Sustainability insights: Five manufacturing trends to accelerate sustainability progress

Five manufacturing trends to accelerate sustainability progress

More than ever, manufacturing companies are forced to consider the impact of their carbon footprint. Five trends for companies to improve their sustainability efforts are highlighted.

By Dave Duncan June 25, 2024

Learning Objectives:

• Learn how Corporate Sustainability Reporting Directive (CSRD) compliance will set new expectations for manufacturing companies to become more sustainable.
• Understand how manufacturers can use modular design and product circularity to decarbonize product offerings.
• Learn how digital transformation helps support manufacturers in capitalizing on sustainability and profitability.

Sustainability insights:

• The Corporate Sustainability Reporting Directive (CSRD) will significantly impact manufacturers operating in the EU, pushing over 50,000 companies to comply with stringent emissions and reporting standards starting in 2024.
• Advanced digital technologies like AI, IoT, and PLM are crucial for manufacturers aiming to meet sustainability goals, enabling them to optimize designs, reduce emissions, and enhance efficiency, potentially capturing billions in annual sales by 2030.

Recent years have brought significant challenges to the manufacturing sector in the United States. Supply chain instability and ongoing workforce shortages have created a landscape of uncertainty. Manufacturers must tackle these challenges with an added layer of preparation for The Corporate Sustainability Reporting Directive (CSRD). CSRD is new European Commission legislation aimed at driving more sustainable business practices at companies that operate in and export to the EU. While this legislation originates in the EU, any company that intends to exceed €150 million annual revenue in the EU needs to be compliant. Starting in 2024, more than 50,000 companies will need to comply with CSRD emissions reductions and reporting requirements.

Many companies have set ambitious decarbonization commitments. More than 6,000 have signed up through the Science Based Targets initiative, 66% of Fortune 500 companies have pledged net zero, and net zero targets cover 65% of the annual revenue of the world’s largest 2,000 companies. However, analysis has shown these commitments haven’t been translated into action. Net Zero Tracker found only 4% of company net-zero commitments are accompanied by a clear plan for how to achieve that goal.

Among discrete manufacturers, the opportunity to decarbonize supply chains and product offerings is hitting an inflection point. Over the next year, we expect CSRD to act as a forcing function that changes the way they approach sustainability, which will kick off a wave of aggressive decarbonization.

This is possible due to the rapid advancement of digital technology over the past few years. Technology such as artificial intelligence (AI), Internet of Things (IoT) and product lifecycle management (PLM) will play a leading role in turning discrete manufacturers’ commitments into reality. Those who prioritize digital transformation and product innovation now will be able to capture potentially of billions in annual sales by 2030.

This shift is expected to manifest in five ways in the near future.

1. Sustainability and profitability working together

Sustainability has long been thought of as a cost center rather than a value center. Research conducted by Capgemini in 2022 found 53% of respondents believed  the cost of pursuing sustainability initiatives outweighs the potential benefit. Contrary to this sentiment, the same report found organizations prioritizing sustainability were outperforming organizations that weren’t.

While it’s true there can be upfront costs associated with implementing sustainable practices, the long-term benefits often outweigh these initial investments. Sustainability can drive efficiency and cost savings, innovation, risk mitigation and enhanced competitiveness, making it an integral aspect of a manufacturer’s overall strategy rather than another cost center.

In fact, as McKinsey noted, “Companies that reduce costs and emissions simultaneously can gain market share and finance further decarbonization efforts through the additional cash generated. Leading companies typically go after the first 20 to 40% of decarbonization while also reducing costs, leading to an improvement in EBITDA.”

This idea should take root as manufacturers realize how sustainability and profitability can work together. Thanks to the acceleration of digital transformation, discrete manufacturers are at a stage of digital maturity where they can leverage the tools that align their financial goals with the decarbonization of their product offerings.

