Energy alternatives for a decarbonised future: the role of hydrogen

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In recent decades, the growing dependence of our economy on fossil fuels has aggravated both environmental and economic challenges due to a combination of two factors: the growth in energy demand and the progressive depletion of fossil fuel reserves. This scenario has created significant tensions in the energy supply chain, highlighting the urgent need to find sustainable alternatives. As a response, recent R&D&I efforts have increasingly focused on the decarbonisation.

However, for decarbonisation to be truly efficient, it is necessary to understand that the new energy system must be made up of a combination of technologies both being capable of satisfying the growing energy demand and being sustainable. Hydrogen enters the picture as a key energy vector – both at industrial and domestic level – with potential to transform the global energy landscape.

Hydrogen: the energy wildcard of the future

One of the features that make hydrogen a great alternative is that it can be produced by renewable energies through electrolysis. This technology makes it possible to convert the energy surpluses produced during peaks of renewable generation – when there is an abundance of sun or wind – into hydrogen, a clean energy and versatile energy carrier. Moreover, hydrogen can be stored for long periods and then be converted both into electricity – using fuel cells or generators – or into heat, using boilers.

In addition to its storage capacity, hydrogen also offers flexibility in terms of transport. It can be distributed through a pipeline network similar to that used for natural gas, although local or decentralised production is also feasible, which significantly reduces transport costs. Such decentralisation would enhance the sustainability and self-sufficiency of the developed electricity system, increasing storage capacity and providing greater flexibility and availability of clean energy.

Hydrogen also plays a key role in the current and future chemical industry, being a valuable resource in processes such as the production of gasoline and other petroleum derivatives. In the future, it will be fundamental in the creation of synthetic fuels from CO2, which will contribute significantly to reducing the carbon footprint of these fuels.

These include alkaline electrolysis, one of the oldest technologies; proton exchange membrane electrolysis (PEM) – whose development has accelerated in the last decade – and solid oxide electrolysis (SOEC) – which is under development and is prominent in industries with surplus heat.

The true colours of H2

The path towards decarbonisation cannot afford to get rid of fossil fuels immediately. It requires a planned and gradual approach that considers environmental impact. While hydrogen production through renewable energy is the most sustainable and preferred option in the long term, other technologies still play an important role in this process. These technologies, which allow hydrogen to be produced from different sources, have led to the classification of hydrogen into different ‘colours’, depending on the raw materials used and the production methods applied.

    • Golden hydrogen refers to hydrogen that existed already on Earth, in underground deposits, and does not require industrial processes to obtain it.
    • Brown hydrogen comes from coal gasification, a process with high carbon emissions.
    • Grey hydrogen, produced from natural gas, also emits large amounts of CO2 during its production. It’s currently one of the most common.
    • Blue hydrogen is produced in a similar way to grey hydrogen, but includes carbon capture and storage systems (CCS), which significantly reduces pollutant emissions.
    • Pink hydrogen is produced using nuclear-generated electricity, which, although low in emissions, raises debate over nuclear waste.
    • Yellow hydrogen refers to hydrogen produced using electricity from an energy mix that can include both renewable and non-renewable sources, which generates a medium environmental impact.
    • Green hydrogen, considered the most sustainable, is generated from renewable energy sources, such as solar or wind power, ensuring a zero-carbon production process.

By establishing these categories, a better understanding of the environmental footprint and the advantages or disadvantages of each type of hydrogen is facilitated, which is crucial for the design of energy policies and for guiding investment decisions towards cleaner technologies.

The technological evolution behind green hydrogen

The growth of renewable energy has driven the development of water electrolysis as one of the main technologies for producing green hydrogen. This process uses clean energy – such as solar or wind power – to split the water molecule into hydrogen and oxygen. Currently, there are three commercial electrolysis technologies operating and another one in development:

