Comment by Liam Lidstone, Business Leader Infrastructure and Engineering, at Energy Systems Catapult.

Innovating to Net Zero 2024 was our second ‘state of energy innovation’ report and it shone a light on the work we must do if we’re to get to Net Zero by 2050. The report demonstrated how not all sectors were created equal in the decarbonisation journey. While progress is being made across industries, some sectors face significantly steeper financial and technological challenges. The progress that these sectors make is critical to the design of the rest of a future Net Zero energy system.

The challenge of hard-to-decarbonise sectors

Certain sectors, including energy-intensive industries, aviation, maritime, and heavy-duty vehicles, present particularly daunting – though not insurmountable – obstacles on the road to decarbonisation. Unlike more straightforward sectors where renewable energy sources or energy efficiency measures might offer clearer paths to lower emissions, these hard-to-decarbonise areas grapple with the higher costs of abatement. This term refers to the cost associated with eliminating each tonne of CO₂ emissions, which tends to be much higher in these sectors due to the current limitations and maturity of available technologies.

Diverse solutions for diverse sectors

One of the most striking features of these hard-to-decarbonise sectors is the diversity of solutions required. Each sector has challenges that demand bespoke approaches:

Energy-intensive industries:

• High temperature process heating requires very high levels of power and large amounts of energy for extended periods.
• The clustering of certain industrial sites (accounting for roughly 80% of CO₂ emissions from UK industry) presents the opportunity for shared infrastructure investments that would otherwise not be economic.
• The economic feasibility of different solutions is also influenced by the proximity of sites to relevant geological resources.
• Dispersed sites may be subject to pre-existing energy infrastructure capacities and planned investments.

Aviation:

• Long haul flights will require high energy density fuels for some time given airframe design limitations
• Regional flights (those with a range of up to 1,000 nautical miles) could use slightly lower energy density fuels, but represent only 3% of flights, 7% of aircraft CO₂ emissions and 1% of their energy demands.
• Appropriate refuelling infrastructure is needed at origin and destination airports – airports and countries cannot make unilateral decisions.

Maritime transport:

• Approximately 78% of maritime vessel CO₂ emissions come from just three types of vessels – tankers, bulk carriers and container ships – predominantly operating internationally.
• Beyond overall journey distance, the typical profile of operating modes a vessel undertakes drives CO₂ emissions and the decarbonisation solutions that might be suitable.
• Ports face the twin challenge of providing appropriate fuel for decarbonising vessels and decarbonising their land-side operations.

Heavy-duty vehicles:

• Approximately 84% of on-road heavy-duty vehicle CO₂ emissions stem from Heavy Goods Vehicles (HGVs).
• Duty-cycles and routes are major factors in the suitability of decarbonisation solutions for different types of heavy-duty vehicle.
• Some vehicles will require access to a national refuelling infrastructure, whilst some fleets can utilise energy infrastructure that could have a lower initial investment outlay.
• Certain off-highway vehicles will have limited opportunity to ‘refuel’ via fixed energy infrastructure.

Sector-specific solutions and how they depend on each other

Decarbonisation solutions must be targeted not just at the sector level but at specific sub-sectors. There is no one-size-fits-all solution. The focus must be on applying the right technologies and solutions to the right parts of each sector. This approach can lead to substantial upheavals, as these sectors transition from what have, historically been relatively uniform ways of meeting their energy needs, to more diversified and complex energy solutions.

Moreover, no sector operates in isolation. Each sector’s decarbonisation efforts are intertwined with the broader energy infrastructure and resource availability. For instance, the adoption of new fuels or technologies in one sector might affect their availability and cost in another. Therefore, the success of decarbonisation strategies in these sectors is heavily dependent on decisions made beyond their boundaries.

Work together and combining our efforts

By recognising the interconnected nature of these sectors, we have an opportunity to take advantage of the interactions that exist. By coordinating efforts and aligning strategies across sectors, it’s possible to achieve cost reductions and enhance overall effectiveness. For instance, sharing energy infrastructure or pooling resources can lead to economies of scale and accelerate the deployment of new technologies.

The UK’s innovation ecosystem, including entities like the Catapult, plays a crucial role in navigating these complexities. The Catapult can provide invaluable insights into the suitability of different decarbonisation solutions, identify when and where these solutions become viable, and uncover potential synergies across sectors. Being able to take account of the implications for adjacent sectors is essential for understanding how to best deploy resources and technologies in a way that benefits the entire system.

Decarbonising hard-to-decarbonise sectors is the next frontier in the UK’s Net Zero innovation journey. It presents a formidable challenge. By acknowledging the needs of each sector, harnessing cross-sector interaction, and coordinating efforts across the board, the UK can make significant strides towards its Net Zero goal. The path may appear complex and require upfront investment, but with targeted strategies and collaborative efforts, it is possible to navigate these sectors and achieve a clean, sustainable, and affordable future.