One example of this is generative design, which uses generative AI to create optimal designs from a set of requirements and constraints. Users define the design problem, and the engine determines an array of optimal solutions no human could. It can achieve what would take designers weeks or months to do by themselves in a fraction of the time, which opens the door for previously unfeasible designs.

Some manufacturers are leading by example, leveraging generative design and 3D simulation within their computer-aided design (CAD) software to create and test parts that use 10 to 15% less material than conventionally designed parts.

Among discrete manufacturers, the opportunity to decarbonize supply chains and product offerings is hitting an inflection point.

Among discrete manufacturers, the opportunity to decarbonize supply chains and product offerings is hitting an inflection point. Courtesy: PTC

2. Using sustainability as a core product design factor

The decisions made during the product development phase are estimated to determine over 80% of all product-related environmental impacts. Material and component supplier selections are often a top two footprint contributor. For energy-intensive products like cars, customer use can be an even bigger contributor.

The bottom line is the decisions that contribute to Scope 3 emissions offer the greatest opportunity to make significant reductions. In 2024, we expect to see manufacturers start embedding sustainability criteria into the fabric of design decisions.

Typical design criteria includes cost, performance, risk, time-to market, durability, reliability, manufacturability and so on. With CSRD, factors such as the footprint of materials, the footprint and decarbonization trajectory of suppliers, the ability to reuse, remanufacture and recycle components and energy efficiency will be added to the mix. The decarbonization trajectory of suppliers is especially important. This may result in situations where suppliers with more aggressive plans are selected over cleaner suppliers who have a less ambitious decarbonization ramp.

As manufacturers progress through the design phase, technology will be key to enable the rapid iterations in product design needed to meet CSRD-mandated reduction commitments. This looks like using CAD and PLM tools to assess the environmental impact of materials and suppliers, choose the right manufacturing process up front, lightweight designs, and run 3D simulation to verify and iterate on designs digitally, reducing physical prototyping. By using these tools to optimize designs and manufacturing processes early and often, manufacturers can innovate faster and reduce costs.

3. Using IoT to reduce factory emissions

While factory emissions only account for 1 to 10% of overall emissions, they represent a significant portion, or even the majority, of the operational Scope 1 and Scope 2 emissions that manufacturers can reduce, making them a priority in 2024. In the factory, the Internet of Things (IoT) plays an integral role in optimizing energy use, reducing waste, and improving overall equipment effectiveness (OEE). But many manufacturers remain hesitant about IoT adoption due to perceived challenges such as implementation costs, effort, and disruption.

CSRD should push manufacturers toward factory modernization. IoT will shift from a competitive advantage enjoyed by early adopters to a non-negotiable for any manufacturer that needs to reduce energy use and carbon emissions. Using IoT sensors to monitor emissions from manufacturing processes, manufacturers can accurately measure their carbon footprint and comply with regulations. They can also identify energy-intensive operations and implement optimization strategies to reduce overall energy usage by monitoring energy consumption in real-time. For example, one supplier of logistics and energy equipment used IoT-enabled energy management software to reduce energy consumption by 13%.

Beyond this, IoT also powers bottleneck analysis, which identifies top OEE-hindering constraint priorities on the factory site, allowing manufacturers to uncover opportunities to increase efficiency and reduce waste. Running this analysis early in the production cycle further reduces errors and defects, preventing waste and rework.

4. Increased investment in circularity and modular design

Circularity is a fundamental aspect of sustainability that emphasizes minimizing waste, promoting resource efficiency, and creating a closed-loop system in which materials are reused, refurbished, remanufactured and recycled. In 2024, we expect manufacturers to increasingly prioritize circularity, with modular design emerging as one of the most impactful long-term strategies to decarbonize product offerings.

Modular design involves creating products with interchangeable components that can be disassembled, reused, repaired, upgraded or recycled. Modularity increases product longevity and circularity as parts and components get reused and remanufactured, rather than sent to a landfill. Modularity also enables more efficient factory tooling and reduces the costs of market-demanded product variations. Technology will play a critical role in enabling modular design, as digital tools are needed to tame the downstream complexity that comes with modularity. This can look like equipping frontline workers with digital tools that provide 3D work instructions and filter instructions and parts lists to their serialized configurations.