      • Alkaline electrolysis. It uses a basic medium and operates at temperatures close to 80ºC and at atmospheric pressure (1.01325 bar), although it is possible to work with up to 30 bar. Low current densities are used, which implies a lower production per occupied surface area, but high efficiencies are achieved, close to 70%. Abundant materials such as steel or nickel can be used for their construction.
      • PEM (polymeric proton membrane) electrolysis. It uses an acid medium and operates at temperatures close to 60ºC and pressures above 30 bar. High current densities are used, allowing for very compact equipment, but the efficiency is slightly lower. Rare metals are used in their construction, which makes the equipment more expensive.
      • SOEC (solid oxide electrolysis cell). It is a solid electrolyte which uses water at very high temperatures – around 800ºC – and atmospheric pressure. The current density used is somewhat lower than that used in PEM electrolysers, resulting in compact equipment and efficiencies of up to 80%. They require an external supply of energy in the form of heat though. The materials used are more expensive because they must withstand the high temperatures.
      • AEM (anion exchange membrane) electrolysis. It combines the best of PEM & Alkaline technologies obtaining high current densities and an average efficiency between the two variants. However, current equipment is not yet at the level of development needed to be competitive. While the necessary materials are abundant, the problem lies in the membrane, for which a suitable material has not yet been developed.

Pioneers in hydrogen: genesal energy bets for the change

Genesal Energy is actually committed to hydrogen. We are developing our own electrolyser with the aim of acquiring experience in this technology. It’s called the H2OG project. In the medium term, this knowledge will allow us to optimally integrate this energy vector in our machinery, not only in the generator sets, but also in the management and storage systems.
The development of this project began with the design of a small-scale electrolyser, which allows us to validate its operation and guarantee the expected results. This planning is key before building the final, larger equipment, as it allows solving possible design flaws before the final integration into the production system, which translates into lower costs.
If you want to know more about the project, watch the following video, in which Guillermo Martínez, Chemical Engineer, explains more about the subject.

Benefits of Industrial Energy Communities for Spanish SMEs

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Spanish small and medium-sized enterprises are currently the backbone of the national economy, representing a crucial source of employment and added value. According to data from the Ministry of Industry, they account for 99.8% of the total number of companies in the country, generating more than 62% of Gross Value Added and almost 70% of total business employment.

However, within the framework of an increasingly demanding and competitive economic environment, they face significant challenges every day that limit their ability to compete on equal terms with large corporations.

One of these is the lack of access to economies of scale, especially in the field of energy, where they face costs that can represent a significant part of their operating expenses. This situation leads companies to the constant need to innovate and seek solutions that allow them to maintain and improve their market position.

In this framework, a strategic solution to improve the competitiveness of SMEs emerges: industrial energy communities, which have the potential to reduce these costs and also promote sustainability and the democratisation of energy.

What are Energy communities?

In simple terms, an energy community is a cooperative entity in which its members, whether individuals, public entities or companies, come together to produce, manage and consume energy jointly.

In Spain, current legislation recognises two types of energy communities:

    • Renewable Energy Community (REC), provided for by Directive 2018/2001. Aimed at promoting the use of energy from renewable sources, they allow local SMEs with less than 250 employees, an annual turnover of less than EUR 50 million per year and a balance sheet total of less than EUR 43 million to join.
    • Citizen Energy Community (CEC), provided for by Directive 2019/944. They aim to ensure the rights and freedoms of access to the network under conditions of equality and non-discrimination; and, in this case, they only allow the presence of micro and small enterprises with no more than 50 employees.

These conditions allow almost 99% of national SMEs to participate in either of the two types of communities. In fact, in Spain, there are already examples of company-driven energy communities, especially in industrial estates. It is in these spaces that the perfect conditions exist to implement this type of initiative for two main reasons, the first being the agglomeration of companies in the same space, which facilitates cooperation and the creation of synergies between them. The second reason is the ease of having large areas, such as the roofs of the warehouses, which offer an ideal space for the installation of renewable energy infrastructures.

These characteristics allow companies to make the most of the available resources and generate their own energy in an efficient and sustainable way.

Energy communities’ benefits for SMEs.

First of all, one of the most tangible and immediate benefits has to do with the aforementioned cost issue, and that is that these communities allow for a reduction of energy costs. By sharing resources and participating in the generation of renewable energy, companies can access more competitive rates than those offered by the traditional market, achieving reductions of between 20% and 40%.

These savings not only improve operating margins, but also free up resources that can be reinvested in other areas of the company. The economic impact goes beyond mere cost reduction. In an economy where energy prices are volatile and sometimes difficult to forecast, participation in an energy community allows companies to benefit from more stable prices, facilitating more accurate financial planning while reducing associated risks.

