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Elevating Sustainability to a Core Business Priority and Value Driver

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For many years, the negative externalities of heavy industrial operations were brushed off as merely the cost of doing business, or an inescapable feature of working with damaging by-products and high-temperature environments. Today, with 22% of global CO2 emissions

 attributable to heavy industries, such mindsets have thankfully shifted.

Everyone from regulators and the working public to politicians and C-level executives is now recognising and emphasising the existential importance of reducing carbon emissions. As individuals make lifestyle changes for the good of the environment, they expect industry and politicians to do the same. Now it seems that business and sustainability are no longer distinct entities, but rather two sides to the same coin.

Words and PR messages are no longer enough; improving sustainability must be centred around taking action. This has been underlined by government-level initiatives, not least the requirements of the Paris Agreement, which place a shared accountability for dramatically reducing carbon levels. The drivers for change extend beyond regulatory requirements, with improvements in cost reductions and brand perception presenting attractive outcomes for companies that lead in this regard.

 
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For industrial organisations to achieve this, improving sustainability cannot be seen as a peripheral area of industrial practices, rather it needs to be fully integrated into all growth and innovation strategies.

The Drive to Innovate

Progress relies on change. When it comes to facilitating sustainability as a core business driver, capitalising on the latest developments in science and technology enables new approaches that have never previously been possible. Our own company is an example of an opportunity that emerged from an important scientific breakthrough; that being the discovery of a natural organism that can ferment gaseous carbon and convert it into ethanol. This process is like traditional fermentation except a biocatalyst instead of a yeast ferments carbon containing gases, instead of sugar.

This one discovery has since given birth to a global business that supports the wholescale adoption of more sustainable business models across industries not conventionally seen as environmentally friendly. Since the discovery of this organism alone, we’ve created more than 90 million litres of ethanol and mitigated more than 100 million tons of CO2.

 
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This is just one example of the many opportunities that exist. By re-evaluating operations and identifying areas of waste, businesses can make fundamental change to business models in line with their ambitious sustainability goals in order to find new sources of value.

The Drive to Succeed

We’ve put this ethos into practice in a joint project with global steel producer ArcelorMittal. Working alongside digitisation experts Rockwell Automation, LanzaTech’s gas fermentation technology is enabling the capture and valorisation of carbon from emissions at one of ArcelorMittal’s steel mills in Belgium.

Conventionally, blast furnaces are one of the most wasteful parts of steelmaking operations. As illustrated in the diagram below, we’ve tackled this problem with our technology to capture the carbon in the steel off-gases and convert it to ethanol using proprietary microbes that feed on the gases rather than sugar, as in traditional fermentation. As a result, the carbon is recycled into a valuable commodity that enables economic routes to sustainable fuels, including sustainable aviation fuel, and chemicals that can serve as building blocks for everyday consumer products, such as plastics and synthetic fibres that can be used in CarbonSmartTM packaging and textiles applications.

 
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The Drive to Sustainability

There is now a growing design space for executives to apply more sustainable processes to their existing operations and identify new areas of opportunity. This approach has the potential to reshape operations, creating a more efficient, sustainable and productive business model. However, this mentality isn’t solely applicable to energy intensive industries. We’re currently working with companies across various sectors from aviation to petrochemicals and consumer goods as more organisations explore opportunities to convert waste into more sustainable products to reduce the environmental impact of their businesses

This circular economy approach helps businesses find new purposes for waste products and supports creation of more sustainable supply chains. It is important to view operations as an ecosystem, where waste products from the process of one industry can bring value to operations in another. We have examples in a broad range of applications from household cleaning to fine fragrances and, with downstream partners, CarbonSmartTM materials for textiles and packaging. This shows that there are opportunities out there and enabling technologies that can contribute to achieving Europe’s ambitious climate targets.

In fact, the more creative your applications, the greater the rewards can be as more companies adopt open innovation and seek to form partnerships with like-minded businesses. It will likely not be a simple process – after all, being a pioneer always comes with unforeseen challenges – but taking this approach allows you to test and learn. By continually seeking out enhancements across your whole supply chain, sustainability can rightly be elevated to the status of a key business driver.

Looking to a Green Future

From shipping, aviation and steel to household products and fragrances, all industries have a role to play in driving this change. Through reducing their environmental footprint, executives have the capability to grow their business, produce new products and develop profitable services, all while benefitting the planet and consumers simultaneously.

People are now actively looking for private enterprise to lead the way in making their operations sustainable. This means that there is an enormous market opportunity for the companies out there that are willing to back up their words and walk the talk on meeting their sustainability objectives, because it is definitive actions that will actually make the difference.

In effect, this has now turned a negative externality into both a business opportunity and an environmental win at the same time. This shows the power of applying creative solutions to large-scale problems and offers a blueprint for other organisations to create their own ‘win-win’ situation for positive business and environmental results.

Published April 7, 2021

 
Topics: Metals The Connected Enterprise Management Perspectives

Babette Pettersen
VP, Europe, LanzaTech
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