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Emission Statement - Issue 2 - Application
- 1. E|MISSION Statement ™
EMAIL enquiries@our-
future.co.uk
ISSUE
02
The
‘Emission
Statement’
sets
out
to
provide
a
view
of
the
application
and
potential
for
carbon
mitigating
technologies
as
they
strive
to
find
commercial
value
propositions
that
are
considered
supportable
by
policy
makers,
treasuries
and
tax
payers.
The
aspiration
from
publishing
such
a
document
is
not
to
provide
an
oracle
or
prescriptive
roadmap
for
clean
technology
development.
Instead
it
is
offered
as
a
simple
pragmatic
framework
for
all
stakeholders
to
be
able
to
consider
such
developments.
Far
too
frequently
the
complexity
of
situations
is
over
analysed
to
the
extent
it
creates
barriers
to
progress.
As
with
the
‘Engineering
of
Things’
(“EoT”),
simplification
and
the
pursuit
of
solutions
can
be
much
more
productive
and
is
the
foundation
with
which
the
‘Emission
Statement’
is
presented.
Application
Risk
Management
In
Issue
1,
Application was
defined
as
the
direct
customer
or
client
market
the
technology
will
be
installed
on.
The
Application
sector
may
not
necessarily
be
the
sector
from
which
the
project
will
secure
all
its
income,
but
it
is
the
basis
for
the
initial
commercial
and
environmental
value
proposition.
Why
is
this
important?
It
is
important
because
it
establishes
the
first
phase
of
project
definition,
that
must
be
addressed
by
the
Engineering
of
Things
(“EoT”).
It
will
also
ultimately
become
the
foundation
of
the
projects
funding
pathway
via
what
we
refer
to
as
the
“consumer
donut”;
which
in
turn
establishes
the
external
factors
that
must
be
resolved
to
allow
execution
of
the
project.
But
we
will
get
to
that.
First
it
is
important
to
consider
the
two
sides
of
carbon
emissions
that
influence
consideration
of
Application.
©
and
™
GB
Management
Services
Ltd
GB
Management
Services
Ltd
offers
consultancy
services
related
emissions
reduction,
process
and
operations
improvement,
and
the
development
clean/renewable
technology
projects.
Contact
Details:
Grant
Budge
Mobile:
+44
(0)
7780
920504 Email:
gbudge@our-‐future.co.uk
With
technology
Application
it
is
essential
to
have
a
grasp
of
the
root
cause
of
emissions.
It
may
seem
overly
simplistic
to
state
that
cause
and
source
are
different,
but
as
we
evolve
the
Emission
Statement
narrative,
we
will
show
how
they
can
be
both
dependent
or
independent
of
each
other.
To
illustrate
the
above
point,
to
the
right
are
two
pie
charts.
These
charts
are
a
blend
of
global
data
sources,
because
it
isn't
the
decimal
points
of
the
numbers
that
are
important,
but
clarity
around
general
distribution
of
emissions.
The
top
chart
illustrates
the
physical
source
of
carbon
dioxide
emissions.
It
identifies
by
business
sector
where
the
challenge
is
precipitated
alongside
a
commercial
trading
activity
(i.e.
on
site
at
a
facility).
This
is
where
the
cost
of
emissions
materialises.
The
bottom
chart
considers
emissions
from
a
different
perspective,
that
of
the
end
beneficiary
of
the
emissions
or
where
the
cost
is
borne.
While
it
may
be
that
‘electricity
and
heat’
are
the
major
source
of
emissions,
they
are
only
a
small
beneficiary
of
the
product
of
those
emissions.
Accepting
this
concept
is
essential
when
establishing
a
carbon
reduction
project
and
its
area
of
Application.