Not to mention that if there is one thing that characterises energy communities, it is the possibility to make decisions and actively participate in their governance, unlike large energy corporations where they have no decision-making power. Thus, they have the opportunity to directly influence crucial aspects such as the type of energy to be used, the investments to be made in infrastructure and the distribution of benefits. This decision-making power not only strengthens the company’s autonomy over its energy supply, but also allows them to influence long-term energy strategies, aligning them with their own business and sustainability objectives.

Another benefit is the reduction of environmental impact and the boosting of social cohesion at local level. By participating in energy communities, companies reduce their dependence on traditional fossil fuels and consequently improve their carbon footprint.

Clean energy can be a crucial differentiator as this aspect is increasingly valued by consumers and business partners alike.

On the other hand, companies participating in the communities often create collaborative networks among themselves, fostering synergies that go beyond the energy sphere. Indeed, opportunities are generated to share knowledge, develop joint projects and improve the global competitiveness. Moreover, as they are open participation initiatives, the communities also help to promote new formulas for inter-cooperation at local level between citizens, public administrations and SMEs.

Summarising, industrial energy communities are a perfect opportunity for companies to overcome the barriers imposed by economies of scale, offering them access to cheaper and more stable energy, and helping to improve their competitiveness against large corporations.

Innovation for a sustainable future

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“Only through innovation will it be possible to reduce CO2, improve energy efficiency and alleviate pressure on natural resources.”

María Teresa Costa i Campi, Professor of Applied Economics at the University of Barcelona.

In this world where climate change and environmental degradation are critical issues, technological innovation must take on a leading role in sustainable development. Without the convergence between technology and sustainability, it won’t be possible to tackle the environmental and social challenges of the current climate crisis.

The role of technology in society

Technology has always been a driving force in human progress, transforming the economy and helping to improve the standards of life. However, this progress has entailed significant environmental impacts: from air and water pollution to unsustainable exploitation of natural resources. The flip of the coin is that technological innovation has been part of the problem and must become an essential part of the solution.

Technology has to foster more sustainable practices, namely: the development of clean energy, the creation of more efficient products or the implementation of less polluting practices. Innovation is at the core of this strategy, searching for new ways of meeting the needs of today’s society without compromising the health of the planet.

Sustainable fuels: the backbone of the energy future

The transition to sustainable fuels is one of the pivotal elements in the fight against climate change because, although great progress is being made in the field of renewable energies, it is not possible to fully electrify all sectors. It is therefore essential to explore and develop sustainable fuel alternatives which can reduce dependence on fossil fuels.

Hydrobiodiesel, or HVO (Hydrotreated Vegetable Oil), is one of these alternatives. It is produced from vegetable oils and animal fats and, unlike conventional biodiesel, it is obtained through a hydrogenation process, resulting in a cleaner fuel with better combustion properties. HVO significantly reduces CO2, NOx and particulate emissions compared to fossil diesel, and is compatible with existing distribution infrastructure and current diesel engines. In addition, HVO has a similar energy density to conventional diesel, making it a practical and efficient option for transport and other energy applications.

On the other hand, within gaseous-fuels sector, Hydrogen (H2) holds another great promise. When used in fuel cells, this gas can produce electricity with water as the only by-product, making it a zero-emission solution. In addition, it is also possible to produce hydrogen in a sustainable way by electrolysis of water using renewable energy. If this is the case, no CO2 emissions are produced, and the product obtained is known as “green hydrogen”. The adoption of hydrogen as a fuel can significantly contribute to the decarbonisation of sectors which are difficult to electrify, such as heavy transport, aviation and industry.

Also Biogas, which is a mixture of gases produced by the decomposition of organic matter in the absence of oxygen. This gas is mainly composed of methane (CH4) and carbon dioxide (CO2); and its production from agricultural residues, manure, organic waste and wastewater not only provides a renewable energy source, but also helps to make waste management more efficient. Biogas can be purified to obtain biomethane, which has similar properties to natural gas and can be used in the existing gas grid.

Energy efficiency: advanced management systems

To maximise the benefits of any energy source, whether renewable or non-renewable, it is crucial to implement advanced energy-management systems. These systems make it possible to monitor, control and optimise energy use in different sectors. Improving efficiency and reducing consumption leads to reduced emissions.