5. Tipping point for product-service systems (PSS)

The adoption of product-service system (PSS) models has been ongoing for many years, but much like IoT, many manufacturers are hesitant about the risks and investment required. While it is a transformative change, moving to the more customer and service-centric PSS model comes with many advantages such as recurring revenue streams and enhanced customer relationships.

However, what may be most convincing to manufacturers is the extended producer responsibility (EPR) for high-value assets included in CSRD. EPR requires manufacturers to be responsible for the entire lifecycle of their products, meaning they need to find ways to reduce materials use, enhance product reusability, recyclability and improve waste management.

A product-service system incentivizes manufacturers to make products more modular and repairable, extend the life of products through service, and prioritize refurbishment, remanufacturing, and responsible end-of-life management. This alignment between product-service system models, circularity and predictable revenue, positions PSS as a key strategy for reaching the sustainability goals outlined in CSRD.

In 2024, there will be an opportune mix of government regulations, technology advancement and consumer pressure. Will this be the year those empty commitments turn into action? No guarantees, but for discrete manufacturers, the future looks bright for sustainability progress.

Sustainability insights

The Corporate Sustainability Reporting Directive (CSRD) will significantly impact manufacturers operating in the EU, pushing over 50,000 companies to comply with stringent emissions and reporting standards starting in 2024.

Advanced digital technologies like AI, IoT, and PLM are crucial for manufacturers aiming to meet sustainability goals, enabling them to optimize designs, reduce emissions, and enhance efficiency, potentially capturing billions in annual sales by 2030.

____________________________________________________________________________

Do you have experience and expertise with the topics mentioned in this content? You should consider contributing to our WTWH Media editorial team and getting the recognition you and your company deserve. Click here to start this process.

Dave Duncan

Author Bio: Dave Duncan is VP of Sustainability at PTC. He is responsible for developing the right sustainability capabilities and integrations in PTC’s product portfolio to help customers more sustainably design, manufacture, and service products to reduce their footprints. He is also responsible for reducing PTC’s corporate footprint and ensuring environmental improvements are aligned with financial goals. Prior to PTC, Dave held various product leadership roles at Servigistics, Kaidara, GE Healthcare, and JD Edwards. Dave holds a Bachelor of Science in Civil Engineering and Operations Research from Princeton University and received a Blended Professional Certificate: Chief Sustainability Officer from MIT.

Source: 

https://www.plantengineering.com/articles/five-manufacturing-trends-to-accelerate-sustainability-progress/

Want to save money? Watch your plant’s energy use

Want to save money? Watch your plant’s energy use

Smart machines, sensors and artificial intelligence tools work in concert for continuous monitoring to help save a plant energy.

By Scott Dowell January 27, 2025

Learning Objectives

• Learn how sensors, smart machines and other automation solutions can provide real-time insight and enable data-driven decisions to optimize production efficiencies.
• Discover how manufacturers can kickstart a sustainability program in a phased approach that minimizes risk and cost while speeding return on investment.
• Determine the information that is critical to building a sustainability program and the best ways to measure the impact from a financial perspective as well as an operational one.

Energy use insights

• Energy use can significantly impact an organization’s bottom line and maintain competitiveness.
• Sensors, smart machines and other automation solutions can improve energy efficiency.
• Energy efficiency and sustainability can often seem like “nice to haves” for plant managers and operators who are laser-focused on keeping lines running. But energy use can have a significant impact on an organization’s bottom line and be a competitive differentiator.

While manufacturers do a good job of capturing the tier-one and tier-two costs of embedded materials, components and even labor into their finished products, they often don’t capture – or know how to capture – energy cost as an ingredient. It is critical that manufacturers think of energy as an embedded cost in each unit of product produced.

