Net Zero Industry Tracker 2024 Cross Sector Findings

–Ammonia: Used as a zero-emission fuel (ZEF) in the shipping industry, ammonia can be produced from green hydrogen or from natural gas coupled with CCS. –Methanol: Another clean fuel for shipping, methanol can be produced from renewable sources and offers a lower carbon footprint. –Waste: Renewable municipal waste, sewage and landfill gas, and residue waste are important in some applications such as in kilns in the cement industry. The analysis shows that an average 61% of energy needed in 2050 climate scenarios for heavy transport sectors, and 21% for heavy industry sectors will be sourced from clean fuels. The sectors in scope often require high energy density fuels (such as in shipping and aviation), high temperature process heat (steel, cement) or feedstock to produce secondary products (chemicals). While some of these processes and fuels can be replaced by other energy carriers (such as electricity), many cannot, and there will be strong competition for those clean electrons for uses in other sectors. Thus, it is imperative that clean fuels develop alongside electrification. In the shipping industry, clean fuels such as ammonia and methanol are essential to meet the International Maritime Organization’s (IMO) targets for achieving net-zero emissions by or around 2050. Ammonia and methanol offer an alternative to traditional marine fuels, significantly lowering the carbon footprint of maritime transport when they are produced from low- to zero-carbon energy sources (such as biomass or clean electricity). In the aviation sector, SAF is expected to play a crucial role. SAF, derived from renewable feedstocks like agricultural residues and waste oils, can reduce lifecycle emissions by up to 80% compared to conventional jet fuel. The analysis shows that 400 MTPA of SAF alone is needed in the sector by 2050. Meanwhile, the trucking industry is exploring the use of hydrogen and biofuels to replace diesel, thereby reducing emissions and improving air quality; however, the sector can be more easily electrified for certain transport cases. In the heavy industrial sectors such as steel, chemicals and cement, clean fuels are equally critical. The steel industry is transitioning to green hydrogen to replace coal in the production process, and green hydrogen is expected to contribute to 21% of steel emissions reduction by 2050.53 The chemicals industry receives 93% of its energy from fuels but will also need to shift towards green hydrogen, ammonia and methanol to reduce emissions. In the cement industry, the use of alternative fuels like biomass and waste-derived fuels is being explored to lower the carbon footprint. These transitions are not only essential for meeting environmental targets but also for ensuring the long-term viability and competitiveness of these industries in a low-carbon economy. Carbon capture utilization and storage (CCUS): Hard-to-abate sectors such as cement, steel, chemicals and aluminium are characterized by emission-intensive processes that are challenging to decarbonize using methods such as clean power and process changes. To address this, a multi-faceted approach involving CCUS and The analysis shows that an average 61% of energy needed in 2050 climate scenarios for heavy transport sectors (excluding trucking), and 21% for heavy industry will be sourced from clean fuels. Net-Zero Industry Tracker: 2024 Edition 16