There are a number of ways to improve the efficiency of energy systems, including the application of management algorithms. These allow energy production and consumption to be dynamically adjusted according to supply and demand. E.g. In solar or wind farms, such algorithms can forecast energy availability and adapt production accordingly, optimising performance.

In the current context, where the aim is to insert renewable energies into the electricity grid, the combination of management algorithms & energy storage systems is truly relevant. This type of energy being intermittent by nature prevents any kind of control over its availability but storage systems, such as batteries, can capture excess energy when it is available and release it when needed. Unfortunately, batteries cannot manage it efficiently on their own. Management algorithms allow them to streamline storage and optimise its operation based not only on energy demand, but also on system conditions.

Also, one of the pillars of the energy transition is the rise of micro-grids and smart grids, where various distributed energy sources, small-scale storage systems and consumer sources are integrated. Although it is not easy to manage all these elements in an efficient and coordinated manner, advances in control algorithms facilitate this task, making it possible to improve the stability and reliability of grids.

AI: Sustainability engine

Artificial Intelligence is transforming our approach to environmental challenges by offering innovative and efficient solutions to reduce the environmental impact of industrial operations. Its application to predictive maintenance extends the lifetime of equipment, reduces waste and optimises resource consumption.

Predictive maintenance consists of supervising the operation of equipment using real-time monitoring techniques, data analysis and AI to detect problems before they occur. It guarantees that the necessary actions are taken when they are needed, reducing labour & parts costs and downtime as well as increasing operator availability.

Firstly, there is a reduction in emissions generated by transport during maintenance by minimising unnecessary servicing and thus the number of trips operators have to make. In addition, significant energy savings are achieved by keeping equipment in optimal working condition, avoiding the excessive consumption that is often caused by faulty or poorly maintained equipment.

Another key point is the optimisation of the materials’ costs. Identifying and correcting potential faults before they become major problems, make repairs simpler and less costly. E.g. Detecting a faulty engine-oil filter and replacing it is a simple and inexpensive task that, if not addressed in time, can lead to engine overheating and more serious and costly repairs.

Finally, predictive maintenance contributes significantly to reducing the amount of waste generated. Prolonging the lifetime of equipment and avoiding catastrophic failures that might require complete replacements reduces the amount of waste produced, promoting more sustainable and responsible resource management.

Genesal Energy: committed to sustainable innovation

Genesal Energy firmly believes that technology and innovation play a pivotal role in the energy transition towards a more sustainable future. We participate, often in collaboration with various public and private institutions, in the development of new technologies that help fight climate change. Not only are we committed to efficiency in all our products, but we are also constantly working to improve distributed generation systems so that they can operate with sustainable fuels. E.g. Our HVO, hydrogen and biogas projects or OGGY, our own intelligent energy storage and management system which allows us to optimise all our energy flows, both generation and consumption.

We are also willing to innovate in our own production processes. This is why we integrate sustainable practices at the heart of our operations through initiatives such as the installation of a photovoltaic façade or the reuse of energy in our premises. 

We are proof that is possible to balance economic growth and environmental sustainability. Leading the way towards a greener and more responsible energy future.

A Fair Energy Transition for All: tackling energy poverty.

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Completion of the Energy Transition towards cleaner and more sustainable energy sources has been widely recognised by the international scientific community as a crucial objective in the fight against climate change and environmental degradation.

However, on this path we must not lose sight of a fundamental aspect when talking about energy: the so-called ‘energy trilemma’, this is, the search for a balance between the 3 fundamental factors of energy policy developed below:

  • Security: Supply must be stable and able to meet current and future demand.
  • Environmental protection: There must be a shift towards energy sources with lower environmental impact and reduced greenhouse gas emissions.
  • Energy equity: Energy access must be affordable and fair for all, including the most vulnerable and disadvantaged groups.

What does this mean? It means that in addition to being sustainable and resilient, the energy transition must be inclusive and fair for all, in other words, it must effectively address the energy poverty issue.

 

Understanding energy poverty

Defining the term energy poverty is not that straightforward. It is not just ‘not being able to pay bills’, but a multi-faceted problem that prevents households from achieving a minimum level of domestic, essential energy services. Examples range from lack of access to modern energy sources, inefficiently insulated housing to insufficient heating and cooling systems that do not meet basic needs. All these leading to prohibitively high energy costs. Depending on the degree of poverty experienced, the consequences can affect people’s well-being & health and effective participation in society.

