Carbon and Energy Reduction Strategy
Furthering a global resource extraction firm’s transition to a low carbon economy
Global
|
2019
Delivered a tool to model the impact of carbon abatement initiatives.
Mapped and assessed over a hundred carbon and energy reduction initiatives at over twenty-five sites in over ten countries spanning five commodities.
Identified an approximate level of MtCO2e abatement via cash-positive initiatives meeting the client’s Paris-aligned target
Assisted with the prioritization of initiatives for maximum impact.
Challenges
- As a component of its strategy to address climate change, the client wished to prioritize capital investment to grow production of commodities essential to the energy and mobility transition and continue its reduction of greenhouse gas emissions from operations.
- With emitting assets spread across multiple lines of business and geographies, the client required an efficient way of communicating, assessing, and prioritizing emission reduction technologies.
- At the corporate level, the client required a means to aggregate and model the financial and environmental impact of emission reduction initiatives across their global portfolio of assets.
Solutions
- Assembled an expert team with boots-on-the-ground process engineering and operations experience at all sites, along with extensive industry knowledge and domain expertise in energy efficiency and renewable energy technologies across the mining and metals sector.
- Facilitated ideation workshops that mapped abatement technologies across emissions data throughout the value chain for each top emitting asset. Ideation workshops were attended by client representatives and Hatch process, renewables, and industrial clean technology experts.
- Assessed emission reduction initiatives and leveraged Hatch’s broad industry knowledge to define capital and resource intensity, abatement potential, and technology maturity for a portfolio of over a hundred carbon and energy reduction initiatives.
- Constructed a Marginal Abatement Cost Curve (MACC) that seamlessly aggregated both site-level and global-level carbon abated, levelized cost of carbon, initiative NPV, IRR, and payback period for over a hundred carbon and energy reduction technologies.
Highlights
- Enabled the client to identify a technically and economically viable target and implementation path for reductions in Scope 1 and 2 emissions by 2030.
- An approximate level of MtCO2e abatement through cash-positive initiatives was identified under all three scenarios along with the level of capital investment required to achieve the client’s full MtCO2e Paris-aligned target.
- Business-specific MACCs along with consolidated corporate-wide, global MACCs that consider generally accepted International Energy Agency World Energy Outlook climate change scenarios.
- Identified concessional financing opportunities through a blend of government funding and private capital, as well as through third-party financed service contracts.
Project numbers
Reduction in Scope 1 and Scope 2 emissions by 2030Over 100 carbon reduction initiatives assessed
Twenty-five sites in over ten countries spanning five commodities included in the analysis