Decarbonizing California'S Industry Sector

DECARBONIZINGCALIFORNIA’SINDUSTRY SECTORCalifornia Air Resources BoardIndustry Workshop: July 8, 2019JEFFREY RISSMAN1

California Industry Emissions in Context450California 2017 GHG Emissions by Sector (MMT CO2e)400Agriculture & Other(direct emissions)350Electricity for Buildings300Buildings (directemissions)Agriculture & Other52 MMT (12%)Buildings89 MMT (21%)Electricity for IndustryThis graph includes energy-relatedemissions and non-energy “processemissions” from industrial andagricultural operations.All significant greenhouse gases(GHGs) are included, not just CO2.250200Industry (directemissions)Industry112 MMT (27%)TransportationTransportation168 MMT (40%)1501005002Emissions from the electricity sectorare divided among other sectorsproportional to their electricitydemand.Data source:California Energy Policy Simulator ons

Emissions by IndustryGLOBAL GHG EMISSIONS BY INDUSTRY IN 2014 (MMT CO2E)Direct Energy-Related EmissionsCO2 Process Emissions05001000Non-CO2 Process Emissions15002000Indirect Energy-Related Emissions2500I R O N AN D S T E E L3285CEMENT2492REFINING1035AL U M I N U M985P U L P AN D P AP E R919M AC H I N E R Y859C E R AM I C S748F O O D & T O B AC C O370LIME262CONSTRUCTIONOTHER INDUSTRIES4000These are the threehighest-emittingindustries in California,together responsible for80% of California’sindustry sectoremissions.The 80% figure includes thewhole natural gas andpetroleum production anddistribution industry, not justrefining.694O T H E R M E T AL SWOOD & WOOD PRDCT35003355C H E M I C AL S &P L AS T I C SG L AS S3000177147881068Global graph from Energy Innovation analysis based ondata from: IEA, USGS,World Bank, Pacific Northwest3National Lab, and UN FAO.Source: California EnergyPolicy Simulator ons

Cement & Concrete IndustryCement Industry GHG Emissions- 30-40% from thermal fuels (heatingkiln and precalciner)- .: 'lll""l --:1". oQ Blending.,./0 60-70% process emissions fromlimestone breakdownO/// V//,,,,,.//I\/0.IlPrehomogenizat1on\and raw meal grind ing \-----------Cement production overview----Source: International Energy Agency and CementSustainability Initiative4\.,.'Cooling and storing.,. JClinker production ,, ,,,. .,. .,. in the rotary kiln /.,.Precalcining.,. . - .,.O Preheating// Minor contribution from electricityuse/."-\ Storing in\W the cement silo,Cement grinding.,.,,. 1

Cement & Concrete TechnologiesEnergy Efficiency Use a kiln with a precalciner and multistagepreheater. This equipment dries inputmaterials using waste heat before they enterthe kiln, so less heat is needed to evaporatewater. Add mineralizers to the raw materials toreduce the temperature at which they convertinto clinker. Operate the kiln with oxygen-enriched air. Use a grate clinker cooler, which is better atrecovering usable excess heat than aplanetary or a rotary cooler.Rotary cement kilnSource: Wikipedia, public domain5

Cement & Concrete TechnologiesProcess EmissionsWorld Region Substitute other materials for clinker.Clinker toCement RatioNorth America 84% Explore novel cement chemistries.Asia excl. China, India, CIS, and Japan 84%Japan, Australia, and New Zealand 83% Capture and store process CO2.CIS (Russian Commonwealth) 80%Africa and the Middle East 79%Europe 76%China and India 74%Latin America 74%Material EfficiencyWorld Average 78% Material strength, longevity, building re-useSource: World Business Council for Sustainable Development More discussion later6

Chemicals IndustryOther Chemicals and PlasticsF-Gases Key emissions drivers are fossil fuelcombustion for heat (e.g. for steam crackingof hydrocarbons) and to drive otherendothermic reactions Refrigerants, propellants, electricalinsulators Can be replaced with climatefriendly alternative gasesSource: Dasapta Erwin Irawan, CC attribution 2.0 Hydrogen is produced in large quantities as areactant, e.g. for ammonia production.7Source: pxhere, public domain