The intersection between energy transition and energy poverty

e intersection between energy transition and energy poverty
The Energy transition can become a powerful tool in tackling energy poverty. Nevertheless, it is also necessary to work on the unique challenges that arise and that would allow to improve the situation, namely:

  • Equity and universal access: One of the main objectives of the energy transition, linked to the Sustainable Development Goals, is to ensure that everyone have access to affordable and sustainable energy sources. This target was set considering the current global context where more than 700 million people still live without any access to electricity, limiting their ability to achieve a decent standard of living. In this sense, the energy transition must go beyond the simple replacement of fossil fuels with renewable energies; the change must address the structural inequalities that perpetuate the lack of access to energy.
  • Cost. While Renewables and sustainable fuels are experiencing cost reductions, there are still significant economic barriers to their widespread adoption. For example, replacing a combustion engine vehicle with an electric vehicle, or simply purchasing a fuel with lower emissions, requires substantial financial resources that may be beyond the reach of households and communities with limited income. It is therefore crucial to develop innovative financing mechanisms and incentive programmes to make transition-related energies more accessible to all.
  • Economic restructuring: The energy transition also poses challenges in relation to the economic and employment system. As we decrease dependence on fossil fuels and move towards a decarbonised economy, certain sectors such as the coal or oil industry are likely to experience declines in demand and production. This could mean losses of thousands of jobs. Measures to retrain workers for emerging clean energy jobs are essential if the transition process is to be carried out in a fair and equitable manner.
  • Climate justice and community participation: These are the two principles that must drive the energy transition. Communities affected not only by energy poverty but also by the negative impacts of conventional energy systems must have a voice in the decisions that affect their lives and environment. A fair transition strategy should include the promotion of neutral spaces for dialogue and collaboration that facilitate the exchange of knowledge, experiences and perspectives. Members of affected communities, civil society, experts, political representatives and businesspeople shall be able to discuss and seek solutions together.

 

Summarising, the energy transition represents a crucial point in the fight against climate change and energy poverty. As we move towards a more sustainable future, it is essential to comprehensively address the challenges that arise along the way to ensure universal energy access, reduce the costs of sustainable energy solutions, provide equitable employment opportunities and encourage active citizen participation. In doing so, we will be one step closer to building a decarbonised and sustainable future for all.

The IV Carbon Footprint Forum brought together companies and professionals interested in reducing their impact on climate change

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The event was held at the Bergondo Business Association HQ.

Foro sobre Huella de Carbono Corporativa

The USC-Genesal Energy Chair of Energy Transition organised the IV Seminar on Corporate Carbon Footprint for SMEs, a meeting that brought together technicians and professionals from small and medium enterprises committed to sustainability.

The aim of the event was building intelligence on the carbon footprint as a KPI used to improve the sustainability strategies. The seminar was attended by experts who shared their experience on its measurement and reduction and the integration of sustainability in the business strategy. The speakers were PhD Enrique Roca Bordello, director of the Chair, and PhD Eugenio Fernández Carrasco – both researchers from the Department of Chemical Engineering of the USC-, Genesal Energy’s CEO & CFO, Julio Arca, and the Sustainability Coordinator at Genesal Energy, Antía Míguez Fariña.

During the first part of the conference, Mr. Roca and Mr. Fernández focused their interventions on the keys to identify the different parameters of the carbon footprint, the most used methodologies and how to measure it. In addition, they presented various practical tools which allow organisations to monitor their emissions improving sustainability indicators in their operations.

Genesal’s experience with corporate carbon footprint

Following, Mr. Arca and Ms. Míguez commented on their experience as a sustainable and socially committed company. They explained the guidelines that a company should include in its Environmental Social Governance strategy to become a benchmark in the implementation of sustainability policies. They also analysed the Border Carbon Adjustment Mechanism, a reference instrument to put a fair price on carbon emitted during the production of carbon-intensive goods entering the EU and to encourage cleaner industrial production in non-EU countries.

