Taxonomy for Industrial Cluster Decarbonization: An Analysis for the Italian Hard-to-Abate Industry

The share of industry in final global energy consumption was more than 30% in 2020, of which, the hard-to-abate sectors accounted for almost 60% of total final consumption in industry. Similarly, in Europe, industry accounts for around 25% of final energy consumption. In order to reduce the impact of industry in energy consumption and greenhouse gas emissions, Europe has set many policies that support and regulate the sector, including pricing carbon emissions in a cap-and-trade scheme called the European Emission Trading Scheme (EU ETS). According to the EU ETS, in 2021 the verified emissions of all stationary installations were around 1.3 billion tons of carbon dioxide equivalent emissions. In 2021, the total allocated allowances amounted to around 1 billion tons of carbon dioxide equivalent emissions, half of which were freely allocated. After reviewing the existing modeling approaches for industrial clusters and the available datasets, and assessing the energy consumption and carbon dioxide emissions at plant level using a geographical information system approach (GIS), a taxonomy for industrial cluster decarbonization was introduced. This taxonomy shows that describing industry as sets of clustered installations rather than based on the conventional sectoral economic classification provides more insights into energy transition. First, the cluster description provides a more accurate techno-economic assessment based on a finer characterization of economies of scale compared to traditional energy systems models. Second, the industrial clustering approach may more realistically show the feasibility, in addition to the costs and benefits from coupling industry with transport (e.g., industrial fleets and logistics) or buildings (e.g., city scale), due to a more detailed representation of the energy sources and sinks

An investigation of the impact of bounded rationality on the decarbonisation of Kenya's power system

How can we transition to a low-carbon energy supply to limit the effects of climate change? The methodology of quantitative energy models can have an impact on the advice inferred. We compare Kenya’s electricity system transition to 2050 with a 2-model inter-comparison. To explore the uncertainty, we use an agent-based simulation model (MUSE) and an optimisation model (OSeMOSYS)

Geospatial Big Data analytics to model the long-term sustainable transition of residential heating worldwide

Geospatial big data analytics has received much attention in recent years for the assessment of energy data. Globally, spatial datasets relevant to the energy field are growing rapidly every year. This research has analysed large gridded datasets of outdoor temperature, end-use energy demand, end-use energy density, population and Gros Domestic Product to end with usable inputs for energy models. These measures have been recognised as a means of informing infrastructure investment decisions with a view to reaching sustainable transition of the residential sector. However, existing assessments are currently limited by a lack of data clarifying the spatio-temporal variations within end-use energy demand. This paper presents a novel Geographical Information Systems (GIS)-based methodology that uses existing GIS data to spatially and temporally assess the global energy demands in the residential sector with an emphasis on space heating. Here, we have implemented an Unsupervised Machine Learning (UML)-based approach to assess large raster datasets of 165 countries, covering 99.6% of worldwide energy users. The UML approach defines lower and upper limits (thresholds) for each raster by applying GIS-based clustering techniques. This is done by binning global high-resolution maps into re-classified raster data according to the same characteristics defined by the thresholds to estimate intranational zones with a range of attributes. The spatial attributes arise from the spatial intersection of re-classified layers. In the new zones, the energy demand is estimated, so-called energy demand zones (EDZs), capturing complexity and heterogeneity of the residential sector. EDZs are then used in energy systems modelling to assess a sustainable scenario for the long-term transition of space heating technology and it is compared with a reference scenario. This long-term heating transition is spatially resolved in zones with a range of spatial characteristics to enhance the assessment of decarbonisation pathways for technology deployment in the residential sector so that global climate targets can be more realistic met

