The future of industry: Efficiency, digitalisation, and the path to net-zero

The future of industry: Efficiency, digitalisation, and the path to net-zero

1. Setting the stage: Why energy efficiency alone is not enough

In my recent article, I highlighted how energy efficiency represents one of the most impactful, greenest, and cost-effective strategies for industries aiming to reduce emissions. By cutting down energy demand, industries can immediately contribute to carbon reduction goals, with the cement sector alone holding the potential for millions of tons in CO? savings annually through optimised processes. However, as global pressures to reach net-zero intensify, there is a clear message: energy efficiency alone will not get us there.

To fully unlock sustainability, industries must look to complementary technologies and approaches that maximise operational effectiveness and emissions reduction. Today, digitalisation, real-time process controls, and predictive maintenance are transforming energy efficiency from a passive practice into an active, intelligent system - one capable of anticipating needs, preventing inefficiencies, and enhancing productivity across sectors.

2. Innovations driving sustainable industry

Smart manufacturing and AI – Opportunities and challenges:

Industries worldwide are harnessing AI and machine learning to drive production efficiencies, with a goal to cut costs, reduce waste, and lower emissions. In theory, real-time data and predictive analytics offer unprecedented levels of process control and optimisation. For example, predictive maintenance models in some cement plants help schedule maintenance only when needed, optimising both energy use and operational uptime.

However, the reality of implementing AI is often far more complex and challenging than expected. AI requires high-quality, continuous data to function effectively, which may not be readily available or affordable for every plant. Additionally, the initial investment in AI technology, coupled with the need for specialised talent to maintain and adjust these systems, can be a deterrent for many companies. This often limits effective AI adoption to larger, well-resourced firms, leaving smaller and mid-sized companies struggling to keep up with digitalisation trends. Achieving true energy efficiency through AI is a significant endeavour and one that must account for substantial training, maintenance, and long-term optimisation efforts to deliver real results.

Alternative fuels and materials – New advances:

Alongside digital solutions, alternative fuels and materials are gaining traction as sustainable substitutes in energy-intensive sectors. The cement industry, for example, has begun integrating alternative raw materials, such as calcined clay, as a supplement or replacement for traditional Portland cement clinker. Calcined clay requires lower firing temperatures, thus reducing energy consumption and emissions. The use of supplementary materials like fly ash, slag, and even agricultural waste products also cuts down on emissions by reducing the amount of clinker needed per ton of cement.

Major players in the cement industry are already piloting these materials in select markets, showing that with the right formulation and production adjustments, calcined clay and similar materials can meet the performance needs of traditional cement. Such innovations not only reduce carbon intensity but also represent a step toward a circular economy, turning waste and by-products into valuable resources.

Global movements and standards:

Industry standards and global movements are further incentivising sustainability efforts. The International Energy Agency’s roadmap for industry targets a 35% reduction in emissions by 2030 through optimised efficiency, alternative fuels, and digitalised processes. Standards like ISO 50001 on energy management provide frameworks for companies to improve their energy efficiency systematically. These global movements make the path clearer for industries, but their success depends on collective action and individual commitment to these standards.

3. The role of proper maintenance in achieving efficiency

The importance of routine maintenance:

The importance of regular, thorough maintenance cannot be overstated when it comes to energy efficiency. Studies have shown that improperly maintained equipment can consume 10-20% more energy due to factors like increased friction, clogged filters, and outdated systems. For industries with heavy machinery and high energy demands - such as cement, steel, and mining - routine maintenance plays a vital role in minimising energy waste and maximising operational efficiency.

Laying the foundation for advanced optimisation:

Effective maintenance extends beyond repairs; it involves regularly scheduled checks, replacements, and optimisation to ensure equipment operates at peak efficiency. Predictive maintenance systems are beginning to offer more insight into machine performance and degradation, allowing plants to intervene before issues lead to energy wastage. However, even these systems require consistent upkeep, calibration, and staff training. Proper maintenance, therefore, serves as the foundation upon which more advanced optimisations, such as AI-driven improvements, can be built effectively.

The growing skills gap:

However, the industry is facing a growing problem: a shortage of skilled labour with the deep technical expertise needed for advanced maintenance and operational optimisation. An increasing lack of younger generations entering technical trades means fewer qualified individuals to manage and maintain complex industrial systems effectively. In fields where hands-on skills and in-depth technical understanding are critical, this gap is already affecting operations, with a ripple effect on energy efficiency and emissions reduction goals. As fewer people gain technical knowledge, and as experienced workers retire, the capacity for efficient, well-maintained operations diminishes, threatening future sustainability efforts. This talent shortage, if unaddressed, could exacerbate energy waste and make the adoption of advanced technologies even more challenging, underscoring the need for a strategic focus on workforce development in parallel with technological innovation.

4. Barriers and industry-wide collaboration

Challenges to adoption:

Despite the compelling benefits, barriers remain in implementing advanced efficiency measures. High upfront costs for digital technologies and AI solutions can deter smaller firms, while a shortage of skilled labor often hinders successful adoption in developing regions. For many, the costs and logistical challenges of retrofitting older plants to accommodate new technologies are also significant.

Collaboration across industries:

These challenges present an opportunity for industry-wide collaboration. Sharing best practices, technologies, and even joint-investment initiatives could help companies mitigate costs and accelerate adoption. Global initiatives, such as the Cement Sustainability Initiative (CSI) and the World Cement Association’s sustainable practices, are creating platforms for this exchange, fostering a culture of innovation and sustainability across competitors. By focusing on collaboration, industries can ensure broader adoption of these energy-saving practices, propelling the entire sector forward.

5. Looking forward: The net-zero vision

A holistic approach:

The journey to net-zero will require more than energy efficiency or isolated technological advancements; it demands a holistic approach. Energy efficiency should be viewed as the foundation, complemented by digital innovation, alternative fuels, and resource optimisation strategies. Companies that lead in this direction are not only improving their competitive standing but also contributing to the resilience of their industries against future regulatory and resource pressures.

The role of leaders:

Leaders across industries must champion these efforts, setting ambitious goals for efficiency and carbon reduction. It is up to these leaders to drive the cultural and operational shift necessary to adopt, optimise, and scale these practices industry-wide. Through responsible leadership and a commitment to sustainable practices, companies can shape the future of industry for the better.

Conclusion

Achieving net-zero in the industrial sector is a formidable task, yet it is achievable with a commitment to energy efficiency, proper maintenance, and openness to the transformative potential of digital innovation, alternative resources, and collaboration. I encourage industry peers to consider both the immediate benefits and the long-term advantages of making these changes now.

Let’s connect and discuss how we can collectively contribute to a more sustainable, efficient, and competitive industrial future.

Feel free to reach out to me for a talk or a discussion on the topic, or just leave your thoughts below in the comments!

Until next time, take care and stay safe out there!

Poul Wathne

External Professor in International Management, CSR

4 个月

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