The good news? Sensors, smart machines and other automation solutions can help improve energy efficiency and ensure that production lines are running sustainably and cost-effectively. These tools provide data to identify inefficiencies, allowing for adjustments to equipment and systems for optimal performance.

But where do manufacturers start, what data do they need to get these programs off the ground and how is return on investment (ROI) measured?

Three ways to kickstart good energy use practices

Sustainability can happen in baby steps. Manufacturers that know they aren’t operating as efficiently as they could be but aren’t looking to make a big sustainability investment right away (i.e. buying new equipment) can kickstart a sustainability focus with a series of smaller steps.

Step 1: Understand how power is purchased

How manufacturers purchase power from the utility can have a major impact on overall energy costs. Most industrial and commercial accounts are on a peak demand program with their utility provider. The catch is that if a manufacturer generates a surge in demand (a peak) that lasts for a certain duration of time, usually 15 or 30 minutes, then the actual current rate at that moment can be made retroactive for their entire monthly bill.

Understanding how you pay for power can significantly influence your bottom line. One customer in the Southeastern U.S. saw its rate jump from $0.07 per kilowatt hour (kWh) to $1.17 per kWh in one month because they didn’t have a firm grasp on how they purchased power from their utility.

It is critical for plant managers to understand how they are paying for power and review their bills to know when surges are being assessed and when changes to use patterns could avoid them.

Step 2: Implement tools to measure and track energy use

As the saying goes, “what cannot be measured cannot be fixed.” Many manufacturers simply think of energy use as a cost of doing business that they have little to no control over. Consequently, they don’t capture the cost of energy or use outdated methods, such as dividing total energy costs by the overall square footage of each department or building/area. Thus, it may look like the warehouse or storeroom pays that same internal cost rate as the heavy manufacturing areas. But this is not accurate.

The first step for many manufacturers is to implement a measurement system to create a baseline and understand which parts of the operations are consuming the most energy. Investing in sensors or systems that provide detailed visibility into the energy use by production line or even further by individual machines is critical. These tools can take snapshots of energy use or continuously monitor it to give operators or plant managers a sharper image of their overall energy consumption and the associated costs.

Not only will establishing a baseline help identify program outcomes, but many manufacturers looking to apply for government stimulus funding, tax credits and rebates will need a baseline in place and real-time data recording to be awarded funding and pass future audits.

 Figure 1: Automation solutions provide real time insight and enable data-driven decisions. Courtesy: Wesco

Step 3: Invest in new machines/platforms/infrastructure that are more energy efficient

Using older, less efficient equipment or running machines when they’re not needed, such as when demand is low, wastes energy and adds unnecessary wear and tear. This can negatively impact both operational costs and sustainability for manufacturers. Organizations that are further along in their sustainability journey or those that identify energy use as a primary cost driver may want to consider investing in more energy-efficient equipment or advanced platforms with artificial intelligence (AI) that can help optimize energy use.

AI and machine learning can then forecast energy needs and automate decision-making for better efficiency. Predictive maintenance also plays a crucial role in preventing energy waste.

For example, AI and sensors can monitor heating, ventilation and air conditioning equipment use to determine if it’s running unnecessarily, providing opportunities to save energy. Similarly, these tools can identify if a motor is running hot, which could indicate that a machine is either running inefficiently or in need of maintenance.

Securing ROI for energy efficiency

Sustainability and energy efficiency can be a competitive differentiator and can make a measurable impact on a manufacturer’s bottom line. With the right data and systems in place, manufacturers can make more strategic, data-driven decisions that can impact multiple areas of the operation — from quality to productivity, enhancing overall ROI.

To see how focusing on energy use can affect your business, consider two real-world examples:

Global steel manufacturer: During the production grade changes, there was a period where an unusable intermix was produced. The manufacturer had to cut the intermix using a plasma cutter, which used a tremendous amount of energy. Then the intermix material was remelted in the furnaces in small amounts. Operators were making these cuts on instinct and typically erred on the side of caution. By using AI to predict quality degradation from one product grade to the next, the manufacturer was able to make more accurate cuts, saving both material and energy. This process generated more than $8 million in savings per year.

