Transitioning Industrial Clusters towards Net ZeroJ A N U A R Y 2 0 2 3In collaboration with Accenture and EPRIContents 2023 World Economic Forum.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,including photocopying and recording,or by any information storage and retrieval system.Disclaimer This document is published by the World Economic Forum as a contribution to a project,insight area or interaction.The findings,interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Partners or other stakeholders.Foreword 3Executive summary 41 Accelerating industrial clusters playbook 92 Working together towards net zero 26Transitioning Industrial Clusters towards Net Zero Initiative 27The global cross-sectoral community 29Empowering and accelerating 303 Signatory cluster community 313.1 Brightlands Circular Space 343.2 H2Houston Hub 403.3 HyNet North West 453.4 Jababeka Net-Zero Industrial Cluster 503.5 Kwinana Industries Council 563.6 National Capital Hydrogen Center 623.7 Net Zero Basque Industrial Super Cluster 673.8 Ohio Clean Hydrogen Hub Alliance 733.9 Ordos-Envision Net Zero Industrial Park 783.10 Port of Antwerp-Bruges 843.11 Zero Carbon Humber 90Contributors 96Images:Getty Images Transitioning Industrial Clusters towards Net Zero2ContentsForewordCollaboration is the new leadership.Only 14 months ago at COP26,our teams launched the Transitioning Industrial Clusters towards Net Zero initiative with four clusters representing a collective CO2 emissions reduction profile of approximately 30 million tonnes.Today,with 13 signatory clusters,that metric is 14 times increased at 417megatonnes equivalent to that of Mexico with$188billion gross domestic product(GDP)contribution and 2.59million jobs protected or created.At the heart of this initiative is our mission to bring together a cohort of global doers from diverse sectoral and geographic landscapes who are not hesitant to explore the hardest technical,environmental and social justice questions we are discovering as we advance in the energy transition.Our community shares,pushes,refines and operationalizes through cross-sectoral,hands-on workshops and roundtables.It is one which most powerfully is willing and eager to bring their stories into the public view to accelerate holistic industrial decarbonization.We are thrilled to present in this document a review of 11 of our signatory industrial clusters onboarded to our initiative ahead of COP27 and,in complement,our Accelerating Industrial Clusters Playbook.This strategy aggregates the best of these clusters experiential learnings to provide a roadmap by which other corporates,non-government organizations,public entities and so on can anchor decarbonization in the hardest-to-abate sectors within their geographies with immediate next steps.Thank you to all of the cluster leaders,policy-makers and community representatives for their time and contributions to this report and the continued development of a roadmap to decarbonize industry.Melissa StarkGlobal Energy Transition Services Lead,AccentureNeva EspinozaVice-President,Energy Supply and Low-Carbon Resources,EPRIJrgen SandstrmHead,Energy,Materials,Infrastructure Programme,Industrial Transformation,World Economic ForumTransitioning Industrial Clusters towards Net Zero3ContentsExecutive summaryTechnology development to support cross-industry decarbonization has sped up in recent years to bring into reach critical milestones set forth by the Paris Agreement,regional policy drivers and corporate sustainability goals.Still,with the industrial sector representing 30%of global greenhouse gas emissions,a complex,variable strategy(of which technological advancements are only one driving factor)must be developed to ensure communities,policy-makers and broader economies are ready for rapid,sustainable clean resource adoption.In this report,the Transitioning Industrial Clusters towards Net Zero initiative presents the experiences and perspectives of 11 signatory industrial clusters who have developed holistic strategies to accelerate their decarbonization journeys.Each cluster represents vastly different geographical,infrastructure,policy and sectoral characterizations and constraints.Still,even at widely varying stages of development,these clusters have adopted a balanced set of environmental,social and economic benefit targets and strategies to engage communities,corporates and the public sector to ensure this transition is not only rapid,but equitable.The approach these clusters and the Transitioning Industrial Clusters initiative take centres around four strategic approach areas seen throughout the Accelerating Industrial Clusters Playbook and in the assessment methodology of Signatory Cluster Profiles.The manifestation of these integrated elements partnership,policy,financing and technology will evolve uniquely over the life of each cluster,but from the start must be grounded in the goals of a common business model that provides sustainability both economically and to the community.PartnershipsHow to build trust between competing companies both on supply and demand side?PolicyHave enabling policies been developed to accelerate the decarbonization of industrial clusters?FinancingWhat innovative options exist for financing?TechnologyWhile the initiative is technology neutral,there is a logical pathway to consider which applies to all clusters.Transitioning Industrial Clusters towards Net Zero4ContentsFor the purpose of this report,these elements have been laid over the development cycle of an industrial cluster based on the aggregated experiences of the cluster community and its associated corporatepartners.On the following page in summary,the Accelerating Industrial Clusters Playbook proposes,at the intersection of each development phase and strategy element,key actions,questions and mindset shifts to guide leaders across contributing sectors of the transition.Each of these anchor back to the foundational responsibilities of a collaborative decarbonization leader:1.Collaborating to drive competition,not limit it.The timescale for decarbonization is much too limited to move forward without the benefit of lessons learned,still-developing insights and success(as well as failure)stories from the global community.Leaders should advocate for full participation in forums where policy enablers,financing models and technology use cases are explored and co-planning of infrastructure,supply chains,etc.take place.This does not limit competitive advantage but rather accelerates the horizontal timeline for the most compelling,cutting-edge assets.2.Rooting in system value,not one technologys finite value.While many industrial clusters are formed at the impetus of federal funding or market demand for a specific technology or resource,successful leaders should not limit the collaboration scope to serve only a subset of technology use cases at the expense of leaving economic,social and environmental value untapped.“Technology optionality”is needed to decarbonize the hardest to abate sectors affordably and reliably,but none will scale without a strong workforce,an aligned value chain,an informed community and a plan for sustainableexpansion.3.Designing financially-sustainable operating models from stage zero,not once scale is achieved.It is critical that each decarbonization opportunity whether at the corporate,joint venture or cluster level begins with leaders careful consideration of how the project financing model will mature as the opportunity scales.Reflection on stacking public and private mechanisms,proactive identification of useful levers at various maturities(e.g.seeding grants,contracts for difference)and frequent reevaluation of the opportunitys maturity directly enable this.Transitioning Industrial Clusters towards Net Zero5ContentsThis guiding framework outlays the actions,mindsets and questions that have demonstrated themselves as critical in the success of highly diverse,global industrial cluster developments.While this guide like all elements of the energy transition must be localized per cluster,and not all components will occur in the order presented,a view of the end-to-end industrial cluster decarbonization journey is paramount when stacking partnership,policy,financing and technology strategies over time.Transitioning Industrial Clusters towards Net Zero6TechnologyWhat are the existing decarbonization technology interests and pursuits among stakeholders,and how do these mutually align?PolicyFinancingPartnershipWho are the right corporate,non-governmental organization and public sector partners to launch this industrial cluster,and what are their decarbonization priorities?Cluster initiation1Cluster formalization2Net-zero strategy development3Net-zero strategy implementation:anchor projects4 Net-zero strategy implementation:full scale5ContentsThe Transitioning Industrial Clusters towards Net Zero initiative is building a variety of supporting assets,resources and forums that are focused onaccelerating cluster development wherever they are in their journey.These assets span workshop series that facilitate early collaborative visioning and ambition development,structured roundtables with global policy-makers and tactical,use case-level technology enablement discussions.This programmes support foundation is based uponits technology-agnostic,holistic system value approach to partner with industrial clusters from cluster initiation through to ongoing net-zero strategy implementation at full scale.This model and the continued shaping of the Transitioning Industrial Clusters initiative is guided by the tested examples of the signatory industrial clusters profiled in this report.Each has emerged in vastly different industrial contexts,by various means,in diverse policy environments,but all with the same purpose:to accelerate decarbonization in the hardest-to-abate sectors while creating jobs and increasing local economic competitiveness.This report will serve as a stage-by-stage journey map aggregating a selection of the initiatives signatory industrial clusters experiences and lessons learned on their paths to achieving sustainable,dynamic and competitive decarbonized industry.Transitioning Industrial Clusters towards Net Zero7ContentsEleven of the initiatives global signatory industrial clusters profiled in this report represent vastly diverse collaboration methodologies/models across industries,policy environments and geological features to name a few but commonly prioritize the creation and maintenance of environmental,social and economic value.Transitioning Industrial Clusters towards Net Zero8ClusterCO2 emissions metricBrightlands Circular Space5.8 Mt CO2 emissions per year emitted by industryH2Houston Hub220 Mt CO2 emissions per year emitted by industryHyNet North West10 Mt CO2 emissions per year emitted by industryJababeka Net-Zero Industrial Cluster0.7 Mt CO2 emissions per year emitted by grid-supplied electricityKwinana Industries Council8.2 Mt CO2 emissions per year emitted by industryNational Capital Hydrogen Center2.7 Mt CO2 emissions per year emitted by industryNet Zero Basque Industrial Super Cluster7.2 Mt CO2 emissions per year emitted by industryOhio Clean Hydrogen Hub AllianceForthcomingOrdos-Envision Net Zero Industrial Park12.4 Mt cumulative CO2 avoidance through new operations,inserviced at net zero by 2025Port of Antwerp-Bruges16 Mt CO2 emissions per year emitted by industryZero Carbon Humber19.8 Mt CO2 emissions per year emitted by industryNet-zero ambitionGDP impactJobs metricCountry net-zero commitmentCO2 emissions metricContentsAccelerating industrial clusters playbook1Transitioning Industrial Clusters towards Net Zero9ContentsChallengeTheindustrialsector is today responsible for 30%of global CO2 emissions.This share has continued to tick up over the last twenty years,with overall sector emissions increasing more than 200%;now,action must be decisive to make a timely impact on these hard to abate emissions.The global energy transition continues to gain momentum as pathways are created to green every nations society,regardless of current energy mix or developmental status.More than 130 countries have pledged to be net zero by 2050,but pledges will not be enough.The massive upgrades,retrofits and net new equipment required for this change is estimated to cost society more than$100trillion to meet that same 2050 goal.Within the global industrial profile,six hard-to-abate