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Third Industrial Revolution Consulting Group Accomplishing exergetic efficiency-productivity gains have become economic, business, and environmental imperatives for the entire €70 trillion global economy. Exergetic growth rates need to exceed economic growth rates in order to drive the engine of aggregate efficiencies across value chains, and significantly increase productivity, while dramatically shrinking ecological footprints. Low and slow exergetic improvement rates drag down the economy, jeopardizing business stability, employment, and dampening innovation. Innovation flourishes, trade expands, businesses thrive, and society and the environment benefit with higher and faster exergetic improvement rates. The Industry Working Group seized this insight by zeroing in on three key topics holding a vast potential for exergetic gains: 1) Energy and Resource Efficiency, 2) Research, Development & EXECUTIVE SEMINAR Innovation (RDI), and 3) Smart Industry and IoT Integration. The Working group emphasizes, May 25 th to 27 th , 2016 “These subjects converge Luxembourg at all times Cluster and Initiative should not be viewed in isolation.” Luxembourg EcoInnovation Cluster – 23.04.2014 Energy and Resource Efficiency Over the next 35 years, total energy use in Luxembourg could be cut by as much as one-half through the greater use of energy efficiency across all economic sectors and households. It is crucial to pinpoint the total energy consumption of industries in this country. Secondly, it will be important to highlight the sources of the energy purchased by industries. What is the percentage of energy that could be qualified as renewable? Here we are talking about energy that is purchased and hence produced by a third party. But the interesting questions go further: Will industries be able to significantly reduce the level of energy they require for production? There are physical limits to energy efficiency that will prevent heavy energy-consuming industries from reducing their level of energy use. Will industries be able to produce significant 216
Third Industrial Revolution Consulting Group energy themselves? This could be achieved through different means (solar, wind, geothermal, biomass). Finally, there is the central question of waste. Many production processes produce heat. How could industry turn this thermal energy into reusable energy to be used by a third party? For example, consider Luxembourg’s glass industry. This is a high-energy consumption industry. During the production process, water with a temperature of 57 degrees is used to run over the finished product (glass). That water is considered to be waste and will flow into the drain and be recycled. An investment would be necessary to use that thermal energy (in the form of warm water) to potentially heat a communal swimming pool or a building. The same is true for steel production. Recuperation of heat energy from cooling steel beams at Arcelor Mittal’s walking beams furnace has significant potential. Clearly both the plant and the consumer would have to be situated in regional proximity to prevent energy losses. The challenge is straightforward: increase energy efficiency and render energy production more sustainable through wind, solar or other renewable technologies. In this regard, industries should be encouraged to use all available free space on roofs and in parking lots to produce solar energy which they can both use and return to the power grid. The exploration of new ways to encourage the storage of energy should be actively promoted. As previously mentioned, the smart grid will be a critical component in the paradigm shift to a Third Industrial Revolution. Smart grid technology will give industries real time information on their energy consumption profiles. This will help them better align their sources of energy (buy or produce) and if they buy, the buying pattern could be optimized and result in cost savings. Simply put, energy peaks are expensive. At the same time, Luxembourg industries will need to explore the potential of reusing waste heat and materials to close the production and consumption cycle. This is an important step to avoid any waste leakages and to maintain the longevity of the input materials. There is also a strong link between the construction and the industrial sector. A number of industries producing building materials such as concrete, glass, and steel are well-established in Luxembourg. At present, the construction sector is required to deliver buildings which have to meet very high standards in regards to energy efficiency. This trend is continuing, and at some point in the future, it may well be that new buildings will have to be built of materials which are 100% recyclable/reusable. Rethinking Energy Services Vintage Second Industrial Revolution energy industries are being buffeted by relentless storms brought on by the IoT and GAIN (genetic, auto-robotic, informatics and nano-engineering) technology advancements driving the Third Industrial Revolution. These general-purpose 217
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