Furniture manufacturer: One furniture manufacturer was unable to adequately compete because of its poor energy use. The company competed against overseas manufacturers who made a cheaper product. Although the manufacturer could switch production lines to make a similar product, their total energy costs were twice that of their competitors. This meant they couldn’t compete with the other manufacturers and had to exit the market.

While these examples may be outliers, they demonstrate the power – and financial benefits – of energy reduction measures. Even small, incremental improvements can add up over time. A commitment to sustainability can also open opportunities for government subsidies, tax breaks or other incentives that can help with ROI.

Making suitable choices toward energy efficiency

Optimizing operations, enhancing sustainability and implementing advanced tools can understandably seem overwhelming. It’s vital to bring in a trusted partner who understands the needs and goals of an organization.

Whether that’s simply understanding how energy consumption is impacting the bottom line or implementing advanced solutions that can continuously monitor energy use, a trusted partner can help ensure that sustainability efforts not only lead to greater production success but also greater ROI.

Scott Dowell is the senior vice president and general manager of U.S. industrial and commercial, industrial and government at Wesco.

Do you have experience and expertise with the topics mentioned in this content? You should consider contributing to our WTWH Media editorial team and getting the recognition you and your company deserve. Click here to start this process.

Scott Dowell

Author Bio: Scott Dowell is Senior Vice President and General Manager, Industrial and CIG, at Wesco. He has more than 25 years of experience and leads the strategy, execution and growth of Wesco’s industrial, automation, institutional and government end-user business throughout the United States.

https://www.plantengineering.com/articles/want-to-save-money-watch-your-plants-energy-use/

How to put decarbonization strategies to work

How to put decarbonization strategies to work

Flexible power systems help cut emissions, keep the power on and improve the bottom line.

By Richard Gorzé January 27, 2025

Learning Objectives

• Understand how to put decarbonization strategies to work to cut emissions, improve resilience and reduce energy costs in industrial settings.
• Explore how microgrid solutions and distributed energy resources (DERs) can enhance energy reliability, sustainability and grid independence.
• Learn actionable strategies to help make a site-specific roadmap and action plan for industrial decarbonization.

 

Decarbonization insights

• Organizations have many opportunities to progress toward environmental, social and governance (ESG) targets and net zero goals.
• Microgrids and renewable energy systems are essential tools for navigating the evolving energy landscape.
• What do you need your energy system to do? It likely needs to work harder, smarter and more sustainably to power operations into the future. The longstanding approach of setting up your electrical system and largely forgetting about it until something breaks or production requirements change is no longer sufficient.

Extreme weather events, power outages and rising energy costs create significant challenges for around-the-clock manufacturing operations. Simultaneously, organizations are striving to accelerate progress toward environmental, social and governance (ESG) targets and net zero goals. Making headway on all these fronts requires a creative, strategic, holistic and site-specific approach that aligns with business objectives.

Industrial sustainability is about netting more affordable, resilient and clean energy — future-proofing your infrastructure. Ultimately, this yields a competitive advantage.

You’re better-positioned to deal with the unexpected, such as a power outage, price increase or other sudden impacts to local energy systems. Evolving your energy mix and leveraging proven strategies and tools can ensure resilient, affordable energy supplies.

Renewable energy projects can also drive significant excitement within and outside of the organization. Unlike efficiency projects, they are visible, tangible and a source of pride for employees who can see the direct impact. This recognition helps bolster internal support and contributes to the overall success of decarbonization initiatives.

Figure 1: At its Arecibo facility, Eaton manufacturers circuit breakers used in homes, buildings and industrial applications. Courtesy: Eaton.

