Industries such as steel, cement, and heavy transport account for some one-third of global greenhouse gas emissions (GHG), rendering breakthrough zero-carbon industrial products one of the most valuable assets of the world’s climate change portfolio. Heavy carbon emitting manufacturers all over the world are making the switch to cleaner industrial processes such as low-carbon electricity for industrial heat and hydrogen-based steelmaking. These companies are desperate to find a new technology that enables this. While quality control remains paramount, lower GHG-emitting industrial products have become the preferred choice.
At the leading edge of this transformation is a North American company, GH Power, that has developed four high-quality zero-carbon industrial products: zero-carbon electricity, zero-carbon hydrogen, zero-carbon iron and zero-carbon high-purity alumina.
GH Power and its team of engineers are bringing the worlds of green hydrogen, green alumina, and exothermic heat that can be fed into the grid using proprietary reactor technology that relies on only two inputs: scrap aluminum and water, which generates zero waste and zero Scope 1 carbon emissions. And a new partnership launched in January adds further credibility to industries as they make the switch. At the beginning of 2024, GH Power partnered with Fresh Coast Climate Solutions, a premier carbon consultant, to develop a comprehensive 3rd party verified green certification and assurance program that could catapult zero-carbon industrial products to a new level. Fresh Coast Climate Solutions provides independent reviews of the climate impacts of a range of clean technologies for global technology startups, technology accelerators, and climate investors.
Last year, GH Power showcased the first 100% green hydrogen power technology. This year, it is hoping to forge a path that offers a mark of excellence for its zero-carbon solutions through certification for industries that adopt its products. This could give users of their products 3rd party assurance of offsets for their own carbon emissions.
The latest Accenture research shows that less than 18% of companies are on track to reach net zero emissions by 2050. The big push is about to come now.
According to Accenture, “just three years of intensive cross-industry collaboration can turn industrial decarbonization from an immovable economic barrier to an economic force compelling all industries to accelerate net zero action.”
Heavy industry (steel, metals, mining, cement, chemicals, freight, and logistics) generates 40% of total global CO2 emissions, but Accenture is confident that new decarbonization strategies will enable growth for these industries.
Industry is responsible for 35% of the U.S. energy consumption. The implications of that are vast. That’s why manufacturers are under immense pressure to switch to low- or zero-carbon products in their production processes.
Of course, industry does nothing if there’s no profit to be made or if it adds product or quality risks while doing it. While the benefit to the world is a drastic reduction in emissions on the front line of the climate change battle, for industries, there are growing financial incentives—both carrot and stick.
The EU is employing a stick in the form of carbon border charges for products produced using dirty inputs and inefficient technologies.
In North America, it’s more about carrots, though. This is an era of technological breakthroughs, and today’s industry leaders are racing to capitalize on the funding opportunities that any clean tech breakthrough presents.
For starters, low- or zero-carbon industrial products, such as those developed by GH Power, build a direct in-road to state and federal contracts and environmental initiatives. The same is true for products manufactured by industries using these clean methods.
In other words, it makes economic sense.
That’s why the market potential for hydrogen technology is poised to hit $11 trillion by 2050, according to Bank of America.
Over 60% of industrial emissions come from the iron, steel, chemicals, non-metallic minerals, and nonferrous metals industries, according to Forbes.
There are incentives all over the place, including the cement industry, which traditionally uses coal to process decomposing limestone. Here, too, one of the world’s biggest cement manufacturers is developing a new process that uses electricity instead of coal, taking things one step further by capturing carbon in the process.
Pylyp is an experienced private banker and asset manager.