sectors are responsible for 80%ofthese emissions.Global GHG emissions by sector(scope 1 and 2)TransportOilNatural gasSteelOthersAgricultureBuildingsCementAluminiumAmmoniaOther industries180%of industrial emissionsNote:1 Other industries include petrochemicals,coal mining,paper and pulp,ceramics and others.Additional detail on these sectors challenges and readiness to change can be explored in the 2022 Net-Zero Industry Tracker published by the World Economic Forum and Accenture.Source:“Dercarbonizing industry:If Industrial Clusters win,we all win”,Accenture,21 June 2022;World Economic Forum,Net-Zero Industry Tracker,2022;Ritchie,Hannah and Max Rose,“Emissions by sector”,Our World in Data,2020.Many decarbonization programmes and acceleration initiatives have been developed by the research community,the public sector and private corporations to facilitate the reduction of a single industrys emissions.The industry must move more quickly and think more economically,environmentally,and socially sustainably than such single industry approaches allow.Advocating for an integrated approach across sectors and stakeholders is necessary where collaboration and distinct characteristics of the local context underline every action.Needs and opportunities driven by geographic components like access to renewables or CO2 geological storage as well as sociopolitical elements like national and regional enabling policy frameworks and workforce access must bring together industry players to decrease cost,risk and speed timelines to scale.Any regions approach must be multi-technology and dynamic to hedge against the increasing instability with time.Looking through the current macroeconomic turbulence and geopolitical developments,regions and corporations need a balanced approach that delivers on the imperatives of sustainability,energy affordability and energy security and access in essence,driving a resilient energy transition.Transitioning Industrial Clusters towards Net Zero10Contents$100 trillion by 2050$100 trillion in global investment is required to achieve net zero by 2050,with$32 trillion deployed by the end of the decade if the world hopes to effectively fight climate change.83%Including China and the United States,more than 130 countries have set net-zero targets covering about83%of global emissions.1.6 billion tonnes CO2The initiatives 100 industrial clusters goal has the potential to abate 1.6 billion tonnes of CO2,protect and create 17 million jobs and contribute$2.5 trillion to global GDP.90%By 2050,almost 90%of the electricity produced globally will need to come from renewable sources with 70%from solar and wind.91%Over 800 companies globally have committed to net zero,representing 91%of global GDP.OpportunityIn all of this,there is a great and urgent opportunity to match todays strong demand for clean resources by industry with developing and varied supply sources at the regional level.In these co-located group of industries generally defined by this initiative as industrial clusters there is immediate opportunity to balance existing markets and lay the collaborative groundwork for the infrastructure,assets and support(financing,workforce,etc.),which will soon be crucial to continuing operations.Open dialogues between supply and demand providers,cross-sectoral peers and wider,non-industrial stakeholders,like government and the financial sector,cannot be put off where new market developments and material decarbonization is to occur.The public sector bears a pressing“right now”role in seeding investment in domestic,decarbonized energy systems.Nations must first secure affordable and reliable energy before companies can adopt low-carbon technologies and energy-efficient processes that do not curtail operations.More information on how the public sector is doing this can be found in the Enabling Policy white paper.The risks of traditional fossil fuel reliance with todays price and global supply instability have already driven a quantifiable shift as cross-sectoral stakeholders have moved to harden their clean energy commitments and speed deployment of investment capital.Globally,$2.3trillion has already been deployed and,the UN reports,is making a material impact,but that is approximately 2%of the estimated capital required to facilitate this transition.There are immediate needs to invest in and rapidly scale energy efficiency and electrification programmes,that are expected to drive 40% of energy sector greenhouse gas(GHG)reductions through 2040,alongside longer-term market developments for circularity,hydrogen,carbon capture utilization and sequestration,and other impactful technologies.Sources:“Net Zero Tracker”,Net Zero Tracker,n.d.,https:/net zero emissions by 2050 possible?Yes,says IEA”,World Economic Forum,26 May 2021,https:/www.weforum.org/agenda/2021/05/net-zero-emissions-2050-iea;World Economic Forum,Fostering Effective Energy Transition:2021 Edition,2021;Transitioning Industrial Clusters towards Net Zero initiative analysis;“Why financial institutions are banking on sustainability”,UNEP,21 April 2022;Accenture,Investing in industrial clusters,2022,https:/Industrial Clusters towards Net Zero11ContentsFive key actions can help give impetus and steady long-term momentum to the energy transition and make it more likely to withstand economic disruptions:Taking and holding long-term decisions with regard to the decarbonization of the national energy system structure(energy mix,power generation mix,energy efficiency and fossil fuel dependency).Decarbonize national energy system structuresEnabling competing and cross-industry stakeholders to collaborate to de-risk investment,share infrastructure,and save resources and energy,resulting in environmental,economic and social benefits.Balancing local industrial supply chainsAnchoring climate commitments in legally binding frameworks that can endure political cycles and enforce the long-term implementation of national transition objectives.Enforce climate commitmentsBuilding an attractive investment landscape for private capital,both foreign and domestic,to finance energy transition projects(policy and legal frameworks,currency and institutional stability,infrastructure quality and technology availability).Build an investment landscapePromoting consumer participation(awareness of climate change and carbon footprints,individual responsibility for action and incentives for consumer behavioural change)and building the local workforce required for the transition,paying particular attention to the livelihoods of vulnerable populations.Promote consumer participationTransitioning Industrial Clusters towards Net Zero12ContentsA just and managed transitionA just transition is defined as a shift to more sustainable economies whereby workers and communities do not bear an inordinate cost or burden.A sustainable transition will not only hinge on the right and rapid deployment of technologies;economic,environmental and social sustainability requires a holistic approach to engage all stakeholders,especially those disenfranchised by technological revolutions in the twentieth century.This left entire sectors and communities without employment,access to support or a clear path forward.The Transitioning Industrial Clusters towards Net Zero initiative approach advocates for cross-sectoral,global collaboration and frequent reassessment of impact versus intent of locally-prioritized system value framework metrics.By bringing together direct representatives of the entire industrial landscape from regulators to industry and community members regions can move more decisively with lessened concerns of stalled progress from regulatory,funding or community intervention.Without full ecosystem inclusion and education,these risks are significant.Specificopportunities that should be investigated inthe Transitioning Industrial Clusters approach include the following:How will traditionally disadvantaged communities benefit from the transitional approach of the cluster?How are they included in the planning process?How can theenvironmental,economic and job benefits of the clusters approach be quantified and communicated to key stakeholder groups?Are they equitably distributed within the community?How will the approach impact affordability of key services in the region?Will those impacts be fairly distributed?Industrial clusters are geographic areas where co-located companies,representing either a single or multiple industries,provide opportunities for scale,sharing of risk/resources,aggregation and optimization of demand.A hollistic and collective approach is required to optimize emissions solutions and create an integrated energy system that maximizes system value outcomes across economic,social and environmental aspects.Industry compositionGeographyExisting infrastructureEnergy costs and policyIndustrial clustersTransitioning Industrial Clusters towards Net Zero13ContentsIndustrial Clusters initiative mission and ambitionThe Transitioning Industrial Clusters towards Net Zero initiative aims to build a community ofone hundred industrial clusters,which balance economic,social and environmental impact through strong and expeditious support of developing clean energy markets and maturing decarbonization technologies.Those 100 industrial clusters will represent 1.6billion tonnes of CO2 emissions per year or 15%of global CO2 emissions.Through their decarbonization journey,these 100 clusters are expected to generate approximately 17 million jobs and contribute$2.5 trillion to the global GDP.In support of these industrial clusters,the initiative has built an array of support mechanisms based on the feedback and lived experiences of signatory industrial clusters.These will be explored in more detail in chapter 2:Working together towards net zero.How the initiative teams with signatory and prospective industrial clusters Best practices exchange between clusters located in various regions Global recognition through initiative partners and signatories media outlets and initiative publications Opportunities to showcase progress and liaise with signatories through in-person community meetings Environmental justice support to build and execute strategies to holistically benefit region Partnerships Partnership development models,resources and assets Facilitated workshops to develop global partnerships Connections to initiatives global network to develop balanced economic,environmental and social outcomesPolicy In-depth,country-specific policy and public funding analyses Roundtables with policy-makers and financial sector leaders Exchange of best practices and tools to build public-private engagementFinancing Country-specific financial analyses to catalyse funding opportunities and investment structure Experts guidance on financing nascent technologiesTechnology Technology expertise and provisioned support to develop an integrated technology strategy and roadmap Technology supply and demand matchmakingTransitioning Industrial Clusters towards Net Zero14ContentsLeveraging collaborative insights along the pathway Through the workshops,roundtables and bilaterals in collaboration with initiative signatories,the Transitioning Industrial Clusters initiative has aggregated the accelerating industrial clusters playbook presented in the following pages.This guiding framework outlays the actions,mindsets and questions critical in the development of the initiatives highly diverse global industrial clusters.While this guide like all elements of the energy transition must be localized per cluster and not all components will occur in the order presented,a view of the end-to-end industrial cluster decarbonization journey is paramount when stacking policy,financing,technology and partnership strategies over time.Accelerating industrial cluster playbookTransitioning Industrial Clusters towards Net Zero15PolicyFinancingTechnologyBuild the regional vision for joint technology and infrastructure development:use as basis for workforce,environmental and social impact targetsPartnershipConvene local stakeholders with shared decarbonization ambitions todefineand champion collaborative initiativesCluster formalization2Net-zero strategy development3Net-zero strategy implementation:anchor projects4 Net-zero strategy implementation:full scale5Cluster initiation1ContentsAccelerating industrial cluster playbookCluster initationPolicyFinancing Net-zero strategy