E-Mobility

Electricity is a beneficial alternative to power several modes of transportation to make them more environmentally friendly. Since an electric car emits no harmful pollutants, it lowers greenhouse gas emissions (GHG). Also, this would aid in tackling the planet’s climate concerns. Also, these environmental crisis has prompted the government to take the lead in making significant changes over the past years. According to a report published in 2021, the transportation sector, which serves as an economic infrastructure for travel and freight, accounts for 25% of total energy consumption. Hence, e-mobility is one such initiative to reduce the consumption of fossil fuel derivatives.

The proposal is to enable automobiles’ electric propulsion by using electric powertrain technology, in-vehicle information, connectivity, and connected infrastructures. Plug-in hybrids and fully electric vehicles use powertrain technology to convert hydrogen fuel into electricity.

There are more types of electric vehicles than e-cars, e-scooters, e-bikes, e-motorcycles, e-buses, and e-trucks. They all have a battery and charging systems, are powered entirely or partly by electricity, and primarily obtain their energy from the grids through distribution networks that follow set standards. Thus, combining all these aspects completes the ecosystem for electric mobility. Corporate fuel economy, pollution standards, and market expectations for lower operating costs drive e-mobility initiatives.

Different types of e-mobility vehicles

Battery Electric Vehicle (BEV)

BEV is commonly known as a pure electric vehicle. This type of electric vehicle has an extensive rechargeable battery on-board that provides all the energy the car needs to propel forward. Examples include the Tesla Model 3, Chevy Bolt, and Nissan Leaf.

Hybrid Electric Vehicle (HEV):

HEVs are series hybrids or parallel hybrids with engines and electric motors. Where the engine powered by fuel, while batteries power the motor. Hybrid electric vehicles are powered by an internal combustion engine and one or more electric motors, which use energy stored in batteries. Hybrid electric vehicle batteries are charged through regenerative braking and the internal combustion engine. The extra power provided by the electric motor can allow for a smaller engine. The battery can also power auxiliary loads and reduce engine idling when stopped. Together, these features result in better fuel economy without sacrificing performance.

Plug-in Hybrid Electric Vehicle (PHEV):

PHEVs, also a series hybrid, have an engine and a motor. You can pick between conventional fuel (such as gasoline) and alternative fuel (such as bio-diesel). A rechargeable battery pack can also power it. External charging is possible for the battery.

Contributors in e-mobility sector

Mobility sector combines a group of stakeholders who is essential for the success of electro mobility system. The efficient and effective functionality of these stakeholders ensures the smooth functioning of the system.

Manufacturers of EVs and accessories:

An electric vehicle is built and operated in large part by automakers (also known as auto OEMs) and other businesses including battery manufacturers, EV accessory manufacturers, maintenance service providers, etc.

Charge station manufacturers:

The companies that fall under this category are ChargePoint Inc., ABB, Tesla, Engie, AeroVironment, Schneider Electric, Siemens, Efacec, Bosch, etc. They develop the hardware and software for the charging stations in accordance with different standards and guidelines. However, in addition to selling their gear and software to charge point operators, several manufacturers also function as CPOs and EMPs/MSPs.

Charge Point Operator (CPO):

The administration and technical facets of the charging station are under the control of the charge point operator (CPO). Today, there are numerous charge point operators in every country who offer a variety of functions and station designs. These are just a few of the duties that a typical charge point operator might have: Installation, operation, maintenance, and servicing of charge stations are all technically based. Billing input to EMP, accessibility, authorization for roaming, etc. are administrative aspects.

E-Mobility Service Providers:

E-mobility service providers make it feasible for electric vehicle users to use the infrastructure for charging (EMSP or EMP). Many EMP may engage in arrangements with charge point operators (CPO) and provide end consumers with e-mobility even when they do not own the charging stations.
With the end-user (EV driver), E-Mobility providers (EMP) enter into a contract, offer to charge tags or RFID cards, and take care of the services’ billing.

Grid Operator (DSO):

The DSOs are the local grid operators (Distribution System operators). They are the ones who “supply” power to homes, workplaces, or public streets; they develop, operate, and maintain public distribution grids.

Transmission System Operator (TSO):

TSOs and DSOs work closely together to maintain the grid balanced. The TSO is responsible for maintaining a stable grid load in each neighborhood. They work with DSO to maintain “demand” and balance power distribution. They also configure profiles to reduce supply in each location as needed.

