As part of its industrial decarbonization program, Azerbaijan plans to replace gas boilers with electric boilers and high-temperature heat pumps, according to the updated review of Azerbaijan's Nationally Determined Contribution (NDC 3.0), The Caspian Post reports citing Report.
The document emphasizes that many industrial processes rely on fuels with a high carbon footprint: "Many segments of the industry rely on high emission fuel combustion to operate, where electrification of equipment and machinery is key to unlock full decarbonization potential. For instance, in food and beverage and chemicals industries, gas boilers would be substituted with high-temperature heat pumps and electric boilers for generating low-pressure and high pressure steam, respectively. Similar applications exist in alumina refining within the metals segment and downstream oil and gas. Electrification with increased penetration of renewables in the energy grid will translate to the decarbonization of fuel consumed by industrial assets."
The industry sector is an important source of economic growth and jobs, with multiple at-scale industrial companies, contributing up to 25% of the country"s non-oil and gas GDP. This contribution and growth have been driven by government policies as well as investments from the private sector and SOEs. This continued growth is projected to translate into higher GHG emissions, making decarbonization of this sector one of the main priorities in achieving emissions targets.
In 2022, this sector was primarily composed of: downstream oil and gas products, production of non-metallic minerals such as cement and metals such as steel and aluminum. Downstream oil and gas products are mainly produced by gas processing plant, petroleum refinery, petrochemical plants, methanol plant, and urea plant. This segment has experienced strong growth over the past decade, with increased production and export volumes.
Metallic and non-metallic material production is another key segment in this sector with nonmetallic minerals producing 2.7 million tons of clinker in 2022 achieving over 50% growth in the last 10 years, whereas metals segment totaled around 0.8 million tons of metal production in 2022, primarily from steel and aluminum production.
In 2022, the industry sector generated 8.9 MtCO2eq of emissions, driven by the use of emission fuel in energy and raw materials across six segments. Downstream oil and gas products, as well as non-metallic minerals, are two major contributing segments, collectively responsible for 6.3 MtCO2eq in total sector emissions. Other contributors include metals, chemicals, and food and beverage which together account for an additional 2 MtCO2eq. The remaining 0.6 MtCO2eq was generated by other industry segments such as construction and construction materials.
It should be noted that the industry sector is often considered hard-to-abate in terms of GHG emissions, primarily due to the high temperatures required in industrial processes. These processes often rely on hydrocarbons and produce gases from chemical reactions that may also contain fluorine.
Industrial parks serve to geographically concentrate industrial assets, thereby easing future decarbonization efforts.
For example, recycling heat and waste, CCUS, and electrification at-scale become easier when industrial assets are geographically concentrated and use shared infrastructure. Multiple industrial parks have been established in the past decade, with policies aimed at continuing this trend in an effort to produce 15% of the sector"s output within these parks.
Existing measures include government energy efficiency support programs, the construction of a direct-reduced iron (DRI) plant as a low-carbon production technology, and the development of large industrial zones such as the Sumgait Industrial Park, Sumgait Technology Park, and the Aluminum Production Complex.
According to the NDC, improving energy efficiency is a key factor in reducing emissions, particularly in the oil and gas sector. Improving equipment energy efficiency and modernizing production processes will significantly reduce emissions. In the oil, gas, and alumina industries, significant potential exists for the implementation of leakage detection and repair (LDAR) technologies, which reduce fugitive methane emissions.
The update highlights key measures by 2035 including: improving energy efficiency in the oil and gas refining sector; replacing gas boilers with electric boilers and heat pumps; and implementing LDAR technologies to reduce methane emissions in the downstream oil and gas sector.
The NDC also emphasizes that achieving industrial decarbonization goals will require significant capital investment in high-cost technologies. The largest investments are planned in the chemical industry and non-metallic minerals, where large-scale electrification is planned. Key success factors will include the implementation of inert anode technologies, the development of renewable energy, the modernization of grid infrastructure, and the upgrading and retraining of personnel.
