America flies the renewables flag

Nikhil Kaitwade, Future Market

Insights, India, examines the consumption of renewable energy in North America, specifically its use in transport, packaging, and agriculture.

With new promises and growth paths ahead, will renewable energy prove to be muchneeded salvation for humanity?

The answer to this question is being researched and debated across the globe. As the debate on combatting climate change and saving world resources continues, administrations worldwide are actively encouraging the use of renewable energy across every domain.

The renewable energy industry has remained quite resilient through the outbreak of COVID-19. With decreasing costs of resources and rapid technological advancements, the sector has emerged as the new power source application, especially in the automotive and packaging industry.

Despite suffering from a decline during 4Q20 from supply chain constraints, the renewable energy industry is expected to witness new tailwinds with the growing adoption of green technology in the automotive industry.

When it comes to renewable energy, the US is among one of the largest and most attractive markets across the globe. According to the International Energy Agency (IEA), the US energy sector was valued at US$350 billion in 2018, becoming the second largest in the world.

With the US being home to a thriving renewable energy industry, North America is one step ahead when it

comes to the application of renewable energy. The US has the largest geothermal capacity of any other country with 3.7 GW, and the third largest bioenergy capacity with 14.2 GW.

In 2019, the US ranked as the second most attractive country for renewable energy investment, according to Select USA. To capitalise on this trend, leading automotive, packaging, and technology players are lining up to strengthen their presence in North America.

According to the Energy Information Administration (EIA), consumption of liquid fuels for bulk terminals in the US reached 16.2 million bpd during 2020, and the oil consumption for the same will rise through 2021. Hence, bulk terminal key players are eyeing the US market to increase their sales.

As per a research report by ESOMAR-certified market intelligence, Future Market Insights, on the bulk terminal market, North America will house the world’s second largest number of tank terminal operators across the globe.

With the strong presence of industrial automation and automotive giants, the US is expected to be the most attractive market across North America. For instance, Zenith Energy, a leading player in transitioning to a cleaner energy future by pioneering sustainable and renewable energy liquid bulk terminals, has acquired three West Coast terminals.

How is renewable energy transforming the US?

In 2020, the consumption of renewable energy in the US grew for the fifth year in a row, reaching a record high of 11.6 quadrillion Btu. Over 12% of total US energy consumption was concentrated in the industrial and transportation sector.

When it comes to greenhouse gas (GHG) emissions, industries tend to be blamed at large. However, according to a CDP Carbon Majors Database report, for over 71% of global GHG emissions, around 100 companies are responsible, mostly those US based.

With growing sustainability and environmental concerns, every industry is transitioning towards generating clean energy. As the US is home to leading pulp and paper, mineral processing, food processing, automotive, and agriculture industries, switching to renewable energy is more prominent in the country.

Renewable energy is increasingly attracting consumers and governments for its potential to curb GHG emissions. Since the aforementioned industries have increasingly opted for renewable energy for production and manufacturing, the use of wind energy, hydroelectric power, solar energy, and geothermal power, collectively grew by 69% in 2019.

In 2020, the US was among the top five countries using solar energy in the transportation industry. To reduce emissions, the US Department of Energy announced an initiative of nearly US$200 million to reduce emissions from cars and trucks.

With 11 billion t of freight vehicle transport, coupled with US$35 billion worth of goods transported every day in the US, the government is extensively developing the way to use clean and green energy for sustainable transport.

As people are becoming more aware of the hazardous effects of carbon emission, the adoption of hybrid and electric cars, for example, is growing every day. Driven by this, the US Department of Energy initiated the EEMS programme to improve transportation energy efficiency through low-cost, clean energy, and secure technologies.

In the coming years, the US transportation industry is expected to have a new face with its ‘SMART Mobility 2.0’ programme, replacing oil with clean renewable energy and domestic fuels, through bioenergy, hydrogen, and fuel cell technologies.

Some of the leading industry players are using renewable energy for improving the performance of container terminals as well. For efficient and sustainable maritime activities, the container terminal industry is under a great deal of pressure for maintaining sustainability.

To meet the sustainability demand, bulk container industry players across North America are adopting renewable energy technologies to reduce coal consumption. Port authorities and terminal operators are increasingly becoming aware of the challenge of energy efficiency, and are increasingly being concerned with coal emissions.

Hence, the regulation of port areas has become more stringent, mostly due to the emission of sulfur and nitrogen oxides. To cater to the growing demand, bulk terminals across the US are shifting from fossil fuels to renewable energy resources.

While some terminals are introducing these technologies voluntarily and have invested in energy-efficient technologies, many port authorities and terminal operators are still lagging regarding the importance of energy-efficient infrastructure.

According to Future Market Insights, leading industrial automation giants are leveraging their advanced technologies incorporated in liquid bulk variants, to cater to the growing demand for clean energy liquid bulk variants.

With the rapid development of port infrastructure, fleeting coal, oil changes, and inefficiencies in fleet management, the need for liquid bulk containers is surging across the US. These developments will create immense opportunities for renewable energy in the bulk terminals industry.

