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Energy Efficiency as an Imperative Climate Strategy

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02 Feb, 2025

This post was originally published on Sustainability Matters

With mandatory climate statement disclosure rolling out in Australia, businesses need to start reporting on their emissions and sustainability plans for the future. As companies begin assessing the relevant risks and opportunities related to various climate scenarios, energy efficiency presents itself as an immediate climate-strategy with long-term benefits.

Commencing 1 January 2025, businesses that meet two of the three conditions — more than 500 employees, gross assets above $1 billion or $500 million or more in consolidated gross revenue — are required to lodge a climate statement, which discloses their climate-related plans, financial risks and obligations. As part of the gradual roll-out, by 1 July 2027, businesses that meet two of these conditions — more than 100 employees, gross assets above $25 million or exceeding $50 million in consolidated gross revenue — will also be required to report.

This climate statement will need to include the company’s sustainability governance, climate risks and opportunities, including those physical and transition related. They will also need to disclose their Scope 1 and 2 emissions, strategy to decarbonise, and conduct scenario analysis on the short, medium and long term impacts on the business. By the second year of reporting, businesses will also be expected to report on Scope 3 emissions.

Scenario analysis will be based on various assumptions of the state of the climate, one of which includes a possible future where global temperature has increased 2.5°C or more. They will be required to share their climate strategy and steps they are taking long-term in preparation for this scenario.

Common themes within climate strategies will include switching to renewable energy sources, electrifying fleet vehicles, purchasing carbon credits, and carbon capture and storage. Many of these methods look at reducing emissions through the energy source, or targeting the carbon aspect directly; however, climate strategies can also include reducing the amount of energy used. By investing in more energy efficient equipment, sites can maintain production whilst using less energy and producing less emissions.

When increasing energy efficiency and reducing energy consumption first, businesses will see short-term impacts; however, in the long term, they are also improving their foundation for an energy transition. Assuming no other changes, higher energy efficiency can lead to decreased energy demand, allowing for reduced system requirements when specifying and planning for self-generation or energy costs.

To understand what opportunities are available for upgrading to more energy efficient equipment, businesses can start with an energy audit to understand how energy is being consumed across site. Energy audits, like the ABB Energy Appraisal, can provide a roadmap for where and how equipment can be upgraded for the best energy saving potential. An energy audit identifies areas that can be immediately improved with existing equipment on the market, so there is no need to wait for the commercialization or development of more sustainable technology. Going beyond just changing all lights to LEDs, efficiency recommendations may include areas where variable speed drives can be added to control motor speed or upgrading from an IE3 motor to an IE5 ultra-premium efficiency or IE6 hyper-premium efficiency motor to reduce energy losses by 40% or more. This area can often be overlooked on sites as the Minimum Energy Performance Standard (MEPS) in Australia for motors is just IE2.

Mostly used in pumps, compressors, conveyors and fans, motors may seem like a minor part of a site; however, with 45% of the world’s electricity converted into motion by industrial electric motors, there are many opportunities for energy savings. In fact, a recent survey commissioned by ABB IEC Low voltage motors, showed that 92% of surveyed businesses in Australia recognize the important role of electric motors in achieving sustainability targets. In this same survey, participants ranked a reduction in operating cost as a more important driver for investing in energy efficiency than lowering their organization’s emissions. This is because upgrading to newer, more efficient equipment provides benefits beyond just emission reduction. For example, ABB’s Synchronous Reluctance (SynRM) Motors, available in IE5 ultra-premium efficiency or IE6 hyper-premium efficiency, use no rare earth metals or magnets. Running quieter and with bearing temperatures reduced by up to 15°C and winding temperatures by up to 30°, SynRM motors have longer maintenance periods, superior reliability, and contribute to a better operational environment.

Looking ahead, upgrading to an IE5 SynRM motor also provides more visibility into Scope 3 emissions, as SynRM motors meet ABB’s circularity criteria and transparency on environmental impact is provided through Environmental Product Declarations (EPDs).

By requiring companies to disclose their climate information, these new legal requirements are opening the door and facilitating more internal discussions on environmental impact and emission reduction. Whilst mandatory climate reporting is only required of large business entities this year, the progressive roll-out and Scope 3 emission reporting requirements mean that businesses of all sizes in Australia will be impacted by these new requirements. As businesses become more conscious of how sustainability should be integrated into their operations and finances, there is no better time to start investing in energy efficient solutions.

For more information, click here.

Image credit: iStock.com/denizunlusu

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ABB receives EPD status for gearless mill drive ring motor

ABB receives EPD status for gearless mill drive ring motor

ABB has gained Environmental Product Declaration (EPD) status for its Gearless Mill Drive (GMD) ring motor — technology used to drive large grinding mills in the mining industry.

An EPD is a standardised document that provides detailed information about the environmental impact of a product throughout its life cycle. Based on a comprehensive Life Cycle Assessment (LCA) study, the EPD highlights ABB’s commitment to transparency, environmental responsibility and supporting customers in making informed decisions on sustainability in their supply chains.

ABB analysed the environmental impact of a ring motor across its entire life cycle from supply chain and production to usage and end-of-life disposal. The study was conducted for a ring motor of a semi-autogenous grinding (SAG) mill with an installed power of 24 MW and was based on a reference service life of 25 years.

“Sustainability is at the core of our purpose at ABB, influencing how we operate and innovate for customers,” said Andrea Quinta, Sustainability Specialist at ABB. “By earning the Environmental Product Declaration for our ring motor, we emphasise our environmental stewardship and industry leadership for this technology. We adhered to the highest standards throughout this process, as we do in the ABB Ring Motor factory every day. This recognition highlights to the mining industry what they are bringing into their own operations when they work with ABB.”

The comprehensive LCA was conducted at ABB’s factory in Bilbao, Spain, and was externally verified and published in accordance with international standards ISO 14025 and ISO 14040/14044. It will remain valid for five years.

The ring motor, a key component of the GMD, is a drive system without any gears where the transmission of the torque between the motor and the mill is done through the magnetic field in the air gap between the motor stator and the motor rotor. It optimises grinding applications in the minerals and mining industries by enabling variable-speed operation, leading to energy and cost savings.

The full EPD for the ABB GMD Ring Motor can be viewed on EPD International.

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