46%
23%
20%
6%
5%
Emitter.(Application)
Sector
Electricity)&)Heat)(Power)
and)Industrial)
Transport
Industrial)and)Construction
Residential)
Other)(Not)Residential)
7%
23%
37%
18%
15%
Emissions. Beneficiary
Sector
Electricity)&)Heat)(Power)
and)Industrial)
Transport
Industrial)and)Construction
Residential
Other)(Not)Residential)
- 2. EMAIL enquiries@our-
future.co.uk
©
GB
Management
Services
Ltd
Contact
Details:
Grant
Budge
Mobile:
+44
(0)
7780
920504 Email:
gbudge@our-‐future.co.uk
The
Consumer
Donut
CADS
With
the
basic
characterisation
accepted
that
emitter
and
beneficiary
of
emissions
are
different,
we
have
developed
the
Consumer
Donut
to
aid
developers
in
framing
their
Application
position.
The
Consumer
Donut
endeavours
to
provide
a
very
basic
model
of
how
the
Application
of
clean
technologies
works,
and
in
so
doing
delivers
a
framework
for
communication
of
the
same
to
all
stakeholders.
Within
the
Donut,
we
propose
the
definition
of
two
Application
groups:
Consumer
and
Demand
Side
(“CADS”)
and
Process
and
Production
Side
or
(“PAPS”)
When
developing
a
project
or
technology,
it
goes
without
saying,
knowing
your
market
position
– your
Application
-‐ is
key.
But
in
emission
reduction
technologies
it
is
even
more
important,
because
it
will
ultimately
align
to
both
your
funding
pathway
and
your
communications
strategy.
So,
what
are
these
two
umbrella
Application
groups
and
how
do
they
interact?
For
this
we
provide
a
general
summary
of
their
characteristics
below.
Consumer
and
Demand
Side
(CADS)
applications
are
characterised
in
the
following
way:
• They
are
small
in
nature
targeted
at
households
and
individuals.
• They
have
relatively
low
unit
costs
to
demonstrate.
As
such,
they
are
an
attractive
investment
opportunity,
potentially
being
scalable
and
volume
driven;
which
allows
cost
exposure
to
better
align
with
returns.
• Gains
are
minuscule
for
each
installation,
impact
is
incremental
and
through
cumulative
(i.e.
volume)
based
utilisation;
and
as
such
they
generally
require
cultural
shifts
to
drive
adoption,
combined
with
Government
backed
incentives
or
subsidies.
• They
are
mostly
energy
efficiency,
energy
switching
and
energy
reduction
focussed.
• Energy
switching
CADS
hold
extended
infrastructure
influence,
because
the
core
energy
demand
is
still
required,
but
its
load
is
shifted
to
another
source,
impacting
PAPS
.
Process
and
Production
Side
(PAPS) applications
are
characterised
in
the
following
way:
• They
are
large
in
nature
and
are
industry/business
led.
• They
require
significant
investment
decisions,
backed
by
a
view
of
long
term
market
security.
• They
have
relatively
high
unit
costs
to
demonstrate
and
still
hold
scaling
risks
beyond
that
demonstration.
• PAPS
have
less
influence
on
CADS,
other
than
as
a
supplier
of
utilities
and
raw
materials.
With
these
definitions
we
can
explore
the
dynamics
of
the
Consumer
Donut,
which
is
illustrated
on
the
next
page.
PAPS
sit
towards
the
core
of
the
Donut.
They
are
the
backbone
of
economic
and
social
existence
and
growth.
Thermometers
of
national
performance
so
to
speak.
A
nation
in
boom
will
increase
in
PAPS
size
and
by
default,
the
donut
will
expand
and
present
a
greater
challenge
for
emissions
reduction
and
burden
of
cost.
CADS
seek
to
reduce
the
donut
diameter
through
demand
reduction.
They
achieve
this
by
providing
avenues
to
enhance
disposable
income
(reduce
demand
through
energy
efficiency
and
education)
and
then
seek
to
consume
the
released
disposable
income
(provide
cleaner
or
energy
efficient
products).
However,
what
can
be
misunderstood
here,
is
the
transfer
of
undertaking
regarding
emissions.
For
example,
an
electric
car
may
make
the
consumer
feel
good
about
his
carbon
footprint,
because
they
are
no
longer
an
emitter,
but
that
doesn’t
eliminate
their
culpability
for
being
the
beneficiary
of
emissions,
due
to
the
increased
electricity
demand.
