Companies in Transition Towards 100% Renewables: Focus on Heating and Cooling, International Renewable Energy Agency, Abu Dhabi
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COMPANIES IN TRANSITION TOWARDS 100% RENEWABLES: FOCUS ON HEATING AND COOLING About the Coalition The IRENA Coalition for Action brings together leading renewable energy players from around the world with the common goal of advancing the uptake of renewable energy. The Coalition facilitates global dialogues between public and private sectors to develop actions to increase the share of renewables in the global energy mix and accelerate the global energy transition. About this paper This white paper has been developed jointly by members of the Coalition’s Working Group on Towards 100% Renewable Energy. Building on several case studies and first-hand interviews with companies, the paper showcases the opportunities and challenges experienced by companies in the industrial sector that have a target for 100% renewable electricity supply, and a meaningful and/or ambitious target or activities to increase the share of renewable energy in their heating and cooling operations. Acknowledgements Contributing authors: Rainer Hinrichs-Rahlwes (European Renewable Energies Federation), David Renné (International Solar Energy Society), Charlotte Hornung (former Energy Watch Group), Namiz Musafer (Integrated Development Association), Duncan Gibb and Chetna Hareesh Kumar (REN21), Aleksandra Mirowicz (The Climate Group), Stephanie Weckend, Emma Åberg, Kelly Tai and Anindya Bhagirath under the supervision of Rabia Ferroukhi (IRENA). Further acknowledgements: Valuable feedback and review were provided by Constantinos Peonides (Alectris), Britta Schaffmeister and Anton Schaap (Dutch Marine Energy Centre), Steven Vanholme (EKOenergy), Rohit Sen (ICLEI – Local Governments for Sustainability), Roque Pedace (INFORSE), Monica Oliphant (International Solar Energy Society), Tomas Kåberger (Renewable Energy Institute), Andrzej Ceglarz (Renewables Grid Initiative), Katerin Osorio Vera (SER Colombia), Jon Lezamiz Cortazar (Siemens Gamesa Renewable Energy), Maria Rojas and Tessa Lee (The Climate Group), Rina Bohle Zeller (Vestas), Bharadwaj Kummamuru (World Bioenergy Association), Anna Skowron (World Future Council), Jesse Fahnestock (former World Wide Fund for Nature), and Diala Hawila, Emanuele Bianco, Gayathri Prakash, Jinlei Feng and Nicholas Wagner (IRENA). The IRENA Coalition for Action would like to express special thanks and gratitude to senior representatives of companies interviewed for the case studies in this paper, including Flemming Lynge Nielsen, Rikke Skou Melsen and Martin Oredson Haugaard (Danfoss), Ishafir Izzadeen and Priyantha Dissanayake (Elpitiya Plantations PLC), Olaf Höhn (Florida Eis), Andreas Werner (Goess Brewery), Winston Chen and Paul Simons (Mars), and Kim Andre Lovas (TINE Group). Stefanie Durbin edited and Myrto Petrou designed this report. © IRENA 2021 Unless otherwise stated, material in this publication may be freely used, shared, copied, reproduced, printed and/or stored, provided that appropriate acknowledgement is given to IRENA as the source and copyright holder. Material in this publication that is attributed to third parties may be subject to separate terms of use and restrictions, and appropriate permissions from these third parties may need to be secured before any use of such material. ISBN: 978-92-9260-323-6 Citation: IRENA Coalition for Action (2021), Companies in transition towards 100% renewables: Focus on heating and cooling, International Renewable Energy Agency, Abu Dhabi. Disclaimer This publication and the material herein are provided “as is”. All reasonable precautions have been taken by IRENA and the IRENA Coalition for Action to verify the reliability of the material in this publication. However, neither IRENA, the IRENA Coalition for Action, nor any of its officials, agents, data or other third-party content providers provides a warranty of any kind, either expressed or implied, and they accept no responsibility or liability for any consequence of use of the publication or material herein. The information contained herein does not necessarily represent the views of all Members of IRENA or Members of the Coalition. Mentions of specific companies, projects or products do not imply any endorsement or recommendation. The designations employed and the presentation of material herein do not imply the expression of any opinion on the part of IRENA or the IRENA Coalition for Action concerning the legal status of any region, country, territory, city or area or of its authorities, or concerning the delimitation of frontiers or boundaries. CONTENTS FIGURES, TABLES AND BOXES .................................................................................................... 4 ABBREVIATIONS ........................................................................................................................ 5 KEY FINDINGS ........................................................................................................................... 6 1. INTRODUCTION ..................................................................................................................... 7 2. DECARBONISING HEATING AND COOLING IN INDUSTRY ................................................... 10 2.1 Industry: The largest energy consumer ...................................................................................................... 10 2.2 Renewable heating and cooling technologies and applications ............................................................ 12 2.3 Sourcing models for renewable heating and cooling .............................................................................. 14 3. ACCELERATING CORPORATE SOURCING OF RENEWABLE HEATING AND COOLING ........... 16 3.1 Corporate target setting and drivers .......................................................................................................... 16 3.2 The renewable heating and cooling challenge.......................................................................................... 19 4. KEY TAKEAWAYS AND LESSONS LEARNED ............................................................................ 20 5. CASE STUDIES: COMPANIES IN TRANSITION ............................................................................... 23 Danfoss ................................................................................................................................................................... 24 Elpitiya Plantations ................................................................................................................................................27 Florida Eis ............................................................................................................................................................... 31 Goess Brewery ....................................................................................................................................................... 34 Mars .........................................................................................................................................................................37 TINE Group - New Dairy Bergen .......................................................................................................................... 41 REFERENCES ............................................................................................................................ 45 4 COMPANIES IN TRANSITION TOWARDS 100% RENEWABLES: FIGURES, TABLES AND BOXES Figure 1: Total final energy consumption in the industrial sector, 2017 .........................................................................10 Figure 2: Working temperatures for various renewable heat technologies .................................................................12 Figure 3: Existing and potential corporate sourcing models for renewable heating and cooling .........................14 Figure 4: Corporate renewable energy targets .....................................................................................................................16 Figure 5: Drivers for increasing renewable heating and cooling in industry ................................................................17 Figure 6: Number of countries with policies for renewable heating and cooling, 2009-2019 ...............................18 Figure 7: Barriers to increasing renewable heating and cooling in industry ................................................................19 Table 1: Overview of featured company case studies ........................................................................................................ 23 Table 2: Elpitiya Plantations energy generation and consumption by source, FY 2019/20 ................................... 27 Box 1: Definition of 100% renewable energy ........................................................................................................................... 7 Box 2: IRENA Coalition for Action Towards 100% Renewable Energy Working Group ............................................. 9 Box 3: Corporate sourcing of renewable electricity .............................................................................................................. 11 FOCUS ON HEATING AND COOLING 5 ABBREVIATIONS AEE INTEC AEE Institute for Sustainable Technologies °C Degree Celsius CHP Combined heat and power CO2 Carbon dioxide EPP Elpitiya Plantations PLC EUR Euro EV Electric vehicle GW Gigawatt GWh Gigawatt-hour hl Hectolitre HVO Hydrotreated vegetable oil IPCC Intergovernmental Panel on Climate Change kW Kilowatt kWh Kilowatt-hour kWhel Kilowatt-hour of electricity LPG Liquefied