Facilitating Decarbonization of the Industrial Landscape
Source: Project Cargo Journal
The global push for decarbonisation is rippling through the industrial landscape, forcing traditional heavyweights like the metallurgical and mining industries to innovate and clean up their acts.
In a recent chat with Project Cargo Journal, Wim Copmans, Key Account Manager – Industry and Energy, and Marko Buneta, Key Account and Project Logistics Manager, highlighted the freight forwarder’s role in facilitating this transition.
Ahlers Logistics specializes in providing customized project logistics solutions from A to Z, boasting an extensive portfolio in the metal, mining, energy, and EPC sectors. In recent years, the drive for decarbonization has become a prominent trend across nearly all industries, leading to increased investment in innovative technologies and sustainable operations. It is fair to say that decarbonisation ranges far beyond the metallurgical sector,” Copmans said. “Previously the decarbonisation focus was on the wind and solar. However, now our clients involved in the metallurgical and mining sectors are investing heavily in decarbonising both their own production facilities and the facilities of their end clients”
The trend is not only evident in the two industries mentioned. Many other heavy polluters like the chemical, cement and aluminium manufacturers are looking to clean up their production lines.
“Decarbonisation projects in these industries are gaining momentum, partly also due to government funding and initiatives,” Copmans added. He pointed to government incentives like the US Inflation Reduction Act and the European Green Deal as catalysts for this change. These initiatives are providing crucial funding for research and development, accelerating the adoption of cleaner technologies.
But it is not only the U.S. and Europe where these changes are happening. The rest of the world is catching up as well. “For China, it is a question of when, not if it will catch up,” says Buneta, adding that the Middle East is also investing heavily in green energy and decarbonisation despite it being so heavily linked with oil production.
Energy Demand Remains the Main Driver and a Stumbling Block
Renewable energy and decarbonisation have a significant role to play in the world of tomorrow. However, the net-zero goals may have been set ambitiously, more with political, rather than realistic goals in mind.
“We have to consider that the global population continues to grow, which subsequently results in an increased demand for energy,” Copmans said. “Even the current AI push is requiring an unprecedented demand for global data centres which only further escalates the energy requirements.”
There needs to be a balance between, meeting the energy needs, as well as the decarbonisation goals. While industries, countries and companies are investing in projects that will offset CO2 emissions, the need for energy is growing. The full spectrum of energy sources has to be considered, even nuclear which is making a significant comeback.
The other side of that coin is the cost for the end consumer. As Buneta points out, government subsidies will have to stop at some point, and the general population will have to carry the full cost of this energy transition. “Ultimately, consumers are reluctant to switch to something unfamiliar, and the resistance to green energy may grow as the subsidies stop and the costs rise,” he said.
Freight Forwarders at the Centre
Freight forwarders, such as Ahlers Logistics, are at the centre point of this complex landscape and take proactive steps to meet these evolving needs. Both Copmans and Buneta pointed out that more and more requests are coming from the company’s clients to provide them with environmentally friendly solutions, as well as help them decarbonise their entire supply chain.
“We’re increasingly seeing customer demand for environmentally friendly transport solutions,” Copmans said. “This includes modal shifts from road to rail and barge transport, alongside providing project dashboards that track CO2 emissions for each shipment.”
Using GLEC Framework, the team determines emission factors for the calculation of the estimated CO2 output. “We work closely with customers to integrate all their requests into the dashboard,” Copmans highlighted. “Information about the shipments is logged into the TMS by our operational specialists. As a result, customers have 24/7 real-time insights and can make data-driven decisions.”
One of Ahlers’ key strengths also lies in their tailored solutions for route optimization. “One of the recent examples, when for one of our customers, we tackled the challenge of reducing the CO2 footprint in transporting cargo from an inland factory to a port terminal in another city,” Buneta explained. “With our in-house data analytics tools, we proposed a solution that achieved a 70 per cent reduction in emissions.”
Ahlers highlighted the importance of transparency and accountability in the transition. “By proactively offering these tools, we empower our customers to monitor and report on their emissions, a key aspect of sustainable business practices.”
The Mining Sector is Doing its Part
Ahlers Logistics supports the mining sector by transporting everything from spare parts to the largest mining and dump trucks, ensuring delivery from production facilities to some of the most remote mining sites. “We have been receiving a lot of feedback from our customers related to advancements in technology,” Buneta says.
Ahlers’ clients in the sector have been making significant investments in research of new technologies, resulting in a shift from internal combustion engine machinery to new types of engines with battery assistance.
“Until 2019-2020, we were transporting almost exclusively only internal combustion engine machinery. Primarily, we were shipping to developing countries, particularly to Central Asia, Africa, and South America, where environmental regulations are not as strict as in the Western world,” he said.
However, over the past three years, Ahlers noticed a growing interest in cleaner mining machinery, particularly hybrid units.
“We are aware that producers have been investing heavily in artificial intelligence, autonomous driving, and purely electric vehicles, all of which are expected to optimise on-site operations and reduce CO2 emissions. These advancements aim to make the machines cleaner and also optimize the overall job site operations,” Buneta said, adding that specifically in Central Asia, many mining sites are considering implementing solar panels to improve energy production and reduce environmental impact.
But this is not a trend limited to Central Asia but is gaining traction globally, especially in developing countries where stricter environmental regulations are starting to be enforced.
Newer technologies with better battery storage capacities allow for the energy produced to be used at a later time, addressing the issue of energy wastage during off-peak hours.
“For freight forwarders like us, this presents an opportunity to gradually upgrade vehicle fleets to accommodate the changing landscape, enabling us to transport additional cargo volumes. This combination of trends is expected to continue, shaping the future of the mining industry,’ stresses Buneta, adding that mining of new materials required for the energy transition means clients will continue exploring new solutions to optimise their supply chains with Ahlers on hand to lend their expertise in the process.
