2050 scenario analysis using the eu cti 2050 roadmap tool...nov 10, 2019 · insights from the...
TRANSCRIPT
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EU CTI 2050 Roadmap Tool
2050 scenario analysis using the EU CTI 2050 Roadmap Tool
Industry – Support Material for Beta-testers
October 2018
Michel Cornet
Julien Pestiaux
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EU CTI 2050 Roadmap Tool
Content
2 14/11/2018
Project context
Modelling approach
Ambition levels & main assumptions
Bibliography
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EU CTI 2050 Roadmap Tool CONFIDENTIAL3 14/11/2018
Structure of the ECF EU CTI 2050 Roadmap model
Buildings
Model core
Energy requirements by sector
Demography, economy and lifestyle assumptions
Transport Manufacturing
Fossil fuels
Demand activity input
Energy supply
Impact on resources
Land
Outside the EU
Foodproduction
Lifestyle DemographyEconomy, fuel prices
Technologies, Energy & Resources Trans-boundary effects,Trade, & Flows
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EU CTI 2050 Roadmap Tool CONFIDENTIAL4 14/11/2018
Structure of the ECF EU CTI 2050 Roadmap model
Buildings
Model core
Energy requirements by sector
Demography, economy and lifestyle assumptions
TransportResidential Commercial
Heating technologiesAppliance efficiencies
Passenger CommercialTransport Technologies
Manufacturing
Product DesignMaterials production
Fossil fuels Fossil fuel reserves
Demand activity input
Energy supply
DietTravel demand, mode & occupancy
Compactness of buildingsAppliance use, product demand
Electricity productionHeat production
Transport & DistributionStorage
Impact on resources
DemographyUrbanization trends
Land
Outside the EU
FoodEnergy
GHGMaterials & resources
Fossil fuel pricesEconomy evolution
Foodproduction
LivestockCrops
Land allocationForestryBiomass
Lifestyle DemographyEconomy, fuel prices
Technologies, Energy & Resources Trans-boundary effects,Trade, & Flows
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EU CTI 2050 Roadmap Tool5 14/11/2018
4 ambition levels are used as boundaries to create scenariosAny value can be chosen in between
Level 3Level 2Level 1Level 0
• Current development (existing legal obligations)
• No additional effort• « BAU scenario »
• Increased ambition compared to BAU
• No breakthrough, but more extensive use of existing technologies
• Ambitious: Significant effort requiring extensive changes in the system, leveraging best practices available today
• Typically reaching –85%
• Transformational: Max potential based on transformational changes but reflecting technical or physical constraints
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EU CTI 2050 Roadmap Tool
Content
CONFIDENTIAL6 14/11/2018
Project context
Modelling approach
Ambition levels & main assumptions
Bibliography
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EU CTI 2050 Roadmap Tool14/11/2018 CONFIDENTIAL7
Industry sectors are linked to products from other sectors
CCS
Technology choice
Additional consumption
Specific consumption per technology
Lifetime & utilisation
Energy efficiency
Fuel switch
Sector activity
Product demand
Product productionin EU
Material production
Secondary material
Share EU materials
Products per activity
X
Product production
X
Share EU products
X
Material intensity
X
Design
Material productionper origin in EU
Material productionper origin
X
X
Material production per technologyX
Energy consumption per technology
Energy consumption per technology
X
X
Levers
Legend
Variables
Material switch
Product demand Material demand Material production
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EU CTI 2050 Roadmap Tool
SOURCE: EUCalc
14/11/2018 CONFIDENTIAL8
The CTI industry modelling logic is very similar tothe EUCalc industry modelling logic (the later is still under development)
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EU CTI 2050 Roadmap Tool
Content
CONFIDENTIAL11 14/11/2018
Project context
Modelling approach
Ambition levels & main assumptions
3 slides summary
Historic calibration
Lever assumptions and scenarios choices
Bibliography
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EU CTI 2050 Roadmap Tool
Insights from the Ambitious and Transformational scenarioProduct demand
CONFIDENTIAL12 14/11/2018
Topic Elements Level 2 scenario Level 3 scenario
High reductions are achievable in industry
• GHG emission reductions• GHG emission reductions without
CCS
• ~ - 80% reduction is achievable• ~ - 35% reduction is achievable
without CCS
• ~-95% reduction is achievable• ~-80% reduction is achievable
without CCS
Product demand(Most actionable lever)
• Spread of choices for consumers in Buildings, Transportation and Food products (steel illustration on next slide)
• Leads to a 30% increase in product demand
• Relies on an ambitious change in consumer behaviours
• Assumed slightly longer lasting higher added value products
• Assumes some shifts to a functional economy
• This scenario leads to a 30% decrease in product demand
• Relies on an complete change in consumer behaviours
• Assumed longer lasting higher added value products
• Assumes major shifts to a functional economy
Share of products and materials manufactured in the EU
• Trade balance of products• Trade balance of materials
• The current trade balance is kept for products and materials in both scenarios. This is the consequence of assuming a level playing field
• Regarding products; there is a minor export balance of transport vehicles, a neutral balance of buildings and some imports of consumer goods
• Regarding materials, there is a 2-5% net import balance of steel and chemical products with some export of clinker
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EU CTI 2050 Roadmap Tool
Insights from the Ambitious and Transformational scenarioMaterial demand
CONFIDENTIAL13 14/11/2018
Topic Elements Level 2 scenario Level 3 scenario
Design(2nd most actionable lever)
• Product lifetime/utilisation • General• Product lifetime +10%• Products utilisation +10%
• Cars are more used, leading to a decreased lifetime of 9 years
• Buildings renovations are not associated to a lifetime
• General• Product lifetime +15%• Products utilisation +15%
• Cars are even more used, leading to a decreased lifetime of 6.5 years
• Buildings renovations are not associated to a lifetime
• Material switches driven by large investments and regulatory pressure (e.g. insulation in buildings)
• In vehicles, 10% of steel is substituted by carbon fibres
• In buildings and infrastructures, 10% of concrete is substituted by insulation materials
• In vehicles, 20% of steel is substituted by carbon fibres
• In buildings, 20% of concrete is substituted by insulation materials (5% in infrastructures)
• Material intensity, through better design and better materials
• 5% material reduction through better design (e.g. better moulding techniques)
• 3-15% material reduction through the use of better materials
• 10-20% material reduction through better design (e.g. through more use of 3D printing)
• 6-30% material reduction through more efficient materials (especially through the use of composites and polymers, but also better dimensioned used of cement mixes)
• Use of recycled materials • Steel scrap reaches 56%• Recycled plastics reach 7.5%• 66% clinker in cement
• Steel scrap reaches 75%• Recycled plastics reach 10%• 10% clinker in cement
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EU CTI 2050 Roadmap Tool
Insights from the Ambitious and Transformational scenarioMaterial production
CONFIDENTIAL14 14/11/2018
Topic Elements Level 2 scenario Level 3 scenario
Processes • Process changes and Energy efficiency (new plants, investments in existing plants and switches to new technologies)
• In steel BOF : 5% EE on classic plants, 9% switches to HIsarna
• In chemicals: 20-25% EE improvements• In cement, 18% EE in clinker; no more
wet clinker, and polymer cement makes 10% of the production
• In steel BOF: 10% EE on classic plants, 30% switches of Hisarna
• In Steel EAF: 5% EE• In chemicals, 40-50% EE improvements
(assuming hydrogen conversion)• In cement, 30% EE in clinker, no more
wet clinker, and polymer cement makes 20% of the production
• Electrification and gasification • In steel BOF, 2.5% of coke is substituted by gas
• In chemicals, 40% of fossil fuels are substituted by electricity (through resistive heating), 20% of the remaining solid and liquid fuels are substituted by gas.
• In steel BOF, 5% of coke is substituted by gas
• In chemicals, 60% of fossil fuels are substituted by electricity (through resistive heating), 30% of the remaining solid and liquid fuels are substituted by gas.