Mr. Arca, one of the promoters of the initiative, pointed out that ‘these meetings are essential to create a space for the exchange of knowledge between researchers and business, leading to greater awareness, greater knowledge and an increase in the number of companies that will implement sustainability policies’.

A successful event that, given the interest it arouses, will continue to be held annually.

What is the carbon border adjustment mechanism and why is it so controversial?

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  • The EU proposes to apply a tariff on imported carbon-intensive products.

  • The measure (CBAM) will be implemented in two phases, will come into force in 2026 and will initially apply to imports in sectors such as cement, hydrogen and electricity.

As part of the fight against climate change, the European Union (EU) has launched what it considers to be one of the key instruments within the European Green Pact: The Carbon Border Adjustment Mechanism, also known as CBAM. It is an essential part of the “Fit for 55” measures package, a set of proposals to revise and update EU legislation to ensure that the EU’s intermediate target of reducing greenhouse gas (GHG) emissions by 55% by 2030 is met.

This proposal has already been described as “bold, complicated and controversial” and several countries have already expressed concerns about its implementation. The measure will undoubtedly disrupt trade relations between the EU and its partners, but let’s look at exactly what it is.

The CBAM is intended to be implemented in parallel to the EU Emissions Trading Scheme (ETS) to counter the so-called ‘carbon-leakage’. Based on the “cap-and-trade” principle, the ETS sets a price on carbon and, each year, industries covered by the ETS must buy allowances corresponding to their GHG emissions. These allowances are limited, and each year the limit is lowered with the aim of creating financial incentives for companies to reduce their emissions.

Risk of carbon-leakage

The issue is that this could lead to what is known as carbon leakage: although some companies, which production processes are high in GHG emissions, are allocated free allowances to support their competitiveness, these will be progressively phased out, raising the risk that they may consider moving their production to other countries outside the EU in order to avoid the increased costs associated with the ETS, importing products at a more advantageous price to the detriment of the environment.  

This is where the CBAM applies. This is a tariff on carbon-intensive products imported to the EU to balance by equalising the carbon price of imports with the carbon price of EU products. The phasing out of the free allocation of allowances under the ETS will take place in parallel with the introduction of the CBAM mechanism, ensuring coherence between climate objectives and trade policy.

The CBAM will be implemented in two phases, so that before the entry into operation of the final version, there will be a transitional period with the following objectives:

  • To serve as a learning curve for importers, producers and the authorities involved.
  • To allow the collection of info
     rmation on GHG emissions to help refine the methodologies for calculating these emissions.
  • Align the price of carbon produced in the EU with that of imported goods.

This first transitional period will run from 1 October 2023 to 31 December 2025, and initially applies only to imports from the sectors most at risk of carbon leakage: cement, iron/steel, aluminium, hydrogen, fertilisers and electricity (although it has already been agreed that this will be extended to more products, such as chemicals and polymers). The specific goods that are affected by CBAM are detailed in Annexes I and II of Implementing Regulation (EU) 2023/1773, where the CN codes for all affected materials are listed.

In addition, the obligations arising from the importation of these goods are also set out:

  1. Register in the transitional CBAM Register, which allows communication between all parties to the mechanism (European Commission, competent and customs authorities, traders and reporting companies).
  2. Submit CBAM reports on a quarterly basis. Importers of goods (or their indirect customs representatives) are responsible for reporting the GHG emissions implicit in their imports. The report must be submitted no later than one month after the end of the quarter, and emissions calculations can be made in 3 ways:
    1. Using default reference values published by the European Commission. This method can only be used to report 100% of the implied emissions until July 2024; it can be used for the remaining transitional period to report up to 20% of the implied emissions.
    2. Using an equivalent methodology that considers either a carbon pricing system, a mandatory emissions monitoring system, or a monitoring system that may include verification by an accredited third party (always where the installation is located). This method may be used for imports until December 2024.
    3. Using the new methodology provided by the EU. It may be applied throughout the transitional period.

No payment or financial adjustment will be required during this first phase.

Once the mechanism fully enters into force on 1 January 2026, importers will be obliged to purchase the corresponding CBAM certificates. It should be noted that this mechanism is not a tax to be paid on import, but that the purchase of the certificates must be acquired prior to the importation of the products subject to CBAM. If the importer can prove that a carbon price has already been paid during the production of the imported goods, this amount can be deducted from the corresponding amount to be redeemed at CBAM.