implementation:full scaleCluster formalization Net-zero strategy development Net-zero strategy implementation:anchor projects12345Case studyCluster initiationTransitioning Industrial Clusters towards Net Zero16K E Y Q U E S T I O NWho are the right corporate,non-governmental organization and public sector partners to launch this industrial cluster and what are their decarbonization priorities?K E Y A C T I O NConvene local stakeholders with shared decarbonization ambitions to define and champion collaborative initiatives Earliest efforts to convene cross-sectoral corporates to work together towards a shared decarbonization goal should prioritize including stakeholders that have publicly demonstrated decarbonization as a priority.Further,from the start,corporate leadership should be well informed on the corporate culture change that will be required to successfully transition business models,the workforce and operational enablers to clean technologies.Within this dynamic stakeholder group,the cluster or anchor aggregators will be required to appoint champions to advocate and bring in potential partners,build an early operating structure,define milestones and push stakeholders towards them.The nature of this collaborative working process will require participants to adopt a holistic approach that balances social,environmental and economic benefits at the earliest stages.This is necessary to understand and communicate not only the impacts that the industrial cluster will have on corporations but also the impacts and benefits for the broader community.Before any technology roadmap development begins,stakeholders should define the system value elements of greatest mutual priority based on demonstrated regional initiatives and needs;this will guide the collaborative identification of priority KPIs for the cluster,rooting the vision in measurable value.Technology strategies as well as those for the policy,financing or collaboration levers will be built around these elements;based on cluster characterization and barriers/enablers across partners.TechnologyPartnershipContentsCollaborators started with a goal to use Infrastructure Investment and Jobs Act(IIJA)funds to accelerate the development of common decarbonization infrastructure in theregion and,in doing so,build an industrial cluster from the ground up:1.Ameren,the founding champion for the cluster,initiated the conversation through outreach to their regional network of more than 20 industrial,community,research and government organizations.2.Following initial conversations with this regionalnetwork of interested parties,a broad set of potential industrialpartners were identified from the steel,manufacturing,chemical and energy sectors.3.Clusters leaders held a series of facilitated bi-monthly workshops over six months to define a common vision and to develop commitments from potential partners.A vision statement was produced as well as a schematic of the clusters decarbonization ecosystem.4.Committed collaborators aligned on a press release with a common vision and stated partners(press release supporters wereAmeren,Burns McDonnell,MPLX(and its sponsor,Marathon Petroleum),Marquis Industrial Complex,Alton Steel,The Urban League of Metropolitan St.Louis,Walmart,Mitsubishi Power,Plug Power,Spire,Washington University in St.Louis,Missouri University of Science and Technology,Greater St.Louis and the Leadership Council of Southwestern Illinois).C A S E S T U D YDuring cluster initiation at the Greater St.Louis and Illinois Regional Clean Hydrogen Hub Industrial Cluster in the Midwest United StatesAccelerating industrial cluster playbookCluster initation Net-zero strategy implementation:full scaleCluster formalization Net-zero strategy development Net-zero strategy implementation:anchor projects12345Case studyCluster initiationTransitioning Industrial Clusters towards Net Zero17ContentsFinancingTechnologyAccelerating industrial cluster playbookCluster formalization Net-zero strategy implementation:full scaleCluster formalization Net-zero strategy development Net-zero strategy implementation:anchor projects12345Case studyCluster initiationTransitioning Industrial Clusters towards Net Zero18K E Y Q U E S T I O NWhat will the cluster aim to achieve among stakeholders great mutual priorities and how must these stakeholders teams to do it?K E Y A C T I O NAlign on cluster-wide,time-bound decarbonization goal for public release;execution of a multi-lateral memorandum of understanding(MoU)between cluster stakeholders in industry,research/academia,government,community organizations,etc.Formalization efforts must begin with the definition of a clusters ongoing structure and scope of collaboration among at least three partners.To ensure momentum is gained and maintained,it is paramount to appoint a“prime”or anchoring body to lead definition and execution of the clusters priorities,scope of work and timeline.If appropriate,cluster leaders should also guide appointment of cluster sub-committee chairs to own these elements within specific workstreams or initiatives.As this structure develops,the cluster should also consider whether it will self-govern or if a coordinating third-party should be introduced to centralize activities and certify outcomes.In parallel,the cluster should begin a workshop series with all partners to identify mutual decarbonization priorities and define its launching vision statement.This vision statement should include a high-level technology prioritization and deployment strategy(common anchors include hydrogen,carbon capture,electrification and/or energy efficiency)aligned to the priority system value framework focus areas and corresponding KPIs(often CO2 abated,incremental GDP contribution,jobs created/maintained).Drawing these components together,the cluster should draft a MoUand prepare non-disclosure agreements(NDAs)for collaborators describing the anchoring cross-sectoral stakeholders,the highest priorities of the industrial cluster,and the overarching,collaborative vision for the region.PolicyPartnershipContentsAccelerating industrial cluster playbookCluster formalization Net-zero strategy implementation:full scaleCluster formalization Net-zero strategy development Net-zero strategy implementation:anchor projects12345Case studyCluster initiation Before public announcement of cluster formation,Jababeka Infrastruktur led closed door sessions with energy companies and its industrial estate tenants to identify decarbonization solutions that are being implemented or planned and explore potential areas of collaboration.Four corporations emerged from these conversations committed to collaborate and support deployment of clean electrification infrastructure within the industrial cluster alongside other sustainability initiatives,such as waste circularity,on top of each partners individual initiatives.The energy partner is Pertamina New and Renewable Energy(PNRE),a subsidiary of Indonesias state oil company,and tenant partners include Unilever Indonesia,LOreal Indonesia and Hitachi Astemo Bekasi Manufacturing(together with Jababeka Infrastruktur,the launching partners).Launching partners convened at the B20 side event“Policy and Partnerships for Indonesias Decarbonisation”where the industrial cluster was announced with a live,televised signing to the Transitioning Industrial Clusters initiative and the collaborative decarbonization MoU was made public.C A S E S T U D YDuring cluster formalization at the Jababeka Industrial Estate in Cikarang,IndonesiaTransitioning Industrial Clusters towards Net Zero19ContentsAccelerating industrial cluster playbookNet-zero strategy development Net-zero strategy implementation:full scaleCluster formalization Net-zero strategy development Net-zero strategy implementation:anchor projects12345Case studyCluster initiationTransitioning Industrial Clusters towards Net Zero20K E Y Q U E S T I O NWhere does the cluster need to develop focused depth and engage external expertise to achieve its goals?K E Y A C T I O NEstablish a scalable governance structure to integrate,develop and manage cross-organizational action plans for technology,workforce and community engagement initiatives Post-MoU,the cluster should put focus on defining decarbonization goals and developing subcommittees to champion and lead holistic roadmap development.Artefacts should be developed both at the aggregate level and within sub-committees and should include quantified mid-point development targets.Further,all road mapping should highlight short-and long-term incentives to lock in corporate and ecosystem engagement.Decarbonization goals should be contextualized within the holistic approach and vision for the cluster and integrate cross-organizational action plans for partnership,policy,financing and technology(including workforce and community engagement)initiatives.Sub-committees and champions should be appointed to drive these on an ongoing basis throughout the life of the cluster.At this strategy development stage,the industrial clusters governance structure and anchoring body should be able to effectively manage the deployment of efforts across financing,policy and technology coordination as well as community engagement to attract new collaborators and educate on opportunities and benefits.As the stakeholder community continues to grow,onboarding processes must be developed for new stakeholders to plug into existing efforts.PartnershipPolicyFinancingTechnologyContents The cluster is led by SPRI(Basque Government),Petronor-Repsol and Iberdrola;both energy companies have long histories and strong commitments with business and social development in the Basque Country.The Basque Net Zero Industrial Super Cluster aims to accelerate the path to net-zero emissions in the Basque Country,creating energy supply decarbonization and energy efficiency in the industrial sectors and creating market opportunities based on the scale-up of the new technologies and innovative services.The Basque Industrial Clusters Associations play a key role in driving the development of decarbonization projects,ensuring coordination and maximizing synergies among their partners.The Super Cluster initiative is also aiming to create market opportunities based on these new technologies and services in the Basque Energy value chain,and therefore work very closely with the Basque Energy Cluster Association to deliver change.C A S E S T U D YDuring net-zero strategy development at the Net Zero Basque Industrial Super Cluster in Spains Basque CountryAccelerating industrial cluster playbookNet-zero strategy development Net-zero strategy implementation:full scaleCluster formalization Net-zero strategy development Net-zero strategy implementation:anchor projects12345Case studyCluster initiationTransitioning Industrial Clusters towards Net Zero21ContentsAccelerating industrial cluster playbook Net-zero strategy implementation:anchor projects Net-zero strategy implementation:full scaleCluster formalization Net-zero strategy development Net-zero strategy implementation:anchor projects12345Case studyCluster initiationTransitioning Industrial Clusters towards Net Zero22K E Y Q U E S T I O NHow must industrial cluster partners engage with internal and external stakeholders to ensure planned operations are sustainable?K E Y A C T I O NTo support shared infrastructure,clusters must develop external workforce transformation and community education programmes as well as internally shape agreements and IT infrastructure for necessary KPI reporting,project management and internet of things-based collaboration Clusters should centralize work across the value chain to develop new skilling and workforce transformation support programmes to anticipate and prepare for green economy talent needs.This should include collaborating with policy-makers to design mechanisms that support existing workers during the transition between fossil-fuel and green jobs.On top of this,engagement programmes targeting the wider community must be deployed to outlay the holistic benefits and sustainable hope of the energy transition.As stakeholders build their own projects and collaborate on cluster-level initiatives,a robust,integrated project management approach,data-sharing strategy and appropriate legal agreements(commercial contracts,offtake agreements,NDAs)must be put in place.Early in the development of a cluster,project management platforms should be