Hydrogen • Technology change to hydrogen • In Steel: 10% hydrogen route • In chemicals: 30% of ammonia and
nitrogen, 10% for other
• In Steel: 30% hydrogen route• In chemicals: 60% in ammonia and HVC,
5% HVC, 30% for other
Biomass(incl. CCU)
• Fossil fuel switch to biomass• Use of biomass in the feedstocks
• In steel BOF 15% of coal is substituted by biomass
• In chemicals, 10% of fossil fuels are substituted by biomass
• In cement, 46% of fossil fuels are substituted by biomass
• In steel BOF 15% of coal is substituted by biomass
• In chemicals, 30% of fossil fuels (incl. feedstocks) are substituted by biomass
• In cement, 100% of fossil fuels are substituted by biomass
CCS • Share of emissions captured with the technology
• Steel (classic) 38% and HIsarna (85%)• HVC and other chemicals 50%• Ammonia and nitrogen 85%• Cement clinker production 64%
• Inclusion of CCS is ambitious• HVC 62% and other chemicals 50%• Ammonia and nitrogen 85%• Cement Clinker 85%, polymers 80%
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EU CTI 2050 Roadmap Tool
Content
CONFIDENTIAL15 14/11/2018
Project context
Modelling approach
Ambition levels & main assumptions
3 slides summary
Historic calibration
Lever assumptions and scenarios choices
Bibliography
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EU CTI 2050 Roadmap Tool14/11/2018 CONFIDENTIAL16
Historic calibration is performed from 2005 to 2015
Products Materials Energy consumption Emissions
• Product demand from the other sectors, aligned with desk research
• Share of products manufactured in the EU (no credible source found for all sectors)
• Specific material consumption per product from Global Calc and “With both Eyes open”(1)
• Share of materials manufactured in the EU from Eurostat
• Energy vector use for energy or feedstocks from Eurostat
• Split per origin (primary & secondary) and per technology (e.g. BOF, Hisarna) aligned with desk research
• Specific process emissions from literature
• GHG emissions from combustion and processes from Eurostat
SOURCE: (1) With both Eyes open, Julian M Allwood, Jonathan M Cullen, 2012 Cambridge UIT
Gaps pluggedGaps plugged Gaps plugged Gaps plugged
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EU CTI 2050 Roadmap Tool14/11/2018 CONFIDENTIAL17
Material calibration covers most of the base year product demand
26 1596
Other industries
50150
Steel Chemical HVCChemical Ammonia
Chemical Nitrogen
Chemical Other Cement
1395
Fertilizer
Airplanes
Residential buildings
Other buildings
Batteries
Consumer packaging
Other cement
Other
Other chemical Nitrogen
Other chemical Other
Other steel
Other chemical Ammonia
Electrical equipment
Other chemical HVC
Wind turbines
Electrical cables
Pipes
Mechanical equipments
Appliance
Metal goods
Ships Freight
Infrastructure
Rail Passenger
Cars & light truck
Cars & light truck EV
Trucks
Ships Passengers
Rail Freight
PV panels
Material demand per product[Mt, before design & switch]
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EU CTI 2050 Roadmap Tool
SOURCE: Global Calculator, Climact analysis
14/11/2018 CONFIDENTIAL18
Historical calibration for product demand(transport sources)
Product Stock demand [units] Annual demand [units] Source
Passenger Vehicles
= 512 million people (1)
*49% car ownership rate (1)
Function of total transport demand, (pkm), modal share (%), occupancy rate (pkm/vkm) asset use rate (vkm/year)
Vehicles are the sum of A) the replacement rates for the current fleet +B) the potential positive increases year on year in vehicle fleet size
(1) Eurostat(2) EU CTI Transport module
Passenger ships
=395 million ships passenger in EU in 2015(1)
/400 ships have 400 people capacity (2)
/300 functions 300 days per year(2)
From stock with lifetime (1) Eurostat(2) Climact
Freight ships =3.8 billion tonnes in EU in 2015 (1)
/ gross tonnage of 7400 tons per ship (1)
/30 trips per year(2)
From stock with lifetime (1) Eurostat(2) Climact
Passenger Rail = 40 000 passenger locomotives in stock on EU market (1) From stock with lifetime (1) Eurostat
Freight rail = 50 000 locomotives in stock on the EU market (1)
-40 000 for passenger transport(2)From stock with lifetime (1) Statista
(2) Eurostat
Airplanes =918 million air passengers (1)
/170 planes have 170 passenger capacity (2)
/4 Assumption of 4 flights per day (2)
/300 functions 300 days per year (2)
(In line with 20,000 airplanes operating in the world (3))
From stock with lifetime (1) Eurostat(2) Climact(3) Boeing
Batterie Not assessed = # of electric vehicles + x * # of electric trucks (1)
(1) EU CTI Transport module
BACKUP
http://ec.europa.eu/eurostat/statistics-explained/index.php/File:Figure_2_Number_of_passenger_cars_per_1000_inhabitants,_2015.pnghttp://ec.europa.eu/eurostat/statistics-explained/index.php/Maritime_ports_freight_and_passenger_statisticshttp://ec.europa.eu/eurostat/statistics-explained/index.php/Maritime_ports_freight_and_passenger_statisticshttp://ec.europa.eu/eurostat/statistics-explained/index.php/File:Figure_1_Number_of_passenger_railway_vehicles,_selected_countries,_2015.pnghttps://www.statista.com/statistics/453306/european-countries-number-of-locomotives-and-railcars/http://ec.europa.eu/eurostat/statistics-explained/index.php/File:Figure_1_Number_of_passenger_railway_vehicles,_selected_countries,_2015.pnghttp://ec.europa.eu/eurostat/statistics-explained/index.php/Air_transport_statistics
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EU CTI 2050 Roadmap Tool
SOURCE: Global Calculator, Climact analysis
14/11/2018 CONFIDENTIAL19
Historical calibration for product demand(Buildings & food sources)
Product Stock demand [units] Annual demand [units] Source
Residential buildings
= 512 million people (1)
*(103,8+93,8)/2 average gross surface of the dwellings (1)
/2,3 number of people per dwelling (1)
Material intensity of renovations is 10% /m² of material intensity of new builds
From stock with lifetime (1) Eurostat(2) EU CTI Buildings module
Other buildings
17% of residential buildings (1)
Material intensity of renovations is 10% /m² of material intensity of new buildsFrom stock with lifetime (1) Global
calculator
Infrastructure 500% of residential buildings (1) From stock with lifetime (1) Global calculator
Mechanical equipment
Not modelled Not modelled /
Appliances Not modelled Not modelled /
Metal goods =280kg (Fridge/freezer 100kg, Oven 60kg, Microwave 20kg, Washing machine 100kg)(2)
* 512 million people (1)
/2.3 persons per households(1)
From stock with lifetime (1) Eurostat(2) Climact
Consumer packaging
512M inhabitants (1)
* 160kg per inhabitant per year (2) (1) Eurostat(2) Eurostat
Fertilizers 22 million tons (1) FAO
BACKUP
http://ec.europa.eu/eurostat/statistics-explained/index.php/File:Development_of_packaging_generated_per_inhabitant,_EU-27,_2005%E2%80%932014.pnghttp://www.fao.org/3/a-i4324e.pdf
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EU CTI 2050 Roadmap Tool
SOURCE: Global Calculator, Climact analysis
14/11/2018 CONFIDENTIAL20
Historical calibration for product demand(Supply sources)
Product Stock demand [units] Annual demand [units] Source
Wind turbines =142 GW of capacity installed in EU in 2015 (1)
/3MW per turbine (2)From stock (of previous year to avoid loops) with lifetime
EU CTI Power module(2) Climact
PV panels =17.2 GW of capacity installed in EU in 2015 (1)
/200 W/m² (2)From stock (of previous year to avoid loops) with lifetime
EU CTI Power module(2) Climact
Thermal & nuclear power plants
Not modelled / /
BACKUP
To assess the annual demand, across all sectors, in most cases,stock/lifetime is used in stead of stock variation
to make demand more stable
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EU CTI 2050 Roadmap Tool
Content
CONFIDENTIAL21 14/11/2018
Project context
Modelling approach
Ambition levels & main assumptions
3 slides summary
Historic calibration
Lever assumptions and scenarios choices
Bibliography
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EU CTI 2050 Roadmap Tool
SOURCE: Global Calculator, Climact analysis
14/11/2018 CONFIDENTIAL22
Product lifetime and utilisation1) Lever impacts
11
Cars & light truckCars & light truck EV
Ships Passengers
Airplanes
10
29
36
26
52
14
14
27
Ships Freight
20
36
20
Mechanical equipments
27Rail PassengerRail Freight
189Batteries
1
45
PV panels
Residential buildings
14
45
Electrical equipment
Other buildings
2045Infrastructure
14Appliance5Metal goods
65
20
Consumer packaging1
Electrical cables
39
Trucks
23Wind turbines
7
65
1414
Fertilizer
52
13
39
65
33
20
14
Lifetime level 3
Lifetime level 0
Lifetime level 2
Lifetime level 1
Product lifetime [years] *utilisation change [%]
Combines product lifetime and product utilisation (functional economy)