Power generation / Utility Supplier:

Utility infrastructure powers the charging stations. These businesses produce energy often; some may even own different power plants (such as wind, solar, nuclear, hydro, etc.), yet, some may buy power from other producers.

Regulating authorities

The ecosystem’s most important stakeholders are government representatives, decision-makers, and regulatory agencies. In addition to industry measures like “subsidies” to promote the market, they also set laws controlling the obligations of each of the stakeholders above.

India’s perspective on e-mobility

Most people in India belong to either middle-class families or are part of the poverty line. But in the past few years, most people have owned a car. All the cities in India are overpopulated with vehicles. Due to this reason, air pollution is increasing irrepressible. For example, Delhi, the country’s capital city, has shown the air quality index to be toxic and increasingly deteriorates daily. As scientists claim, if this kind of effect is not managed appropriately and continues for an extended period, humans would be bound to carry their oxygen tanks for survival. It is believed that introducing electric vehicles can resolve this problem to a certain extent.

Furthermore, there is a common misperception that EV two-wheelers are more expensive than their classic ICE equivalents. While the upfront cost of an EV may be higher than that of an ICE, the evaluation is complete once we consider the total cost of ownership (TCO). It includes the purchase price, operating costs (fuel/charging fees and maintenance), and resale value modifications. Climate change, rising fuel prices, and urban transportation challenges are all threatening to alter the future of mobility. E-mobility, to a considerable extent, addresses all of these difficulties. While the first electric vehicle was launched in India in 2001, the fundamental shift from internal combustion engine (ICE) based vehicles to electric vehicles (EV) started only in the last five years. According to NITI Aayog and Rocky Mountain Institute, India’s EV market could touch US$152.2 billion by 2030.

How successful is the e-mobility project

Pollution from transportation is especially significant in cities, where many people and vehicles move within a small geographical space. As a result, air pollution has become a more prominent policy priority. E-mobility reduces NOX and soot emissions in cities. With better and more environmentally friendly public transportation, more walking and bicycling infrastructure, and improved electric car infrastructure, cities also have opportunities to rethink traffic.

For prospective consumers, electric automobiles are pretty intriguing. We may anticipate additional improvements in the field as established automakers concentrate on e-mobility. These businesses may advance EV adoption by utilising their dealership networks, business information, and R&D skills. The champions of e-mobility will be two-wheelers, while four-wheelers may still need some improvement before the TCO of EVs becomes more profitable. In conclusion, India’s future for e-mobility is quite bright despite infrastructure and demand issues.

Flex Fuel Vehicles

For decades, sustainable mobility has been a pressing issue. There are now numerous alternatives to the traditional modes of transportation. There are electric vehicles, carpooling, hydrogen-powered buses, and countless other options. All these new alternative methods significantly impact the reduction in the release of harmful pollutants. However, biofuel-powered vehicles, also known as flex-fuel vehicles, provide more drastic results by replacing the use of fossil fuels. In India, Maruti Suzuki, Toyota, and Hyundai have agreed to launch cars with multiple fuel compatibility, which would be possible in the coming years.

Flex Fuel Vehicles (FFV) have engine flexibility with different fuel compatibility. These vehicles support many single blends or fuel combinations and can support more than one fuel type. But the standard compatibility is flex fuels. It consists of gasoline-ethanol blends up to 85% ethanol or fuel based on methanol. E85 is a combination of a gasoline-ethanol mix based on the ethanol percentage.

Flexible Fuel Vehicles consist of an internal combustion engine (ICE) that generates power with the help of heating the trapped air and thus burning any fuel present. As said, It runs majorly on the E85 blend; the blend percentage of ethanol can be 15% to 85%. The rate of combination used can depend upon geography, availability or the seasons. The consumer needs to know their vehicle’s capacity and fuel compatibility. 

FFVs are similar to conventional gasoline-only vehicles, except for an ethanol-compatible fuel system and a different powertrain calibration. While higher ethanol levels generally reduce fuel economy and many FFVs have improved acceleration performance when operating on higher ethanol blends.

