DECARBONIZING CALIFORNIA’S INDUSTRY SECTOR

California Air Resources BoardIndustry Workshop: July 8, 2019

JEFFREY RISSMAN

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Transportation

Industry (direct emissions)

Electricity for Industry

Buildings (direct emissions)

Electricity for Buildings

Agriculture & Other (direct emissions)

0

50

100

150

200

250

300

350

400

450California 2017 GHG Emissions by Sector (MMT CO2e)

Industry112 MMT (27%)

Buildings89 MMT (21%)

Agriculture & Other52 MMT (12%)

Transportation168 MMT (40%)

California Industry Emissions in Context

Data source:California Energy Policy Simulator (prerelease)https://california.energypolicy.solutions

This graph includes energy-related emissions and non-energy “process emissions” from industrial and agricultural operations.

All significant greenhouse gases (GHGs) are included, not just CO2.

Emissions from the electricity sector are divided among other sectors proportional to their electricity demand.

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Emissions by Industry

1068

88

147

177

262

370

694

748

859

919

985

1035

2492

3285

3355

0 500 1000 1500 2000 2500 3000 3500 4000

OTHER INDUSTRIES

WOOD & WOOD PRDCT

GLASS

CONSTRUCTION

LIM E

OTHER M ETALS

FOOD & TOBACCO

CERAM ICS

M ACHINERY

PULP AND PAPER

ALUM INUM

REFINING

CEM ENT

CHEM ICALS & PLASTICS

IRON AND STEEL

GLOBAL GHG EMISSIONS BY INDUSTRY IN 2014 (MMT CO2E)Direct Energy-Related Emissions CO2 Process Emissions Non-CO2 Process Emissions Indirect Energy-Related Emissions

Global graph from Energy Innovation analysis based on data from: IEA, USGS, World Bank, Pacific Northwest National Lab, and UN FAO.

These are the three highest-emitting industries in California, together responsible for 80% of California’s industry sector emissions.The 80% figure includes the whole natural gas and petroleum production and distribution industry, not just refining.Source: California Energy Policy Simulator (prerelease)https://california.energypolicy.solutions3

Cement & Concrete Industry

• 30-40% from thermal fuels (heating kiln and precalciner)

• 60-70% process emissions from limestone breakdown

• Minor contribution from electricity use

Cement Industry GHG Emissions

Cement production overviewSource: International Energy Agency and Cement Sustainability Initiative

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- - ...:~'lll""l --:1" .• ~ ....

"-\ Storing in \ W the cement silo, o Cement grinding.,.,,. 1

Q Blending .,.

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' 0 Cooling and storing.,. J

$ Clinker production ,, ,,,. .,... .,... -V in the rotary kiln / O Precalcining.,... _ ..... - .,...

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O Preheating _,,,,,. /

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. . l 0 Prehomogenizat1on \ and raw meal grind ing \ ----------- ----

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Cement & Concrete TechnologiesEnergy Efficiency

• Use a kiln with a precalciner and multistage preheater. This equipment dries input materials using waste heat before they enter the kiln, so less heat is needed to evaporate water.

• Add mineralizers to the raw materials to reduce the temperature at which they convert into clinker.

• Operate the kiln with oxygen-enriched air.

• Use a grate clinker cooler, which is better at recovering usable excess heat than a planetary or a rotary cooler.

Rotary cement kilnSource: Wikipedia, public domain

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Cement & Concrete TechnologiesProcess Emissions

• Substitute other materials for clinker.

• Explore novel cement chemistries.

• Capture and store process CO2.

World Region Clinker to Cement Ratio

North America 84%Asia excl. China, India, CIS, and Japan 84%

Japan, Australia, and New Zealand 83%CIS (Russian Commonwealth) 80%

Africa and the Middle East 79%Europe 76%

China and India 74%Latin America 74%

World Average 78%

Source: World Business Council for Sustainable Development

Material Efficiency

• Material strength, longevity, building re-use

• More discussion later

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Chemicals Industry

• Refrigerants, propellants, electricalinsulators

• Can be replaced with climate-friendly alternative gases

F-Gases

Other Chemicals and Plastics

• Key emissions drivers are fossil fuelcombustion for heat (e.g. for steam crackingof hydrocarbons) and to drive otherendothermic reactions

• Hydrogen is produced in large quantities as areactant, e.g. for ammonia production.

Source: Dasapta Erwin Irawan, CC attribution 2.0 Source: pxhere, public domain7

Chemicals Technologies

• Novel catalysts can lower input energy requirements of a variety of reactions

• For example, olefins may be produced via dimethyl ether through “dry reforming” of methane

• Methane pyrolysis, a technique under development, can split natural gas into hydrogen and solid carbon, avoiding CO2 emissions

• Electricity may be used to provide the heat to drive many reactions.

• Electricity may also be used to generate hydrogen (through electrolysis of water)

Novel Chemical Pathways and Catalysts

Electrification

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Chemicals: CO2 Use

Re-use of CO2 is promising to make certain molecules whose chemical structure is similar to CO2, such as urea and formic acid.

However, making other chemicals from CO2 has high input energy requirements.