instituted to provide a central source of truth for all planning,coordinated execution and holistic KPI tracking.This tool often described as a digital twin should be adaptive to accommodate increasingly complex cluster composition,secure data sharing for operations and reporting,clean resource market balancing and internet of things system monitoring and control.The earliest priority within this development should be to standardize data-sharing methodologies and KPI reporting exercises particularly focused on regulatory and financial levers.PartnershipPolicyFinancingTechnologyContents Cluster leaders,appointed on a rotational basis to complement the permanent role of carbon capture and storage(CCS)infrastructure owner and operator Eni,teamed closely with the UKs Department for Business,Energy and Industrial Strategy(BEIS)to workshop regulatory and financing hurdles,adjust business models for cluster-wide projects and discuss emerging opportunities and challenges.Community engagement and education programmes rolled out as precursors to scaled workforce transformation programmes to educate the community on the immediate and sustainable benefits of driving the regions energy transition.Within the cluster enabled by successful community engagement offtake agreements in advance of full infrastructure installation continued expansion beyond initial cluster members.HyNet today has over 40 offtake agreements between hydrogen and carbon capture and sequestration use cases.C A S E S T U D YDuring net-zero strategy implementation:anchor projects at HyNet North West in North West and North Wales,UKAccelerating industrial cluster playbook Net-zero strategy implementation:anchor projects Net-zero strategy implementation:full scaleCluster formalization Net-zero strategy development Net-zero strategy implementation:anchor projects12345Case studyCluster initiationTransitioning Industrial Clusters towards Net Zero23ContentsAccelerating industrial cluster playbook Net-zero strategy implementation:full scale Net-zero strategy implementation:full scaleCluster formalization Net-zero strategy development Net-zero strategy implementation:anchor projects12345Case studyCluster initiationTransitioning Industrial Clusters towards Net Zero24K E Y Q U E S T I O NHow can the decarbonization progress of the industrial cluster expand to drive accelerated regional emissions reduction and community uplift?K E Y A C T I O NImplement cultural transition tools so that cluster members can draw messaging from aconsolidated reporting resource to shape a public,quantitative impact story(environmental,social,economic)The cluster should expand its remit beyond the focus of the industrial community to support the broader regional energy transition by building a holistic,data-driven story for community consumption.This should encapsulate the positive environmental,social and economic benefits already and still to be realized through progress towards the clusters decarbonization target.Activating workforce transformation programmes and regional just transition roadmaps,credentialed by this narrative,should be a central focus of cluster partners.As the clusters impact expands and matures,the organizational structure and operating model should do the same.While the central body should still provide consolidated reporting,integrated project management,cluster-level resource balancing,and coordinated community and workforce uplift,it should stay agile to adopt new funding support models,geographic expansion and close collaboration with global developing and mature industrial clusters.PartnershipPolicyFinancingTechnologyContentsAccelerating industrial cluster playbook Net-zero strategy implementation:full scale Net-zero strategy implementation:full scaleCluster formalization Net-zero strategy development Net-zero strategy implementation:anchor projects12345Case studyCluster initiation Following the Circular Economy Action Plan,a 2020-2030 Investment Agenda was developed to support four strategic pillars:1.Circular investments,innovations and applications2.Circularcompetencies3.Circular foundation 4.Circularsociety Within the industrial cluster,21 projects are in progress or in preparation,which include a broad range of themes from the realization of sustainable circular raw material flows to the electrification of processes.Strong links to programmes and investment funds on a national and European scale are being explored.A chairman for the regional board championing the action plan was appointed,who also acts as ambassador in The Hague and Brussels for the Chemelot Circular Hub.Additionally,through the Circular Academy,newcircular knowledge and skills are delivered to theteaching staff and fed into a broader educationalsystem.C A S E S T U D YDuring net-zero strategy implementation:full scale at Brightlands Circular Space in South Limburg,NetherlandsTransitioning Industrial Clusters towards Net Zero25ContentsWorking together towards net zero2Transitioning Industrial Clusters towards Net Zero26ContentsTransitioning Industrial Clusters towards Net Zero initiativeThe Transitioning Industrial Clusters towards Net Zero initiative was created with the aim to accelerate industrial decarbonization through a holistic approach,involving cross-industry stakeholders with a technology-neutral focus.The programme is built on the belief that four foundational components are required to launch sustainable,cross-sectoral decarbonization in any geography:Balanced emphasis on driving economic,social and environmental value informed bythe system value framework.Inclusive consideration of all technologies and processes that support industrial decarbonization as described in the initiatives pre-launch report.Cross-sectoral collaboration within and across industry,public sector,financiers,labour and community stakeholders.Coordinated,agile strategies between partnership,policy,financing and technology enablement and deployment.Within this approach,the Transitioning Industrial Clusters towards Net Zero initiative is building a variety of supporting assets,resources and forums,which are focused onaccelerating cluster development from cluster initiation through to ongoing net zero strategy implementation at full scale.These range from publicly accessible resources from the initiative and its collaborators(the World Economic Forum,Accenture and EPRI)to closed workshops,roundtables and multilaterals hosted for community members or signatory industrial clusters,wherein the initiative curates expert opinions,coaching and lessons learned from policy-makers,industrials,financiers,the non-profit sector and others.Once we unlock clean industrial techniques,we can spread them all around the worldgiving industry everywhere a boost as our nations look to move faster towards our net-zero goals,and securing a place in the clean energy economy for their workers.As with so much of our transition,success will depend on collaboration.Jennifer Granholm,Secretary,US Department of Energy at the 2022 Global Clean Energy Action Forum Opening CeremonyTransitioning Industrial Clusters towards Net Zero27ContentsTransitioning Industrial Clusters towards Net Zero28A total of 139 countries,representing 91%of the global GDP have committed to net zero by 2050,but industrial emissions are considered some of the most difficult to abate on the path to net zero.Both public and private sectors understand the need for policy and financing enablers and mechanisms to accelerate the energy transition;84%of global companies have committed to increasing investment in sustainability initiatives and putting sustainability at the core of their future priorities.Policy-makers are scaling up programmes to provide seeding and bridge funding for scaled private investment to come into play.One of the foremost challenges that industry is facing,however,is not isolated to one enabling lever but rather bringing together cross-industry stakeholders to scale technology deployment,scale investments and work together to find collaborations to best support the energy transition.Sources:“Accelerating global companies toward net zero by 2050”,Accenture,5 November 2022,https:/Zero Tracker”,Net Zero Tracker,n.d.,https:/solutions for industrial clustersSystem value of the clean energy transitionTransitioning Industrial Clusters towards Net Zeros“Why?”ContentsThe global,cross-sectoral communityThe Transitioning Industrial Clusters towards Net Zero initiative has created a growing platform of signatory industrial clusters with diverse industrial composition,infrastructure and technology approaches to the energy transition.Signatory companies within the clusters represent roles across the value chain,keeping a balanced supply and off-take technology structure to ensure the success of the investments and technology deployed.Click here to switch between viewsTransitioning Industrial Clusters towards Net Zero29Net Zero BasqueIndustrial Super ClusterBrightlands Circular SpaceZero Carbon HumberNational Capital Hydrogen CenterOhio Clean Hydrogen Hub AllianceHyNet North WestCanary Islands Industrial ClusterGreater St.Louis and Illinois Regional Clean Hydrogen Hub Industrial ClusterH2Houston HubPort of Antwerp-BrugesJababeka Net-Zero Industrial ClusterWestern Trade Coast(Kwinana Industries Council)Ordos-Envision Net Zero Industrial ParkSystemic efficiency and circularityDirect electrification and renewable heatHydrogenCarbon capture utilisation and sequestrationStrategic technologiesIndustries representedStrategic technologiesStakeholdersContentsEmpowering and acceleratingAs a neutral body with a technology-impartial approach,the Transitioning Industrial Clusters initiative sits as an aggregator and connector between global industrial clusters,media outlets,environmental justice programmes and cross-value chain stakeholders.A four-pronged strategic approach ensures balance between sustainable environmental,economic and social value creation.Transitioning Industrial Clusters towards Net Zero30How the initiative supportsIn support of formalizing partnerships across the value chain to facilitate financial and operational risk sharing,the initiative has developed tested partnership structures and collaboration models,facilitates workshops series to build a unified vision and cluster structure,and brokers global connections to build balanced economic,environmental and social outcomes.Work in practiceTransitioning Industrial Clusters April 2022 Community Meeting on Developing Partnerships in Bilbao,Spain,dove into the key components of sustainable,scalable partnership through the experiences of global market developers.Materials are available upon request.PolicyFinancingTechnologyPartnershipContentsSignatory cluster community3Transitioning Industrial Clusters towards Net Zero31ContentsInitiative signatory clustersOf the initiatives 13 signatory industrial clusters,the 11 profiled in this report today represent annual emissions greater than the United Kingdom,spanning a diversity of industries across North America,Europe and Asia Pacific.Signatory profile approach Signatory industrial clusters are profiled in the following pages for all clusters which joined before 15 November 2022 11 global clusters representing eight nations across North America,Europe and Asia Pacific.These profiles have been developed in line with the Transitioning Industrial Clusters initiative approach:balancing system value(primarily economic,social and environmental benefit)ina technology-neutral,collaborative format.Aligned to the strategic development priorities of the initiative,each cluster is represented through its partnership,policy,financing and technology positioning.Partnership profiles have been standardized through the lens of the Fostering Effective Energy Transition:2022 Edition insight reports model for assessing net zero collaboration between customers and suppliers.The federal policy enablement foundation has been used from the initiatives October 2022 National Policy Enablement for Industrial Decarbonization white paper.The technology consideration model from Accenture in collaboration with the World Economic Forums March 2021 Achieving net-zero future with industrial clusters report,which has been adopted as core tothe initiative.Each profile has been developed in close coordination with signatory clusters based on the current stage of their decarbonization journey and thus,available