Rise of floating solar photovoltaics

Expansion of solar projects in North America, especially in the US, is a chief trend across wastewater treatment plants, agriculture and fish farms, mining companies, and other sectors. As a clean, green, renewable energy source, floating solar photovoltaics is a pillar when it comes to addressing climate change.

Consequently, several industry players within North America are exploring this technology through various projects, emphasising sustainability to reduce emissions through mining and wastewater treatment plans.

Considering the developments lined up across diverse end use industries, North America might be the first in preserving natural resources through renewable energy.

Supply chain strategies continue to evolve with advent of renewable energy

With the onset of COVID-19, the supply chain industry remained under pressure. The US-China trade tension

created more challenges during 2020. However, as a result of the focus on adopting renewable energy sources in diverse sectors, US renewable energy researchers are likely to face transformation with relaxed domestic measures and ease in shipping methods.

Focus on sustainability is expected to rise globally and North America will be a trendsetter in renewable energy adoption. The US, with the shale gas revolution, will be a hotspot of this change within North America.

Over the coming years, several solar developers are likely to ramp up their compliance monitoring activity, as they try to mandate the Solar Energy Industries Association’s (SEIA) Solar Supply Chain Traceability Protocol, which comprises stringent regulations intended to trace the origin of solar materials.

Can renewable energy limit food waste?

According to the Food and Agriculture Organisation, the agrifood value chain consumes over 30% of the earth’s available energy. The availability of fossil fuels has played a vital role in feeding the world but it also has increased environmental problems.

With natural resources being finite and an increasing population, the adoption of renewable energy in the food industry is like a boon. North America has one of the largest agriculture and food industries across the globe.

As the adoption of solar-powered irrigation and biogas digesters is increasing, the North American food industry is witnessing an enormous change in its core. In 2021, 56.7 billion lb. of milk was produced in the US, according to the US Department of Agriculture.

With the increasing consumption and production of milk, the amount of wasted milk is significant. 3.7 gal. of milk is wasted every day in the US, which negatively affects the economy, environment, and farmers.

To curb that waste, the regulatory bodies are investing in developing sustainable energy technologies with which the milk can be restored or cooled with the use of biogas – a renewable energy source.

The food processing and aquaculture industries are also focusing on green and clean energy innovation to reduce carbon emissions and reach independence from fuel price fluctuations.

For instance, the leading food processing industry giants are investing in the development of solar agro-processing power stations which play a significant role in agricultural production, especially in milking, the emergence of solar mills in rural farms, and by saving manual labour.

Hence, with the incorporation of renewable energy in food processing and food manufacturing, key players are trying to reduce the amount of waste.

For instance, in 2021, Food Union, the international ice cream and dairy production and distribution group, announced its investments in renewable energy to power ice cream and dairy operations in the Baltics and Norway. Additionally, US Department of Agriculture Secretary Tom Vilsack announced the investment of US$464 million to build or improve renewable energy infrastructure and to help rural communities, agricultural producers, and businesses lower energy costs in 48 states and in Puerto Rico.

Renewable energy revolutionising the North American packaging industry

In 2021, the renewable energy industry has been focusing on keeping pace with rapid technological advancements in the packaging industry. The growing interest in clean energy technologies is compelling packaging industry manufacturers for more investments to capitalise on the ongoing trends.

The emergence of intelligent packaging and the integration of clean energy technology is reshaping the packaging industry in North America. With the US being home to the leading major packaging industry, sustainability remains the largest concern for the government as well as consumers.

Along with the transportation industry, the US is trying to make amends with the environment by introducing clean energy and sustainable packaging to consumers. The emergence of intelligent packaging through renewable energy, recycling, and incorporation of advanced technologies such as artificial intelligence is expected to be at the heart of the new US economic model.

The presence of packaging industry giants such as Henkel, Dow, Emmerson, and Evergreen Packaging, and the use of biomass and other renewable energies is making deeper inroads in the US packaging industry.

For instance, Evergreen Packaging uses renewable energy to power its operations and manufacturing production by using efficient cogeneration or combined heat and power (CHP) process.

This process helps reduce the electricity and avoid energy losses due to the transmission of electricity. Also, this company claims that approximately 85% of the energy it uses to make paper products comes from a renewable energy source: biomass and lignin.

In addition, millennials nowadays are becoming more concerned and aware of the environment and hence are willing to pay more for sustainability. To bank on this trend, leading players such as Emmerson packaging are introducing innovative, recyclable, and biodegradable sustainable packaging by using renewable energy resources.

The company is introducing fully recyclable and biodegradable products with very few films. Its sustainable SmartPack packaging uses energy-curing technology to reduce the number of films that are needed to produce a sustainable product, making them one of the leading packaging companies in North America.

Based on such aforementioned development in regards to the use of renewable energy for sustainable packaging, North America is expected to be at the forefront of the global renewable energy industry.

Summary

The renewable energy industry is booming and innovations hold promise to deliver a clean energy future. In the coming years, more industries across the globe will join the bandwagon to stay ahead of the competition.