sustainability Archives - Page 2 of 5 - Energy Management Summit | Forum Events Ltd

Energy Management Summit | Forum Events Ltd Energy Management Summit | Forum Events Ltd Energy Management Summit | Forum Events Ltd Energy Management Summit | Forum Events Ltd Energy Management Summit | Forum Events Ltd

Posts Tagged :

sustainability

EU Hydrogen Bank could bring renewable hydrogen costs below 1 euro/kg

 960 640 Guest Post
By:

By Jake Stones, ICIS

ICIS data shows that renewable hydrogen could be sold for below €1/kg if a producer obtains the maximum support provided by the European Hydrogen Bank, according to the heads of terms for the bank published by the European Commission on 31 March.

The bank, which was announced in September 2022, aims to support hydrogen producers using an auction bidding system, which ranks bidders according to price per kilo of hydrogen.

Utilising the Innovation Fund, the commission will allocate €800m for the first auction for support from the bank, with subsidies capped at €4/kg of hydrogen. The hydrogen has to be aligned with the delegated act for renewable fuels of non-biological origin (RFNBO), also known as renewable hydrogen, and projects must reach full capacity within three-and-a-half years of being awarded funding. Funding is granted once hydrogen production starts.

Successful bidders will then be granted a fixed sum according to the volume bid, over the course of ten years. Bidders cannot win more than 33% of the available budget, and must have a project size of at least 5MW.

€1/KG HYDROGEN

ICIS assessment data from 4 April shows that renewable hydrogen produced using a 10-year renewable power purchase agreement (PPA) starting in 2026 in the Netherlands would cost €4.58/kg on a project breakeven basis. For 10-year PPA renewable hydrogen, ICIS accounts for the recovery of the capital investment for the electrolyser over the duration of the PPA, meaning by the end of the subsidised period, costs would be recovered.

Given a hydrogen producer could receive the full subsidy of €4/kg, this would mean just €0.58/kg of hydrogen would be needed to achieve capital cost recovery, meaning the producer would need to charge buyers less than €1/kg to ensure project breakeven.

Comparatively, renewable hydrogen production in Germany commencing in 2026 and utilising offshore was assessed at €5.96/kg on 4 April, meaning post-subsidy hydrogen would be just under €2/kg.

However, given the competitive nature of the bid, namely that ordering is a result of lowest-bid first, there is potential that the full subsidy will not be awarded.

Further, the auction limit depends on volume and bid amount, meaning once the €800m is allocated, there will be no further subsidy for this round.

ICIS data shows that European hydrogen demand by 2030 is forecast to reach 10.3 million tonnes (mt) by 2030. If full subsidy was distributed to all bidders, it would cover just 200,000 tonnes of renewable hydrogen, just under 2% of projected demand by the end of the decade.

The commission is aiming to hold further auctions however, meaning that the €800m is an initial starting point, not the limit, for the European Hydrogen Bank.

MARKET DEVELOPMENT

Alongside the development of hydrogen support and therefore expansion of hydrogen supply, the bank mechanism indicated the benefit of the auction system for driving competition. By awarding hydrogen to the lowest bidder, and by maintaining an auction limit of €800m, participants are encouraged to reduce costs of production where possible.

The heads of terms document for the European Hydrogen Bank notes that a fixed premium, namely a single subsidy figure provided over the course of 10 years for every unit of hydrogen produced, was opted for due to the absence of price transparency in the current hydrogen market.

By utilising a fixed premium, there is no need for a market reference price, the document outlined.

During the pilot for the European Hydrogen Bank, just renewable hydrogen is being targeted. However, low-carbon hydrogen could be included in future iterations.

On the basis of price discovery, the heads of terms noted that the auction type was referring to as “static”, meaning bidders bid a single price that is not changed. The alternative was 

noted as “dynamic” whereby bidders could receive some information on the activity of other auction participants, providing a component of price discovery.

The first auction will be held in autumn of 2023.

Carbon management adoption increasing as part of corporate sustainable development goals

 960 640 Stuart O'Brien
By:

As the urgency to combat global warming intensifies, enterprises are increasingly adopting rapid decarbonisation practices to align their business strategies with sustainable development goals (SDGs).

With a focus on addressing the dual crises of climate change and the ongoing destruction of natural ecosystems, businesses are at the forefront of sustainability efforts and are highly interested in investing in carbon management technologies to systematically reduce their CO2 emissions, says GlobalData.