information.The profiles will be updated on an annual basis.417 Mt CO2abated emissions represented2.59 milliondirect/indirect jobs represented$188 billionGDP contribution representedTransitioning Industrial Clusters towards Net Zero32ContentsMaturity statusIndustrial clusters have been categorized into three general maturity groups for the purpose of standardizing the type and style of attributes depicted in the following profiles:Planning:Public announcement has been issued,but no collaborative physical asset improvements or construction has begun.Developing:Collaborative physical asset improvements or construction has begun but is not yet facilitating decreased-or avoided-emissions operations.Scaling:Decreased-or avoided-emissions operations are occurring as a result of clean technology integration through collaborative measures.Maturity statusNet Zero BasqueIndustrial Super ClusterBrightlands Circular SpaceZero Carbon HumberNational Capital Hydrogen CenterOhio Clean Hydrogen Hub AllianceHyNet North WestGreater St.Louis and Illinois Regional Clean Hydrogen Hub Industrial ClusterH2Houston HubPort of Antwerp-BrugesJababeka Net-Zero Industrial ClusterOrdos-Envision Net Zero Industrial ParkWestern Trade Coast(Kwinana Industries Council)Initiative signatory clustersTransitioning Industrial Clusters towards Net Zero33Contents3.1 Brightlands Circular SpaceTransitioning Industrial Clusters towards Net Zero34ContentsBrightlands Circular Space is a flagship initiative of Chemelot Circular Hub,an alliance of companies,institutes and government agencies in the region of Sittard-Geleen(Netherlands)at the heart of the circular chemical industry(ARRRA region).A place to be for talented researchers,engineers and entrepreneurs who realize circular innovations and scale up circular processes and products.Brightlands Circular Space aims to become to be the ultimate growth accelerator for a circular society.In addition to the emission reduction goals of Chemelot Circular Hub stated above,Brightlands Circular Space aims to recycle 50%of the clusters plastics by 2030 through collaboration with the hubs industrial partners in new sustainable business models that promote reuse and circularity.Brightlands Circular SpaceKey highlights Chemicals Energy(oil and gas)Materials and manufacturing Power generationStatusIndustries representedPlanningDevelopingScaling5.8 Mt CO2annual emissions(2019)8,100jobs across 150 companies20%of the regions GVA(2019)Decarbonization roadmapSupportingSupportingDirect electrificationand renewable heatSecondarySystemic efficiencyand circularityPrimaryCCUSCurrent annual emissions(2019)Impact on roadmap towards decarbonization5.8 Mt CO2Net zero by20502030 target emissions reduction50%Hydrogen1990 baslineSittard-Geleen,NetherlandsTransitioning Industrial Clusters towards Net Zero35ContentsBrightlands Circular Space PartnershipCollaboration type existing in clusterPartner typesPartnersShared infrastructure development Researchers Cross-industry partners Entrepreneurs Students DesignersTNO,Maastricht University,Chemelot Industrial partners,CHILL,BrightlandsIndustrial cluster infrastructure planning Public-private partnersShared commercial projects Cross-industry peers Public private institutions Brand owners EntrepreneursChemelot Circular Hub Network,TNOCross-industry funding Public authorities Private investors Regional,national and EU level partners Venture partnersKnowledge sharing Researchers Cross-industry partners Entrepreneurs StudentsBMC,AMIBM,CHILL,Maastricht University,TNOReskilling the workforce Schools Applied and academic institutions Regional authoritiesMaastricht University,Zuyd,CHILL,labour consultanciesEnergy transition index collaboration model The core partners of Brightlands Circular Space are Brightlands Chemelot Campus(Chair),the Netherlands Organization for Applied Scientific Research(TNO),Maastricht University and SABIC.Core parties invest a fixed amount per year into the Brightlands Circular Space,which is also funded by the European Union and the Dutch government via the Groeifonds.There are no additional governance layers within the industrial cluster beyond the founding partners,but rather individual sustainability initiatives are developed through Brightlands Circular Space,each with unique governance structures developed by the respective investing corporates and R&D groups from small-and mid-sized Dutch businesses to multinationals.As a platform,Brightlands Circular Space provides manufacturing equipment,lab and office space,and support services to more than 150 co-located corporates within the campus.It also provides knowledge sharing with partners of the ARRRA cluster as well as partners of the Forum.Shared infrastructure within the cluster is owned by Brightlands Chemelot Campus and exists to catalyse innovation across industries housed in Brightlands Chemelot Campus with the input of surrounding government and society,research and innovation,and education and competence building.The transformation in energy and raw materials and cooperation is one of the greatest challenges for the future.Replacing fossil raw materials with waste and recycling products form the foundation for the development of the circular economy.In this regard it is not only new technology that is important,but also new business models,new forms of cooperation and the development of new competencies.Therefore,we set the goal to develop blueprints for a plastic waste refinery.We do this in an open space environment,making use of our estimated state-of-the-art infrastructure,aimed at scaling up innovative circular technology and the application of innovative processes and/or other forms of cooperation.For us the Forums Net Zero initiative fits seamlessly into our journey.I believe only cooperation on this level makes the change we are looking for in tomorrows life.Lia Voermans,Director,Circular Economy,Brightlands Chemelot Campus Transitioning Industrial Clusters towards Net Zero36ContentsBrightlands Circular Space Policy Public-private financing of Brightlands Circular Space is enabled by partnerships with companies and supported by the public through the National Growth Plan as well as various subsidies issued at the national,provincial and municipal levels.Enabling policy support is generally considered at the sustainability initiative level as each programme is responsible for securing its own support and funding.The provincial government of Limburg and the involved cities were the initiating parties of the cluster and remain involved supporters without operating responsibilities.Neighbouring provinces have also pursued involvement with the industrial cluster,but corporates and research institutions remain primary in strategic and operational management.The European Green Deal has effectively incentivized cluster participation as the legislations policies pressure companies to change rapidly rather than the traditional incremental approach.This has driven companies towards Brightlands Circular Space to explore and integrate CO2 emission reduction solutions,primarily at the stage of testing new technologies and processes beforescaled investment.CCUSHydrogenTransitioning Industrial Clusters towards Net Zero37How these policies are being leveraged Brightlands commitment to circularity closely aligns to Netherlands Ministry of Economic Affairs and Climates Circular Plastics a guiding piece of legislation promoting plastics circularity which boasts the same goal.Brightlands is leading the Syschemiq consortium.An EU Horizon project with 16EU parties involved focusing on the R&D of plastic recycling,including new models for cooperation and business.Enabling policies available Climate and Energy Innovation Demonstration Scheme(DEI )provides 76million to support pilot and demonstration projects that contribute to the cost-effective reduction of CO2 emissions by 2030,including circular use of materials.Mission-driven Research,Development and Innovation(MOOI)scheme provides 25,000 minimum subsidy to each of the three participants for research and feasibility studies for renewable energy,decarbonization of industry and circularity.Systemic efficiency and circularityDirect electrification and renewable heatContentsBrightlands Circular SpaceFinancing The industrial cluster relies on public financing legislated by both the European Union and Dutch government(Groeifonds),private financing of founding members and earned income by making R&D infrastructure available and additional services based on specific challenges of companies and institutes.Project-level financing must be secured by the network of stakeholders collaborating on the initiative.That same group must arrange among themselves any necessary contracting to cover investments,control and benefit/risk sharing.Supplementary public-private financing of the Brightlands Circular Space is enabled by the National Growth Plan and various subsidies issued at the national,provincial and municipal levels.Subsidies have and will continue to play an important role in bringing Brightlands Circular Space through economic reforms or crises.Development stageTechnology readiness levelFunding allocationNowIn 2025By 2030Research and developmentExploratory research transitioning basic science into laboratory applicationsTechnology concepts and/or application formulatedProof-of-concept validationPilot projects and early developmentSubsystem or component validation in a laboratory environment to simulate service conditionsEarly system validation demonstrated in a laboratory or limited field applicationEarly field demonstration and system refinements completedComplete system demonstration in an operational environmentAt scale commercial deploymentEarly commercial deploymentWide-scale commercial deploymentPlanned funding deployment by technology readiness levelTransitioning Industrial Clusters towards Net Zero38ContentsBrightlands Circular Space TechnologyBrightlands Circular Space anchors on the promise of“design for and design from”to promote circularity and reuse at the heart of all industrial cluster initiatives.Systemic efficiency and circularity,direct electrification,and renewable heat best capture most of the industrial clusters technical pursuits regarding the path towards industrial decarbonization.Besides the initiatives below,the Brightlands ecosystem counts many start-ups,scale-ups and multinational companies working on new technologies in these four categories.Digital foundations of the clusterWith 60-70%of the industrial clusters focus going towards resource feedstock transition,Brightlands Circular Spaces primary goal is developing and scaling the right technologies and materials for achieving circularity.One example of success in this area is through digital twin research atSyschemic where the teammaps resource streamsthrough thePRISM model,uses blockchain and AI,and tests outcomes through a qualityrecycle model.Selected technology initiative matrixTransitioning Industrial Clusters towards Net Zero39 Leaders within Brightlands Circular Space seek to recycle 50%of the clusters plastics by 2030 and create a plastic refinery for the future through the industrialization of plastic recycling and designing circularplastics.Pyrolysis oil from plastic wasteis being produced by SABICs facility to fuel its own operations as part of the“TRUCIRCLE”programme.BrightlandsCircular Space supports sustainability initiatives at Brightsite Plasma Lab to eliminate CO2emissions in chemical processes,at Coolbrook to sustainably produce“olefins”components in plastic,textiles,packaging,etc.and the development of circular materials of Brightlands Materials Center and at the Aachen Maastricht Institute for Biobased Materials.Systemic efficiency and circularityDirect electrification and renewable heatCarbon capture,utilization and storage(CCUS)HydrogenContents3.2H2Houston HubTransitioning Industrial Clusters towards Net Zero40ContentsThe industrial cluster in Houston,Texas,intends to usehydrogen tobecome a global leader in low carbon energy.Large clustersof Houstons corporates and industrials own trillions of dollars in assets across the Gulf Coast and already represent approximately one third of national hydrogen production,creating a nationally unique positioning to accelerate clean hydrogen market growth.While there is growing support among Texan politicians for speeding the energy transition,the statewill rely heavily