Assessed by the transport module,for cars utilisation impact is bigger than lifetime
Assessed by the buildings module, buildings lifetime not relevant vs renovation
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
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EU CTI 2050 Roadmap Tool
Lever Description Ambitious change scenario (Level 2),leveraging best practices available today
Transformational change scenario (Level 3),the maximum potential
In general, this lever is determined by 2 parameters‒ Product lifetime‒ Product utilisation rate
Product lifetime increases by 10%, which requires higher quality, higher added value productsProduct utilisation increases by 10%, which requires a significant development of the functional economy
Product lifetime increases by 15%, which requires high investmentsProduct utilisation increases by 15% which requires major transformational changes from products to services
In transport, vehicle lifetime is determined by 2 parameters:‒ Industry lever ‘lifetime’
(how many km a vehicle perform in its life)‒ Transport lever ‘utilisation rate’
(how many km a vehicle performs per year)
Major switch to transport as a serviceCars‒ Can perform more km in lifetime(1)
‒ Perform more km per year(1)
‒ last 9 yearsTrucks‒ last 13.5 years
Total switch to transport as a serviceCars‒ Can perform more km in lifetime(1)
‒ Perform more km per year(1)
‒ last 6.5 years Trucks‒ last 14.2 years
In buildings, new buildings demand is determined by 3 parameters:‒ Demand for new dwellings‒ Destruction rate‒ Renovation rate
Residential buildings:‒ Dwellings additional demand, destruction and
renovation (1)
Commercial buildings:‒ Surface additional demand, destruction, and
renovation(1)
Residential buildings:‒ Dwellings additional demand, destruction and
renovation (1)
Commercial buildings:‒ Surface additional demand, destruction, and
renovation(1)
NOTE: (1) not quantified in this document
14/11/2018 CONFIDENTIAL23
Product lifetime and utilisation2) Description by scenario
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
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EU CTI 2050 Roadmap Tool
Product Information Source
General rationale Product lifetime/utilisation in 2050 evolves as follow vs 2015 lifetime: (1) Global Calculator
Level 0 Level 1 Level 2 Level 3
90%(1) 100%(1) 120%(1) 130%(1)
Vehicles specifics Assessed by the Transport module(In line with 10.7 years old, and growing, average age of cars in the European Union) (1)
(1) European Automobile Manufacturers association(2) Climact transport module
Buildings specifics Assessed by the Buildings moduleWith higher ambitions, the renovation rate increases (1)
(1) Climact buildings module
14/11/2018 CONFIDENTIAL24
Product lifetime and utilisation3) Sources
BACKUP
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
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EU CTI 2050 Roadmap Tool
SOURCE: EU Calc (preliminary)
14/11/2018 CONFIDENTIAL25
Share of products manufactured in the EU1) Lever impacts
Share of product manufactured in the EU [%]
Ships Passengers
90%
Cars & light truck
Electrical cables
80%
81%
121%
Cars & light truck EV
50%
50%
100%
Trucks
90%
Batteries
80%
80%
90%Fertilizer
80%
100%
PV panels
Ships Freight80%
120%
50%
Rail PassengerRail Freight
60%
120%Airplanes 80%20%
100%
Residential buildings
50%
100%Other buildings
121%
100%InfrastructureMechanical equipments
10%
50%ApplianceMetal goods
50%
81%
50%
50%Wind turbines
Electrical equipment
120%
120%
120%
Consumer packaging
90%
100%
50%
90%
90%
90%
90%
120%
Lifetime level 0
Lifetime level 3
Lifetime level 2
Lifetime level 1
Will remain local
Import intensive
Import intensive
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
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EU CTI 2050 Roadmap Tool
Lever Description Ambitious change scenario (Level 1),leveraging best practices available today
Transformational change scenario (Level 1),the maximum potential
In general, this lever reflects how much of the demand for products in Europe is addressed by European manufactured products
We assume the ambitious scenarios does not import or export more products
We assume the ambitious scenarios does not import or export more products
14/11/2018 CONFIDENTIAL26
Share of products manufactured in the EU2) Description by scenario
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
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EU CTI 2050 Roadmap Tool
Product Information on base valueInformation of the evolution
Source
Overall Europe is in financial terms small net exporter, while it imports raw materials, it exports chemicals, machineryWith regards to china, while Europe is a net exporter of services (by value), it is a net importer of goods
Product lifetime in 2050 evolves as follow vs 2015 lifetime:
Eurostat 1,2,3will be reviewed in EU Calc
0 1 2 3
120% 100% -10% -20%
Cars and light trucks 100,6% : 115 000 cars are exported from EU in 2016 (1), vs an EU annual demand of 18,3M cars
Aligned with overall (1) Eurostat
Trucks 100%: 200 trailers& semi trailers are exported from the EU (1) vs an EU annual demand of 0,7m vehicles
Aligned with overall (1) Eurostat
Passenger ships, freight ships 100% Aligned with overall Climact, will be reviewed in EU Calc
Passenger rail, freight rail 100% Aligned with overall Climact, will be reviewed in EU Calc
Airplanes 100% Aligned with overall Climact, will be reviewed in EU Calc
Batteries 40% Aligned with overall Climact, will be reviewed in EU Calc
Residential buildings, other buildings, infrastructure
100%: Buildings are not imported or exported 100% : Buildings will not be imported or exported
Climact
Appliances 101% Aligned with overall (1) Eurostat
Consumer goods 101% Aligned with overall (1) Eurostat
Wind turbines 100% of the wind turbines are manufactured in the EU Aligned with overall Climact, will be reviewed in EU Calc
PV panels 30% of the PV panels are manufactured in the EU Aligned with overall Climact, will be reviewed in EU Calc
14/11/2018 CONFIDENTIAL27
Share of products manufactured in the EU3) Sources
BACKUP
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
http://ec.europa.eu/eurostat/statistics-explained/index.php/File:Evolution_of_extra_EU-28_trade,_2008-2016_(billion_EUR).pnghttp://ec.europa.eu/eurostat/statistics-explained/index.php/File:EU-28_exports_by_product_group,_2008_and_2016.pnghttp://ec.europa.eu/eurostat/statistics-explained/index.php/File:EU-28_imports_by_product_group,_2008_and_2016.pnghttp://ec.europa.eu/eurostat/statistics-explained/index.php/File:Extra_EU_trade_of_motor_vehicles,_by_category,_2013-2016_(EUR_million).pnghttp://ec.europa.eu/eurostat/statistics-explained/index.php/File:Extra_EU_trade_of_motor_vehicles,_by_category,_2013-2016_(EUR_million).pnghttp://ec.europa.eu/eurostat/statistics-explained/index.php/File:Evolution_of_extra_EU-28_trade,_2008-2016_(billion_EUR).pnghttp://ec.europa.eu/eurostat/statistics-explained/index.php/File:Evolution_of_extra_EU-28_trade,_2008-2016_(billion_EUR).png
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EU CTI 2050 Roadmap Tool
SOURCE: Global Calculator, Climact analysis
14/11/2018 CONFIDENTIAL28
Material switch1) Lever impacts
Cars & light truck
Cars & light truck EV 5%
Airplanes
5%
5%
10%
Trucks
2%Mechanical equipments
20%
20%
20%
50%
10%
5%Residential buildings
5% 20%
5%
Other buildings
Infrastructure
20%
20%
Lifetime level 0
Lifetime level 3
Lifetime level 1
Lifetime level 2
Steel substituted by chemicals [%]
Concrete substituted by chemicals [%]
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
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EU CTI 2050 Roadmap Tool
Lever Description Ambitious change scenario (Level 2),leveraging best practices available today
Transformational change scenario (Level 3),the maximum potential
General Large investments and regulatory pressure (e.g. insulation in buildings) are required to support the material switch. Consumer demand becomes substantial (e.g. timber in buildings)
Very large investments and regulatory pressure (e.g. insulation in buildings) are required to support the material switch. Consumer demand becomes very strong (e.g. timber in buildings)
Cars Steel is substituted• at 10% by aluminium (not modelled), and• at 10% by carbon fibres (represented by HVC
chemicals)
Steel is substituted• at 20% by aluminium (not modelled), and• at 20% by carbon fibres (represented by HVC
chemicals)
Trucks Same rationale as cars Same rationale as cars
Planes Aluminium (represented by steel) is substituted• At 25% by carbon fibres (represented by HVC)