Kiran Raj, Practice Head of Disruptive Tech at GlobalData, said: “From green financing and green buildings to green IT, investments in clean technology are on the rise, defying the considerable geopolitical and macroeconomic headwinds that affected most capital markets. The fast-paced adoption of carbon management technologies will continue in 2023 and beyond as governments, corporations, and investors increasingly collaborate to make the low-carbon future a reality.”

Shagun Sachdeva, Project Manager of Disruptive Tech at GlobalData, added: “Across the broad spectrum of carbon management solutions from new materials, clear sustainability disclosure standards, improved carbon capture techniques to more adaptive supply chains, companies are constantly innovating to stay ahead of the curve. The key for the companies will be to evaluate their strategies in light of growth and return projection and strike a balance between capability and profitability.

GlobalData’s Innovation Radar report, “Green business: How carbon management technologies help reduce CO2 emissions,” highlights how the real-world innovations in carbon management across industries can allow companies to either draw analogies with existing products, services, and processes or transfer strategic approaches for a revolutionary transformation.

PR17455.png

Sachdeva added: “While there has been a slow yet steady rise in carbon management concepts such as carbon assessment, reduction, recycling, trading, and green fuels in the last few years, new innovations in use cases such as carbon capture & sequestration and green IT will take carbon management ecosystem to the next level.”

Carbon capture & sequestration

Carbon capture & sequestration will play a promising role in the energy transition, especially in heavy industries like power, steel, cement and oil and gas. It refers to the suit of technologies used for capturing CO2 produced during industrial processes. In June 2022, Italy-based startup Energy Dome developed a CO2 battery for long-duration energy storage. Energy Dome claims that the battery uses CO2 to store renewable energy on the grid and can be deployed anywhere. In March 2022, Danish green-tech startup Algiecel developed a photobioreactor based on a mobile container using algae to absorb CO2 emissions from industrial processes.

Green IT

Green IT or green computing covers information and communications technology (ICT) and computing technologies with lower carbon footprints. This starts with manufacturers manufacturing sustainable products to IT departments switching to more environmentally friendly options like virtualization, power management and proper recycling habits. In February 2023, a Taiwan-based manufacturer and distributor of computer hardware, Gigabyte, introduced next-generation servers with an aim to reduce carbon emissions with its green computing solutions. In January 2023, California-based Data Center-as-a-Service provider ECL launched a modular, environmentally friendly, off-grid data center that uses green hydrogen as its main power source.

Sachdeva concluded: “Despite a strong push towards carbon management solutions, the industrial application of carbon management technologies is still in its infancy and will take significant time to scale up. No major industries currently operate in an entirely circular way. Infrastructure implementation, cost control and standard as well as lack of efficient reporting frameworks being the key challenges at present, it will be interesting to watch how companies will strategically place their bets and meet their M&A targets that not only capture the climate-focused tailwinds but also keep them insulated from the macroeconomic headwinds.”

Europe takes the lead in sustainable growth: Digital Product Passports

 960 640 Stuart O'Brien
By:

By Elena Rotzokou, Global EPR Researcher, Ecoveritas

The unprecedented number of Extended Producer Responsibility legislation that has been greenlighted since the advent of 2023 across Europe no doubt signals a new level of environmental awareness on a governmental, rather than merely social level.

European legislative bodies have mobilized themselves en masse since March 2022, which is when several proposals aimed at product sustainability saw the light of day, most notably a circular economy business model. All these proposals fall under the ambitious purview of the European Green Deal, first approved in 2020, whose goal is to achieve incremental sustainable growth so that Europe becomes the first climate-neutral continent by 2050. Green Deal legislation has proven most adaptable to the times. In the face of an era of overwhelming environmental catastrophe, which has just been capped with the war in Ukraine, the European Commission has issued a matching response: the European Digital Product Passport (DPP) initiative.

What are digital product passports? As the term implies, each product placed by a business on the EU market will need to carry its individual information passport, access to which will need to be provided via a data carrier to a unique product identifier (UID). The EU aims for a 2026 date by which to implement the legislation across three industries: apparel, batteries, and consumer electronics – with more to follow. Food and pharmaceutical products will be excluded. Through data transparency and accessibility, the product passport initiative seeks to raise awareness and encourage environmentally friendly action across all parties involved in a product’s lifecycle: manufacturers, distributors, and end consumers.