Benefits

Environment Friendly

Flex Fuel Vehicles support sustainably produced fuel blends. As already mentioned, ethanol (E85) is a renewable fuel which doesn’t adversely affect the planet compared to fossil fuels when burned. It releases significantly less smoke and doesn’t release toxic greenhouse gases (GHG) into the atmosphere. 

Fuel Flexibility

Any combination of fuel is compatible with a flex fuel vehicle as it has sensors that understand the fuel type and adjust its combustion process accordingly. It allows the consumer flexibility to fill their fuel tanks based on availability. 

Self Reliance

The sustainability and availability of resources for extracting flex fuels ease the country’s struggle for oil imports. Hence, This encourages every nation to be self-reliant on the available resources for flex-fuel. 

Engine Efficiency

The engine performance of FFV is still arguable. But current studies have shown the results of better engine performance and the ability to burn pure and cleaner fuels such as ethanol and methanol blends. Zinc, brass, copper, lead, and aluminum are incompatible with storing pure blends as there is a risk of corrosion.

Benefits on Taxes

There would-be many tax benefits for FFVs consumers also could claim tax credits after purchase. Also, In the long run, there is an elimination of tax obligations as well.

Challenges

Single-Crop Use

Flex-fuel can be produced sustainably using corn and sugar, which is mass produced but has a drawback. The inability to use crops made for flex-fuel production for other purposes could increase the cost of animal feed. In addition to being susceptible to plant pathogens, corn can be negatively impacted by weather events like floods and droughts.

Potential Engine Damage

Everyone wants to give their vehicle the best care possible. Unfortunately, ethanol is mild cleaning solvent which readily absorbs dirt, potentially eroding and harming the engine in the long run. Thus, it is to be maintained on time to time basis.

Fuel Economy

Gas mileage is one of the main issues with flex-fuel vehicles. While some experts claim that flex-fuel vehicles get similar gas mileage to conventional cars, others assert that they get worse gas mileage. While ethanol does increase a car’s octane rating, it has less energy than gasoline. So, yes, using ethanol will result in lower miles per gallon. But because ethanol is less expensive than regular gas, the savings should compensate for the reduced mileage.

Limited Number of Gas Stations

Gas stations are less likely to stock flex fuel because it isn’t as cost-effective as regular gasoline. Ethanol is currently only available at a small fraction of gas stations nationwide, but the situation will be different in the coming years. 

Facts and Figures

Comparisons of tailpipe emissions for E85 versus gasoline of flex-fuel vehicles (FFVs) 

The tailpipe emissions of E85 from flex-fuel vehicles (FFVs) and regular gasoline have been compared in various ways, with varying results. Based on actual measurements of five FFVs made with a portable emissions measurement system (PEMS), additional chassis dynamometer data, and projections from the Motor Vehicle Emission Simulator (MOVES) model, differences in FFV fuel use and tailpipe emission rates are quantified for E85 versus gasoline. Despite average rates being lower on E85 than gasoline, an individual FFV may have higher nitrogen oxide (NOx) or carbon monoxide (CO) emission rates due to inter-vehicle variability. Comparing the tailpipe emission rates of E85 and gasoline is sensitive to vehicle-specific power, according to PEMS data (VSP). For example, while CO emission rates are lower in all VSP modes, they are proportionally lower at higher VSP. Driving cycles with a high power demand are better for CO emissions but worse for NOx.

The vehicle’s fuel cycle and tailpipe emissions were considered in a life cycle inventory. Although E85 for FFVs emits less nitrogen oxide (NOx) from the tailpipe than gasoline, this is advantageous for the communities where the vehicles are used. The life cycle NOx emissions are higher due to higher NOx emissions during fuel production. According to dynamometer data, the average difference in tailpipe emissions between E85 and gasoline is 23% for NOx and 30% for CO, and there isn’t a noticeable difference for hydro-carbons (HC). Emissions from fuel production typically occur in rural areas, and there are no significant variations in overall hydro-carbon emissions. 

The wide range of vehicle-to-vehicle fluctuation explains why earlier studies with smaller sample sizes yield inconsistent results. E85 significantly reduces nitrogen oxide (NOx) and carbon monoxide (CO) emissions from tailpipes compared to gasoline, which may be advantageous for controlling ozone air quality in NOx-restricted areas. Comparisons of the FFV tailpipe emissions of gasoline and E85 are sensitive to driving style and power demand.