Aluminium (represented by steel) is substituted• At 50% by carbon fibres (represented by HVC)
Buildings(residential & others)
steel is substituted • at 10% by timber (not modelled)Concrete is substituted • at 10% by timber (not modelled)• at 10% by insulation materials (represented by HVC
chemicals)
steel is substituted • at 20% by timber (not modelled)Concrete is substituted • at 20% by timber (not modelled)• at 20% by insulation materials (represented by HVC
chemicals)
Infrastructure Concrete is substituted• at 2,5% by insulation materials (represented by HVC
chemicals)
Concrete is substituted• at 5% by insulation materials (represented by HVC
chemicals)
Consumer goods / /
14/11/2018 CONFIDENTIAL29
Material switch2) Description by scenario
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
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EU CTI 2050 Roadmap Tool
Product Switch Steel to HVC chemicals Switch cement to HVC Chemicals Source
Cars In level 3 :• steel is substituted at 20% by aluminium (2)
(not modelled)• Steel is substituted at 20% by carbon fibres(2)
(represented by HVC chemicals)
/ 1) Global Calculator consultations2) With Both Eyes open
Trucks Same rationale as cars / 1) Global Calculator consultations
Planes In level 3 :• aluminium (represented by steel) is
substituted at 50% by carbon fibres (represented by HVC)
/ 1) Global Calculator consultations
Buildings(residential & others)
In level 3 :• steel is substituted at 20% by timber in
buildings(2) (not modelled)
In level 3 :• Concrete is substituted at 20% by timber
(not modelled)• Concrete is substituted at 20% by insulation
materials (represented by HVC chemicals)
1) Global Calculator consultations with raised EU ambition by Climact
2) With Both Eyes open
Infrastructure / In level 3 :• concrete is substituted at 5% by insulation
materials (represented by HVC chemicals)
1) Global Calculator consultations
Consumer goods /
14/11/2018 CONFIDENTIAL30
Material switch3) Sources
BACKUP
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
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EU CTI 2050 Roadmap Tool
26
25
1
113
17
22
-9
Timber(3)
Cement in Concrete
(2)
Carbon fiber
Avg for plastics
4
Aluminium (1)
HDPE
13
Steel
50
30
Rationale
• We substitute one ton of material by one ton of another
• We could use the Young modulus to compute how much material is required to replace another (e.g., ~2x the weight of timber to replace steel)
• This is a high level approximation and the conversion factor should differ for each pair of products
• Product lifetimes are assumed not to be affected by the material change
Global calculator correction for switch factor
Specific Young modulus
NOTE: (1) Tweaked to 20% more than steel, to represent the fact 20% less mass is typically required in transport applications (2) Assuming 8% cement per ton concrete
(3) Assuming Pine, then removing 40% to account to material discontinuity safety factor
SOURCE : Wikipedia Specific modulus
31
Material switch3) Assumptions : As a simplification measure, we don’t model a Young modulus which would specify how much of a material is required to replace another
Specific Young modulus[Young modulus in Gpa, divided by density]
BACKUP
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
SOURCE: Global Calculator, Climact analysis
14/11/2018 CONFIDENTIAL32
Material intensity1) Lever impacts
Material intensity [%]
Chemical HVC
80%
79%Steel
90%
50%
90%
90%
Chemical Ammonia
Chemical Nitrogen
90%Chemical Other
100%Cement
Other industries
100%
100%
100%
100%
100%
100%
Level 0
Level 1
Level 3
Level 2
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Lever Description Ambitious change scenario (Level 2),leveraging best practices available today
Transformational change scenario (Level 3),the maximum potential
General The material per product required to fulfil its specifications is function of 2 parameters• The application of a better design or,• The use of materials with better performance
Steel • Design: -5% materials• Better materials: from currently 30% to 40% of
high strength steel
• Design: -10% materials• Better materials: from currently 30% to 50% of
high strength steel
Chemicals • Design: -5% (e.g. additional use of moulding leads to limited yield loss)
• Better materials: -15% (e.g. significant use of composites and polymers with better properties)
• Design: -20% (e.g. increased use of moulding and 3D-printing leads to reduced material need)
• Better materials: -30% (e.g. improved composites and polymers will have significantly better properties)
Cement • Design: -5% (e.g. additional use of optimized moulds and stainless steel)
• Better materials:-5% (e.g. through better dimensioned use of cement in the concrete mix)
• Design:-10% (e.g. intensive use of optimized moulds which could enable to use up to 40% less concrete in some places, commun use of stainless steel in combination with concrete)
• Better materials:-10% (e.g. through better dimensioned use of cement in the concrete mix and addressing the current mixes rationalization which leads to unnecessary use of cement)
14/11/2018 CONFIDENTIAL33
Material intensity2) Description by scenario
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Material Better design (level 3) Better materials (level 3) Source
Steel -10%• explained by more advanced manufacturing
(including 3D printing) (3)
• -21%= -(50%-30%)*(1-30%)• Globally, use of strength steel is at around 20% with a potential of
50% (2)
• In EU, use of strength steel is at 30% (3)
• High strength steel (also called « Hard steel » or « High processability steels ») requires 30% less material to meet the same standards (e.g. to enable the end product to be as solid)(2)
• For automotive manufacturers, the use of Advanced and Ultra High-Strength steels (AHSS and UHSS), allow to reduce mass of the vehicles by 17% to 25% while maintaining safety standards(1)
• Producing higher strength steel does not produce significantly more CO2e emissions per ton of steel produced. It is estimated that treatments like reheating and galvanizing could increase consumption by 2-5% (with an unknown upside) (1,2)
• High strength steel can be made from primary or secondary steel (2)
1) WorldSteel fact sheet the 3Rs (Reduce, Reuse, Recycle), based ona) A) on ULSAB research (WorldAutoSteel),
carmakers’ own body structure designs b) B) ‘Determination of Weight Elasticity of
Fuel Economy for Conventional ICE Vehicles, Hybrid Vehicles and Fuel Cell Vehicles’, fka, June 2007
2) Global Calculator steel consultations3) Climact
Chemicals HVC • -20%• Increased use of molding and 3D-printing
leads to reduced material need (Plastic Europe should be contacted to review these assumptions)
• -30%• Improved composites and polymers will have significantly better
properties
1) With both eyes open
Chemicals ammonia, nitrogen, others • -5% • -5% 1) Climact
Cement • -10%• Use of optimized moulds could enable to use
up to 40% less concrete in some places (1)
• Use of stainless steel, or plastic coated bars removes the need for concrete to protect the steel(to use with caution as stainless steel is more emissions intensive
• -10%• Concrete strength is proportional to the amount of cement in the
mix, so lower strength concrete can use less cement• Current rationalisation of mixes on a site leads to above required
use of cement
1) With both eyes open (Orr et Al. (2010), research of efficient concrete shapes
Other industries • -5% • -5% 1) Climact
14/11/2018 CONFIDENTIAL34
Material intensity3) Sources
BACKUP
SOURCE:
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
NOTE: for cement, recycled corresponds to the use of zero emission by products (leading to a reduced demand for clinker or polymer cement)
SOURCE: Global Calculator, Climact analysis
14/11/2018 CONFIDENTIAL35
Recycled materials1) Lever impacts
Share of secondary materials [%]
Cement
Chemical Nitrogen
36%Steel
Chemical HVC
Chemical Other
0%
Chemical Ammonia
28%
30%Other industries
75%
20%
0%
20%
90%
51%
Level 2
Level 0
Level 1
Level 3
Recycled products are also in lifetime
(along with functional economy)
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Lever Description Ambitious change scenario (Level 2),leveraging best practices available today
Transformational change scenario (Level 3),the maximum potential
General Corresponds to the share of secondary materials entering the plant (it excludes the waste of the process itself)Excludes products recycling which is covered by the product lifetime lever
Share of secondary (scrap) steel in the production mix. This share is caped by the material availability at high quality and by the potential to use it in manufacturing processes.