on clean resource markets to shape its hydrogen opportunity development.The NGO Center for Houstons Future(CHF)was created to advocate for social,environmental and economic promise in the city and is set toplay an integral role in this process as facilitator of cross-sectoral collaboration.H2Houston HubKey highlights Chemicals Energy(hydrogen)Energy(oil and gas)Power generationStatusIndustries representedPlanningDevelopingScaling220 Mt CO2global abatement potential from 21Mt of hydrogen(4 times Houstons 2019 emissions)180,000potential direct,indirect and induced jobs to be created by hydrogen by 2050$100 billion potential addition to Texas GDP(6%of Texas 2019 GDP)by 2050Decarbonization roadmapCurrent annual emissions(2019)Impact on roadmap towards decarbonization220 Mt CO2Net zero goal forthcomingHydrogenPrimarySupportingCCUSHouston,Texas,USATransitioning Industrial Clusters towards Net Zero41Contents Center for Houstons Future is facilitating the development of the over 100 corporate partners H2Houston Hub vision to meet the opportunity posed by US Department of Energy funding for hydrogen hubs.H2Houston Hubs programmes and initiatives are strongly driven by industry with stakeholder feedback collected and integrated at every stage in hub planning.In the Department of Energys recent ROI for hydrogen hub funding programme design,the cluster submitted a response aggregated through seven stakeholder meetings and 25 industrials contributing comments.Sustainable partnerships will be structured upon policy levers that mimic incentive systems established during the build out of transmission in the late 2000s;the cluster has already brought together a diversity of stakeholders incentivized to collaborate on capital-intensive infrastructure for hydrogen and CCUS as a means of de-risking.H2Houston HubPartnershipCollaboration type existing in clusterPartner typesPartnersShared infrastructure development Suppliers Industry peers Industrial cluster infrastructure planning Researchers Non-profits University of Texas,Texas A&MCenter for Houstons Future,GTI EnergyShared commercial projects Cross-industry peersCross-industry fundingKnowledge sharing Researchers Non-profits University of Texas,Texas A&MCenter for Houstons Future,GTI EnergyReskilling the workforce Researchers Non-profits University of Texas,Texas A&MCenter for Houstons Future,GTI Energy,HARCEnergy transition index collaboration model We have a tremendous opportunity to accelerate the creation of a clean hydrogen market at the pace needed to meet aggressive decarbonization goals for communities in our nation and around the globe.We need hydrogen deployment at scale,and this hub will lay the foundation with complete end-to-end demonstrations of an integrated network,match supply and demand regionally or locally,and leverage existing infrastructure to deliver resilient,reliable,and sustainable clean energy.Paula A.Gant,President and Chief Executive Officer,GTI Energy Transitioning Industrial Clusters towards Net Zero42ContentsH2Houston HubFinancing While private capital exists to fund development of clean hydrogen projects,the lack of secured,scaled demand pushes risk levels higher than private capital will tolerate.In cases where offtake is secured,H2Houston Hub has been successful in deploying early funding for small to mid-scale projects.Today there exists more than adequate hydrogen supply as well as transmission and distribution infrastructure to meet current demand,alleviating what is often otherwise a barrier to investment in clean hydrogen projects.Through cross-sectoral collaboration and education,cluster stakeholders have not faced barriers in raising capital for projects,which promote balance supply and demand through existing transmission infrastructure.Development stageTechnology readiness levelFunding allocationNowBy 2025By 2030Research and developmentExploratory research transitioning basic science into laboratory applicationsTechnology concepts and/or application formulatedProof-of-concept validationPilot projects and early developmentSubsystem or component validation in a laboratory environment to simulate service conditionsEarly system validation demonstrated in a laboratory or limited field applicationEarly field demonstration and system refinements completedComplete system demonstration in an operational environmentAt scale commercial deploymentEarly commercial deploymentWide-scale commercial deploymentPlanned funding deployment by technology readiness levelTransitioning Industrial Clusters towards Net Zero43ContentsH2Houston HubTechnologyDigital foundations of the clusterH2Houston is usingseveral digital tools to develop their deployment strategy,including the McKinsey Power Model,which projects capacity additions in the power sector and simulates dispatching decisions based on system-cost optimization;theMcKinsey CO2 Emissions Database,whichsupports the examination of potential CCUS clusters,testing of CO2 pipeline networks,and understanding of regional abatement costs;as well as the McKinsey CCUS Cost Model,which takes an end-to-end approach to model carbon capture,compression,transport and storage.Selected technology initiative matrixH2Houston is focused on enabling the expansive natural gas infrastructure in the region to produce and distribute low carbon hydrogen,as well as to deploy CCUS capabilities throughout the region.Another key pillar is the deployment of the vast wind resources in the region to produce clean hydrogen.Transitioning Industrial Clusters towards Net Zero44 Waste-to-hydrogen pilot forhydrogen production in majorcities such as Houston,Dallasand San AntonioHydrogenCarbon capture,utilization and storage(CCUS)Direct electrification and renewable heatSystemic efficiency and circularityContents3.3HyNet North WestTransitioning Industrial Clusters towards Net Zero45ContentsHyNet is a consortium comprised of eight founding organizations:Eni,Progressive Energy,Cadent,Essar,Vertex Hydrogen,Hanson,INOVYN and University of Chester.HyNet has grown to involve more than forty partners,across public and private sectors.UKs Government has designated HyNet as one of the two leading industrial decarbonization clusters.It will provide the infrastructure to produce,transport and store low carbon hydrogen across the UKs North West to enable industry to switch away from natural gas.In addition,it will develop infrastructure to transport and lock away carbon dioxide emissions from industry which is unable to fuel switch.HyNet will both upgrade significant existing infrastructure,as well as develop and construct underground pipelines,hydrogen production plants and storage facilities.The project will bring significant economic benefits into this industrial heartland creating new roles,safeguarding existing jobs and attracting inward investment,positioning it at the heart of the UKs hydrogen and CCS economy.HyNet North WestKey highlights Energy(hydrogen)Energy(oil and gas)Power generationStatusIndustries representedPlanningDevelopingScaling10 Mt CO2per year from 20306,000permanent new jobs created annually until 2030;350,000 manufacturing jobs in region2.8 billion UK gross value added 2022-2030Decarbonization roadmap10 Mt CO2HydrogenPrimaryPrimaryCCUSCurrent annual emissions(2019)across all sources of emissions within the North WestImpact on roadmap towards decarbonization40 Mt CO2Target reduction each year from 2030Net zero by2040North West England and North East Wales,United KingdomTransitioning Industrial Clusters towards Net Zero46Contents HyNet is a hydrogen and CCS-focused industrial cluster led by Progressive Energy,Eni,Essar Cadent,Vertex Hydrogen,Hanson,INOVYN and University of Chester.HyNets geographic area is home to many energy intensive industrial emitters and dispatchable power generators,and has agreements.HyNets geographic area is home to 20 existing emitters and has 40 future customers for low carbon and hydrogen production plants applying through bids.HyNet is also engaged with alliances who share a common vision for decarbonization,including the North West Hydrogen Alliance,Net Zero North West and the Mersey Dee Alliance.Engagement with these groups allows HyNet to elevate their voice for decarbonization,work with leading engineers,landowners,academics and other entities in the region in the mission of decarbonization.Partners within HyNet can use shared hydrogen and CCS infrastructure and complement each others individual purposes.HyNet North WestPartnershipCollaboration type existing in clusterPartner typesPartnersShared infrastructure development Industry peers Eni,Cadent,Vertex Hydrogen,INOVYNIndustrial cluster infrastructure planning Cross-industry peers Eni,Cadent,Vertex Hydrogen,INOVYN,Hanson,Viridor and hydrogen off-takersShared commercial projects Industry peers Progressive Energy,Eni,Cadent,Vertex HydrogenCross-industry funding Public authorities Financiers(public and private)Government Funding from BEIS and UKRI Private funding from HyNet partnersKnowledge sharing Cross-industry peers ResearchersEni,Progressive Energy,Cadent,Essar,Vertex Hydrogen,Hanson,INOVYN and University of ChesterReskilling the workforce Industry typesEni,Progressive Energy,Cadent,Essar,Vertex Hydrogen,Hanson,INOVYN and University of ChesterEnergy transition index collaboration model HyNet is the UKs most advanced industrial decarbonisation cluster.It will include UKs first large scale,low carbon hydrogen production plant,the UKs first large scale hydrogen distribution network,carbon capture and storage facilities and a large amount of hydrogen storage.The project will act as a blue-print which can be replicated across the UK to enable large scale industrial decarbonisation,quickly.It will bolster the UKs hydrogen and CCS economies,whilst generating and safeguarding jobs,attracting inward investment and providing support for the UKsenergy security.HyNets founding consortium,and project partners,work closely together to ensure that HyNet is well designed and developed as the infrastructure moves forward to planning consent and construction.David Parkin,Director at Progressive Energy and Project Director,HyNetTransitioning Industrial Clusters towards Net Zero47ContentsHyNet North West Policy HyNet was successful in UK Research and Innovations(UKRI)Industrial Decarbonisation Challenge(IDC)competition through which they were awarded funding to develop early-phase projects on CCS and low-carbon hydrogen.HyNet has had an open dialogue with the UK Government since it was formed with Progressive Energy,HyNets lead partner,collaborating with UK government on different policies and guidelines.The UK government continues to provide active support to HyNet in supply/demand matchmaking,permitting enablement,public messaging,business model refinement and more.Both UKRI and UK Governments Department for Business,Energy&Industrial Strategy(BEIS)have provided continuous engagement and funding for the completion of the engineering studies through the Industrial Decarbonisation Challenge(IDC)and the Hydrogen Supply Competition.Eni has had a long history working with UK regulators for HyNet,when it was a hydrocarbon extraction area.In 2014 Eni became the sole operator of the Liverpool Bay oil and gas fields and,in 2020,the UK Oil and Gas Authority(now NSTA)awarded Eni a six-year storage appraisal license to use offshore fields as permanent storage for CO2.Systemic efficiency and circularityDirect electrification and renewable heatTransitioning Industrial Clusters towards Net Zero48How these policies are being leveraged HyNet was placed within the first phase of CCS deployment projects in the UK through the UK BEIS CCUS cluster sequencing process,enabling infrastructure development and bilateral government discussions on business support model requirements.UKRI funding from the IDC,is allowing HyNet to develop the project,through its eight consortium partners,to financial investment decision(FID).The UKs Levelling Up agenda,and its associated funds,support the development of“green skills”and the creation of jobs for the workforce of the future.Enabling policies available 1 billion through the Carbon Capture and Storage Infrastructure Fund to support four industrial clusters.100 million for industry and CCUS from the Energy Innovation Programme.37.5 million to fund the largest government programme of greenhouse gas removal methods for cement(innovation and scaling projects).100 