Lay the groundwork for more resilient, decarbonized power systems

There is no one-size-fits-all approach when modernizing and decarbonizing energy systems. Yet, the need for flexible energy systems to power industrial operations is universal. Making that happen requires strategies that meet specific organizational and facility requirements. What needs to be replaced, upgraded or added will vary based on location, critical processes, the age of existing equipment and systems and other factors.

How do you know where to start and what strategy will make the most sense? Based on years of hard-earned experience, an engineering study is a crucial first step. This comprehensive analysis will help determine the scope and requirements for your site, ensuring the project delivers the desired outcomes. The study should evaluate existing equipment and suggest necessary upgrades, providing a roadmap to create energy infrastructure that supports your business objectives well into the future.

One approach to the energy transition revolves around the concept of “everything as a grid” — a framework that turns traditional energy consumers into proactiveenergy producers that have a two-way relationship with the local utility. One way might be pursuing clean energy projects in areas where you can make the biggest impact, including regions where the utility mix is still largely reliant on fossil fuels. These projects help control energy costs, bolster energy resilience and meet regulatory guidelines. But how exactly does this strategy play out in real-world industrial settings?

Figure 2: The clean energy project at Eaton’s Arecibo facility is strengthening energy resilience in the face of climate change, with extreme weather events becoming more common. Courtesy: Eaton.

Decarbonization in action at Eaton’s Arecibo manufacturing facility

We recently completed clean energy projects at our Arecibo manufacturing facility in Puerto Rico, where we make circuit breakers used in homes, buildings and industrial applications. Here are two takeaways from those projects.

1.     The best energy is the energy you don’t use, and we took action to drive energy efficiency at the site.

2.     A solar-plus-storage microgrid gives new control over our energy supplies and costs, incorporating 5 megawatts (MWac) solar PV and approximately 1.1 MW of battery storage (along with existing onsite generators).

Together, these measures are boosting resilience, driving energy use down 45%, cutting emissions by 7,100 metric tons and substantially boosting our resilience while reducing the facility’s annual energy spend by nearly 20%.

Importantly, the microgrid’s ability to withstand a Category 5 hurricane ensures critical manufacturing operations can remain online in the face of extreme weather conditions.

The Arecibo microgrid balances energy from various sources, including onsite solar panels, energy storage systems and existing backup generators. This flexibility allows the facility to maintain operations even during grid outages, effectively “islanding” itself from external disruptions. During normal operations, the microgrid generates renewable energy that can be stored, consumed onsite or even fed back into the local grid, helping to reduce strain on regional infrastructure while cutting our energy costs.

The focus on sustainability at our Puerto Rico facilities is part of our broad initiative targeting a 50% carbon emissions reduction by 2030, aligning with science-based targets. Our approach incorporates various initiatives, including energy efficiency upgrades, plant engagement to reduce energy usage, onsite distributed energy resources, offsite renewable sourcing and green supply contracts.

Leveraging microgrids and DERs for industrial resilience

Microgrid systems balance where, when and how electricity is consumed. They provide control over onsite energy sources and can enable you to island from the grid to keep the power on even when the grid is down. These systems are highly adaptable and scalable, enabling facilities to integrate multiple DERs over time, such as solar panels, wind turbines and energy storage systems. This flexibility allows industrials to diversify their energy mix, reduce reliance on fossil fuels and lower energy costs.

Moreover, as industries electrify their operations and expand EV charging infrastructure, microgrids can provide the additional onsite energy capacity needed while minimizing service upgrades.

Additionally, microgrid systems like the one helping power our Arecibo manufacturing site can enable businesses to sell excess energy back to the grid during peak demand periods. This creates new revenue streams while also contributing to overall grid stability.

Figure 3: As part of the clean energy project at Eaton’s Arecibo manufacturing facility, the company replaced existing switchgear at the site to handle solar input. Courtesy: Eaton.