Subsequently, by 31 May each year at the latest, the importer or his representative must submit an annual report, stating the goods imported in the previous calendar year and their corresponding emissions, as well as the number of CBAM certificates purchased for that year.

Antía Míguez, Technologist at Genesal Energy

Energy transition and decarbonisation, an opportunity to seek sustainable industrial models.

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One of humanity’s greatest challenges is the fight against climate change, global greenhouse gas (GHG) emissions need to reach a ceiling as soon as possible, but this implies carrying out a process of decarbonisation of current socio-economic systems and “transitioning” towards new efficient models in the use of resources, from raw materials to energy fluxes, based on clean and competitive energies. Genesal Energy is well aware of this.

How to perform the transition?

According to the Intergovernmental Panel on Climate Change (IPCC), it is not enough to replace current energy infrastructures, dependent on fossil fuels, with other renewable and sustainable ones. It is also necessary to implement energy efficiency measures which allow more than just reducing consumption. As is often said colloquially, “the best energy is the energy that is not consumed”.

In this context, the industrial sector must play an active role in the process of change. Genesal Energy is doing so: We have launched OGGY (Off Grid Genesal energY), our own energy management system that allows real-time monitoring of both production and energy consumption, deciding at all times what to do with these flows to make the most efficient use of them: store them in the battery system, consume them at the company’s facilities, discharge them into the grid or a combination of the previous options.


This system consists of three main blocks (Figure 1):

  • The OGGY is capable of controlling different sources of energy generation, including the conventional electricity grid. In the specific case of the application at Genesal Energy, the sources are the following:
    • Two photovoltaic building façades on our HQ warehouses (Illustration 2), which occupy a surface area of 111 m2. They are made up of 93 units of the latest generation crystal-silicon photovoltaic glass, with seven different sizes to suit the design of the original façade. In total, the installed power is 13.1kWp, which allows for a generation of 11 000 kWh per year. These panels are not installed on top of the old façade, they are integrated into it, allowing for better thermal insulation of the buildings.

    • This means that we haven’t just focused on renewable self-consumption, but it has also been possible to reduce cooling needs by up to 50% reducing the air conditioning of the buildings. This installation alone – not mentioning the rest of the energy system – is going to avoid the emission of 245 tonnes of CO2 in 35 years, the equivalent of a saving of 661 barrels of oil per square metre.
    • In addition to the façades, 126 photovoltaic panels with an output of 57.33 kW have also been installed on the roof of the company’s warehouses. These panels save more than 20 tonnes of CO2 per year.
    • Testing of generators at the company’s facilities. All generators sold by Genesal Energy are tested at its facilities before being sent to the customer. This allows us to offer a top-quality warranty, but it also means consumption of fossil fuel. In accordance with the principles set out by the circular economy, the company has decided to reuse this energy by reintroducing it back into the value chain. The OGGY stores a percentage of the energy generated in these tests.
    • Although the amount of energy generated in the facilities Genesal Energy could make us self-sufficient, we have maintained the connection to the conventional electricity grid in case of system failures.
  • The core, and the most important part, is the energy management algorithm or EMS, which is responsible for controlling all energy fluxes. This energy system continuously analyses the status of generation, storage and consumption in order to determine the system’s working profile at any given moment.
    In addition, it considers variables external to the system, such as the weather forecast (to predict what the energy generated by the photovoltaic installation will be) or the price of electricity in real time (deciding whether to feed the energy into the grid or store it in the battery system).

The integration between the OGGY system and the generating sources is performed through MODBUS, an open communication protocol used to transmit information through serial networks between different electronic devices. This is essential for the system to be able to properly manage all the fluxes and where they are directed to.

As for the storage system, it consists of a rack of lithium batteries with a total power of 92 kWh, grouped into 14 modules.

  • Finally, there are the energy consumption points. In the case of Genesal Energy, these are the ones in the factory itself and the offices.

 

All Genesal’s actions, research and projects developed in the sustainability field are based on the absolute conviction that we are doing the right thing. The industrial sector must understand the processes of ecological transition and decarbonisation as opportunities to promote its own transformation towards sustainable models. Comprehensive energy management systems such as OGGY are key to this new scenario.

Antía Míguez, technologist at Genesal Energy