The urgency to transition to sustainable energy solutions has never been more critical. This journey is not just about mitigating risks, but also about seizing opportunities for innovation and growth. A recent study, spearheaded by experts from Genesis Italy and Technip Energies Italy, delves into this transformative journey, focusing on Central Asia—a region ripe with potential for green technology investments.
The study, titled "A Project to Context Decarbonization Analysis (PCDA) to Select the Best Energy Transition Solution Fit for Funding," explores how to identify and prioritise the most promising energy transition (ET) solutions. The goal is to align these solutions with Environmental, Social and Governance (ESG) criteria, EU climate ambitions, market trends and Technology Readiness Levels (TRL).
The Heart of the Study: Carbon Energy Environmental and Cost Model (CEE&C)
At the core of this research is the Carbon Energy Environmental and Cost Model (CEE&C). This model is a powerful tool designed to evaluate various ET technologies by analysing their lifecycle, environmental impact and economic feasibility. By incorporating the CEE&C model into a Project to Context Decarbonisation Analysis (PCDA), the study provides a holistic view of each technology's potential.
The CEE&C model is not just a theoretical framework; it is a practical tool that integrates data on capital expenditures (CAPEX), operational expenditures (OPEX) and carbon footprint. It helps identify the primary contributors to greenhouse gas (GHG) emissions and evaluates the effectiveness of different decarbonisation strategies. This comprehensive approach ensures the selected ET solutions are not only environmentally sustainable but also economically viable.
A Rigorous Screening Process
The study evaluated seven typical ET technologies each with multiple decarbonisation scenarios, resulting in more than 40 configurations. These configurations were rigorously tested against various criteria, including stakeholder engagement, economic and financial viability and environmental impact. Key Performance Indicators (KPIs) such as Product Carbon Footprint (CTG), GHG avoidance and Levelised Cost of Carbon (LCOC) were used to rank and compare the configurations.
The screening initially identified 14 configurations, which were narrowed to seven. These shortlisted configurations were then subjected to detailed profitability analysis using the Modelling Economic and Financial (MEF) tool. This tool calculates critical profitability indicators like Internal Rate of Return (IRR), Net Present Value (NPV) and Pay-Out Time (POT), ensuring the selected solutions offer the best return on investment.
Real-World Impact and Strategic Alignment
The study focuses on real-world applicability. Our proposed paper intends to show how the results of the CEE&C model with the LCOC in a PCDA study can support stakeholders and investors to implement their decarbonisation strategies. By providing insights into the highest value for carbon reduction and the most cost-effective solutions, the study helps align technological innovation with market needs and policy goals.
Moreover, the study emphasises the importance of strategic stakeholder engagement. By involving industrial partners, state investments, feedstock providers, off-takers and financing institutions, the study ensures the selected ET solutions are not only technically and economically sound but also socially and politically feasible.
A Vision for the Future
The findings of this study are not just academic; they are a call to action. They highlight the immense potential of Central Asia as a hub for green technology investments and underscore the importance of a comprehensive, data-driven approach to decarbonization. By integrating environmental, economic and social considerations, the study provides a roadmap for achieving sustainable growth and climate resilience.
In conclusion, the "Project to Context Decarbonisation Analysis" is a testament to the power of innovation and collaboration in addressing one of the most pressing challenges of our time. It offers a blueprint for how businesses, governments and investors can join forces to turn climate ambitions into tangible actions, fostering a just and sustainable transition toward a low-carbon future.
The full article was published in the Chemical Engineering Transactions (CET) Journal. Click here to read more.
Authors:
Maria Valeria Ermini - Study Manager, Valeria Bernardini - Environmental Advisory Service Manager, Marco Verna - Head of Market, Downstream Consulting & Products, T.EN X, Luca Giuseppe Campana - Project Director, Arzu Abdullaeva - Advisory & Consultancy Section Head, T.EN X, Luigi Fiorentino - VP Business Development, Strategy & Marketing, T.EN X, Gianluca Florio, Business Development Manager, T.EN X