CO2

formic acid

urea

acetic acid

cellulose (biomass)

methanol

acrylic acid

ethanol

carbon monoxide

formaldehyde

methane

ethylene oxide

polyetheylene (PE)

polypropylene (PP)

diesel

poly-iso-butene

naphtha

iso-butene

propylene

benzene

ethylene

butadiene

-450

-400

-350

-300

-250

-200

-150

-100

-50

0

50

100

Heat of Formation per Carbon Atom (kJ/mol)

Heat of formation ΔfH(g) of CO2 and various chemicals per carbon atom (kJ/mol). Chemicals are in the gas phase, except urea, which is in the solid phase. Condensation energy (such as energy associated with water formation in the urea production process) is not considered.Source: BASF

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Electrification

In California, in 2017, electricity provided only 21% of industry energy use, while direct fuel combustion provided 79%.

This means that electrification has a large potential to drive decarbonization, but cost and technology barriers must be addressed.

Energy Use by U.S. Manufacturing Sector in 2014

Source: Lawrence Berkeley National Laboratory

- Electricity

2,000 4,000 6,000 8,000 10,000 12,000

T btu ■ Boiler Fuel ■ Process Heating

■ Process Cooling/ Refrigeration ■ Machine Drive

■ Electro-Chemical Processes ■ Other Process Use

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Electrification

Today, it is cheaper to generate heat (e.g. for boilers, for melting input materials, etc.) by burning fossil fuels rather than by electricity.

Key Challenge

Technical Solutions

• Replace systems where heat is used inefficiently. For instance, some process heating applicationshave thermal fuel efficiencies one third of electricity efficiencies.

• Boilers themselves are typically efficient, but use of the resulting steam may not be.

• Use electricity to apply heat more precisely to the material (laser sintering, electric arc furnaces).

• Some processes may be redesigned to use non-thermal alternatives to heating, such as ultraviolet lightor electron beams.

• Certain processes that don’t need very high temperatures may be served via an industrial heat pump,which is much more efficient than electrical resistance heating.

And/Or make renewable electricity cheaper than thermal fuels11

Hydrogen

It is unlikely all industrial processes can be electrified, at least not in the next few decades.

But we need to drive down emissions urgently.

Therefore, we need a zero-carbon, thermal fuel.

Biomass is inefficient and limited in its ability to scale up to meet global energy needs.

Therefore, hydrogen and/or hydrogen-derived energy carriers (e.g. ammonia, methane) are the likely fuels of choice.

Global Emissions Trajectories and Resulting Warming

Source: Global Carbon Project, CC Attribution

140 Data: SSP database (IIASA)/GCP

Scenario group Base ne 3 5 1 C)

6.0 W/m2 (3.2-3.3°C)

4.5 W/m2 {2.5· -2.7"C)

3.4 W/m2 (2.1-2.3°C)

2.6 W/m2 (1.7-1.8°C)

net-negative global emissions

-25--------------------+-1980 2000 2020 2040 2060 2080 2100

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Hydrogen

• Can be burned for high-temperature heat, useful in many industries• Hydrogen is a widely-used chemical feedstock• H2 burns cleanly (emits only water vapor)

Hydrogen has advantages

Hydrogen has challenges

• Prone to leaks due to hydrogen’s small molecular size• Can embrittle and diffuse through ordinary metals• Currently made via steam reforming of methane, which emits CO2. Electrolysis (splitting water) is

promising but not yet financially competitive.

Solutions

• R&D for cheaper electrolysis, or methane pyrolysis (solid carbon output)• Use special equipment to store and use hydrogen where it makes sense• Convert hydrogen to ammonia or methane where necessary13

Material Efficiency

• Design for reduced material (e.g. curved fabric concrete molds, more sizes of steel beams)

• Increased material strength (new chemistries, pre-tensioning concrete, etc.)

• Additive manufacturing (3D printing) allows novel shapes and complexity

• Product longevity

• Intensification of use, the “sharing economy”

• Repurposing / re-use (especially of buildings)

Most industrial energy use is embodied in input materials

Also material substitution

Coal power plant in Baltimore repurposed as commercial space

Wikimedia Commons, public domain

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Circular Economy

Source: Ellen MacArthur Foundation

Preserve and enhance natural capital by controlling finite stocks and balancing renewable resource flows

Renewables ® Regenera te

Renewables flow managemen t

BIOLOGICAL CYCLES

Regeneration

Optimise resource yields by circulating products, components and materials In use at the highest utility at all times In both technical and biological cycles

Foster system effectiveness by revealing and designing out negative externalities

/ collect ion'

B iochemica l feedstock

Extraction o f b iochemica l feedstock'

Subst it ute materials

it ! Parts manufacturer

Product manufacturer

Service provider

Min im ise systemat ic leakage and negative

externalities

Finite materials

Virtua lise Restore

Stock management

TECHNICAL CYCLES

1. Hunt ing and fish ing 2- Can takg both post -harvest and post-consumer waste as an input

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DECARBONIZING CALIFORNIA’S INDUSTRY SECTOR

California Air Resources BoardIndustry Workshop: July 8, 2019

JEFFREY RISSMAN

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TITLE SLIDE IMAGE SOURCES

Title slide, left side:Peter Hess, Creative Commons Attribution 2.0https://www.flickr.com/photos/peterhess/16875011947

Title slide, right side:NASA, public domainhttps://www.nasa.gov/feature/nasa-reaches-platform-milestone-at-kennedy-space-center-for-space-launch-system

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