Future of Flex Fuel Vehicle

There are arguments for and against flex-fuel vehicles. However, using ethanol as a cost-effective and environmentally friendly fuel source makes way to switch toward a flex-fuel car in the future. There are many benefits to using flex fuels and flex-fuel-supported transportation vehicles. Since technology is ever-evolving, it is impossible to predict what flex-fuel cars and more cutting-edge innovations might appear over the coming years.

It might not be easy to figure out Flex Fuel vehicles. However, a few telltale signs in flex-fuel vehicles differentiate them from regular cars. Examples involve yellow gas caps or a yellow ring where the manufacturer’s fuel nozzle goes on flex-fuel vehicles. Other cars can use flex-fuel due to the labels on their fuel doors. In a nutshell, using alternative renewable fuels and sustainably powered vehicles is the future that can save time and money and also contribute to reversing the adverse effects of global warming.

Decarbonisation

Compatible framework for climate change

Climate change is one of the defining issues of our generation. The cause of these changes, global warming, is significantly impacting the entire planet. The world is undeniably warming, which is causing a series of unexpected disasters. Scientists are working tirelessly to forecast the circumstances given the number of assumptions. The reality, however, may differ and will not always be precise. We may be too late to respond if the planet reaches damage in irreversible conditions. Assume that neither the government nor the people of each country take drastic action. In that case, the IPCC predicts that we will reach 1.5°C above pre-industrial levels within the next few decades. The IPCC is a United Nations Intergovernmental panel on climate change that provides assessments of human-caused climate change. The image given below shows the temperature level within the year 2040.

Current rising temperature due to global warming ( 1950-2100 )

Scientists attribute rising temperatures to the human induced ‘greenhouse effect.’ Carbon dioxide accounts for most of it. As Display 2 shows, current concentrations of CO2 in the atmosphere are already significantly higher than for the past hundreds of thousands of years. The speed and level of the increase suggest most of it is by human activity.

Decarbonisation- What, how and why is it important?

Decarbonisation is simply reducing the carbon dioxide (CO2) emission into the atmosphere by effectively switching towards the usage of low carbon energy sources, thereby creating an economic system that substantially reduces and compensates carbon dioxide emissions. The concept increases the dominance of low-carbon power generation by correspondingly minimising fossil fuels, creating a high demand for renewable energy sources like biomass, wind power, and solar power. 

In the business context, decarbonisation refers to all measures adopted by an entity. It can be either private or public, to bring down its carbon footprints. This involves greenhouse gas emissions, carbon dioxide, and methane, to reduce its impact on the climate as a whole. Khaitan BioEnergy, as a company, has shown key initiatives towards decarbonisation by developing bio-fuels for the global economy. What matters for investors, is the resulting changes in government policy and consumer behaviour. Similarly the impact on companies and their valuations (the ‘transition risk’) too.

Why governments, businesses and society are in urgent need of decarbonisation?

In Paris Agreement of 2015, governments and business leaders across different countries have committed to work towards achieving a low carbon economy. Thus making the concept a global imperative priority of governments and companies as it has significant role in limiting global warming. 197 countries worldwide have shown their consensus to gradually reduce the use of fossil fuels and CO2 emissions. This is to achieve carbon neutrality by 2050 and bring down global warming below 2°C by 2100. And to keep global warming within the acceptable level, the only way left is through deep decarbonisation.

Companies operating in specific industries like transport, energy, etc have declared their vision to become carbon neutral by 2050. To realize this ambitious mission,  key progress must be in sectors that share similar nature. This can be like longer asset lifespan, the complexity of electrification and high energy density. And as per the statistics, such sectors account for 32 per cent of the total carbon emissions. 

To meet the global temperature standards by the Paris Agreement and the UK government, “there should be reduction in carbon emission from transportation and power generation”.

WHY DOES IT MATTER IF THE WORLD ‘ONLY’ BECOMES 1.5°C WARMER?

Warming will not be evenly spread. The climate will become more unstable and weather patterns disrupted,. Similarly with heatwaves in some places and hurricanes and floods in others. The list of resulting direct physical climate change risks is long. It includes damage to assets, rising sea levels, water stress, crop failures and lower yields, lower fish catches, high mortality and low labour productivity in hotter countries, etc.