Scrap based steel reaches 56% vs 36% today Scrap based steel reaches 75% vs 36% today
Share of recycled plastics in the production mix. This covers both 1ary recycling: material re-extruded and 2ndary recycling : plastics is ground in small chips and converted in resins
15% of HVC and other plastics are recycled 20% of HVC and other plastics are recycled
Share of recycled cement in the production mix, this mainly correspond to the use of zero-emissions by-products, leading to a reduced demand for clinker or polymer cement
66% of clinker in the cement 10% of clinker in the cement
14/11/2018 CONFIDENTIAL36
Recycled materials2) Description by scenario
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Material Comments Source
General Covers materials recycling. Product recycling is covered in the lifetime lever
Steel There is a constrain on the availability of high quality scrap steel.Without this availability constrain, the steel recycling potential and objectives of 90% by 2050(1,2)
Scrap levels are:
1) Worldsteel fact sheet, the 3 Rs(Reduce, Reuse, Recycle)
2) Professor Robert Ayres (INSEAD) 3) Global Calculator
Today L0 L1 L2 L3
36%(3) 36%(3) 44%(3) 56%(3) 75%(3)
Chemicals HVC Product recycling is difficult because of the large amount of different plastic applications, and the cheap price of plasticsDesign and waste collection will evolve to make products more recyclable in 4 ways:• Primary recycling: material is directly re-extruded• Secondary recycling: plastics is ground in small chips, washed, dried & converted in resins (lower
quality)• Tertiary recycling: plastics are broken down chemically to produce new feedstock (e.g. by
pyrolysis)• Quaternary recycling: recovery of energy through incineration (this is addressed in the
supply/waste analysis, not in manufacturing)The first 2 ways are covered by this lever Recycling levels are:
1) With both eyes open
Today L0 L1 L2 L3
TBD 5% 10% 15% 20%
Chemicals Ammonia & Nitrogen
No recycling potential has been identified
Chemicals others Assumed same as HVC(1) 1) Climact
14/11/2018 CONFIDENTIAL37
Recycled materials3) Sources
BACKUP
SOURCE:
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Material Comments Source
Cement Cement recycling can cover various techniques. This lever corresponds mainly to the point 4: 1) Noguchi et al. (2011) Japan research2) WBCSD Cement Sustainability
initiative3) Fortea CBR and Holcim consultations,
Febelcem annual report4) Global calculator
1. Cement ratio in concrete
• The lever excludes share of cement in the concrete (addressed in the design lever)
2. Cement chemical reaction
• The lever does not consider the reaction which makes cement. Because reversing this reaction requires theoretically at least 1GJ/t
3. Reusable components • The lever does not consider 2 technical options that enable to make concrete block components reusable at the end of life : a) Chemical connectors (1), b) Mechanical connections, with some metals, to provide a “Lego” interface
4. Composed cement • 4 types of cement substitution are most common; each has a specific resource availability and a specific impact on the cement performance
• 1) Ground Granulated Blast Furnace Slag (GGBS)• 2) Pulverised Fly Ash (PFA),• 3) Pozzolan, and• 4) Limestone (most widely available)
• The Substitution is function of the applications. While prefabricated sector requires Portland cement (95% clinker) to dry faster (3) , other applications can be satisfied with CM III C cement (10% clinker and 90% steel slag). This cement can reach higher solidity levels than Portland cement but takes longer to dry (3)
• The following clinker rate are proposed
Current L0 L1 L2 L3
• 82% (4) • 72%(4) • 69%(4) • 66%(4) • 10%(4)
5. Crushed concrete as aggregate
• Concrete can be crushed to make an aggregate which can be used to make concrete if mixed with new cement. However extra cement is required to bind the wider range of particle sizes in crushed concrete. This is then typically used for roads and infrastructures. This is addressed in the composed cement component above (it could be considered the 5th substitution)
Other industries 1) Climact
14/11/2018 CONFIDENTIAL38
Recycled materials3) Sources
BACKUP
SOURCE:
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
• Low plastics value and higher recycling complexity make plastic recycling less attractive
• Higher complexity comes from :• the higher variability of plastic manufacturing processes
and additives (to change colours & properties) & fillers (cheaper materials which increase strength & hardness)
• The fact plastics are harder to isolate from other waste streams(e.g. it is weakly magnetic)
• Only thermoplastics can be recycled(not the thermosets) (2)
• Upcoming directive will increase the plastics recycling rates in packaging will force the waste collection systems to sort and recycle most of the plastics.
• Production scraps can easily be recycled (not much improvement potential is expected here)
• Improved separation of plastics waste streams from municipal waste(difficult because diverse)
• Improved sorting of plastics waste stream(difficult because similar density and optical properties)
• 2 application areas are illustrated:
NOTE: (2) There are 2 families of plastics A) Thermoplastics which represent most of the plastics. These can be melted and reformed several times. B) Thermosets, which represent a smaller portion of the plastics. These change irreversibly on being heated, mixed, irradiated, and cannot be recycled (e.g. glass & carbon fibers)
SOURCE: (1) With both eyes open
39
Recycled materials3) Assumptions on ChemicalsRecycling rates are lower in chemicals than in other industries
Rationale on plastics recycling rates Solutions
BACKUP
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
Packaging • ~20kg packaging /person/year is in the end consumer waste• ~30kg packaging /person/year is for moving goods from
factory to factory or shops• There is a potential to further recycle packaging products,
especially the reuse of industrial packaging
Construction • Pipes could be dismantled and reused• Car components could be reused
-
EU CTI 2050 Roadmap Tool
SOURCE: Eurostat for baseline. EUCalculator (preliminary)
14/11/2018 CONFIDENTIAL40
Share of materials manufactured in the EU1) Lever impacts
Share of materials manufactured in the EU [%]
Other industries
79%
74%Steel
Chemical Ammonia
Chemical HVC
79%
79%Chemical Nitrogen
79%Chemical Other
127%84%Cement
77%
111%
119%
119%
119%
119%
116%
Level 0 (+20%)
Level 1 (+10%)
Level 2 (-10%)
Level 3 (-20%)
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Lever Description Ambitious change scenario (Level 1),leveraging best practices available today
Transformational change scenario (Level 1),the maximum potential
Trade balance for both primary and secondary materials
We assume the ambitious scenarios does not import or export more products
We assume the ambitious scenarios does not import or export more products
14/11/2018 CONFIDENTIAL41
Share of materials manufactured in the EU2) Description by scenario
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Material General evolutions to 2050 Source
General Base L0 L1 L2 L3
Steel Base 93%(1) +10%(1) +0%(1) -5%(1) -10%(1) 1) Eurostat: based on quantities of production, exports and imports
Chemicals HVC Base 98%(1) +20%(1) +0%(1) -10%(1) -20%(1)
Chemicals others Base 98%(1) +20%(1) +0%(1) -10%(1) -20%(1)
Cement Base 105%(1) +5%(1) +0%(1) -2.5%(1) -5%(1)
Other industries Base 96%(1) +20%(1) +0%(1) -10%(1) -20%(1)
14/11/2018 CONFIDENTIAL42
Share of materials manufactured in the EU3) Sources
BACKUP
SOURCE:
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool14/11/2018 CONFIDENTIAL43
Technologies1) Lever impacts
Technology shares [%]
Material Origin Technologies Mix
Level 0 Level 1 Level 2 Level 3
Steel Primary BOFHIsarna
Secondary EAFDRI
Chemical HVC Primary/Sec HVC Primary
Ammonia Primary Ammonia
Nitrogen Primary Nitrogen
Other Primary/Sec Other chemicals primary
Cement Primary Clinker dryClinker wetPolymers
Secondary 0 emission by-products
Other industries Primary Other industries primary
Secondary Other industries secondary
100% 97% 91% 71%100%
9%0% 3% 29%
100% 100% 100% 100%
0%
100%
0% 0%0%
92% 90% 90% 80%
0%5%0% 8% 5% 20%0%10%
100%
SOURCE: Global Calculator, Climact analysis
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Lever Description Ambitious change scenario (Level 2),leveraging best practices available today
Transformational change scenario (Level 3),the maximum potential
Steel 9% of primary steel is performed with HIsarna(combined with CCS)No change for secondary steel
29% of primary steel is performed with HIsarna(combined with CCS)No change for secondary steel
Chemicals Because the chemical industry is so diverse, no major technology group is modelled. The technology potential is addressed through the EE lever
Because the chemical industry is so diverse, no major technology group is modelled. The technology potential is addressed through the EE lever
Cement Wet clinker is entirely substituted by dry clinkerPolymer cement makes up 10% of the cement production
Wet clinker is entirely substituted by dry clinkerPolymer cement makes up 20% of the cement production
14/11/2018 CONFIDENTIAL44
Technologies2) Description by scenario
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Material Primary Secondary Source
Steel • Classic• Top Gas Recyling (HIsarna, not ULCORED) needs to be
applied together with CCS. Greenfield full HIsarnaimplementation enable a 35% consumption reduction(2)
• Hydrogen based reduction assessed through Hydrogen lever• Electrolysis is not modelled
Only EAF scrap is modelled, we assume there is no EAF DRI in Europe(3)
1) Climact2) Climact Belgium 2050 Roadmap 3) EUCalc (H2020 research project)
Techno.