million of new research and development funding to help develop direct air capture technologies in the UK.CCUSHydrogenContentsSystemic efficiency and circularityDirect electrification and renewable heatSelected technology initiative matrixHyNet North West TechnologyDigital foundations of the clusterIn order to realize the project vision of a decarbonized industrial cluster,HyNet is building a hydrogen and CCS sectors across the region.This involves the design,development,integration and construction of hydrogen and carbon capture and storage technologies.HyNet will both upgrade existing infrastructure,as well as the develop new infrastructure including underground pipelines,hydrogen production plants and storage facilities.The project will use best-in-class technology to produce low carbon hydrogen at scale.HyNet partners are committed to sharing knowledge,when relevant,to support the progression of industrial decarbonization clusters within the UK,and further afield.HyNet is delivering mature decarbonization technology and infrastructure solutions,using the regions expertise,establishing a hotspot of innovation and economic growth,anchored in infrastructure for low carbon hydrogen and CCS ecosystem enablement.The cluster will build a low carbon hydrogen production plant which will be used to power the regions industry,transport,homes,and businesses.It willalso develop infrastructure to capture CO2 emissions from energy-intensive processes,transport and safely store these emissions underground.Transitioning Industrial Clusters towards Net Zero49HydrogenCarbon capture,utilization and storage(CCUS)HyNet is using CCS to capture and transport carbon emissions from local industry.The cluster has the capacity to support the ambition both on the surface and subsurface sections,leveraging its existing supply chain and its optimal geological composition.The usage of this proven technology is estimated to remove the carbon equivalent to 4 million cars by 2030 Eni are developing a carbon dioxide pipeline,which will transport CO2 emissions from local industry,such as the Hanson Cement Plant at Padeswood,Flintshire and from the new Vertex hydrogen production plant at Stanlow Manufacturing Complex in Cheshire,to be stored safely in depleted gas reservoirs under Liverpool BayContents3.4Jababeka Net-Zero Industrial Cluster Transitioning Industrial Clusters towards Net Zero50ContentsThe Jababeka Net-Zero Industrial Cluster plans to collectively develop decarbonization solutions at Jababeka Industrial Estate with the goal of achieving net-zero carbon emissions before 2050,supporting Indonesias national net-zero target by 2060.Other key areas include enhancing operational efficiency and circularity and transitioning to solar-powered electricity and other renewable sources.Jababeka Industrial Estate in Cikarang is managed by Jababeka Infrastruktur a subsidiary of PT Jababeka Tbk that spans an area of approximately 5,600 hectares.It is the largest industrial estate at South-East Asia with more than 2,000 companies from 30 countries,including major international and local brands.Jababeka Net-Zero Industrial Cluster Key highlights Chemicals Materials and manufacturing Metals Power generationStatusIndustries representedPlanningDevelopingScaling709 kilotons CO2annual emissions(2022)*1.7 millionjobs protectedDecarbonization roadmapCurrent annual emissions(2022)Impact on roadmap towards decarbonization709 kilotons CO2*Net Zero by2050HydrogenSupportingSupportingDirect electrificationand renewable heatPrimarySystemic efficiencyand circularityPrimaryCCUS*Estimated 2022 carbon emissions associated with grid-supplied electricity.Preliminary analysis by Accenture.Cikarang,West Java,IndonesiaTransitioning Industrial Clusters towards Net Zero51ContentsCollaboration type existing in clusterPartner typesPartnersShared infrastructure developmentJababeka Infrastruktur,in collaboration with Pertamina New&Renewable EnergyIndustrial cluster infrastructure planningWorkplan to be developedShared commercial projectsWorkplan to be developedCross-industry fundingWorkplan to be developedKnowledge sharingJababeka Infrastruktur via FabLab Jababeka,a collaboration with President UniversityReskilling the workforceJababeka Infrastruktur via FabLab Jababeka,a collaboration with President UniversityJababeka Net-Zero Industrial Cluster PartnershipEnergy transition index collaboration modelThe partners for Jababeka Net-Zero Industrial Cluster are Jababeka Infrastruktur,Pertamina New&Renewable Energy(PNRE),Hitachi Astemo,LOreal and Unilever.While the governance structure is still being developed,partnerships are recognized as a core value creation driver within Jababeka Net-Zero Industrial Cluster.It is envisioned that the tenant partners LOreal Unilever and Hitachi Astemo will bring on board their global experience in decarbonizing their manufacturing operations while PNRE,as the energy partner,contributes deep technical expertise and capabilities for clean energy deployment in the cluster.Jababeka Infrastruktur would anchor the partnerships in the role of the cluster chair,using its plans for Correctio(Jababekas plan for a digital ecosystem at the industrial estate)to cultivate partnerships within the industrial estate.Correctio is focused on the three pillars of Industry 4.0,Society 5.0 and Transit-Oriented-Development to create a hub for technology and innovation in the region.Correctio features Jababekas FabLab initiative that aims to encourage the development of Industry 4.0 skills,solutions and is a collaboration between Jababeka and President University,a leading private university in Indonesia.The Jababeka Net-Zero Industrial Cluster will build on the groundwork Jababekas founders especially Mr S.D.Darmono and Mr H.Rahardja have laid at the industrial estate over 30 years to transform for the future,using operational and digital technologies.As the first South East Asian industrial cluster transitioning towards net zero from the emerging markets,we will take a leading role as the largest industrial park in the region to help address rising consumer demand for sustainable products and responsible business practices with support of the cluster partners,Pertamina New&Renewable Energy in its role as an energy company,and Hitachi Astemo,LOreal and Unilever as committed tenants.Collectively,we seek to aggregate the voices of industry to key stakeholders and drive impactful changes to the industrial ecosystem,enabled by cross-industry collaborations together with the larger global signatory community for the sake of future generations.Agung Wicaksono,Managing Director,Jababeka InfrastrukturTransitioning Industrial Clusters towards Net Zero52ContentsJababeka Net-Zero Industrial Cluster Policy The formation of Jababeka Net-Zero Industrial Cluster emerged as a concrete response to the work of the B20 2022 Energy,Sustainability and Climate Change Task Force(ESC-TF),in particular,the B20 ESC-TFs policy recommendation for energy efficiency and decarbonization for the industrial sector.Policy is seen as an important enabler in order for the industrial cluster to scale the expansion of renewables.With the formalization of the Jababeka Net-Zero Industrial Cluster,the partners plan to actively engage with key government stakeholders and entities to support the work of decarbonizing Jababeka Industrial Estate,making use of relevant policies.The collective nature of an industrial cluster encourages tenants participation in industrial forums that could influence policy aspects that are supportive of decarbonization efforts at Jababeka Industrial Estate.Transitioning Industrial Clusters towards Net Zero53How these policies are being leveraged On top of the fiscal and non-fiscal incentives from establishing business in industrial parks and special economic zones(SEZs)formed by the government,electricity generation assets from renewable energy(i.e solar PV,biomass or biomass co-firing,hydrogen,etc.)can now supply end consumers within business areas despite being outside such business areas.Sources:Reuters;Pertamina;New Energy and Industrial Technology Development OrganizationEnabling policies available National Strategy on Managing Domestic Waste and Similar Waste(Presidential Regulation 97/2017)Management of Domestic Waste and Similar Waste(Regulation 81/2012)Acceleration of development for Environmentally Sound Waste-to-Energy Projects Presidential Regulation(35/2018)Systemic efficiency and circularityDirect electrification and renewable heatCCUSHydrogenContentsDevelopment stageTechnology readiness levelFunding allocationNowBy 2025By 2030Research and developmentExploratory research transitioning basic science into laboratory applicationsTechnology concepts and/or application formulatedProof-of-concept validationPilot projects and early developmentSubsystem or component validation in a laboratory environment to simulate service conditionsEarly system validation demonstrated in a laboratory or limited field applicationEarly field demonstration and system refinements completedComplete system demonstration in an operational environmentAt scale commercial deploymentEarly commercial deploymentWide-scale commercial deploymentJababeka Net-Zero Industrial ClusterFinancing Current initiatives,such as rooftop solar photovoltaics(PV),are privately funded by each individual company pursuing their own sustainability targets.The group led by Jababeka Infrastruktur is exploring the potential for public funding to develop plans for scaling up decarbonization initiatives following the formation of the Jababeka Net-Zero Industrial Cluster.Planned funding deployment by technology readiness levelTransitioning Industrial Clusters towards Net Zero54ContentsCarbon capture,utilization and storage(CCUS)HydrogenJababeka Net-Zero Industrial ClusterTechnologyThe initial focus would be on expanding clean electrification in the industrial estate,such as the deployment of rooftop solar PV,and electrification technologies,such as electric mobility.The group also intends to collaborate to enhance systemic efficiency and circularity at the cluster,such as the implementation of innovative circular organic waste management solutions.In the longer term,the group would explore other solutions that could help meet the decarbonization goals of the cluster,such as hydrogen and CCUS.Digital foundations of the clusterJababeka Industrial Estate has a robust foundation for digital communications and data infrastructure with the availability of estate-wide fibre optic coverage and tier-three data centre that cater to the needs of tenants.In addition,Jababeka recently launched Correctio in September 2022,announcing plans for the development of a digital ecosystem over the next five years.Correctio,with its three pillars of Industry 4.0,Society 5.0 and Transit-Oriented-Development,would support technology companies with ambitions to create a hub for technology and innovation for the region.Selected technology initiative matrixTransitioning Industrial Clusters towards Net Zero55Direct electrification and renewable heatSystemic efficiency and circularity Jababeka Infrastruktur is piloting innovative organic waste management solutions at Jababeka Industrial Estate.The pilot initiative utilizes Black Soldier Fly(BSF)maggots to produce fertilizer from food waste generated by tenants.The plan is to scale up from 72tons to 2,500 tons processed annually and expand the products produced,such as bioethanol,animal feed,fertilizer and distilled water.Contents3.5Kwinana Industries CouncilTransitioning Industrial Clusters towards Net Zero56ContentsThe members of the Kwinana Industries Council(KIC),an industry association,view the decarbonization challenge of the Kwinana Industrial Area in Perth,Australia(KIA)from the perspective of an ecosystem of collaborative partners.KIC anchors the clusters as the collaboration leader with a mission to organize and advise the sharing of resources,knowledge and best practices that support the individual and collective carbon reduction efforts of participating corporates.Active full member corporates collaboratively pursuing decarbonization goals within the KIC include Alcoa,Avertas Energy,BHP,BP,Cockburn Cement,Coogee,Covalent Lithium,Wesfarmers Chemicals,Energy and Fertilisers(CSBP,Kleenheat),Synergy,Tianqi Lithium,Tronox,Water Corporation,Fremantle Ports and Woodside Energy.Kwinana Industries CouncilKey highlights Cement