The logistics behind product passport use might seem complicated at first glance but are, in fact, straightforward: all a consumer needs to do is scan the product QR code with their phone to access DPP information. To help businesses understand their role in effectively making those passports a reality, several data specification standards have already been established at this early stage to demystify the process. For example, digital links accessible through a unique product identifier will need to be added to the products themselves rather than outer packaging or tags. Interested parties should be able to access information relating to raw materials, manufacturers, distributors, retailers, and recycling options.

Traceability systems are to be in place to enable tracking all procedures leading from raw materials to the finished product. Measures will be taken to implement data collection and combination systems to meet the reporting requirements for the passports. Whoever on the supply chain brings a product to the market will carry the responsibility for guaranteeing DPP data accuracy.

As far as the packaging industry is concerned, a range of data availability requirements are expected pertaining, among other things, to product and product packaging weight and volume, durability, reusability, reparability, the presence of substances inhibiting circularity, energy and resource efficiency, recycled content, remanufacturing, waste generation, resource use, microplastic release, and carbon footprints.

In addition to batteries, apparel, and electronics, there is pressure on more industries to adopt the DPP initiative, such as textiles (especially furniture), plastics, chemicals, construction, and automobile manufacturing. Since the 31st of January and until the 5th of December, the European Commission is conducting consultation on various product categories that will be impacted by this law, such as textiles and footwear, furniture, cosmetics, aluminum, plastic and polymer, paper, and glass.

Legislation pertaining to data accessibility and traceability information has already affected EPR laws for plastics, and so DPPs should be a crowning moment in what is already an unfolding process. If all obligated parties cooperate effectively, digital passports might come to be an inextricable part of products, to the point where, ultimately, all products come to life equipped with passports.

2026 is not far away and further guidelines are expected to start trickling in throughout the coming months to inform obligated businesses of how they should expect to be impacted by DPPs.

About the Author

Elena Rotzokou is Global Extended Producer Responsibility (EPR) Researcher at Ecoveritas. She joined Ecoveritas immediately after completing a master’s degree in English at the University of Oxford. She has brought the advanced research, writing, and communication skills she honed during her academic studies to Ecoveritas, where she performs research on EPR regulations worldwide, writes reports and blog posts, and facilitates external liaisons with clients. 

Research urges more use of excess heat for energy

 960 640 Stuart O'Brien
By:

New data from Danish engineering group Danfoss has highlighted the vast untapped potential of excess heat as a source of energy.

In the EU alone, excess heat amounts to 2,860 TWh/y, corresponding almost to the EU’s total energy demand for heat and hot water in residential and service sector buildings such as schools, hospitals, hotels, restaurants, offices and shopping centers.

A full implementation of technologies that tap into synergies between different sectors and enable a utilization of excess heat has the potential to save EUR 67.4 bn a year once fully implemented in 2050.

Every time an engine runs, it generates heat. Anyone who has felt the warmth behind their fridge can confirm this. The same is true on a larger scale in supermarkets, data centers, factories, wastewater facilities, metro stations and commercial buildings. Excess heat can be reused to supply a factory with heat and warm water or reused by neighboring homes and industries through a district energy system.

Using this energy that would otherwise go to waste can give a productivity boost to the economy and lower energy prices for consumers, says the whitepaper.

Utilizing excess heat can replace significant amounts of fossil fuels that are otherwise needed to produce heat. Used this way, excess heat can help stabilize the future electricity grid and thereby ease the transition to a green energy system.

In some countries the excess heat can even match the entire heat demand. In the Netherlands, excess heat amounts to 156 TWh/y while the heat demand is only 152 TWh/y.

Yet the potential of excess heat is not even close to being utilised and is politically ignored, asserts the whitepaper.

According to Kim Fausing, President & CEO of Danfoss, recycling heat is not only an overlooked measure in the current energy crisis, but also the next frontier of the green transition: “Energy demand is set to grow dramatically in the years to come due to population growth and rising incomes. Without urgent action to tackle the demand side of the green equation, using every single unit of energy more efficiently, we will not get on track to meet global climate goals,” Kim Fausing adds.

