Why Your Business Can’t Ignore Net Zero in 2024?

Net zero, the equilibrium between the greenhouse gases emitted and those removed from the atmosphere, can mitigate climate change impacts. The IPCC has cautioned that world leaders must cut global emissions in half by 2030 to uphold a 1.5 degrees Celsius limit on global warming. Considering that 100 businesses are responsible for 71% of global emissions, we can't overstate the significance of their contribution to the net-zero cause.

The Corporate Net-Zero Standard sets an ambitious precedent for companies to significantly cut emissions by 2050. While this initiative reveals the importance of net zero principles in corporate strategies, it also sets science-based targets. The standard gives leaders a clear understanding of how to align their short- and long-term decarbonization strategies with climate science.

This challenge brings innovative solutions like thermal energy storage systems (TESS) to the forefront, which can transition businesses towards net zero principles. With TESS, industries can use low-grade waste heat, pushing the idea of 'net zero' carbon emissions from a lofty ideal to a critical strategy. 

The Importance of Net Zero for Businesses

As governments impose stringent regulations to meet international climate goals, businesses must adapt or risk significant fines and restrictions. Net zero principles align companies with global efforts to combat climate change, as the Paris Agreement outlines. By working towards net zero, businesses contribute to the worldwide goal of mitigating climate change's adverse effects.

Given this landscape, businesses can no longer afford to ignore the net zero transition because of:

• Market Expectations: Consumer demand increasingly favors eco-friendly products and services, giving companies that don't meet these expectations a competitive disadvantage.

• Investor Pressure: Investors are factoring sustainability into their decision-making, preferring to support companies with clear net zero commitments and strategies.

• Corporate Responsibility: There is a moral imperative for businesses to reduce their environmental footprint and contribute positively to society, enhancing brand reputation and loyalty among stakeholders.

Companies that proactively embrace the transition to net zero will lead their industries, while those that lag will struggle to remain relevant. Net zero is a crucial target for businesses aiming to reduce their environmental impact, align with global standards, and improve their market positioning. Here's how enterprises are integrating net zero into their operations:

• Emission Reduction Initiatives: Businesses focus on optimizing energy use, investing in renewable energy, innovating in product development, and investing in environmental projects to remove greenhouse gases.

• Public Reporting and Strategy Enhancement: Regularly reporting on progress towards net zero targets helps businesses maintain transparency with stakeholders and refine their sustainability strategies over time.

• Legal and Consumer Expectations: Achieving net zero is a moral obligation and a response to increasing legal and consumer demands for environmentally responsible practices. Governments worldwide set ambitious net zero goals, necessitating business compliance to avoid penalties.

• Strategic Investments for Long-term Viability: Switching to renewable energy is vital for long-term sustainability. It requires significant investment but supports net zero objectives and future regulatory trends.

Barriers Stopping Companies From Adopting Net Zero Principles

While many businesses understand the urgency of adopting net zero principles, several barriers hinder this transition. These challenges range from financial constraints to technological limitations, each slowing down the pace of adoption.

• Financial Hurdles: The shift towards net zero often comes with substantial upfront investment costs. Securing funding for these initiatives proves challenging for many companies, especially SMBs.

• Technological and Expertise Gaps: Some sectors lack commercially viable low-carbon alternatives, hampering their ability to decarbonize fully. Additionally, a noticeable lack of expertise regarding decarbonization makes it difficult for businesses to implement changes.

• Supply Chain and Operational Complexities: Companies with complex global supply chains find tracking and reducing emissions particularly challenging. This complexity is compounded by the difficulty of managing and measuring complete emissions scopes.

• Resource and Input Limitations: The transition requires significant physical inputs and, if not well-managed, could lead to shortages that slow the growth of new, cleaner energy systems. 

How R-TESS Systems Assist With Adopting Net Zero Principles

Adopting net-zero principles isn't just a matter of environmental stewardship but a strategic imperative for long-term sustainability. TESS and RenewableNRGY's Thermal Energy Storage Systems (R-TESS) offer a pathway to reduce carbon footprints while significantly enhancing efficiency and operational resilience. The GigaTES project in Austria aims to develop large-scale thermal energy storage to enable a 100% renewable energy heat supply for urban districts.

This project exemplifies how companies can scale TESS to meet the energy needs of entire communities.

• Enhanced Energy Efficiency: TESS and R-TESS technologies enable thermal energy storage for later use, allowing businesses to leverage energy more efficiently. Excess heat can be stored and used during peak demand, reducing energy wastage and reliance on fossil fuels.

• Cost Reduction: Thermal energy storage can help businesses optimize energy use and reduce dependence on peak-time energy sources, leading to lower operational costs and increased profitability. According to IRENA, this technology could also make energy systems more flexible, stable, and cheaper.

• Operational Resilience: TESS and R-TESS provide a buffer against energy price volatility and supply disruptions. Businesses can ensure operational continuity and protect against market fluctuations by storing energy when it's cheap and using it during shortages or price spikes.

• Support for Renewable Energy Integration: Renewable energy sources like solar and wind can be unreliable due to their intermittency. TESS and R-TESS help solve this problem by storing excess energy generated during periods of high renewable output, ensuring a reliable energy supply for businesses aiming to reduce their carbon footprint.

Variable renewable energy (VRE) could comprise 60% of power generation by 2050. TESS and R-TESS support the global shift towards a clean energy mix by providing the necessary storage solutions to accommodate these renewable sources. Incorporating RenewableNRGY's TESS into your company's processes presents a strong case for reaching net-zero targets. As a business leader, implementing R-TESS can identify your enterprise as an innovative frontrunner on the path to a net-zero horizon. 

R-TESS stands out from other storage systems by generating electricity from residual heat. Each megawatt of R-TESS can store 6.5 megawatts of thermal energy, with a 25-35% conversion rate into electricity. This translates to as much as 3 million kWh of electricity production annually per megawatt. 

Final Thoughts

Thermal energy storage systems like R-TESS can reduce carbon footprints and showcase a commitment to energy efficiency. With TESS technologies, businesses stand on the precipice of a transformative shift, aligning with global sustainability goals and enhancing their competitive edge. The impending deadline of 2030 is fast approaching, and business leaders must strategize and integrate sustainable practices into their operations. 

Embracing thermal energy storage exemplifies a forward-thinking approach that mitigates environmental impact and ensures long-term success. Mark the first step toward empowering your business with a solution that delivers energy autonomy, cost savings, and a profound environmental commitment. Contact RenewableNRGY today to explore how we tailor our R-TESS systems to your industry.