards environmental sustainability, decarbonization emerges 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, decarbonization becomes a fundamental element in ensuring a sustainable future, with Europe and Italy positioned at the forefront of the ecological transition.
Pros and cons of the energy transition
The energy transition represents a critical opportunity to make the economy more sustainable and resilient. Among the main advantages is the significant reduction in carbon dioxide emissions, which has already been partially achieved in Italy, with a 2.8% drop in 2022. Investments in renewable sources such as solar, wind and biomass not only reduce the environmental impact, but they 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 has some significant challenges. One critical aspect is the high initial investment needed to develop sustainable infrastructures and technologies, which can weigh heavily on governments and businesses, especially in more fragile economies. Changes in the energy landscape can lead to unemployment in traditional sectors, leading to social tensions and requiring professional retraining programs. Finally, sustainability policies need to address cultural and structural resistance, 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, representing one of the most promising ways to reduce greenhouse gas emissions and to promote a sustainable future. Unlike fossil-based 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 does decarbonization mean?
Decarbonization represents a process designed to progressively reducing the use of carbon in human activities, especially in the form of fossil fuels. This process involves a transition to renewable and clean energy sources, such as solar, wind and hydroelectric. To achieve the goal of decarbonization, various methods and strategies that progressively reduce emissions need to be adopted. Each entity can take a different path, with an emphasis on activities such as energy requalification, the use of renewable sources of energy and emission compensation systems.
A key aspect of decarbonization is the acceleration in the use of biofuels and decarbonized fuels, which can replace, at least partially, fossil fuels. These new fuels are compatible with existing cogeneration systems. Not only does this transition help comply with the regulations, but 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 rise in global temperature of approximately 1.1°C compared to the pre-industrial period. Although this variation seems minimal, the consequences are obvious and become increasingly severe. The most worrying effects of climate change include:
The melting 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 widespread and include water shortages, rising sea levels, acidification of the oceans and the loss of biodiversity. These problems not only threaten the ecosystems, but they also have serious implications on human health and the economy. Vulnerable communities, often those which 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 decarbonization?
Decarbonizing 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. Companies have different options for formulating a decarbonization strategy, depending on which solution best suits their business model, the opportunities available and the practicality of implementation. Among the main technologies that can be adopted:
Renewable energy transition: decarbonization begins with a fundamental overhaul of the energy system, shifting the focus from fossil fuels to totally committing to clean, renewable sources. This includes technologies such as solar photovoltaics, wind, hydropower, tidal power, geothermal and biomass. This transition can take place by installing renewable energy generation systems within their plants or through energy supply contracts with renewable energy suppliers;
Improving energy efficiency: one key element of the energy transition is the optimization of energy use, reducing the energy needs to achieve the same goals. Adoptable strategies include improving building insulation, choosing energy-efficient appliances, adopting innovative technologies for heating and smart building management through digital systems. Advanced performance monitoring software can be used to detect inefficiencies. Also, when upgrading equipment, it is crucial that technologies which consume less energy be selected;
Electric 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 by promoting electric vehicles, from electric cars to e-bikes and battery-powered buses;
Creating energy communities: these represent 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 set up as legal entities, allowing participants to share economic advantages, such as a decrease in energy costs and the possibility of selling surplus energy, as well as social and environmental benefits, therefore contributing to sustainability and the fight against climate change. In 2023, 54 energy communities have already been started in Italy, with another hundred or so being created;
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 a circular economy offer a fundamental approach to reducing pollution and promoting sustainability;
Implementation of a residual emissions management procedure: strategies need to be implemented 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 be safely stored underground. Another promising technology is direct air capture (DAC), which uses equipment to extract carbon dioxide from the air and remove it from the atmosphere.
What technologies can be used for decarbonization?
Cogeneration currently represents an efficient solution through the use of natural gas and offers higher energy efficiency than the 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 reduced even more, making it an increasingly sustainable solution.
In addition to solar photovoltaics, many other solutions can be adopted to achieve this goal. For example, wind power harnesses the strength of the wind to generate CO2-free electricity, while geothermal power uses heat from the earth to produce clean energy. Energy efficiency solutions, such as smart grids and heat pumps, also contribute to decarbonization by reducing the 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 decarbonizing hard-to-electrify sectors. While all of these technologies have significant advantages, it is important to note that some of them have limitations, such as the need for adequate infrastructures, high upfront costs, and, in some cases, the environmental impact related to the production and disposal of the technologies themselves.
Cogeneration or photovoltaics?
The growing sensitivity to decarbonization issues is transforming the energy market. Today, the required energy solutions no longer focus on just efficiency and the resulting economic and competitive advantages, like in the past, but are increasingly focused on reducing the environmental impact and carbon footprint.
In this context, cogeneration continues to play a strategic role: the key to success lies in incorporating it into a hybrid energy system, which maximizes the contribution of different renewable energy sources. Cogeneration cannot be completely replaced by any other currently available technology and addresses many of the problems of other renewable energy sources:
Photovoltaics, for example, have limitations due to their intermittent production, which can only be partially mitigated by storage batteries, as well as not meeting thermal needs except in combination with other technologies such as heat pumps;
Fuel cells, on the other hand, prefer continuous operation with stable power and at high temperatures and therefore are not suitable for flexible operation, with variable power or with frequent switching on and off.
In terms of decarbonization, it is also important that the use of biofuels and decarbonized fuels be increased instead of fossil fuels. AB's cogeneration systems, already set up to be powered by biofuels, can take advantage of this opportunity in a widespread way, as soon as the new generation of fuels becomes available on a large scale. In this way, not only can the requirements, such as those imposed by the Emission Trading System, be met but it will also allow the industry to make partially or totally decarbonized products.
The complexity of the energy solutions requires an integrated approach, like the one we have decided to adopt. Thanks to an advanced programmable energy resource optimization system, 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, by managing energy storage compatibly with the utilities and ensuring efficiency and flexibility.
For example, the photovoltaic solar panels integrated with the ECOMAX® cogenerator make energy production even more efficient: thanks to the ABptimizer software, a company's electricity needs can be covered using the renewable energy from the photovoltaic panels, when available, modulating the cogenerator for the production of only heat. On the other hand, when photovoltaic energy is not being produced, the cogenerator can operate at full capacity, producing both electricity and heat. In addition, a photovoltaic system is a zero-impact technology, which is designed to operate for a period of over 30 years with almost no maintenance costs.
In summary, AB's current strategy not only focuses on the cogeneration unit, but includes a variety of solutions that allow customers to reduce their energy costs, through "Primary Energy Saving", and to decarbonize their processes. This holistic approach allows you to seize new opportunities in the field of energy transition, reducing the use of primary energy and lowering climate-altering emissions.
Decarbonization agreements in place
In recent years, international decarbonization efforts have gained momentum, supported by initiatives such as the UN's 2030 Agenda for Sustainable Development. International climate summits and concrete actions have led to a significant drop in carbon dioxide emissions. However, to achieve ambitious targets such as net-zero emissions by 2040, it is crucial that the efforts be increased.
The Paris Agreement, signed in 2015 by 196 parties, is 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 coordinated and decisive action is required. 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, the European Commission officially launched the Green Deal on 14 July 2021, an agreement involving all EU Member States with two main goals:
1. To reduce CO2 emissions by 55% by 2030;
2. To achieve carbon neutrality by 2050.
This agreement aims to achieve ambitious but desirable goals, such as zero greenhouse gas emissions and economic growth free from the use of fossil fuel energy sources. The secondary goals 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.
