Decarbonizing the Industrial Water Sector: Understanding the Path

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Water-intensive industries—manufacturing, oil and gas, and energy—account for 22% of global water use. As water scarcity intensifies due to climate change, population growth, and energy volatility, it will impact nearly every industry operational decision. The pressure on utilities and industrial water users to reduce their carbon footprints is mounting, showing no signs of slowing down.

Fortunately, users can enhance energy efficiency, minimize greenhouse gas (GHG) emissions, and support global decarbonization goals by strategically shifting to digitalization and leveraging innovative energy solutions. This shift is guided by the principles of:

• Reduce
• Replace
• Recover

We partnered with Global Water Intelligence (GWI) to examine how these principles contribute to decarbonization success and lay out the key steps and technologies for implementing these strategies.

Laying the foundation for decarbonization

Decarbonization success requires a strategic plan leveraging digital tools to make your pathway achievable and manageable, including:

• Understanding your baseline: Deploy IoT sensors or energy management systems to gather real-time energy consumption and carbon emissions data.
• Setting specific, attainable goals: Use the baseline data to establish clear targets for reducing carbon emissions.
• Creating a long-term roadmap: Outline a plan that includes incremental targets and KPIs to track progress over time.
• Leveraging digital platforms: Utilize digital tools to monitor, adjust, and share your results, ensuring continuous improvement and transparency in your decarbonization efforts.

Reduce: Optimizing energy efficiency through digitalization

Today’s advanced digital tools offer low capital expenditure (CapEx) solutions to improve energy efficiency in existing infrastructure. IoT sensors, digital twins, data analytics, and real-time monitoring enable utilities to:

• Optimize their operations
• Reduce energy consumption
• Cut emissions

For example, La Societe Wallonne des Eaux, a European water utility, successfully implemented a digital platform to monitor its energy usage in real time. This allowed the utility to identify inefficiencies and make data-driven decisions that reduced its energy consumption by 15% in just a few months.

One of the most transformative aspects of industrial water sector digitalization is the convergence of IT (information technology) and OT (operational technology). This integration gives utilities a more holistic operational view, leading to better decision-making and greater efficiency. For instance, integrating real-time IoT sensor data with operational controls can:

• Automatically adjust processes, reducing energy consumption
• Enhancing the overall performance of water treatment facilities
• Enables predictive maintenance, minimizing downtime and extending the life of critical assets

Replace: Transitioning to renewable, green energy

Transitioning from fossil fuels to renewable energy (e.g., solar, wind, water) is critical to lowering GHG emissions. Water utilities have multiple pathways to access these green energy solutions, such as power purchase agreements (PPAs), allowing them to shift their CapEx burden to the energy provider while benefiting from clean energy.

For example, Singapore’s national water agency, PUB, signed a 25-year PPA for a floating solar farm. It powers five water treatment plants and offsets 7% of PUB’s overall energy needs, demonstrating the feasibility and impact of renewable energy integration.

Recover: Turning waste into value

The circular economy model transforms resource efficiency, particularly in sludge treatment processes, by recovering energy from waste, reducing GHG emissions, and creating new revenue streams. This approach turns the traditional linear resource consumption model on its head by advocating for a system that minimizes waste and continually repurposes resources.

A standout example is Logan Water’s bio-factories in Australia. They generate enough electricity from sludge treatment to power nearly 40,000 homes annually and reduce emissions by 4800 tonnes annually, mitigating emissions and contributing to the utility’s bottom line.

The circular economy model enhances utilities’ long-term financial stability by pursuing new revenue streams through energy recovery and byproduct repurposing. As technology becomes more accessible and scalable, smaller operators can also benefit.

For example, producing biochar from sludge (food and incinerable waste) mitigates carbon emissions and generates a valuable byproduct for agricultural markets. This dual benefit—environmental and financial—makes the circular economy an attractive model for utilities of any size.

Navigating the crossroads of climate and water

Water utilities and industrial water users face increasing pressures from climate change, water demand, and energy volatility, and they have a critical need for a comprehensive decarbonization strategy. By adopting digital tools, integrating renewable energy, and embracing circular economy practices, utilities, and industrial water users can make significant strides toward reducing their carbon footprints.

These strategies are not just about meeting regulatory requirements or achieving net-zero goals—they’re about future-proofing the industrial water sector against tomorrow’s uncertainties. To learn more about the steps and technologies that can drive this transformation, download “The Path to Decarbonization” for detailed insights and the six key steps to decarbonizing the water sector.