An increasing number of large manufacturing companies worldwide, especially those involved in the production of iron, steel, aluminum and automobiles, are looking for energy sources cleaner than traditional fossil fuels. According to the Centre for Climate and Energy Solutions, manufacturing accounts for 12% of all greenhouse gas emissions worldwide. The trend of using renewables instead of fossil fuels is in part a response to a strengthening worldwide commitment to decarbonisation as set out in the Paris Agreement. Incentivised by national targets, the use of cleaner, renewable energy has led to lower costs while increasing the availability and reliability of sustainable energy supplies.
I addition, the cost of grid-scale renewable power generation has seen significant declines in costs, according to a recent International Renewable Energy Agency (IRENA) report. IRENA estimates that at the end of 2019, global renewable generation capacity had amounted to 2,537 GW; the share of renewables in global power generation was 28%. IRENA forecasts that, as soon as 2030, renewables could provide between 27% to 32% of total energy consumption by global manufacturing. Selecting an energy source for manufacturing can be challenging, requiring research and expert advice. Manufacturers have several alternative sustainable energy sources to choose from, including green hydrogen, wind and solar power, biomass, geothermal and hybrid power.