Casting Out Carbon: How to Reduce GHG Emissions in Energy-Intensive Industries

As climate change gains more global attention, companies with extensive energy-intensive consumption running operations for foundries, manufacturing, hospitals, data centers, and others, are looking for ways to reduce their Greenhouse Gas Emissions (GHG). GHGs contribute to global warming, with different gases having varying effects based on their Global Warming Potential (GWP). For example, carbon dioxide has a GWP of 1, while sulfur hexafluoride (SF6), a less common GHG, has a GWP of 23,500. Lowering emissions not only supports environmental goals but also helps businesses meet growing regulatory and market demands. This requires a commitment to sustainability and the right tools to manage emissions effectively.

Environ’s Yoram Bernet Speaks to Reducing GHG Emissions

Yoram Bernet, Founder and CTO of Environ’s Scope 5 software, recently shared insights on carbon tracking in the foundry industry during an American Foundry Society webinar. He emphasized the importance of accurately measuring emissions across Scopes 1, 2, and 3 to develop effective reduction strategies. As regulatory pressures and customer demand for sustainability grow, these strategies are crucial for operational efficiency and compliance.

Understanding Scopes 1-3

GHG emissions originate from various sources, typically grouped by activity and scope. Key contributors include stationary combustion (e.g., boilers, furnaces), mobile combustion (e.g., vehicles), and electricity consumption. Additionally, fugitive emissions — such as refrigerant leaks and emissions from industrial processes — also play a significant role in GHG output.

GHG emissions are divided into three scopes:

Scope 1: Direct emissions from company-owned or controlled sources, such as boilers or company trucks.

Scope 2: Indirect emissions from purchased energy, such as electricity or steam.

Scope 3: All other indirect emissions that occur in a company’s supply chain, from suppliers to waste management and transportation.

Understanding how reducing GHG emissions and their sources is critical for businesses aiming to manage and reduce their carbon footprint.

Why GHG Emissions Matter

There are many reasons GHG reduction efforts are a priority for companies:

Regulatory pressures, such as carbon taxes or cap-and-trade systems, can impose financial burdens on companies failing to manage emissions. Stakeholder expectations, especially from large customers and investors, drive demand for sustainable practices.

Customers of publicly traded companies look for transparency of supplier efforts toward energy reduction and sustainability.

“Carbon neutrality, or reduction in the case of the metal casting industry, is a reality. The more folks can understand it and get ahead of this, the better off they’re going to be,” noted Jeff Hannapel of The Policy Group. Kim Phelon of Modern Casting echoes this sentiment, emphasizing that customer demand for sustainability will likely precede even regulatory mandates.

Measuring and Reporting Carbon Emissions

The ability to accurately measure and report emissions is key to driving down GHG outputs. There are three levels of measuring emissions:

Tier 1: Emissions modeled using gross averages.

Tier 2: A more accurate approach, combining activity data with emissions factors.

Tier 3: Direct measurements using sensors and precise emissions factors.

Companies can calculate emissions based on energy usage, such as electricity (measured in megawatt-hours multiplied by regional emissions factors), or fuel combustion volumes. Fugitive emissions, such as those from refrigerant leaks, are typically calculated using estimates combined with GWP values for various gases.

Yoram revealed, “The ability to accurately measure and report emissions is key to driving down GHG outputs. You’ll need a plan to identify your carbon sources and devise actions for improvement.”

Optimize Operations to Reduce GHG Emissions

For energy-intensive operations like foundries, hospitals, higher education, data centers, and others there are proven ways to reduce GHG emissions. For Scope 1 or 2 emissions, businesses have the most control, Key reduction strategies include:

Electrify where possible to reduce reliance on fossil fuels.

Purchase low or zero-emissions electricity, such as through renewable energy credits (RECs), though RECs may not meet all reporting standards.

Generate onsite electricity using renewable sources like solar or wind, or through cogeneration.

Optimize energy use by insulating equipment, using waste heat recovery, and scheduling operations to align with lower grid emissions.

Reducing GHG emissions isn’t just an environmental necessity; it’s good business. By understanding emission sources, measuring accurately, and optimizing operations, companies can reduce both their environmental impact and operational costs. Using renewable energy sources into operations is essential for reducing greenhouse gas emissions. Renewable Energy Certificates (RECs) also play an important role in supporting renewable energy projects, though their acceptance varies among carbon reporting protocols.

Are You Looking to Reduce Your Carbon Output?

At Environ Energy, we guide clients through every step of GHG management, from measurement to reduction. With experience in energy management and sustainability, our experts help businesses optimize operations and meet regulatory requirements while lowering costs.