Today L0 L1 L2 L3
Classic 100% 100% 97% 91% 71%
Hisarna
0% 0% 3% 9% 29%
Chemicals HVC Because the chemical industry is so diverse, no major technology group is modelled.The technological improvements are covered by the EE lever
same 1) Climact
Chemical ammonia, nitrogen The technological improvements are covered by hydrogen lever same 1) Climact
Chemicals others Same as HVC same 1) Climact
Cement Wet clinker is entirely substituted by dry clinker as of ambition level 2Polymer cement share of the production is summarized below
Technologies for zero-emitting products do not change (1)
1) Climact
Techno. Today L0 L1 L2 L3
Polymer 0% 0% 5% 10% 20%
Other industries
14/11/2018 CONFIDENTIAL45
Technologies3) Sources
BACKUP
SOURCE:
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool14/11/2018 CONFIDENTIAL46
EE1) Lever impacts
Additional EE [%]
Material Origin Technologies Additional EE
Steel Primary BOFHisarna
Secondary EAFDRI
Chemical HVC Primary/Sec HVC 1/2
Ammonia Primary Ammonia
Nitrogen Primary Nitrogen
Other Primary/Sec Other 1/2
Cement Primary Klinker dryKlinker wetPolymers
Secondary 0 emission by-products
Other industries Primary Other industries primary
Secondary Other industries secondary
5%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0% 40%
5%
0%
0%
10%
6%
6%
51%
51%
40%
30%
30%
0%
0%
10%
10%
Level 0
Level 3
Level 1
Level 2
SOURCE: Global Calculator, Climact analysis
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Lever Description Ambitious change scenario (Level 2),leveraging best practices available today
Transformational change scenario (Level 3),the maximum potential
Steel energy efficiency potential in plants within the specified technologies. This includes the reduction of internal waste which needs to be reprocessed.
High ambition leads to• 5% EE improvements in classic plants, and• 3,5% EE improvements in EAF
Transformational ambition leads to• 10% EE improvements in classic plants, and• 5% EE improvements in EAF
Chemicals energy efficiency potential in plant. This covers the technological changes and the EE within an existing technology
Technological improvements lead to• 10% in HVC,• 15% in ammonia and nitrogen (through the
hydrogen conversion), and• 15% in other chemicals
In addition, newer plants &retrofits lead to an additional 10% in all subsectors
Technological improvements lead to• 20% in HVC,• 30% in ammonia and nitrogen (through the
hydrogen conversion), and• 30% in other chemicals
In addition, newer plants &retrofits lead to an additional 20% in all subsectors
Cement Technological improvements lead to 18% EE in clinker production
Technological improvements lead to 30% EE in clinker production
Other industries In addition, newer plants &retrofits lead to an additional 7% in all subsectors
In addition, newer plants &retrofits lead to an additional 10% in all subsectors
14/11/2018 CONFIDENTIAL47
EE2) Description by scenario
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Material Comments Source
General Combined heat and power potential is not modelled in this version of the model
Steel Recent Energy efficiency improvements leave limited improvement within existing technologies. However:• There is ~25% scrap through the chain which can be reused (this is accounted through additional scrap
availability in level 3 and not here)• Downstream processes also reveal significant improvement potential; In the EU, through downstream
improvements, total energy efficiency could be improved by 5% (2)
• However, replacing all existing plants by BAT will enable a certain reductionBased on this, the following improvements are modelled in level 3:• For classic plants , the replacement of equipment's can lead to minor energy efficiency improvements (~10%) (1)
• For HIsarna plants, the efficiency potential has already been tapped (1)
• For Electric plants, the energy efficiency potential is lower (1)
1) Climact2) Global Calculator
Chemicals HVC In level 3, technological improvements lead to 20% EE through:• Olefin production via catalytic cracking of naphtha and via methanol, moving away from steam cracking• Olefin production via methanol• Propylene Oxide (PO)production via the hydrogen peroxide propylene oxide (HPPO) processIn addition, newer plants &retrofits lead to more catalysis and process intensification and enables to reduces energy intensity by another 20%
1) DECHEMA, ICCA catalytic roadmap
Ammonia and nitrogen In level 3, technological improvements lead to 30% EE (through the hydrogen transition)In addition, newer plants &retrofits lead to more catalysis and process intensification and enables to reduces energy intensity by another 20%
1) DECHEMA, ICCA catalytic roadmap
Chemicals others In level 3, technological improvements lead to 20% EE through:• Improved hydrogen generation for steam methane reformers• Synthesis of aromatics from lignin, ethanol or methane• Direct synthesis of hydrogen peroxide from hydrogen and oxygen• Direct epoxidation of propylene with oxygen In addition, newer plants &retrofits lead to more catalysis and process intensification and enables to reduces energy intensity by another 20%
1) DECHEMA, ICCA catalytic roadmap
Cement In level 3, technological improvements lead to 30% EE in clinker production 1) Global Calculator
Other industries
14/11/2018 CONFIDENTIAL48
EE3) Sources
BACKUP
SOURCE:
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool14/11/2018 CONFIDENTIAL49
Fuel switch (1/3) Electrification and gasification
From Coal, liquid & gas to electricity [%] for combustion
Chemical HVC
Chemical Other
60%Chemical Nitrogen 0%
0% 60%
Chemical Ammonia 0%
0%
0%Other industriesPrimary
0%Other industriesSecondary
60%
60%
70%
70%
Level 0
Level 3
Level 2
Level 1
SOURCE: Global Calculator, Climact analysis
5%0%
30%
Steel oxygen
Chemical HVC 0%
From Coal, liquid to gas [%] for combustion
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Lever Description Ambitious change scenario (Level 2),leveraging best practices available today
Transformational change scenario (Level 3),the maximum potential
Steel 2.5% of coke is substituted by gas in classic 5% of coke is substituted by gas in classic
Chemicals 40% of the fossil fuels are substituted by electricity. A large share of the heating processes can be performed by resistive heating.20% of the remaining solid and liquid fuels are substituted by gasThis is exclusive from the hydrogen lever
60% of the fossil fuels are substituted by electricity. A large share of the heating processes can be performed by resistive heating.30% of the remaining solid and liquid fuels are substituted by gasThis is exclusive from the hydrogen lever
Cement Not applied Not applied
Other industries
14/11/2018 CONFIDENTIAL50
Fuel switch (1/3) Electrification and gasification2) Description by scenario
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Material Switch to electricity Switch to gas Source
Steel Addressed by the EAF and electrolysis technologies.
Level 3• 5% of coke is substituted by gas in
classic
1) Global Calculator
Chemicals HVC, ammonia, nitrogen, others
Level 3:• 60% of fossil fuels are substituted by
electricity. A large share of the heating processes can be performed by resistive heating
This is independent from the hydrogen lever
Level 3:• 60 of remaining solid and liquid fuels
are substituted by gas
1) Climact
Cement Not applied Not applied 1) Climact
Other industries Level 3:• 70% of fossil fuels are substituted by
electricity. A large share of the heating processes can be performed by resistive heating
Not applied 1) Climact
14/11/2018 CONFIDENTIAL51
Fuel switch (1/3) Electrification and gasification3) Sources
BACKUP
SOURCE:
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool14/11/2018 CONFIDENTIAL52
Fuel switch (2/3) Hydrogen1) Lever impacts
From Coal/Oil/Gas to hydrogen [%]
Chemical Nitrogen
Chemical Ammonia
0%Steel.Oxygen
60%
0%Chemical HVC
0%
0%
0%Chemical Other
0%Other industriesPrimary
0% 30%Other industriesSecondary
30%
5%
60%
30%
30%
Level 0
Level 1
Level 3
Level 2
SOURCE: Global Calculator, Climact analysis
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Lever Description Ambitious change scenario (Level 2),leveraging best practices available today
Transformational change scenario (Level 3),the maximum potential
Steel Major deployments of the hydrogen route, replacing 10% of the classic BOF
Complete deployment of the hydrogen route, replacing 30% of the classic BOF
Chemicals Major change of the manufacturing processes, relying on hydrogen for 30% of the production of ammonia and nitrogen, and 10% of the other chemicals.