Overcoming the technical challenges of microgrid implementation

The successful deployment of a microgrid requires careful planning and collaboration with key stakeholders, including technology providers, financing partners and local utilities. Our Arecibo project, for example, was financed through an energy-as-a-service (EaaS) model. This approach shifted the investment from a capital expenditure to an operational expense, making it easier for our company to invest in sustainable energy infrastructure.

From a technical perspective, one of the primary challenges in implementing a microgrid is ensuring that all system components work in harmony. This requires:

• An optimized control architecture
• Precise synchronization between energy sources
• Ongoing system tuning

You may also need to audit existing energy systems to ensure components such as switchgear can handle new energy inputs.

It is also critical to consider your environment and resilience requirements. For example, high winds can have a huge impact on the installed base of PV arrays, and it is up to system designers to interpret local building codes and standards to develop a mounting system that will withstand the wind loading of the given site.

Your state or local building codes will provide guidance on wind load calculations and limitations for a given area. These formulas take many aspects of the PV system and environment into consideration, including historical wind data, panel tilt, distance from roof or foundation, racking material selection and bracing type.

 Circuit breakers used in homes, buildings and industrial applications. Courtesy: Eaton.

Protecting microgrid components

In addition to protecting PV modules and racking systems from winds, there are opportunities to protect other microgrid components such as generators and battery banks by ensuring they are enclosed within a reinforced structure. These structures will also need to meet local building code requirements for wind bracing, structural engineering, rooftop weight and more.

It is vital to ensure the foundation and support structures used for any microgrid component are rated for the intended load and potential environmental conditions. This can be a challenge when attempting to retrofit an existing rooftop with solar PV modules and racking. Structurally reinforcing an existing rooftop is often cost-prohibitive, so ground-mounted PV installations on a reinforced concrete pad designed for the local environment are common.

Since many renewable energy projects are financed by power purchase agreements (PPAs), the project owner is responsible for ongoing maintenance. The PPA agreement outlines maintenance responsibilities and it’s critical to involve operation and maintenance teams to ensure roles and responsibilities are clear. It’s also important to consider who will take over system maintenance and whether upgrades will be possible.

Create a scalable blueprint for climate-friendly power infrastructure

The path toward a decarbonized, resilient energy future requires careful planning, collaboration and strategic investment. Microgrids and renewable energy systems are essential tools for navigating the evolving energy landscape and businesses that prioritize sustainability are better positioned to thrive in the long run.

While each facility’s needs are unique, a common factor is the need for flexible, scalable energy solutions that support increased electrification and renewable integration. Plant management teams play a crucial role in guiding their facilities through this transition, ensuring that energy systems are not only reliable but also ready for scaled energy optimization projects. Here are several strategies that can be implemented today to optimize performance and help future-proof operations while setting the stage for further decarbonization investments:

• Prioritize energy efficiency improvements: The best energy is the energy you don’t use. From lighting systems to motor-driven equipment, there are countless opportunities to cut energy consumption, reduce cost and improve sustainability.
• Integrate DERs: Adding onsite renewable energy systems, such as solar PV, can significantly reduce both electric bills and carbon footprints. These systems can be designed to meet the specific energy needs of each facility.
• Leverage energy storage: Energy storage systems provide industrials with the flexibility to use self-generated energy during periods of high demand or when the grid is unavailable. This helps reduce peak demand charges and further cuts utility bills.
• Embrace digitalization: Smart energy management systems and digital tools provide real-time insights into energy usage, enabling more efficient operations, predictive maintenance and better decision-making.
• Engage with utilities early: Every utility has its own set of interconnection requirements and incentive programs. Early engagement helps ensure that projects are appropriately sized and compliant, reducing delays and unforeseen costs.

Building a more sustainable tomorrow starts today

The pressure is on companies to develop more capable power infrastructure in our increasingly electrified and sustainability-focused world. By leveraging the energy transition alongside advancements in digital technologies and advanced control systems, you can create more flexible and scalable energy systems that advance organizational decarbonization goals and help boost the bottom line.