Chemicals Energy(oil and gas)Materials and manufacturing Metals Power generation StatusIndustries representedPlanningDevelopingScaling8.2 Mt CO2per year(2021)30,000jobs across the precinctAUD 16 billion GDPDecarbonization roadmapCurrent annual emissions(2021)Impact on roadmap towards decarbonization8.2 Mt CO2Net Zero by2050HydrogenSupportingPrimaryDirect electrificationand renewable heatSecondarySystemic efficiencyand circularityPrimaryCCUSAccording to the CarbonReduction Kwinana IndustrialArea(CRKIA)project,andeach corporate has theirown individual targetsKwinana,Perth,AustraliaTransitioning Industrial Clusters towards Net Zero57Contents Corporations participate through the KIC board,which includes both full(major)and associated members,to support their enablement of international competition and resiliency.The KIC board and its members initiateda flagship carbon reduction project for the Kwinana Industrial Area(CRKIA)in 2020 to formalize collective efforts toward carbon reduction and achieve net zero by 2050.KICs work is carried out by its four specialist committees:Infrastructure and Planning,Environment(including CRKIA working group),Kwinana Industries Public Safety,Public Affairs and Communications Advisory Group.Three government trading enterprises(GTEs)supply uses directly to consumers on commercial terms Water Corporation,Synergy and Fremantle Ports and manage shared infrastructure and assets.KIC works with several public agencies to create an environment that is supportive of carbon reduction intentions and actions of industry.Kwinana Industries CouncilPartnershipCollaboration type existing in clusterPartner typesPartnersShared infrastructure development Public authoritiesWater Corporation,Synergy and Fremantle PortsIndustrial cluster infrastructure planningSingle firms collaborating under the KIC banner,and also collaboration with governmentShared commercial projectsA range of technology providers is in discussion with several industry partners.Memoranda of understanding agreements underpinning these discussions.Cross-industry fundingVia KIC membership fees for full and associate members.Government identifying sectors and individual sector corporates for financial assistance.Knowledge sharingPublic authorities:the Australian government Department of Jobs,Tourism,Science and Innovation(JTSI)KIC:specialist committee established for knowledge sharing and project potential evaluationReskilling the workforceRe-skilling is not needed,so the KIC focus is to run programmes that engage senior high school students with industry and the careers on offer.KIC runs a pre-apprenticeship course in partnership with the national training agency.Energy transition index collaboration model It continues to be an honour to lead Kwinana Industries Council(KIC)on behalf of the members along the decarbonization journey.I remain very proud of their courage and foresight in embracing the journey as a collegiate of companies co-located within a heavy industry sector and individually to set and take the appropriate actions to meet their own targets.As we progress towards fine-tuning the technologies most likely to be adopted,Im noticing a trend where over the past three years,individual company carbon reduction targets are changing.Self-imposed emission reduction percentages are getting revised upwards,and the time in which to achieve them is reducing.The imperative is becoming less about slowing down climate change and more about corporate financial sustainability.Chris Oughton,Chief Executive Officer,Kwinana Industries CouncilTransitioning Industrial Clusters towards Net Zero58ContentsKwinana Industries CouncilPolicy The Kwinana Industrial Area(KIA)is nearly 70 years old and has developed despite a lack of broad policy support at the regional and federal levels.The Australian government has supported the development of the cluster through the provision of common user infrastructures like roads,rail and ports,and the provision of industrial land.The designation of KIA as a strategic industrial area(SIA)has elevated the attention received at the state level,though this has not yet materially increased the financial or enabling-policy support of cluster operations.In spite of clear policy direction for decarbonization and net zero industry transition,participants in KICs CRKIA report noted that international supply and demand forces will likely drive the pace of carbon reduction.Transitioning Industrial Clusters towards Net Zero59CCUSHydrogenDirect electrification and renewable heatSystemic efficiency and circularityHow these policies are being leveragedThe sustainability initiatives of the Kwinana Industries Council do not,at this time,benefit from public funding.Enabling policies available Achieving 80%average recovery rate from all waste streams by 2030 and increase use of recycled content by governments and industry.AUD 43 million to assist large energy users to undertake studies to identify opportunities to lower energy costs and reduce emissions.ContentsKwinana Industries CouncilFinancing The provision of funds is managed on an individual corporate basis through capital-and private equity-raising efforts from publicly-and privately-listed companies.Federal grants have been allocated to corporates with a focus on modern industry manufacturing as opposed to infrastructure development within the cluster.Federal grants from the Australian government haveprovided support for individual companies.Forexample:Alcoa received over AUD 10.3 million in federalfunding to support their pilot carbon-reducingelectric calcination technology for alumina refining.To date,BP has received more than AUD 70 million infederal funds from the Western AustralianGovernment Renewable Hydrogen Fund andAustralian Clean Hydrogen Industrial Hubs Programto support the repurposing of part of BP AustraliasKwinana site into a green hydrogen hub.Development stageTechnology readiness levelFunding allocationNowBy 2025By 2030Research and developmentExploratory research transitioning basic science into laboratory applicationsTechnology concepts and/or application formulatedProof-of-concept validationPilot projects and early developmentSubsystem or component validation in a laboratory environment to simulate service conditionsEarly system validation demonstrated in a laboratory or limited field applicationEarly field demonstration and system refinements completedComplete system demonstration in an operational environmentAt scale commercial deploymentEarly commercial deploymentWide-scale commercial deploymentPlanned funding deployment by technology readiness levelTransitioning Industrial Clusters towards Net Zero60ContentsKwinana Industries Council TechnologyDigital foundations of the clusterThe decarbonization of the Kwinana cluster sits atop the digital systems of each of the KICs member companies.Their own systems technology development is driven by their need for economic and commercial sustainability,for gathering and interpreting systems data,and for its collation in preparation for formal emissions reporting to Australias federal government.It seems unlikely that there will be a future where individual company data is aggregated across the precinct for it to be reported at that level.The pressure for emissions reduction is really coming from shareholders and boards,so the drive for emissions data reporting requires significant investment in IT systems and data-gathering processes.Selected technology initiative matrixIn order for its industry members to achieve net zero by 2050,Kwinana Industrial Council is continuously evolving its search for new technologies,specifically around CCUS and collective infrastructure,to support cluster and individual goals.To best facilitate the removal of technology barriers,KIC focuses on itsrelationships with new technology providers and large enterprises to reach into the technology innovation space and to learn from the examples of US and UK CCUS infrastructure and develop well-informed,locally-suited decarbonization opportunities.Transitioning Industrial Clusters towards Net Zero61HydrogenCarbon capture,utilization and storage(CCUS)Direct electrification and renewable heatSystemic efficiency and circularity KIC recognizes that the route to decarbonization is industry-specific and targets the implementation of systemic efficiency measures onceclear,compelling data is collected to inform the development of a diversity of technologies and sector-fit decarbonization levers.For example,a carbon capture and re-use technology developed in a small-scale industrial“shed”is now partnering with a major CO2-producing industrial to co-locate a larger pilot plant and thinking beyond that,the start-up is working with KIC and members to secure a site for the next stage,which is a carbon re-use installation on a major scale,once the technology is proven.The use of the captured carbon is for it to be sent back into the local industry as input into the production of fertilizer for the agricultural industry.The gathering of data is central to the planned expansion process.Contents3.6National Capital Hydrogen CenterTransitioning Industrial Clusters towards Net Zero62ContentsThe National Capital Hydrogen Center is anchored bya non-profit“do-tank”,Connected DMV,and a diverse industrial,commercial and non-profit steering committee that has entered the competition for IIJA Clean Hydrogen Hub funding not to secure their own market share but to convene hydrogen use cases across the region without commercial conflict inhibiting.Connected DMV has built a consortium of commercial,industrial,governmental and community organizations across the region that will collaborate in the bid for government funding.The industrial cluster targets abating 2.7 MtCO2by 2030.National Capital Hydrogen CenterKey highlightsStatusIndustries representedPlanningDevelopingScaling180 Mt CO2annually8,900jobs created$1.7 billion gross value added in the region by 2030Decarbonization roadmapCurrent annual emissionsImpact on roadmap towards decarbonization2.7 Mt CO22030 target emissions reduction1.5%HydrogenPrimaryDirect electrificationand renewable heatSecondaryNet zero goal forthcomingWashington DC,Maryland,Virginia,USA Aviation Energy(hydrogen)Heavy transport MaritimeTransitioning Industrial Clusters towards Net Zero63Contents The National Capital Hydrogen Center is led by a non-profit“do-tank”,Connected DMV,and managed by an independent steering committee of public and private organizations pursuing the DOEs Clean Hydrogen Hub funding:A selection of steering committee members includes Washington Gas,Constellation Energy,Exelon,Dominion Energy,Universal Hydrogen,US Department of Defense,US Department of Transportation,Accenture,Plug Power,Virginia Tech,DOE and Connected DMV.The industrial clusters anchor,Connected DMV,is actively aligning supply/offtake and facilitating MoUs among participants to open access to de-risked financing,as well as substantiating the case for federal investment for hydrogen in the region.The steering committee works primarily to create a collaborative environment by engaging vendors,suppliers,policy-makers,community groups and universities with tailored opportunities to contribute to and mutually benefit from research,urban and suburban planning.National Capital Hydrogen CenterPartnershipCollaboration type existing in clusterPartner typesPartnersShared infrastructure development Industry peers Non-profit and think tanks Researchers Public authoritiesIndustrial cluster infrastructure planning Non-profit and think tanksThe National Capital Hydrogen Center Steering Committee,the Mid-Atlantic Hydrogen HubShared commercial projectsCross-industry fundingKnowledge sharing Non-profit and think tanks AcademiaEnvironmental and social equity groups leading regional colleges and universitiesReskilling the workforce Non-profit and think tanksEnergy transition index collaboration model We are pleased that our Hydrogen Greenprint work,which began over 18 months ago,directly aligns with the federal government priorities Through the 2021 bipartisan Infrastructure Investment and Jobs Act and the Department of Energys(DOE)Energy Earthshots Initiative,we have a once-in-a-lifetime opportunity to transform existing infrastructure that has served us well into a cleaner,more modern network.The Mid-Atlantic Hydrogen Hub coalition comprises the diverse and industrial strength set of leading partner