Complete change of the manufacturing processes, relying on hydrogen for above half the production of ammonia and nitrogen, 5% of the HVC, and 30% of the other chemicals.
Cement Not applied Not applied
Other 20% switched to hydrogen 30% switched to hydrogen
14/11/2018 CONFIDENTIAL53
Fuel switch (2/3) Hydrogen2) Description by scenario
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Material Comments Source
General Hydrogen can cover 11% of the industry’s energy consumption (1)
As a future modelling improvement, the hydrogen switch, corresponding to a technological change, should be assessed prior the electrification and gasification
1) Öko Vision Scenario for Europe (2017)
Steel Simplification assumption that coal, oil and gas are substituted to hydrogen with a 1-to-1 ratio (1)
In level 3, 30% of the classic BOF production is switched to hydrogen
1) Climact2) IEA Estep research program
Chemicals HVC In level 3, 5% of fossil fuels are substituted by hydrogen (3) 1) ICCA Catalytic roadmap2) Ren, Patel and Blok, 20063) Climact (for all the ambition
levels)
Chemicals Ammonia In level 3, 60% of fossil fuels are substituted by hydrogen (3)
Chemicals Nitrogen In level 3, 60% of fossil fuels are substituted by hydrogen (3)
Chemicals others In level 3, 30% of fossil fuels are substituted by hydrogen (3)
Cement Not applied 1) Climact
Other industries
14/11/2018 CONFIDENTIAL54
Fuel switch (2/3) Hydrogen3) Sources
BACKUP
SOURCE:
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
SOURCE: (1) DECHEMA, ICCA catalytic roadmap
55
Fuel switch (2/3) Hydrogen3) AssumptionsProduction of hydrogen from renewables currently uses a lot of energy
Additional energy demand versus fossil energy savings for replacement of current ammonia and methanol processes by hydrogen-based routes[% implementation of hydrogen route]
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
• Ammonia synthesis based on hydrogen from renewable energy sources requires roughly 26 GJ/ t ammonia (NH3) more energy
• For methanol (MeOH) from hydrogen and coal, an additional 15.7 GJ/tMeOH are required compared to the gas steam reforming route and additional 5.6 GJ/tMeOH compared to the coal partial oxidation route
• In the model, we simplify by substituting 1 kwh of fossil fuel by 1 kwh of hydrogen
BACKUP
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EU CTI 2050 Roadmap Tool14/11/2018 CONFIDENTIAL56
Fuel switch (3/3) Biomass and CCU1) Lever impacts
From Coal/Oil/Gas to Biomass [%] in combustion and feedstocks
0%
Steel.Oxygen 0%
0%
Chemical Ammonia
Chemical Nitrogen
Chemical HVC
0%
0%
0%Chemical Other
15%
Cement.KlinkerDry
0%Cement.KlinkerWet
30%
0%Other industriesPrimary
0%Other industriesSecondary
30%
80%
30%
20%
100%
100%
80%
Level 0
Level 1
Level 2
Level 3
SOURCE: Global Calculator, Climact analysis
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Lever Description Ambitious change scenario (Level 2),leveraging best practices available today
Transformational change scenario (Level 3),the maximum potential
Steel 15% coal is substituted by biomass (from level 2 onwards) in classic BOF plants
same
Chemicals HVC, ammonia, nitrogen and other 10% fossil fuels are substituted by biomass(5% for other chemicals)
30% fossil fuels are substituted by biomass(20 for other chemicals)
Cement 46% of fossil fuels are substituted by biomass 100% of fossil fuels are substituted by biomass
14/11/2018 CONFIDENTIAL57
Fuel switch (3/3) Biomass and CCU2) Description by scenario
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Material Comments Source
Steel Levels 1,2,3• 15% coal is substituted by biomass in classic plants(1)
1) SERPECCC study
Chemicals HVC • Several monomers, such as the ethylene olefins, can be produced from plants (e.g. sugar cane 200kt/yr capacity)(2)
• More generally the feedstock can be made from biomass• Bioplastics also tend to be more biodegradable than oil based plastics (but
all 4 combinations are possible)• Overall, the energy consumption of the relevant biomass routes is 3.5 to 5
times that of the fossil route (1) . In the model we assume it requires no more fossil energy
• Catalysis process changes (lever addressed later) facilitate the inclusion of biomass feedstock
Level 3 share of biofuel is 30%
1) DECHEMA analysis for Lignocell. Via MeOH and sugar cane Sugarcane via EtOH
2) Braskem
Chemicals ammonia and nitrogen
Assumed same as HVC(1) 1) Climact
Chemicals other Assumed slightly lower than HVC (level 3 is 20%) 1) Climact
Cement Level 3 substitution of fossil fuels by biofuels is 65% 1) Global Calculator
Other industries
14/11/2018 CONFIDENTIAL58
Fuel switch (3/3) Biomass and CCU3) Sources
BACKUP
SOURCE:
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Bio-degradability of plastic
No Yes
What it is made of
Renewable materials
Biopolymers• e.g. BioPE (PP/PET), biosourced
PA, PTT
Biopolymers• e.g. PLA, PHA,• Amidons
Fossil materials
Conventionnalpolymers• Nearly all conventional plastics• e.g. PE, PP, PET
Biopolymers• e.g. PBAT, PBS, PCL
Addressed by biomass lever(fuel and CCU)
Scope addressed by recycling lever
NOTES: Biomass availability is constrained, and enters in competition with biomass use for food, other products and energy.The Global calculator illustrates the impacts of using biomass
Some estimates lead to 10% of biomass in feedstock, (these figures include a wider scope e.g. biofuels and waste from slaughter houses)
SOURCE: (1) Fost+ environmental impact of biopackaging
59
Recycled materials3) Assumptions on bio-plastics:The term “bio” can describe 1) what it is made of, 2) if it is bio-degradable
Share of green plastics(%) (1)
EU activityLifetime
& utilisationShare of products
from EU Materialswitch
Materialintensity
Recycledmaterials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
BACKUP
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EU CTI 2050 Roadmap Tool
SOURCE: Global Calculator, Climact analysis
NOTE: Assuming covered sites capture 85% of emissions
14/11/2018 CONFIDENTIAL60
Carbon capture & storage1) Lever impacts
Share of emissions captured [%]
Steel.Oxygen
85%
Chemical Nitrogen
64%
Steel.OxygenHisarna 80%
Steel.Electric
Steel.ElectricDRI
Chemical Ammonia
Chemical HVC
Chemical Other
Cement.KlinkerDry
Cement.KlinkerWet
80%
Cement.ZeroEmissionByProducts
Cement.Polymers
Other industriesPrimary
Other industriesSecondary
80%
80%
62%
80%
85%
85%
62%
85%
80%
64%
Level 3
Level 0
Level 2
Level 1
EU activityLifetime
& utilisationShare of products
from EU Material switch Material intensity Recycled materials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
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EU CTI 2050 Roadmap Tool
Lever Description Ambitious change scenario (Level 2),leveraging best practices available today
Transformational change scenario (Level 3),the maximum potential
General 85% capture rate on sites equipped with CCS technology
same
Steel 38% of classic = 45% coverage*85% capture rate85% of HIsarna0% of EAF and DRI
85% of classic = 100% coverage*85% capture rate85% of HIsarna85% of EAF and DRI
Chemicals HVC 50%Ammonia 85%Nitrogen 85%Other 50%
HVC 62%Ammonia 85%Nitrogen 85%Other 50%
Cement Clinker 64%Zero emission by products 0%Polymers 0%
Clinker 85%Zero-emission by products 80%Polymers 80%
14/11/2018 CONFIDENTIAL61
Carbon capture & storage2) Description by scenario
EU activityLifetime
& utilisationShare of products
