Transcript Industrial Energy Efficiency Innovation and Technology

INDUSTRIAL ENERGY EFFICIENCY INNOVATION
AND TECHNOLOGY COOPERATION
Anne Arquit Niederberger, Ph.D.
Principal, Policy Solutions
[email protected]
2013 International Forum on Low Carbon Industry and Green Economy
[We need a practical 21st
Century development model
that
between
the key issues of our time]
UN Secretary General
Ban Ki-moon
Associating  Innovation
BUSINESS MODEL INNOVATION –
BEYOND EFFICIENCY
“Lower carbon”
today…truly “low-carbon”
tomorrow?
Need disruptive innovation
Culture of innovation:
Aspire to transformational,
not incremental change
Adopt new behaviors and
think differently
New business models
Source: 2012 China Energy Saving Service Industry Report
CONVENTIONAL BUSINESS MODELS
Fundamental approaches to create,
deliver and capture value respond to
powerful drivers
Fertilizer Production
(1.2% of global CO2 emissions)
Lighting Services
(6% of global CO2 emissions)
•Large chemical
companies produce
urea from coal /
natural gas feedstock
to address nitrogen
scarcity
•Manufacturers
produce bulbs and
luminaires and sell
B2B; utilities supply
grid electricity to endusers
Scrap Tire Treatment
•Energy-intensive
industries (e.g.,
cement) incinerate
tires as a supplemental
fuel to reduce costs
Only 25 – 33% of
greenhouse gas
emissions from fossil
fuel combustion (rest
feedstock)
Energy and carbonintensive
2 – 5 tCO2/t ammonia
Energy Management
Systems
Fuel switch coal 
natural gas
Best Practice
Technologies are 30%
more energy efficient
Modern plants are
rapidly approaching the
theoretical minimum
energy consumption
1.6 – 3.8 tCO2/t ammonia
Transformational model addresses
multiple challenges simultaneously,
benefits farmers,
eliminates food vs. fuel
Transformational Approach
94% of the energy
consumed by the
fertilizer industry is used
for ammonia synthesis
Incremental Approach
Status Quo
FERTILIZER PRODUCTION
Cornucopia BioRefinery
New business model:
Entire ear of corn 
Food (oil/protein from
germ) + Fertilizer
(bran/cobs gasified) +
Fuel (endosperm
fermented)
Biomass drove design,
new income stream for
farmers
BioAmmoniaTM is net
carbon negative
“Innovator’s DNA”
Questioning
Asking questions that challenge common wisdom
Observing
Scrutinizing customer, supplier, and competitor behaviors to identify
new ways of doing things
Networking
Meeting people with different ideas, backgrounds, and perspectives
Experimenting
Constructing interactive experiences that provoke unorthodox
responses to see what insights emerge
Associating
Connecting the unconnected across questions, problems, or ideas
from unrelated fields
Christensen, Clayton M.; Jeff Dyer; Hal Gregersen (2011-07-12). The Innovator's DNA:
Mastering the Five Skills of Disruptive Innovators. Harvard Business Review Press.
Forbes Most Innovative
Companies
1. Salesforce.com
2. Amazon.com
3. Intuitive Surgical
Innovation Premium 
Proportion of a company’s market value that cannot
be accounted for from cash flows of its current
products or businesses in its current markets
4. Tencent Holdings
5. Apple
6. Hindustan Unilever
7. Google
8. Natura Cosmeticos
40. China Oilfield Services
Consumers purchase
inefficient
lamps/luminaires from
retailers and pay high
electric bills
Utilities in many
developing countries
are losing money on
every kWh sold
14 lumen/W
Incandescent  CFL
technology
No change in
manufacturer or utility
business model
Slow uptake of LED
and widening energy
supply gap
60 lumen/W
Transformational model integrates
LED as infrastructure to enhance
efficiency of building-energy system
Transformational Approach
Replacement bulbs
are mass market
consumables
Incremental Approach
Status Quo
LIGHTING SERVICES
Inefficient  LED
technology
Utilities integrate LED
technology into their
business model
LED as infrastructure
Utilities more
profitable, able to
deliver energy
services to more
customers with the
same generation
90 lumen/W
“LED-FUELED” EFFICIENCY POWER PLANTS
65% of urban population in SSA is electrified
Every kilowatt-hour of power used represents a
Bulk procurement of LED can turn loss  profit
to utilities
BEST USE OF SCRAP TIRES?
 Transformational
approach
 Incremental approach
Arquit Niederberger, Anne, Shiroff, Samuel, Raahauge, Lars (2012): Implications of Carbon Markets
for Implementing Circular Economy Models. ICAE 2012 (Suzhou)
Avoids 0.8 tCO2e/
t scrap tires
compared to
co-incineration
Does your company foster a culture of
innovation?
Is disruption part of your innovation portfolio?
Are small project teams central to taking innovative
ideas to market?
Are employees encouraged to take smart risks (and
learn from failure) in the pursuit of innovation?
Is innovation everyone’s job?
Business model innovation can
transform industries and catalyze broader systems change