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How heavy industries can lead the decarbonization revolution

The global shift towards sustainability is reshaping the landscape of heavy industries worldwide. Sectors such as steel, cement, chemicals, and oil and gas stand at a critical crossroads.

With increasing emphasis on renewable energy and carbon neutrality, these industries must decarbonize their operations while sustaining profitability and competitiveness.

This transition involves more than emission reductions; it requires reimagining business models, embracing innovative technologies, and forging strategic partnerships.
 

The Imperative for Transition

Stringent carbon-reduction targets and evolving regulatory landscapes are compelling heavy industries to pivot towards cleaner energy solutions.

The European Union’s Renewable Energy Directive (RED III), for instance, mandates a 42% green hydrogen usage in the industry by 2030.

Such directives underscore the urgency for sectors traditionally reliant on fossil fuels to adopt renewable energy sources and reduce their carbon footprint.
 

Strategies for Successful Decarbonization

Transitioning to a low-carbon future is a complex challenge that demands a multifaceted approach. Heavy industries can implement several key strategies to effectively decarbonize their activities:

1. Embracing Renewable Energy and Advanced Storage Solutions

Transitioning to renewable energy sources like solar and wind requires meticulous planning and investment in supportive infrastructure. To manage the variability of these sources, integrating Battery Energy Storage Systems (BESS) is essential. BESS allows excess energy generated during peak times to be stored and utilized when production is low, ensuring a consistent energy supply. Intelligent systems like Power Plant Controllers (PPC) optimize BESS performance by managing energy flow, balancing supply and demand, and maintaining grid stability.

2. Investing in Green Hydrogen

Hydrogen emerges as a viable alternative to fossil fuels in heavy industries. It can replace coal in processes such as iron ore reduction and power electric arc furnaces using renewable energy. Developing expertise in hydrogen production, storage, and utilization positions companies at the forefront of the energy transition.

3. Leveraging Advanced Software Management Systems

Digital solutions are pivotal in optimizing operations and reducing emissions. Asset Performance Management (APM) systems, in particular, offer comprehensive tools for energy monitoring, management, and optimization. APM facilitates the integration of renewable energy sources into industrial operations, enabling companies to manage energy production, storage, and distribution effectively. By providing real-time data analytics, predictive maintenance capabilities, and seamless integration with existing processes, APM ensures a stable energy supply even with variable renewable sources. Monitoring equipment health and predicting failures reduces downtime and maintenance costs, leading to more efficient operations and lower emissions.
 

The Role of Software Solutions in Decarbonization

Advanced software solutions are at the heart of successful decarbonization efforts. BaxEnergy’s Asset Performance Management (APM) platform offers a comprehensive tool for energy monitoring, management, and optimization. It enables companies to integrate renewable energy sources into their operations seamlessly.

  • Asset Performance Management (APM): APM systems help companies maximize asset performance and lifespan. By monitoring equipment health and predicting failures, APM reduces downtime and maintenance costs. It facilitates effective management of energy production, storage, and distribution, ensuring a stable supply even with variable renewable sources. The system’s real-time data analytics and predictive maintenance capabilities enhance efficiency and reduce emissions.
  • Intelligent BESS Management with PPC: Integrating BESS with intelligent PPC systems enhances the efficiency and reliability of renewable energy systems. PPCs provide real-time control and coordination of all power plant components, including energy storage. They optimize energy flows, manage grid interactions, and ensure compliance with regulatory requirements. This intelligent management is essential for balancing intermittent renewable energy production and maintaining grid stability.
     

Yokogawa and BaxEnergy: A Synergistic Offering

The recent acquisition of BaxEnergy by Yokogawa marks a significant step toward providing comprehensive decarbonization solutions for heavy industries (i.e. for Oil&Gas companies). 

Yokogawa’s expertise in industrial automation and control systems complements BaxEnergy’s advanced software capabilities, offering heavy industries an integrated approach to energy transition.

A tangible example is the collaboration between Yokogawa and BaxEnergy on the Baseload Power Hub project. This pioneering offshore green hydrogen production and storage plant is part of the Hollandse Kust Noord offshore wind farm, developed by CrossWind—a joint venture between Shell and Eneco.

Through this collaboration, BaxEnergy and Yokogawa established a model for increasing system availability and ensuring energy optimization, paving the way for similar offshore hydrogen projects that address both energy stability and decarbonization goals.
 

Conclusion

By embracing renewable energy sources, investing in green hydrogen, and leveraging advanced software solutions like those provided by Yokogawa and BaxEnergy, heavy industries can reduce their adverse effects and become influential drivers of positive transformation worldwide.

As heavy industries continue to progress, projects like the Baseload Power Hub act as models that can be adopted globally where sustainability and equity are both prioritized.

The example provided demonstrates the significant potential of heavy industries to pave the way toward a sustainable and equitable future. These changes are not limited to technological advancements; they represent a comprehensive, multi-stakeholder strategy that combines environmental responsibility, social equity, and economic development.
 

Ready to Lead the Energy Transition?

Contact our experts today to explore how BaxEnergy’s innovative solutions can empower your company’s decarbonization initiatives and position you at the forefront of the sustainable energy revolution!

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