But longer-term concern is that at some point in the warming process, various natural feedback mechanisms will kick in, and warming will self-perpetuate and become unstoppable. These include the albedo effect release of methane by melting permafrost . Also the Amazon rainforest dieback is happening. These outcomes are impossible to model exactly, which is why there are a wide range of climate scenarios.

Nonetheless, irreversible damage and our actions in coming decades will dictate our planet’s course for centuries to come.

TARGETING ‘NET ZERO’ BY 2050 IS NOW A GLOBAL IMPERATIVE

The consensus now is that we have to fully decarbonise—reach ‘net zero’—by around 2050. Display 3 models the drastic decline in CO2 emissions. It require an immediate effect in order to reach net zero by both 2055 and 2040.

To achieve zero net emission, there should be a radical switch toward cleaner energy sources. and shifting from fossil fuels to other clean green sources of energy.  Complete decarbonisation is the only solution for achieving climate stability, as per the reports by the World Economic Forum.

Industrial Decarbonisation

The global middle-class population is expected to reach 3 billion over the next two decades. Thus compelling the industries to produce more commodities at relatively low prices. But constraints on vital resources will hurdle the industries to meeting the growing demand. 
Industries being nearly half of the global GDP and employment should note that they contribute to 28% of the world’s greenhouse gas emissions. With due concerns over environmental degradation by political parties and international agencies, the decarbonisation of industries has become more prominent. And industrial decarbonisation is not an easy process. It concerns the four major sectors that contribute 45% of carbon emissions into the atmosphere. These sectors include; cement, ammonia, steel and ethylene. And this requires rebuilding the production process from scratch or redesigning the existing sites. Decarbonising these four significant industries requires a careful mix of technologies and strategies. Statistics in recent reports estimate the total cost of industrial decarbonisation to be around $21 trillion.

Following are the most effective ways to decarbonise the four most environmentally significant industrial sectors;

  • Cement: 
  • Steel:
  • Ammonia:
  • Ethylene:

How Khaitan Bio Energy MAKES a difference

Khaitan BioEnergy, as a company, has shown key initiatives towards decarbonisation by developing bio-fuels for the global economy. The company encompasses the idea of focusing on producing high-efficiency products for the green and circular economy. The company developed and owns multiple patents for technologies that significantly reduce greenhouse gases. By holding an ethanol production patent, the company converted presently wasted albeit economically viable cellulose to sugars to 2G bioethanol . This technology is by undergoing various levels of development and testing. Thus making it highly efficient and unique by fully utilising components of lignocellulosic materials. Rice and paddy straw are the main agricultural waste. With this technology, the long-pending problem of open field burning will significantly solved. E ventually leading to a significant reduction in the environmental hazards arising from such activity.

Khaitan Bio energy uses rice straw to produce Bio-ethanol. The estimated carbon credits from 2G ethanol produced from Rice Straw:

From the life cycle of ethanol production, the reduction in greenhouse gases is estimated at 1 MT of CO2 is reduced for every MT of ethanol. 1 MT of ethanol equals 1268 litres or 1.268 Kiloliters. On 100 Kiloliters/day of production, the weight of ethanol produced is 78.9 MTs. Carbon credits per Kiloliter of ethanol accruable are 0.789 Credits/Kl

The company is commits to the principles of environmental sustainability and green (ESG) & tapping natural resources responsibly. Using the latest technologies contributes to safeguarding the energy supply. With fuels cutting CO2 emissions by up to 88% compared to fossil fuels, Khaitan BioEnergy shows the way forward in climate protection and achieving carbon neutrality in the coming decades.

Regulatory framework governing Decarbonisation

  • The Paris Agreement of 2015 appears to be a vigilant move towards achieving carbon neutrality. The agreement gets approval from 195 countries across the world. The countries have jointly shown their consensus towards minimizing the increase in global temperature by 2°C and trying hard to reduce it to 1.5°C in the coming decades.
  • Europe has been very positive and supportive of achieving a low carbon economy through various policies and regulations in recent years. One such initiative was by The European Green Deal 0f 2019. The initiative targets reaching carbon neutrality by 2050 and also aims to improve competitiveness by reducing the gap between economic growth and the use of resources.
  • The above initiative was rectified in the European Climate Law of June 2021. Targeting to achieve carbon neutrality by 2050 and modified the emissions reduction objective for 2030. And this upward improvement shows reforming the existing energy and climate regulations through a comprehensive legislative package.
  • Recently, the European Union has approved the Next Generation EU funds of 750 million euros targeting the speedy recovery following the Covid-19 crisis. As per the Recovery and Resilience Plans by the Member States, a part of this fund is used for to achieve the climate objectives.