from EU Material switch Material intensity Recycled materials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
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EU CTI 2050 Roadmap Tool
Material Comments Source
Steel Applicable to Oxygen and Always applied on HIsarnaOnly applied in level 3 on EAF or DRI, because these are smaller installation
1) IEA ETP2012
Chemicals HVC Site applicability is function of plant size and of gas homogeneity• Crackers can be high-volume sources (1 MtCO2/yr), but their flue gas is more dilute (4% to
7% CO2, lower concentration than a coal-fired power plant which can be 10% CO2 to 12% CO2) and drive up the CO2 capture costs
1) IEA ETP2012
Chemicals Ammonia and Nitrogen
Applied to 100% of sites from ambition level 1, because• Large facilities for the production of ammonia, methanol, ethylene oxide, hydrogen and
products from coal gasification might have sufficient scale to make CCS financially feasible • the gases tend to be more homogenic
1) IEA ETP2012
Chemicals others Same as HVC 1) IEA ETP2012
Cement Applied to 100% of sites in level 3• Clinker production plants can be high volume sources and be therefore easier to address
through CCS
1) IEA ETP2012
Other industries
14/11/2018 CONFIDENTIAL62
Carbon capture & storage3) Sources
BACKUP
SOURCE:
EU activityLifetime
& utilisationShare of products
from EU Material switch Material intensity Recycled materials
Share of materialsfrom EU
Processes Hydrogen Biomass CCS
-
EU CTI 2050 Roadmap Tool
Content
CONFIDENTIAL63 14/11/2018
Project context
Modelling approach
Ambition levels & main assumptions
Bibliography
-
EU CTI 2050 Roadmap Tool
▪ UK Department of Energy & Climate Change, Climate-KIC and International Energy Agency, The global Calculator Industry Steel consultation(2015)
▪ --- The Global Calculator Industry Cement consultation (2015)
▪ --- The Global Calculator Industry Chemicals consultation (2015)
▪ --- The Global Calculator Industry Cross-sector technical consultation (2015)
▪ Bath University, Construction materials database; inventory of carbon energy. Bath database
▪ Cambridge (Julian M Allwood, Jonathan M Cullen), With both eyes open (2012)
▪ Carbon Trust, Carbon Trust. Industrial Energy Efficiency Accelerator - Guide to the paper sector (CTG059). London (2011)
▪ Carbon War Room, Cement Report 1 (2011)
▪ CEFIC, European chemistry for growth, Unlocking a competitive, low carbon and energy efficient future (2013)
▪ Cembureau, the role of cement in the 2050 low carbon economy (2013)
▪ CEPI, roadmap
▪ ---, Two team project report (presents 8 breakthrough technologies)
▪ CEI Bois, Wood in carbon efficient constructions : Tools, methods & applications/ Lutter contre le changement climatique : utiliser le bois
▪ Imperial Grantham, Briefing paper Carbon Capture Technology (2010)
▪ Climact, previous consultations performed in Belgium, UK, Algeria, the Balkans & India
▪ Ecofys, SERPECC studies
▪ European Cement Research academy, Technical documentation
▪ European Climate Foundation, Europe’s low carbon transition: Understanding the challenges and opportunities for the chemical sector (2014)
14/11/2018 CONFIDENTIAL64
Bibliography
http://site2.globalcalculator.org/sites/default/files/Steel Workshop Preread.pdfhttp://site2.globalcalculator.org/sites/default/files/Cement Workshop Preread.pdfhttp://site2.globalcalculator.org/sites/default/files/Chemicals Workshop Preread.pdfhttp://site2.globalcalculator.org/sites/default/files/Cross sector workshop preread.pdf
-
EU CTI 2050 Roadmap Tool
▪ Eurofer, Low Carbon Steel Roadmap 2050 (IEA involved, led by BCG and German Steel Institute)
▪ EU JRC, Prospective Scenarios on Energy Efficiency and CO2 Emissions in the EU Iron & Steel Industry
▪ European Aluminium Association, www.alueurope.eu
▪ FAO, Statistics on link between product demand and materials demand
▪ GNR, Global Cement Database on CO₂ and Energy Information
▪ ICCA, Technology Roadmap: Energy and GHG Reductions in the Chemical Industry via Catalytic Processes (IEA, ICCA, Dechema)
▪ ---, The role of the chemical industry in achieving targets of IEA roadmaps on biofuel and bioenergy (2011) (ICCA and SRI International)
▪ ---, Building Technology Roadmap: The Chemical Industry’s Contribution to Energy and GHG Savings in Residential and Commercial Construction Buildings roadmaps (2012) (ICCA)
▪ IEA, 2016 Key world energy statistics
▪ ---, Chemical and Petrochemical Sector – Potential of Best Practice Technology and Other Measures for Improving Efficiency (IEA)
▪ ---, Summary report
▪ ---, Energy Technology Perspectives 2016, Pathways to a clean energy system
▪ --- ETP 2016 data
▪ ---, GHG 2008. CO2 capture in the cement industry. Report 2008/3. Cheltenham, UK: International Energy Agency Greenhouse Gas R&D Programme
▪ --- Technology Roadmap: Carbon Capture and Storage (2013)
▪ ---, UNIDO: Technology Roadmap Carbon Capture and Storage in Industrial Applications (2011)
▪ ---, US geological survey (USGS)
▪ International Cement Review, The global cement report (6th edition)
▪ ---, Insights from the global cement report (10th edition) (2013)
▪ IEA-WBCSD, 2050 Cement Technology Roadmap
14/11/2018 CONFIDENTIAL65
Bibliography
-
EU CTI 2050 Roadmap Tool
▪ McKinsey, McKinsey cost abatement curves v2.1▪ ---, Manufacturing the future: the next era of growth and innovation (2012)▪ Midrex, MidrexStats2011-6.7.12▪ Mineral product association, UK cement roadmap (2013)▪ NTNU & Cambrige University, 2014 04 10 International Materials Education Symposium▪ Plastics Europe, Plastics- the facts 2013▪ ULCOS, Official website▪ US Environmental Protection Agency, Available and emerging technologies for reducing greenhouse gas emissions from the iron and steel
industry. North Carolina: US EPA (2010)▪ Utrecht University, Ren, T. Petrochemicals from Oil, Natural gas, Coal and Biomass: Energy Use, Economics and Innovation. PhD (2009)▪ World Aluminium, A Review of the Global Aluminium Industry: 1972-2012 (2013)▪ ---, Aluminium Intensive Electric Vehicle Report (2012)▪ ---, Aluminium for Future Generations Sustainability Update: 2010 data (2011)▪ ---,Current and (global) scenarios for metal flow, inc recycling: www.world-aluminium.org/publications/tagged/mass%20flow%20model/▪ ---,Building: http://www.alueurope.eu/publications-building/, greenbuilding.world-aluminium.org/home.html▪ ---,Transport: transport.world-aluminium.org/home.html , www.drivealuminum.org, www.alueurope.eu/publications-transport ,
www.alueurope.eu/publications-automotive▪ ---, Recycling: recycling.world-aluminium.org/ , www.thealuminiumstory.com▪ Wikipidia, https://en.wikipedia.org/wiki/Geopolymer#Geopolymer_cements_and_concretes, 2017▪ World Steel Association, World Steel in Figures (2013)▪ ---, Steel Statistical year book (2013)▪ ---, Sustainable steel: Policy and indicators (2013)▪ ---, Steel's Contribution to a Low Carbon Future▪ ---, The three Rs of sustainable steel (Reduce, Reuse, Recycle) (2010)▪ ZEP, Application of CCS in EU energy intensive industries
14/11/2018 CONFIDENTIAL66
Bibliography
http://www.world-aluminium.org/publications/tagged/mass flow model/http://www.alueurope.eu/publications-building/http://greenbuilding.world-aluminium.org/home.htmlhttp://transport.world-aluminium.org/home.htmlhttp://www.drivealuminum.org/http://www.alueurope.eu/publications-transporthttp://www.alueurope.eu/publications-automotivehttp://recycling.world-aluminium.org/http://www.thealuminiumstory.com/https://en.wikipedia.org/wiki/Geopolymer