The whitepaper, titled ‘The world’s largest untapped energy source: Excess heat’ assesses the potential of excess heat as an efficient energy source. According to the International Energy Agency (IEA), a global push for more efficient use of energy can reduce CO2 emissions by an additional 5 gigatons per year by 2030 compared with current policy settings. A third of the reduction needed in energy-related CO2 emissions this decade according to the IEA net zero scenario must come from improvements in energy efficiency.

In terms of energy security, these energy savings can help avoid almost 30 million barrels of oil per day and 650 billion cubic meters (bcm) of natural gas per year (around four times what the EU imported from Russia in 2021).

“The potential in reusing excess heat is staggering. But we need to change our perspective on it and begin to consider excess heat as an energy resource instead of waste to be disposed of,” adds Kim Fausing.

“Today there are a number of barriers that prevent us from reusing excess heat including lack of information and regulation. We have to introduce economic incentives, policy measures and prioritization of partnerships between local authorities, energy suppliers and energy sources to help maximize the full potential of excess heat.”

Toby Morgan, Senior Manager, Built Environment, Climate Group, said: “The global energy crisis is a wakeup call to stop wasting energy, and Danfoss is right to call for governments and corporates to seize the enormous potential of excess heat. Now more than ever we need to make better use of the energy we already produce, we simply can’t afford to let it literally escape out the window. Energy efficiency improvements, like capturing and recycling excess heat, are absolutely critical to lower fossil fuel demand and lower bills.”

IT service providers actively targeting ESG opportunities

 960 640 Stuart O'Brien
By:

IT services providers that are expanding their portfolios to target environmental, social and governance (ESG) opportunities are making a wise move as many enterprises require assistance developing and implementing ESG-related initiatives, says GlobalData.

The leading data and analytics company notes that these companies must continue to adapt to shifting market dynamics to stay ahead of the curve.

According to a recent GlobalData survey, 34% of respondents indicate that their company has made adjustments to its ESG initiatives in the last 12 months.

Rena Bhattacharyya, Service Director for Enterprise Technology and Services at GlobalData, said: “For the most part, IT service providers are focusing on the environmental aspect of ESG by offering services and solutions related to sustainability such as carbon emissions assessments and advice on methods for reducing carbon footprints.

“Additionally, providers are helping customers implement circularity with strategies targeting reuse, reduce, and recycle initiatives. IT services providers are also embedding the sustainability conversation into the sale of complementary solutions, such as procurement and supply chain-related products, or smart city and fleet management solutions.”

GlobalData’s latest reports, ‘IT Services Providers Build Portfolios to Monetize ESG (part 1)’ and, ‘IT Services Providers Build Portfolios to Monetize ESG (part 2)’, found that IT services providers are developing sustainability portfolios to help customers with ESG-related initiatives, but not all are equally well-positioned in this emerging area. Many focus primarily on sustainability, but the most forward looking are offering best practices related to inclusivity.

Providers utilize a variety of strategies to expand their portfolios, ranging from acquisitions and partnerships to development of new services and solutions, and re-packing of existing tools. For example, IT services providers, including Accenture, Atos, and IBM acquired niche players that focus on emissions consulting or data analytics services.

Bhattacharyya added: “Not surprisingly, given the importance of sustainability in Europe, acquisition targets tend to be based in that region. However, the competitive landscape is evolving quickly with repositioning of players likely as acquisitions continue and as small ESG-focused boutique consultancies continue to carve a niche for themselves in the market.”

Most IT services providers offer little in the way of guidance to customers when it comes to the social and governance aspect of ESG. However, this lack of focus on social and governance-related offerings may change as ethical issues, particularly with respect to data management and privacy, cloud sovereignty, artificial intelligence, and the metaverse, become increasingly top of mind amongst organizations, and regulatory requirements evolve and mature, especially for emerging technologies.”

Bhattacharyya concluded: “Looking ahead, IT services players will need to embed sustainability elements in all business operations and not as a separate workstream.

“Although environmental sustainability is receiving a large amount of focus at present, other aspects of ESG will become increasingly top of mind. Issues related to data privacy, ethics, bias, and Responsible AI will continue to grow in importance and organizations will need help responding to these governance-related issues.”

Change or be changed – The looming threat of regulation for data centre energy use

 960 640 Guest Post
By:

By Simon Harris, Head of Critical Infrastructure at BCS

Climate change and the global response of Net Zero has dominated the political discourse in recent years. There appears to be widespread agreement within the data centre industry – as a major and growing consumer of power – that it has an important role to play in the debate and resulting actions to implement change to limit and ultimately reverse the damage caused by historical methods of power generation.

