TY - JOUR

T1 - Cost-Driven Assessment of Technologies’ Potential to Reach Climate Neutrality in Energy-Intensive Industries

AU - Nagovnak, Peter

AU - Rahnama Mobarakeh, Maedeh

AU - Diendorfer, Christian

AU - Thenius, Gregor

AU - Böhm, Hans

AU - Kienberger, Thomas

N1 - Publisher Copyright: © 2024 by the authors.

PY - 2024/2/23

Y1 - 2024/2/23

N2 - Efforts towards climate neutrality in Europe must prioritise manufacturing industries, particularly the energy-intensive industry (EII) subsectors. This work proposes a novel approach to assessing transformation options for EII subsectors. At the center of this approach we position a potential analysis of technologies’ impact on subsector decarbonisation—an approach only known so far from the investigation of renewable energy potentials. These so-called technical climate neutrality potentials, supplemented by a set of indicators taking into account energy consumption, capital and operational expenditures, and GHG taxation programs per technology and subsector, enable cross-sector comparisons. The indicators allow the reader to compare the impact on GHG emission mitigation, energy demand, and cost for every considered technology. At the same time, we keep an open mind regarding combinations of technological solutions in the overall energy system. This ensures that the technology pathways with the greatest climate neutrality potential are easily identified. These focal points can subsequently serve in, e.g., narrative-driven scenario analyses to define comprehensive guides for action for policymakers. A case study of Austria for the proposed potential analysis demonstrates that bio-CH 4 and electrolysis-derived H 2 are the most economical green gases, but GHG certificate costs will be necessary for cost-competitiveness in high-temperature applications. Electrification offers advantages over conventional technologies and CO 2-neutral gas alternatives in low-to-mid temperature ranges. Under the given assumptions, including GHG emission certificate costs of 250 EUR/t CO 2, alternative technologies in the identified climate neutrality pathways can operate at total annual costs comparable to conventional fossil-based equivalents.

AB - Efforts towards climate neutrality in Europe must prioritise manufacturing industries, particularly the energy-intensive industry (EII) subsectors. This work proposes a novel approach to assessing transformation options for EII subsectors. At the center of this approach we position a potential analysis of technologies’ impact on subsector decarbonisation—an approach only known so far from the investigation of renewable energy potentials. These so-called technical climate neutrality potentials, supplemented by a set of indicators taking into account energy consumption, capital and operational expenditures, and GHG taxation programs per technology and subsector, enable cross-sector comparisons. The indicators allow the reader to compare the impact on GHG emission mitigation, energy demand, and cost for every considered technology. At the same time, we keep an open mind regarding combinations of technological solutions in the overall energy system. This ensures that the technology pathways with the greatest climate neutrality potential are easily identified. These focal points can subsequently serve in, e.g., narrative-driven scenario analyses to define comprehensive guides for action for policymakers. A case study of Austria for the proposed potential analysis demonstrates that bio-CH 4 and electrolysis-derived H 2 are the most economical green gases, but GHG certificate costs will be necessary for cost-competitiveness in high-temperature applications. Electrification offers advantages over conventional technologies and CO 2-neutral gas alternatives in low-to-mid temperature ranges. Under the given assumptions, including GHG emission certificate costs of 250 EUR/t CO 2, alternative technologies in the identified climate neutrality pathways can operate at total annual costs comparable to conventional fossil-based equivalents.

KW - climate neutrality

KW - energy-intensive industries

KW - industrial climate policy

KW - technology options

UR - http://www.scopus.com/inward/record.url?scp=85187480225&partnerID=8YFLogxK

U2 - 10.3390/en17051058

DO - 10.3390/en17051058

M3 - Article

VL - 17.2024

JO - Energies

JF - Energies

SN - 1996-1073

IS - 5

M1 - 1058

ER -