How to achieve decarbonization

The following are the main steps in the process of decarbonization;

  • Have a clear understanding of the current potential and baseline. As a first step towards achieving decarbonization, getting a straight forward deal of the current decarbonization journey. It helps to set the target and enable us to make quick decisions about where to start. And to begin with, industries can go for creating baseline emissions by sources.

Further, to create a well decarbonization process, industries and governments can use software to scrutinise the data. Thereby helping the stakeholders and use the data in the right way. Keeping stakeholders is essential to ensure that the decarbonization.

  • Build and announce the targets: After identifying the goals, the next step is to promote this goal in public, helping businesses to realise those goals faster. 
  • Decarbonization Strategies and Programs: Different industries need to adopt different decarbonization strategies based on their varying nature. Because of advancements in technology, most enterprises require individual efforts to achieve a carbon-neutral economy, such as infrastructural upgrades, digital solutions, and data management.
  • Monitor and adjust: Towards achieving decarbonization, industriesmight face challenges such as additional human capital, reallocation of finances and more.

Therefore to keep updated with the latest trends, industries must constantly monitor. Also analyse the changes happening in the internal and external business environment from time to time.

The possible impact of the net-zero transition

Various research analysts suggest that as per the Network for Greening the Financial System (NGFS) Net Zero 2050 Scenario, there will be a considerable shift in demand for various goods and services due to changes in policies, technologies, and consumer and investor preferences. By 2050, the oil and gas production will experience a sudden decline in its production volume up to 55- 70%. Further, coal production for energy use may extinct by 2050.

Decarbonisation also significantly impacts the demand for products and services that use fossil fuels. The need for internal-combustion engines may decline considerably because of rising awareness about battery-electric and fuel cell electric cars. And demand for EV’s is expected to reach 100% by 2050.

Regarding other sectors, productions will concentrate more on lower-emission alternatives than products with emission-intensive operations. In the agriculture and food sector, the necessary changes for achieving net-zero transitions can be a shift from protein demand from emission-intensive beef and lamb to a lower emission food option like poultry.

The other sectors like power are expecting exponential demand on account of targets for aligning with net-zero emissions. The power sector is expecting a twofold increase in its market by 2050. Also, the production of biofuels and hydrogen will increase tenfold in the coming years. Other industries that indulge in managing carbon with carbon capture and storage expect to project a high growth rate in the coming years.

Under the NGFS Net Zero 2050 scenario, a capital allocation of nearly $275 trillion is on physical assets as cumulative spending. Achieving a net-zero transition would require eliminating some existing physical assets and replacing them with new ones – investments in installing physical assets with low carbon emissions in a period running from 2021 to 2025. The scenario also ensures the decarbonisation of existing assets. And on average, the annual spending for attaining net-zero emissions amounts to $3 trillion to $4 trillion, which will be equivalent to about 7.5% of GDP from 2021 to 2050. About $1 trillion of the present spending on high emission assets will have to be reallocated to low emission assets. Specific sectors like buildings, power and transportation would account for 75% of the total spending on physical assets. 

This capital expenditure for achieving net-zero transitions will result in operating savings in the long run through reduced fuel consumption, improved energy and material efficiency and lower maintenance costs.  

The net-zero transition will also impact consumer spending as they may experience increased prices and include the need to replace goods that burn fossil fuels like transportation, vehicles and home heating systems that depend on fossil fuels and a potential change from beef and lamb consumption. Consumers will experience severe hikes concerning mobility and building transitions, and the cost of production in fuels will be transferred to consumers in various duties and taxes. 

NGFS Scenario also foresees a demand for 162 million new job opportunities and a decrease in demand for direct and indirect jobs relating to the operations and maintenance sector by 2050. As per the scenario, the need for direct operations and maintenance jobs relating to the fossil fuel extraction and production sector and the fossil fuel-based power sector would be lesser. Whereas the agricultural and food sector jobs will prosper as demand for animal protein is affected under the net-zero mission. On average, 34 million positions associate with livestock and feed-relate jobs will be close by 2050. Similarly, low emission sectors will experience more job gains by 2050.