A dynamic model of global natural gas supply

This paper presents the Dynamic Upstream Gas Model (DYNAAMO); a new, global, bottom-up model of natural gas supply. In contrast to most “static” supply-side models, which bracket resources by average cost, DYNAAMO creates a range of dynamic outputs by simulating investment and operating decisions in the upstream gas industry triggered in response to investors’ expectations of future gas prices. Industrial data from thousands of gas fields is analysed and used to build production and expenditure profiles which drive the economics of supply at field level. Using these profiles, a novel methodology for estimating supply curves is developed which incorporates the size, age and operating environment of gas fields, and treats explicitly the fiscal, abandonment, exploration and emissions costs of production. The model is validated using the US shale gas boom in the 2000s as a historic case study. It is found that the modelled market share of supply by field environment replicates the observed trend during the period 2000–2010, and that the model price response during the same period – due to lower capacity margins and the financing of new projects – is consistent with market behaviour

Clustered spatially and temporally resolved global heat and cooling energy demand in the residential sector

Climatic conditions, population density, geography, and settlement structure all have a strong influence on the heating and cooling demand of a country, and thus on resulting energy use and greenhouse gas emissions. In particular, the choice of heating or cooling system is influenced by available energy distribution infrastructure, where the cost of such infrastructure is strongly related to the spatial density of the demand. As such, a better estimation of the spatial and temporal distribution of demand is desirable to enhance the accuracy of technology assessment. This paper presents a Geographical Information System methodology combining the hourly NASA MERRA-2 global temperature dataset with spatially resolved population data and national energy balances to determine global high-resolution heat and cooling energy density maps. A set of energy density bands is then produced for each country using K-means clustering. Finally, demand profiles representing diurnal and seasonal variations in each band are derived to capture the temporal variability. The resulting dataset for 165 countries, published alongside this article, is designed to be integrated into a new integrated assessment model called MUSE (ModUlar energy systems Simulation Environment)but can be used in any national heat or cooling technology analysis. These demand profiles are key inputs for energy planning as they describe demand density and its fluctuations via a consistent method for every country where data is available

A bottom-up appraisal of the technically installable capacity of biogas-based solid oxide fuel cells for self power generation in wastewater treatment plants

This paper proposes a bottom-up method to estimate the technical capacity of solid oxide fuel cells to be installed in wastewater treatment plants and valorise the biogas obtained from the sludge through an efficient conversion into electricity and heat. The methodology uses stochastic optimisation on 200 biogas profile scenarios generated from industrial data and envisages a Pareto approach for an a posteriori assessment of the optimal number of generation unit for the most representative plant configuration sizes. The method ensures that the dominant role of biogas fluctuation is included in the market potential and guarantees that the utilization factor of the modules remains higher than 70% to justify the investment costs. Results show that the market potential for solid oxide fuel cells across Europe would lead up to 1,300 MW of installed electric capacity in the niche market of wastewater treatment and could initiate a capital and fixed costs reduction which could make the technology comparable with alternative combined heat and power solutions

Agent-based scenarios comparison for assessing fuel-switching investment in long-term energy transitions of the India’s industry sector

This paper presents the formulation and application of a novel agent-based integrated assessment approach to model the attributes, objectives and decision-making process of investors in a long-term energy transition in India’s iron and steel sector. It takes empirical data from an on-site survey of 108 operating plants in Maharashtra to formulate objectives and decision-making metrics for the agent-based model and simulates possible future portfolio mixes. The studied decision drivers were capital costs, operating costs (including fuel consumption), a combination of capital and operating costs, and net present value. Where investors used a weighted combination of capital cost and operating costs, a natural gas uptake of ~12PJ was obtained and the highest cumulative emissions reduction was obtained, 2 Mt CO2 in the period from 2020 to 2050. Conversely if net present value alone is used, cumulative emissions reduction in the same period was lower, 1.6 Mt CO2, and the cumulative uptake of natural gas was equal to 15PJ. Results show how the differing upfront investment cost of the technology options could cause prevalence of high-carbon fuels, particularly heavy fuel oil, in the final mix. Results also represent the unique heterogeneity of fuel-switching industrial investors with distinct investment goals and limited foresight on costs. The perception of high capital expenditures for decarbonisation represents a significant barrier to the energy transition in industry and should be addressed via effective policy making (e.g. carbon policy/price)