Through the implementation of DERs and microgrid systems, there are opportunities to reinvent the way energy systems support a more sustainable and profitable future for companies. Regional and federal government funding and tax incentives make the decarbonization more achievable than ever.

By creating flexible energy systems, you can build the foundation for a more resilient and sustainable operations and gain greater control over your energy costs.

Richard Gorzé is the senior global energy manager at Eaton.

 

Do you have experience and expertise with the topics mentioned in this content? You should consider contributing to our WTWH Media editorial team and getting the recognition you and your company deserve. Click here to start this process.

 

Richard Gorzé

Author Bio: Richard Gorzé is the senior global energy manager at Eaton.

 

Source:

https://www.plantengineering.com/articles/how-to-put-decarbonization-strategies-to-work/

Eni signs agreement for KKR to increase stake in Enilive

Overall, the investment will give KKR a 30% stake in Enilive’s share capital

Eni and KKR, a leading global investment firm, have signed an agreement under which KKR will increase its stake in Enilive through an additional purchase of Enilive’s shares from Eni. The purchase will correspond to 5% of Enilive’s share capital and will be funded through an additional investment of €587.5 million. Overall, the investment will give KKR a 30% stake in Enilive’s share capital, optimizing Eni’s capital structure, while maintaining Eni’s control and consolidation of Enilive.

The transaction is in line with the agreement signed between KKR and Eni last October for KKR’s acquisition of a 25% stake in Enilive’s share capital, which is expected to close by next month, and it is based on the same post-money valuation of €11.75 billion of Equity Value for 100% of Enilive’s share capital.

KKR’s further investment, backed by leading international co-investors, including large international pension funds among others, underscores market recognition and the solidity of Enilive’s business model, which is committed to offering integrated services and progressively decarbonized products to its consumers in the sustainable mobility sector. Furthermore, the transaction highlights the validity of Eni’s satellite strategy, effectively attracting capital for specific business segments, enabling their independent growth and providing visibility into their fair market value.

The closing of the acquisition of the additional 5% stake is subject to regulatory approvals of the competent authorities.

 Francesco Gattei, Chief Transition & Financial Officer of Eni, commented: “KKR’s additional investment confirms the attractiveness of Enilive to the market. Enilive is a solid and growing company, with an important financial partner, and it will play a crucial role in reducing emissions generated by the end use of our products, which is a key aspect of our path to Net zero by 2050. In line with our strategy, we will continue enhancing our best energy transition businesses, enabling them to create value on their own, increase their market value, open up new opportunities in the capital market, make them attractive to important future industrial and financial partners and grow their business rapidly in support of our decarbonisation path”.

https://www.nsenergybusiness.com/news/eni-signs-agreement-for-kkr-to-increase-stake-in-enilive/

Indonesia’s PLN opens first-ever green hydrogen plant

The plant is capable of producing 51 million tonnes of hydrogen per year.

State-owned energy company PT Perusahaan Listrik Negara (PLN) launched the first green hydrogen plant (GHP) of Indonesia.

Located in Pluit, Jakarta, over the Muara Karang Steam Gas Power Plant (PLTGU) area, the hydrogen plant is 100% sourced from new and renewable energy (EBT) and could produce 51 million tonnes of hydrogen per year.

Green hydrogen is seen as one of Indonesia’s major initiatives for energy transition to adapt as a major source of energy for transportation and achieve net-zero emissions by 2060.

ALSO READ: Masdar, PLN NP to triple Indonesia’s Cirata floating solar PV capacity

PLN President Darmawan Prasodjo said the GHP serves to respond to the challenges in transitioning.

“The government is committed to developing this green hydrogen plant and continues to carry out more comprehensive studies and policy formulation to encourage green hydrogen to develop in Indonesia,” Director General of New, Renewable Energy and Energy Conservation of the Ministry of Energy and Mineral Resources Yudo Dwinanda Priaadi said during his speech.

Indonesia’s PLN opens first-ever green hydrogen plant