According to the findings of the latest BCS Summer Report 2022, which showcases the views and insights of over 3,000 senior industry professionals, there is a firm commitment amongst respondents to move towards a renewable-sourced future.  However, there are also strong concerns that regulation could be placed on the industry to push initiatives for the greater use of renewable sources of power at a more rapid rate, with around 90% of those surveyed believing that this could be introduced to ensure greater compliance.

Despite the industry taking action, the direction of travel in the political realm suggests that regulation could be placed on the industry due to increasing socio-political pressures and Net Zero requirements

Should the industry self-regulate?

The issue of regulation is always difficult. There is of course a need for industries to operate within a regulatory framework to ensure standards on many aspects. However, the extent of that regulation lies at the very heart of the fundamental debate of state intervention in the private sector and its implications for how business operates. There is a real and practical debate to be had, and in the real world there are industry groups to influence policy makers and legislators to ensure positive outcomes without stifling industry growth. Sensible policy makers accept and welcome this knowledge as it provides – accepting a degree of self-interest – knowledge, experience, and expertise on an issue from those with the greatest exposure to it.

In turn those reputable businesses accept the need to operate their business within a sensible regulatory framework as it provides a stable and secure environment and gives their customers confidence around industry standards. The argument around self-regulation is to what extent processes within the industry need to guide and frame within a legal process and how much can be voluntarily supported and provided.

For the data centre industry there is little doubt that the industry recognises the need to move forward with power optimisation and sensible sourcing initiatives. There are several high-profile groups and initiatives already in operation including the voluntary European Code of Conduct for Energy Efficiency in Data Centres and the Climate Neutral Data Centre Pact for example. The argument here is that those within the industry – and whose bottom lines it will directly impact – are best placed to know how to innovate and produce solutions. Around three-quarters of all our survey respondents believe that self-regulation offers the best course of action to aid the push to meet Net Zero targets. Around 94% of developers and investors, and 85% of service providers indicated this view.

There are ambitious targets to be achieved by 2025 and 2030 under the green deal, and it begs the question that if our sector doesn’t get ahead of these targets, will this be the catalyst that sees the self-regulatory initiative become legislative and regulated?  Our sector is at a crossroads with one route being proactive, investing in new technologies, self-generation and looking at innovative storage solutions to reach climate neutral targets. The other route is having legislation and regulation imposed on us and having to react to the imposition of energy, water and emission targets that we have no influence over. The outcome is uncertain.

Is data the key to reducing power & meeting sustainability goals?

 960 640 Guest Post
By:

By Chris West (pictured), Head of Managed Service, Keysource

A growing number of customers are committing to sustainability/Net Zero targets and asking us to help them understand the journey to achieving their IT and data centre related goals. 

Know what you’ve got

Our starting point is simple – organisations need to get visibility of the utilisation of their compute in order to then optimise it.  The deployment of DCIM (Data Centre Infrastructure Management) is the critical first step to see the compute, storage and networking, where it is and crucially what the hardware is.

Recent enhancements in software technology now allow us to interrogate IT (through management interfaces and industry standard monitoring protocols such is IPMI) to understand the actual utilisation of IT and this can present a number of opportunities for optimisation which can lead to a more sustainable solution. This could for example show that current servers are under utilised and that these could be consolidated, or that a technology refresh is needed to replace equipment with new more efficient hardware. Our findings show that on average, compute is only about 16% utilised and we are regularly able to make this as high as 60% once we have the data.

Accountability

If we can start to get visibility of utilisation, we can start to drive accountability for it. With optimisation statistics on individual servers, we can start to make platform managers and business segments accountable for their compute. Couple this with information on the power draw and we can start to monetise the cost of the inefficiencies.

The next stage is to leverage this information to keep driving efficiency. Currently, it is recognised as good practice to ensure that our data centres are scalable and have good levels of resilience so they are often designed for “day 2 load”  – meaning we can accommodate the ever expanding IT should we need to.

Get dynamic

“Day 1 loads” are invariably much lower than the capacity of the infrastructure, often resulting in a “low load” operation. Low load often means that we run with a greater level of resilience than we need (N+3 instead of design N+1), so we have more M&E powered than we really need. Another function of low load is that M&E systems are often not as efficient as designed and for example might be overcooling with low return air temperatures and reduced free cooling.

