Net Zero Industry Tracker 2024 Cross Sector Findings

The cumulative infrastructure capacity required across the sectors in scope is 4.7 TW clean power, 297 MTPA clean hydrogen and 4.2 GTPA CO2 utilization. Compared to IEA estimates for the global target capacity in 2050, the requirement from these sectors contributes to 42% of the global target for clean power, 69% for clean hydrogen and 55% for CCUS.50 2050 NZE infrastructure capacity required by sector FIGURE 16 Note: *Global targets as per IEA51 Source: Accenture analysis based on data from IATA, IMO, MPP , IEA and CGI. Clean power: Clean power derived from sources like solar, wind, hydropower and nuclear is expected to be the primary means for reaching global net-zero ambitions. Regarding decarbonizing hard-to- abate heavy industries and transport, clean power has direct and indirect applications, including the electrification of industrial processes and the production of clean fuels like green hydrogen. In aggregate, by 2050, clean power is expected to be an average 22% of the final energy mix across the sectors in scope. However, the application and impact of clean power on these sectors vary. Clean power’s direct application in decarbonizing is especially critical for sectors like steel, aluminium and trucking, where clean electricity is better positioned to replace fossil fuels in specific processes. For instance, aluminium production has already made strides by using renewable electricity, which currently accounts for 39%52 of its smelting energy mix for primary aluminium. Steel production can benefit from electrifying operations like steel rolling, and the trucking industry can adopt battery-electric trucks (BETs), which run directly on clean electricity, reducing emissions in short- and medium-haul transport. Indirectly, clean power is necessary for the production of green hydrogen and other clean fuels, which are expected to account for 40% of emissions reduction in heavy transport sectors, and 12% in heavy industry sectors (including oil and gas) by 2050. For industries like steel and chemicals, which require high temperatures and use fossil fuels as feedstock, green hydrogen offers a solution. Green hydrogen, produced via electrolysis powered by renewable energy, can help replace coal in steelmaking or serve as a clean feedstock in chemical production, such as for ammonia and methanol. In transport, green hydrogen and synthetic fuels produced from renewable electricity will be vital in decarbonizing long-haul trucking, aviation and shipping, where direct electrification is challenging due to limited availability of electrification technologies and nature of their energy needs. Clean fuels: The transition to clean fuels and feedstocks is essential for achieving emissions reductions in heavy industrial and transport sectors by 2050. The key types of clean fuels used in these sectors include: –Clean hydrogen: Hydrogen (particularly green hydrogen) produced using renewable energy sources is essential for various industrial applications. Blue hydrogen is also expected to play a role. –Advanced biofuels: Derived from feedstocks like agricultural residues and waste oils, and sustainable energy crops that do not compete with food need. Sustainable aviation fuel (SAF), in particular, is crucial for reducing aviation emissions. In aggregate, by 2050, clean power is expected to be an average 22% of the final energy mix for the heavy transport sectors and 33% for the heavy industry sectors including oil and gas.Aviation Shipping Trucking Steel Cement Aluminium Primary chemicalsOil and gasTotalGlobal target* % Clean power generation (TW)~0 ~0 0.7 0.8 0.6 0.2 2.2 0.2 4.7 11.2 42% Clean hydrogen production (MTPA)44 72 50 48 6 10 60 8 297 430 69% Carbon capture, utilization and storage (GTPA) 0.7 0.13 0 0.85 1.4 0.086 0.64 0.39 4.2 7.6 55% Net-Zero Industry Tracker: 2024 Edition 15