Considering
emissions
must
be
holistic.
Caught
between
the
PAPS
and
CADS
are
the
consumers
– society.
Many
focus
the
burden
of
climate
change
to
Governments
and
business
to
resolve
and
finance,
ignoring
the
fact
that
it
is
societies
right
for
existence
and
desires
for
an
increasing
standard
of
such
existence,
that
is
the
driver
of
environmental
change.
Such
rate
of
change,
will
always
have
variable
‘pull’
to
it,
expanding
and
contracting
the
Donut.
In
practice,
the
sole
role
of
business
is
to
use
best
endeavors
to
assess
and
develop
Technologies
for
a
lowest
cost
pathway
(best
available
technology)
and
facilitate
the
passage
of
that
cost
to
society.
Alongside
this,
the
role
of
Government
is
the
application
of
Policy,
Regulation,
Legislation
and
provision
of
finance
to
stimulate
or
impose
the
adoption
of
will
always
sits
at
the
end
of
the
value
chain
and
bare
the
burden
of
cost.
The
‘Consumer
Donut’
is
not
intended
to
be
exhaustive,
but
is
provided
for
low
level
mapping
of
Applications
to
Technologies
and
their
collective
impacts.
It
is
the
starting
point
for
characterising
Application
and
determining
how
the
proposed
project
will
influence
and
be
influenced.
E|MISSION Statement ™
- 3. ©
GB
Management
Services
Ltd
Contact
Details:
Grant
Budge
Mobile:
+44
(0)
7780
920504 Email:
gbudge@our-‐future.co.uk
The
Consumer
Donut
CADS
PAPS
THE
3
LAWS
OF
APPLICATION
• CADS
CAN
INCREASE
DEMAND
FOR
PAPS
• THE
GOVERNMENT
MUST
BE
AN
ENABLER
FOR
BOTH
• THE
CONSUMER
PAYS
NOTE: To
aid
continuity
with
future
issues
of
the
Emission
Statement,
we
have
profiled
a
selection
of
Technologies
and
Wider
Impacts
of
each
Application/Technology
blend
CADS
GOVERNMENT
CONSUMER
PAPS
GOVERNMENT
TECHNOLOGY
TECHNOLOGY
EXTENDED3
INFRASTRUCTURE3
INFLUENCE
THE3FLOW3OF3
FINANCIAL3BURDEN
Application** Technology* Wider*Impact*
Wholesale(Power( Nuclear(
CCUS(/(BECCS(
(
Tidal(
Wind(
Solar(
Energy(Storage(
Increased(cost(–(unknown(liability(
Increased(cost(–(unknown(liability(
New(Infrastructure(
Increased(cost(–(defined(periodic(flow(
Increased(cost(–(unpredictable(flow(
Increased(cost(–(un(predictable(flow(
Reduction(in(installed(capacity(
Wholesale(Gas( CCUS/Hydrogen(Grid(
Hydrolysis(
Increased(cost(/(New(Infrastructure(
Increased(cost(/(New(Infrastructure(
Industrial((Direct(
Energy)(&(
Industrial((Indirect(
Energy)(
Biomass(
Hydrogen(
BECCS(
CCUS(
Impact(on(product(quality(and(press(performance(
through(direct(energy.(
Increased(cost(/(New(Infrastructure(
(
E|MISSION Statement ™
Application** Technology* Wider*Impact*
Transport) EV)&)Fuel)Cells)
)
Biofuels)
Increased)Electricity)Demand)
New)Infrastructure))
New)Production)System)
New)infrastructure)
Domestic)Power) Smart)Metres)
Low)Energy)Devices)
Energy)Storage)
Solar)Power)
Potential)Reduced)Power)Demand)
Potential)Reduced)Power)Demand)
Potential)reduction)and)balancing)of)power)use)
Reduction)in)Power)Demand)
Domestic)Heat) Hydrogen)Grid) New)Infrastructure)
New)appliance)burners)
New)safety)standards)
)