Pathways to Sustainables Industries ; Energy Efficiency and CO2 Utilisation
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PATHWAYS TO SUSTAINABLE INDUSTRIES Energy efficiency and CO2 utilisation Research & Innovation Projects for Policy Research and Innovation PATHWAYS TO SUSTAINABLE INDUSTRIES – Energy efficiency and CO2 utilisation European Commission Directorate-General for Research and Innovation Directorate D – Industrial Technologies Unit D.2 – Advanced Manufacturing Systems and Biotechnologies. Contacts Nicolas SEGEBARTH Carmine MARZANO E-mails [email protected] [email protected] [email protected] European Commission B-1049 Brussels Manuscript completed in January 2018. Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that might be made of the following information. More information on the European Union is available on the internet (http://europa.eu). Luxembourg: Publications Office of the European Union, 2018 Print ISBN 978-92-79-77476-8 doi:10.2777/154816 KI-AZ-18-001-EN-C PDF ISBN 978-92-79-77477-5 doi:10.2777/74667 KI-AZ-18-001-EN-N © European Union, 2018 Reuse is authorised provided the source is acknowledged. The reuse policy of European Commission documents is regulated by Decision 2011/833/EU (OJ L 330, 14.12.2011, p. 39). For any use or reproduction of photos or other material that is not under the EU copyright, permission must be sought directly from the copyright holders. European Commission PATHWAYS TO SUSTAINABLE INDUSTRIES Energy efficiency and CO2 utilisation Research & Innovation Projects for Policy 2018 Directorate-General for Research and Innovation TABLE OF CONTENTS EXECUTIVE SUMMARY 4 INTRODUCTION 6 POLICY CONTEXT 7 1. 2050 climate policy targets 8 2. Investments and investment gaps in research and innovation in Europe 8 3. Energy efficiency first 9 4. Circular economy and CO2 utilisation 9 PORTFOLIO OF EU-FUNDED R&I PROJECTS 11 1. Programme areas contributing to energy efficiency and carbon capture and utilisation 12 2. Portfolio of beneficiaries 13 3. Portfolio of research topics covered 14 IMPACT OF R&I FUNDING ON EU POLICY GOALS 17 1. R&I achievements supporting policy challenges 18 2. Added value of EU-level R&I investment 20 3. Impact for policies 21 POLICY RECOMMENDATIONS 23 PATHWAYS TO SUSTAINABLE INDUSTRIES Energy efficiency and CO2 utilisation 3 EXECUTIVE SUMMARY Projects for Policy (P4P) is a European Commission initia- emissions savings, at 22 % on average, compared to tive that aims to use research and innovation (R&I) project state of the art practices at the start of the project, with results to shape policymaking through evidence-based significant energy savings and a decrease in operating policy recommendations. This report belongs to this ini- costs. However, especially for some CCU projects, the tiative. It provides an overview of the policy context and availability of abundant and cheap low carbon electric- challenges relating to enabling a low carbon economy. ity is a necessary condition to realise the claimed envi- It highlights the specific efforts that need to be pursued ronmental benefits and build a business case. As renew- by process industries, providing recommendations for pol- able energy is still a precious and limited resource for icy on the basis of an EU funded project portfolio analysis the foreseeable future, suitable policies and tools supported by relevant literature in the field. should be designed to ensure its best use, considering all possible pathways and accounting for the efficient The policy context is clear. The EU has committed to act use of limited resources (efficiency in the sense of cli- to keep global warming below 2°C. To this end, it has set mate impact reductions per kilowatt hour), while consid- ambitious targets in terms of Greenhouse Gas emissions, ering all the relevant aspects (environmental, economic, with a minimum reduction of 80 % by 2050. The achieve- strategic, political). The report also demonstrates the ment of such targets will require a wide range of policy impacts of R&I funding on the speeding up of technol- initiatives, in particular aimed at increasing investments ogy development and deployment, with an average in research and innovation to foster the deployment of technology readiness level (TRL) increase of 2.3 during clean technologies. The report focuses on energy effi- the project lifetime, and a reduction in time to market ciency and on carbon dioxide (CO2) utilisation, from a cir- of 24-36 months. European R&I projects enable com- cular economy perspective. munity building and efficient resource coordination, bringing together players from different sectors and This study analyses a portfolio of 559 research and inno- different countries to achieve an enhanced impact. vation (R&I) projects funded by the EU over the last dec- ade, addressing specifically energy efficiency and CO2 Based on the project analysis and on additional infor- utilisation (CCU), two different pathways showing diverse mation gathered from projects through a survey, the technological maturity, to gather evidence concerning report proposes five policy recommendations to foster the impact of EU funded R&I for these two areas. The the transition to a cleaner industry, each support by pro- portfolio analysis shows that, projects reported sizeable posal for concrete actions and measures. 