The rise in cumulative spending on physical assets will create substantial growth opportunities for companies and countries. Companies that minimise the emissions of their processes and products can get numerous benefits. Decarbonising their products and methods can also help them run their businesses cost-effectively. For example, improving the energy efficiency of heating systems in a steel plant can lower both its emission and operating costs. Car makers will prefer to manufacture EVs over Internal Combustion Engines. Industries will shift towards solar, and wind energy to generate renewable electricity and energy companies will start generating biofuels and hydrogen. 

Sectors that are exposed to net-zero transition

  • Fossil fuels: Combining fossil fuels contributes to 83% of global CO2 emissions. And the sector is highly expose to achieving carbon neutrality through energy efficiency, electrification and managing methane emissions. The industry will also face a steady decline in the demand for fossil fuels and growing demand for other energy sources like electricity, biofuels and hydrogen.
  • New energy sectors-Hydrogen and biofuels: Growing awareness about decarbonisation will soon create more demand for low emission energy technologies. Investments in expanding the capacity and infrastructure of other low carbon fuels would require additional capital spending amounting to $230 billion per year between 2021 and 2050. Net Zero 2050 scenario estimates that hydrogen and biofuels sectors will create two million direct job opportunities by 2050.
  • Power: To decarbonise the economy, the power sectors of different countries would require a phase of fossil fuels based operations and add low emission capacity power to meet the growing demand for economic development and electrification of other sectors. The sector must require capital spending amounting to $1 trillion, $820 billion, and $120 billion for power generation, power grids, and energy storage. As the industry prospers, the allied sectors like equipment providers, electricity storage hardware and related services will also develop. The industry expects to generate six million direct job opportunities. 
  • Mobility: The transportation segment accounts for 75% of the total mobility emissions. And decarbonisation would require the sector to adopt electric vehicles or vehicles powered by hydrogen fuel cells rather than internal combustion engine vehicles. The Net Zero 2050 scenario estimates annual spending of $35 trillion on the same for building charging and fueling infrastructure by 2050. Nearly nine million job opportunities expect to generate in the EV manufacturing sector by 2050. 
  • Industry: Two leading sectors are given more attention. That is steel and cement, as they contribute 14% of the global carbon emission and 47% of total industrial carbon emission. These two sectors decarbonise by installing CCS equipment or shifting to fuels like hydrogen resulting in zero or low emissions. 
  • Agriculture and food: Agriculture sectors are driven towards carbon neutrality by ensuring that they follow GHG-efficient farming practices. They encourage to increase the production of energy crops to produce biofuels. Annual spending amounting to $60 billion would be required to enable more emission-efficient farming by 2050.

Khaitan Bio Energy

Khaitan BioEnergy, as a company, has shown key initiatives towards decarbonisation by developing bio-fuels for the global economy. The company encompasses the idea of focusing on producing high-efficiency products for the green and circular economy. The company develops and owns multiple patents for technologies that significantly reduce greenhouse gases resulting from transportation fuels to decarbonise the mobility sector. By holding an ethanol production patent, the company converted economically viable cellulose to sugars to 2nd generation bioethanol technology. This technology is developed by undergoing various levels of development and testing, making it highly efficient and unique by fully utilising all the components of lignocellulosic materials in the production of high-value products. Rice straw is a massively produced agricultural waste. With the emergence of this technology, the long-pending problem of open field burning will be significantly solved, leading to a significant reduction in the environmental hazards arising from such activity.

The pre-commercial pilot plant established by the company highly focuses on establishing an end to end process for self-sustained integrated biorefinery, which facilitates zero discharge. And this patented technology by the company is recognised as a significant breakthrough for biotech innovation by the Biotechnology Industry Research Assistance Council, BIRAC.

The company is committed to the principles of environmental sustainability and green (ESG) & tapping natural resources responsibly. Using the latest technologies contributes to safeguarding the energy supply. With fuels cutting CO2 emissions by up to 88% compared to fossil fuels, Khaitan BioEnergy shows the way forward in climate protection and achieving carbon neutrality in the coming decades.