Chemicals TechnologiesNovel Chemical Pathwaysand CatalystsElectrification Electricity may be used to providethe heat to drive many reactions. Novel catalysts can lower inputenergy requirements of a variety ofreactions Electricity may also be used togenerate hydrogen (throughelectrolysis of water) For example, olefins may beproduced via dimethyl ether through“dry reforming” of methane Methane pyrolysis, a technique underdevelopment, can split natural gasinto hydrogen and solid carbon,avoiding CO2 emissions8

Chemicals: CO2 UseHeat of Formation per Carbon Atom (kJ/mol)100iso-butene50polypropylene nol-100carbon monoxide-150polyetheylene (PE)ethyleneRe-use of CO2 is promising tomake certain molecules whosechemical structure is similar toCO2, such as urea and formicacid.acrylic acidcellulose (biomass)-200methanolacetic acid-250butadienepoly-iso-buteneethylene oxide-50benzeneHowever, making other chemicalsfrom CO2 has high input energyrequirements.-300urea-350formic acid-400CO2-450Heat 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 solidphase. Condensation energy (such as energy associated with water formation in9 the urea production process) is not considered.Source: BASF

ElectrificationEnergy Use by U.S. Manufacturing Sector in 2014-2,000Electricity4,0006,0008,00010,00012,000T btu Process Heating Process Cooling/ Refrige ration Machine Drive Other Process UseBoiler FuelElectro-Chem ical ProcessesSource: Lawrence Berkeley National LaboratoryIn California, in 2017, electricity provided only 21% of industry energy use, whiledirect fuel combustion provided 79%.This means that electrificationhas a large potential to drive decarbonization, but10cost and technology barriers must be addressed.

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

HydrogenGlobal Emissions Trajectories andResulting WarmingIt is unlikely all industrial processes can beelectrified, at least not in the next few decades.140Data: SSP database (IIASA)/GCPScenario groupBase ne 3 5 1 C)But we need to drive down emissions urgently.6.0 W/m 2 (3.2-3.3 C)4.5 W/m 2 {2.5· -2.7"C)Therefore, we need a zero-carbon, thermal fuel.3.4 W/m 2 (2.1-2.3 C)2.6 W/m 2 (1.7-1.8 C)Biomass is inefficient and limited in its ability toscale up to meet global energy needs.Therefore, hydrogen and/or hydrogen-derivedenergy carriers (e.g. ammonia, methane) are thelikely fuels of choice.net-negative global emissions-25-------------------- 1980200020202040206020802100Source: Global Carbon Project, CC Attribution12

HydrogenHydrogen has advantages 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 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) ispromising 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 13necessary

Material EfficiencyMost industrial energy use is embodied in input materials Design for reduced material (e.g. curved fabricconcrete molds, more sizes of steel beams) Increased material strength (new chemistries, pretensioning concrete, etc.)Coal power plant in Baltimorerepurposed as commercial space Additive manufacturing (3D printing) allows novelshapes and complexity Product longevity Intensification of use, the “sharing economy” Repurposing / re-use (especially of buildings)Also material substitution14Wikimedia Commons, public domain

Circular EconomyRenewab lesPreserve and enhancenatural capital by controllingfinite stocks and balancingrenewable resource flowsRegenera te Substit ute materialsRenewab les fl ow managemen tFinit e materialsV irt ua liseRestoreStock managementit !BIOLOGICAL CYCLES/ collect ion'TECHNICAL CYCLESParts manufacturerB iochemica lfeedstockProduct manufacturerRegenerationOptimise resource yieldsby circulating products,components and materialsIn use at the highest utilityat all times In both technicaland biological cyclesSe rvice prov iderExtraction o fb iochem ica lfeedstock'Foster system effectivenessby revealing and designingout negative externalities15Min im ise systemat icleakage and negativeexterna lities1. Hunt ing and fi sh ing2- Can takg b o t h p ost - harvest and p o st-consumer waste as an inputSource: Ellen MacArthurFoundation

DECARBONIZINGCALIFORNIA’SINDUSTRY SECTORCalifornia Air Resources BoardIndustry Workshop: July 8, 2019JEFFREY RISSMAN16

TITLE SLIDE IMAGE SOURCESTitle slide, left side:Peter Hess, Creative Commons Attribution 1947Title slide, right side:NASA, public launch-system17

CEMENT . CHEMICALS & 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.