Integrated Clean Energy Hub
Powering industries with renewables, hydrogen, and CCS for a decarbonised future.
Why are integrated clean energy hubs essential to a net-zero future?
Renewable electricity alone cannot help hard-to-abate industries meet their carbon emissions goals. For example, steel plants with blast furnaces need fuel sources that can produce high heat to manufacture their product, which cannot be solved by switching to electricity. Cement plants release over half of their carbon dioxide (CO2) through the calcination process1, so electrification alone cannot get them to net zero emissions. Glass plants combine both issues, with temperature requirements that cannot be met in large furnaces through electricity alone and raw materials that release CO2 when melted.
Because of these realities, lower-carbon fuels such as hydrogen and carbon capture and storage (CCS) are needed in steel, cement, utility and chemical plants. As a result, industrial hubs around the world will need large infrastructure investments to bring in new fuels and remove and sequester or utilise CO2 when lower-carbon fuels and processes cannot eliminate all emissions.
What are the integrated clean energy hubs?
An integrated clean energy hub is most often an existing industrial hub that promotes the development and use of lower-carbon energy sources such as wind electricity, solar electricity, hydrogen and biofuels, along with technologies such as electrolysers and CCS. These hubs typically serve as centres for innovation, research and development, with the aim of accelerating the adoption of clean energy technologies and increasing energy system flexibility by sector integration.
In addition, integrated clean energy hubs are high-potential geographic areas where governments, energy suppliers, energy users from industry sectors and local communities collaborate to accelerate energy transition. They can do so by prioritising and scaling up decarbonisation solutions and creating synergies across technologies and value chains.
Clean energy hubs are beginning to take shape all around the world, including industrial regions in Europe, Asia, and North America.
How do they operate?
The components of an integrated clean energy hub can vary based on the supply and demand in the hub, geographical distinctions and the mix of public and private funding to decarbonise.
Explore our concept integrated clean energy hub
Why Shell?
At Shell, we take a holistic view of an integrated value chain for the energy sector and optimised supply and demand for lower-carbon and renewable energy.
We have the expertise to support the development of energy solutions, and our global network of operations could help to accelerate the adoption of clean energy technologies across different regions.
The concept of developing integrated clean energy hubs requires cross-industry and cross-country collaboration. None of the stakeholders can single-handedly build integrated clean energy hubs and accelerate clean energy at scale. At Shell, we are committed to collaborating with our stakeholders, including industries, policy makers, academia and local communities. By working together with stakeholders, we can help to accelerate the development, adoption and scale-up of renewable and lower-carbon solutions and support the successful transition to a more sustainable energy system.
Get in touch to discuss your business’ decarbonisation goals
1 Source: https://www.mckinsey.com/industries/chemicals/our-insights/laying-the-foundation-for-zero-carbon-cement