The technologies used to understand IT utilisation (including intelligent BMS) can also provide us with power draw information, giving us a clear picture of our IT load. If we leverage this then we can write dynamic programs to match our operating M&E to the requirements of the IT load – shutting down M&E we don’t need.

Predictive algorithms

We can also use these technologies to react quickly to failures in M&E including predictive algorithms to identify when systems are likely to fail and also to preempt operations.

These predictive technologies can in turn also contribute to sustainability goals. We can leverage technology to understand M&E equipment run hours and adapt our planned maintenance programs to service equipment when it is needed, not simply based on a calendar year. Consider your scope 3 emissions (which include your supply chain) and the savings that could be made against unnecessary travel and the replacement of consumables you don’t yet need.

The Future

Data can play a vital role in helping us to make informed choices by collecting and leveraging data and enabling the technology to drive value and reduce power usage and carbon. However, the software won’t do this alone as it needs to be part of a broader consistent approach.

Can we get to Net Zero by 2030?

 960 640 Guest Post
By:

By Steve Lorimer, Group Technical Director at Keysource

In 2021, 25 operators and 17 associations in the data centre industry pledged to be net zero by 2030, when they signed up to The European Data center Association’s Climate Neutral Data center Pact (CNDCP).

They committed to three-quarters of the energy used by their data centre facilities to be renewable or carbon-free by 2025, and completely carbon-free by 2030.  The dichotomy however is that demand for computing power and digital services is growing fast. In the last decade, global internet traffic increased ten-fold and data centre energy use is likely to increase accordingly by 2030.  As a result, there is much talk within the market about sustainable solutions, and innovative ways to reduce carbon emissions.

Let’s take a step back and look at what sustainability means for a data centre and what does the next generation data centre need to have for sustainability to be at its core…

Building efficiency

Historically a lot of decisions and considerations around data centre facilities have related to commercial incentives and lower operating costs. It’s only more recently that the focus has shifted to how sustainable the building, its infrastructure and the operation of the facility is and there is now some excellent work being done. However, in my view, it’s going to require an even bigger step forward to hit the net zero target.

Performance related M&E Infrastructure improvements will continue to be relevant but ultimately these will be further enabled and driven by the performance and technologies implemented at the IT layer – after all the ability to deliver the workload in the most sustainable manner is the ultimate goal.

This can only be done by ensuring that resource utilisation measurements are aligned against the relevant IT performance statistics to drive a relevant KPI/metric for the given organisations use case. Historically the focus has been on carbon reduction achieved both through energy optimisation, and plant upgrade including implementation of newer technologies. As our energy sources decarbonise, considering whole life carbon of the services will become more critical, as embodied carbon becomes a more dominant factor.

This is somewhat at odds with the cyclical nature of both IT lifespan and the supporting M&E infrastructure so ensuring that facilities are designed and implemented with this in mind is critical. Using existing best practice considerations including right sizing, modular implementation and appropriate implementation of resilience will continue to form the bedrock; reducing embodied carbon whilst optimising performance. However, having the ability to accommodate new and future IT technology requirements (such as direct liquid cooling), without wholesale plant replacement, and whilst still maximising energy performance, will be critical to keeping equipment relevant and therefore maximising lifespan.

Reap the benefits

Professional data centre operators will be challenged from numerous angles moving forward to demonstrate their carbon reduction credentials. That will include: planning and permitting new facilities or upgrades; meeting reporting and disclosures which will now in some case be under a legal mandate to provide; or just addressing internal operational improvement obligations. Increasingly operators will need to regularly reciprocate more data with their clients to meet each of their own obligations. From raw materials to water and energy use, the whole supply chain across the facility lifecycle will need to become more mature in both its consideration of resources and the availability of relevant data.

This increased pressure from both up and down the supply chain, along with pressure from investors, may mean data centres who can achieve the 2030 target on time or earlier, whilst integrating seamlessly with customers and supply chain, will come out on top. Not only will they reduce their impact on climate change but also their operating costs through increased operating efficiencies, whilst maximising the value of existing capacity, and helping to comply with regulations and initiatives. 