4 Research & Innovation Projects for Policy FIVE KEY POLICY INDUSTRIAL STRATEGY AND REDUCTION OF GHG EMISSIONS RECOMMENDATIONS Build investor Introduce standardised confidence in metrics to enhance disruptive low carbon R&I funding and decision technologies through making processes for low efficient funding of carbon technologies. demonstration projects and easier access to finance. ENERGY EFFICIENCY FIRST CO2 UTILISATION AND CIRCULAR ECONOMY Extend the scope of Realise the full Remove regulatory energy audits to foster potential of CO2 and knowledge the deployment of cutting utilisation, beyond barriers to Industrial edge energy efficiency greehouse gas (GHG) Symbiosis so as to unlock technologies, including mitigation, through the unexploited potential support for capacity targeted regulatory of industrial waste streams building of auditors. and market measures, and enhance circular supported by harmonised utilisation of resources. life-cycle sustainability assessment. PATHWAYS TO SUSTAINABLE INDUSTRIES Energy efficiency and CO2 utilisation 5 INTRODUCTION Energy intensive industries, like the chemicals, cement The report is not limited to presenting a mere analysis of and steel sectors, are responsible for 20 % of CO2 emis- the EU R&I project portfolios, but sets out the policy con- sions. Drastically lowering these emissions is crucial to text, including the relevant legal instruments, putting fore- reach the agreed EU 2050 Greenhouse Gas Emission ward policy recommendations and actions to the Euro- reduction objective of at least 80 %. Decoupling produc- pean Commission, Member States and industry. tion from the utilisation of fossil resources (75 million tonnes of oil equivalent are used today in Europe as raw This publication builds on a study 1 carried out by inde- material feedstock by the chemical industry) is an addi- pendent experts, Professor André Bardow from Germany tional necessary step towards achieving a more sustain- and Mr Damien Green from the United Kingdom. The able society. Electrification, based on non-fossil fuel study analysed a wide portfolio of EU research projects energy, and the use of biomass, which is put forward in (559 in total) addressing energy efficiency and CCU the EU Bioeconomy Strategy, is seen as an obvious (which stands for ‘carbon capture and utilisation’), com- solution to decrease dependency on fossil resources. plemented by consultation of a wide range of stakehold- However, biomass resources are limited and have many ers via a survey and a validation workshop held on 6 existing uses, including for food and feed, as well as November 2017. The study outcomes and policy recom- energy. Their use may also have negative environmental mendations are based on quantitative and qualitative impacts. Therefore, a broader set of technologies must data analysis, of both the R&I portfolio and relevant lit- be developed to reduce the dependency of European erature, as well as on survey responses and feedback industry on fossil resources, while making it cleaner and obtained from a validation workshop. more sustainable. In this context, research, innovation, and investment efforts are necessary to keep European industry competitive at global level, saving jobs from moving to other areas in the world. 1 Low-Carbon Process Industries Through Energy Efficiency and Carbon Dioxide Utilisation, A Bardow and D. Green, https://doi.org/10.2777/175882. 6 Research & Innovation Projects for Policy POLICY CONTEXT 1. 2050 CLIMATE POLICY TARGETS Global engagements to combat climate change and the use of energy, and can be decarbonised through adapt to its effects have been taken in the Paris Agree- electrification and the decarbonisation of the power ment reached at COP 21 in December 2015, in an effort supply sector, some industries – such as steel and to limit global warming below 2°C this century 2. This is cement production – generate greenhouse gas emis- considered the only way to avoid major climate related sions through their processes, and the chemical/petro- catastrophes in the years to come. In the context of this chemical sector products – being based on fossil carbon global political drive to achieve a sustainable society, feedstocks – generate further emissions as their prod- the EU will have to review its current 2050 targets on ucts arrive at their end-of-life. Considering the variety GHG emissions 3 reduction and milestones to allow for of sectors and processes involved, a significant their achievement. The targets are currently as follows: decrease in GHG emissions from the process industries cannot be delivered by a single set of technologies. In > 20 % reduction in emissions by 2020 (compared this respect, the two topics addressed in this study – to 1990). energy efficiency (EE) and, to a lesser extent, CCU > 40 % reduction in emissions by 2030 (compared approaches – can provide a significant contribution to to 1990). the achievement of GHG targets.