Many Paths Lead to Reduced Carbon Emissions
There are numerous methods to mitigate climate change. Increasing energy efficiency is the most effective and usually produces lower costs. According to "Energy Technology Perspectives 2008" published by the International Energy Agency, improving energy efficiency offers the biggest potential (over 50 percent) for carbon reduction in the energy sector. That's why our climate strategy not only encompasses zero-emission generation technologies (renewables and nuclear energy) and carbon capture and storage but also enhancing the efficiency of energy production and consumption. This multi-pronged approach is the only way we can help achieve the European Union's ambitious climate-protection targets while ensuring an affordable and secure energy supply.
Supporting Technology Development
Technical innovations in power generation have the potential to achieve further substantial reductions in carbon emissions. As one of the world's leading energy companies, E.ON deploys its expertise to help new, climate-friendly technologies become commercially viable on an industrial scale. To ensure the sustainability of our generation portfolio, we also invest in energy research and in the training of young academics.
Nuclear Energy's Future
Nuclear energy is a proven, affordable technology for reducing carbon emissions. Nuclear power stations operate essentially emission-free. Shutting down existing, demonstrably safe nuclear power stations does not help achieve climate protection goals. In addition to our engagement for an extension of the operating lives of existing nuclear power stations, E.ON is increasingly involved in the ongoing development of nuclear technology. Examples include third-generation nuclear reactors.
High Efficiency Through Combined Gas- and Steam-Fired Generation
Along with expanding renewables, another strong potential for avoiding carbon emissions lies in improving the efficiency of conventional power plants. At 58 percent, gas-fired power plants with combined gas and steam turbine technology are already achieving the highest thermal efficiency rates in the E.ON generation fleet. But there is room for further technological advancements, as demonstrated by the E.ON Irsching power plant near Ingolstadt, Germany. A new combined gas and steam power unit is currently being tested and should go permanently on line in 2011. It is expected to exceed a thermal efficiency of 60 percent. This two percent increase alone can save as much as 43,000 tons of carbon emissions each year.
Because of its thermal efficiencies - and because of its relatively low carbon emissions - natural gas is proving to be an energy-efficient, cost-effective, and eco-efficient generation technology. What's more, natural gas is also an important supplement to renewables - particularly in the case of wind and solar energy, which are sometimes temporarily unavailable. Biomethane is a new renewable resource which can be produced from biomass and therefore doesn't have to be imported.
Low-Carbon Coal
We also believe it makes sense to develop less carbon-intensive coal technology, in part due to the growing energy needs of the many emerging countries that rely on coal. We aim to be a pacesetter on the road to a lower-carbon future and to create a functioning infrastructure for carbon capture and storage (CCS) by 2020. CCS could reduce the carbon emissions of coal-fired generation by up to 90 percent. Yet it would also be more expensive than electricity generated without CCS. That's why, in addition to enhancing the thermal efficiency of our power plants, one of our top priorities is to make energy consumption more efficient.
Enhancing Efficiency on the Consumption Side
Energy consumers - industrial manufacturers, commercial property owners, and millions of families - have an important role to play in improving energy efficiency. The IEA estimates that energy-saving measures by consumers could reduce energy-related carbon emissions by 47 percent by 2030. If consumption declines, so would our sales volume unless we increase our market share or tap new markets. On the other hand, we would burn less fuel and need less generating capacity. Our energy-efficiency programs offer our customers a wide range of energy-saving advice, services, and products. These programs, which enhance customer satisfaction as well as value creation per customer, are also one of the important ways we help reduce carbon emissions.
Supporting Technology Development
Technical innovations in power generation have the potential to achieve further substantial reductions in carbon emissions. As one of the world's leading energy companies, E.ON deploys its expertise to help new, climate-friendly technologies become commercially viable on an industrial scale. To ensure the sustainability of our generation portfolio, we also invest in energy research and in the training of young academics.
Nuclear Energy's Future
Nuclear energy is a proven, affordable technology for reducing carbon emissions. Nuclear power stations operate essentially emission-free. Shutting down existing, demonstrably safe nuclear power stations does not help achieve climate protection goals. In addition to our engagement for an extension of the operating lives of existing nuclear power stations, E.ON is increasingly involved in the ongoing development of nuclear technology. Examples include third-generation nuclear reactors.
High Efficiency Through Combined Gas- and Steam-Fired Generation
Along with expanding renewables, another strong potential for avoiding carbon emissions lies in improving the efficiency of conventional power plants. At 58 percent, gas-fired power plants with combined gas and steam turbine technology are already achieving the highest thermal efficiency rates in the E.ON generation fleet. But there is room for further technological advancements, as demonstrated by the E.ON Irsching power plant near Ingolstadt, Germany. A new combined gas and steam power unit is currently being tested and should go permanently on line in 2011. It is expected to exceed a thermal efficiency of 60 percent. This two percent increase alone can save as much as 43,000 tons of carbon emissions each year.
Because of its thermal efficiencies - and because of its relatively low carbon emissions - natural gas is proving to be an energy-efficient, cost-effective, and eco-efficient generation technology. What's more, natural gas is also an important supplement to renewables - particularly in the case of wind and solar energy, which are sometimes temporarily unavailable. Biomethane is a new renewable resource which can be produced from biomass and therefore doesn't have to be imported.
Low-Carbon Coal
We also believe it makes sense to develop less carbon-intensive coal technology, in part due to the growing energy needs of the many emerging countries that rely on coal. We aim to be a pacesetter on the road to a lower-carbon future and to create a functioning infrastructure for carbon capture and storage (CCS) by 2020. CCS could reduce the carbon emissions of coal-fired generation by up to 90 percent. Yet it would also be more expensive than electricity generated without CCS. That's why, in addition to enhancing the thermal efficiency of our power plants, one of our top priorities is to make energy consumption more efficient.
Enhancing Efficiency on the Consumption Side
Energy consumers - industrial manufacturers, commercial property owners, and millions of families - have an important role to play in improving energy efficiency. The IEA estimates that energy-saving measures by consumers could reduce energy-related carbon emissions by 47 percent by 2030. If consumption declines, so would our sales volume unless we increase our market share or tap new markets. On the other hand, we would burn less fuel and need less generating capacity. Our energy-efficiency programs offer our customers a wide range of energy-saving advice, services, and products. These programs, which enhance customer satisfaction as well as value creation per customer, are also one of the important ways we help reduce carbon emissions.