Conclusion

The data centre sector has made some huge changes during a complex and challenging time and we should all feel proud of the progress that has been made to date. However, to become truly sustainable there are still many things that must change and practices that must end. There is no doubt that it is only through a wholesale approach that our sector can reach net zero. We cannot afford to stand still.

Government puts livestock methane production in spotlight

 960 640 Stuart O'Brien
By:

The UK Government has launched a UK-wide call for evidence asking agricultural industry, scientists and the wider public for information on the use of new types of animal feed products that can reduce methane emissions from livestock.

Ruminant livestock – cows and sheep – are the leading cause of farm greenhouse gas (GHG) emissions. However, feed products with methane inhibiting properties have shown potential in reducing reduce GHG emissions, especially from housed cattle. These products may include ingredients like methane production inhibitors, seaweeds, essential oils, organic acids, probiotics, and antimicrobials.

The consultation has been launched in agreement with the Devolved Administrations of Northern Ireland, Scotland and Wales. The governments are seeking to find out how farmers and agri-businesses can increase adoption of this technology to support more sustainable protein production. It will consider the current role of feed additives within our farming systems, and the potential barriers that could prevent the introduction of methane suppressing feed products in both the near and long-term future.

In 2019, agriculture accounted for 10% of total UK greenhouse gas (GHG) emissions, with methane accounting for approximately 54% of agricultural emissions. The UK Government has set an ambitious target to achieve net-zero GHG emissions across the whole UK economy by 2050. To meet this target all sectors must reduce their GHG emissions.

Agricultural greenhouse gas emissions have reduced by 16% since 1990 (as of 2020) thanks to innovation and advances in technology, with many farms using more efficient agricultural practices. Government emissions and production statistics suggest that since 1990 we are producing a litre of milk with 21% less GHG emissions. Efficiency gains in dairy farming mean that we are now producing 11% more milk than we were in 2000 with 24% fewer cows.

Farming Minister, Victoria Prentis said: “We’ve set out ambitious targets to achieve net-zero greenhouse gas emissions by 2050 and it’s right to consider how we can help farmers produce food sustainably and reduce emissions from agriculture further.

“Well managed livestock can provide various environmental benefits and meat and dairy can both be an important part of a balanced diet. Through this call for evidence we’ll better understand the promising role emerging feed additive technologies for cattle could play and how government can help drive its development.”

Minister for Rural Affairs Lesley Griffiths said: “We need to develop a resilient and prosperous agriculture sector which reduces its carbon emissions and greenhouse gases through a range of approaches including the possibility of adoption of important technologies. We want to work with our farmers and industry to achieve this and I encourage everyone involved in the industry in Wales to respond to the call for evidence.”

Scotland’s Cabinet Secretary for Rural Affairs and Islands, Mairi Gougeon, said: “The Scottish Government has ambitious climate change targets and, to meet them, agriculture in Scotland needs to reduce its emissions by 31% from 2019 levels by 2032. Methane is a potent greenhouse gas and therefore methane reducing feed additives have the potential to be a crucial part of the solutions that the agriculture sector needs to deploy towards achieving our climate ambitions.

“That is why I welcome this four nations effort to improve our understanding of the use of this innovative new technology in the sector, which will inform each government’s approach to future policy-making in this area. I would encourage the Scottish farming community to respond to the call for evidence and make their views known.”

Agriculture, Environment and Rural Affairs Minister Edwin Poots MLA said: “Following my consultation on future agricultural policy for Northern Ireland earlier this year, I announced that the use of feed additives to reduce enteric methane emissions, nitrogen and phosphorus outputs would be progressed by collaborative industry research. This UK wide call for evidence will provide further guidance to guide us along the path to reduced methane emissions from our livestock industry.”

While food choices can have an impact on greenhouse gas emissions, well managed livestock also provide environmental benefits such as supporting biodiversity, protecting the character of the countryside and generating important income for rural communities.

A robust approval process is adopted for these products and takes into consideration the health and welfare of the animals, food safety and implications for human health and the wider environmental impact of these products.

On 27 June 2019, the UK became the first major economy in the world to set a legally binding target to achieve net zero greenhouse gas emissions from across the whole UK economy by 2050. The UK was also amongst the first signatories of the Global Methane Pledge launched at COP26, aiming to reduce global methane emissions by at least 30% by 2030, against 2020 levels.

As part of the effort to achieve our net zero ambitions, the UK Government and the Devolved Governments are considering a wide range of measures to reduce emissions from our agricultural sectors. The use of feed additives and other animal feed with methane suppressing properties have been shown to potentially reduce methane emissions, especially from dairy and beef cattle, and is one such measure being explored.

Emerging tech ‘critical’ to manufacturers who want to embrace the Circular Economy in difficult times

 960 640 Stuart O'Brien
By:

A study by Sage has revealed advances in technology and innovation (72%) as the biggest driver of Circular Economy (CE) strategies in manufacturing and distribution.

Its “The State of the Circular Economy” report shows the industry is paying greater attention to the need for, and benefits of, the Circular Economy (CE). It comes in response to the growing importance of sustainable business practices to over 60% of employees, customers, shareholders, and supply chain partners alike.

CE is based on the principles of designing out waste and pollution, keeping products and materials in use, regenerating natural systems, and supporting environmental sustainability. 84% of senior leaders say building and implementing a CE strategy is now part of their role, with 32% stating it is central to their duties.

Rob Sinfield, Head of Business Unit, Sage X3 and Sage Intacct Manufacturing, said: “Sustainability is increasingly becoming a non-negotiable for modern manufacturers and distributors. While business goals remain front of mind, the industry equally recognises the importance of environmental drivers, with energy-efficiency and helping the environment as key motivations for pursuing a sustainability strategy.

“As a result, 32% of organisations adopting circular economy strategies are already reaping the rewards – from greater profitability and productivity to improved resource usage and an enhanced brand reputation. Better yet, a further 32% believe they will achieve benefits within the next three years.”

Manufacturers and distributors see new technology and innovations (72%) as a key enabler to adopting CE and sustainability strategies, and concerns arising from inaction such as damaged brand perceptions (46%) and reduced long-term profitability (46%) are consolidating the need for investment.

The promise of technology and innovation

Digital transformation is fundamental to delivering a CE strategy. The research found manufacturers and distributors ranked cloud applications (74%), data analytics (68%), and automation (67%) as the most important technologies for running a business more sustainably.

  • Cloud applications and infrastructure is impacting nearly every aspect of modern manufacturing already. The cloud enables manufacturers to develop products more effectively and support sustainable practices such as 3D printing.
  • Data analytics for predictive intelligence is helping businesses to refine their product development, optimize supply chains, and monitor equipment to increase resource efficiency.
  • Automation boosts productivity by speeding up workflows and reducing human error. It also provides valuable data-driven insights that can be analysed to improve production performance and sustainability.

However, the industry has more to do when it comes to technology adoption. Despite 61% citing cloud apps as helpful in collecting, analysing, and reporting on their CE capabilities, public cloud usage is far from universal among manufacturers and distributors. In fact, only a minority of respondents say they use public cloud for core apps such as supply chain (39%), CRM (38%), business intelligence (35%), human resources management (34%), ERP (32%) and payroll (29%).

Overcoming the barriers to sustainable transformation

Organisations want to take advantage of the opportunities presented by becoming more sustainable, such as improved reputation (50%), increased energy efficiency (47%), increased business resiliency (46%) and a reduced impact on the environment (46%).

But despite recognizing the many advantages, global manufacturers and distributors are struggling to realize the full benefits. Navigating a turbulent external market, with its own immediate challenges of rising costs (72%), supply chain disruptions (71%) and changing customer demands (68%), is taking up valuable resources that leaders could otherwise invest in future-proofing their business.

Furthermore, two-thirds (67%) of manufacturers and distributors still need to transform their business operations in order to shift to CE. 64% of those companies say transformation is a significant barrier and is hindering their pursuit of greater sustainability. Finding people with the right expertise (71%) is the biggest challenge, along with cost and budget limitations (68%) and updating technology integrations and processes (68%).

Tech expert Isaac Sacolick, President and Founder of StarCIO, said: “Organisations can overcome these barriers with innovative thinking. Recruiting from a wider talent pool to bring data and analytics skillsets into the fold will help manufacturers and distributors see the bigger picture – what can I solve today, how can I become more sustainable tomorrow, and where do I want to be in 10 years.

“With greater data insights at their fingertips, organisations will be able to identify the most suited use cases for automation and transformative technologies to enhance their cost efficiency and free up time to focus on the pressing need for a circular economy and sustainability strategy.”