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Decarbonization: a global opportunity for projects

Published 23.9.2024

At the forefront of the energy transition, Techint Engineering & Construction is carrying out cutting-edge innovations, leveraging its expertise to promote a more sustainable future.

 

In a world that is increasingly concerned about decarbonization and sustainability, one marked by major climate change, the energy transition is a topic of growing urgency. Techint Engineering & Construction is fully aware of the situation as it has been tracking movements in this area for several years, developing initiatives that not only dovetail with global trends, but also make the most of local advantages to create a meaningful impact.

For this energy transition to take place, it’s essential for governments to support private sector efforts by drafting laws and creating incentives that work in practice, reducing the costs of alternative energy sources. “The creation of mechanisms that encourage investors is crucial to attract investments, break down barriers and create jobs. In the case of natural gas, for example, we need to reduce costs in order to increase the industry's competitiveness,” says Robson Otoni, the commercial manager for Techint E&C’s Energy Transition area in Brazil.

Recently, the company has been taking part in trials for different energy transition projects, with a special focus on green hydrogen plants (with hydrogen produced from renewable energy sources), biorefineries to produce sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO). Otoni explains why this is so important: “Developing alternatives for different types of renewable fuels is a unique opportunity for Brazil, thanks to our ability to generate plentiful renewable energy in a competitive way. With the right infrastructure and resources, we can become leading producers and exporters in this emerging market.”

 

The fuels of the future?

Green hydrogen, produced via electrolysis, where water is split into hydrogen and oxygen molecules using renewable electricity, appears as one of the most promising solutions for decarbonization. Although, there’s still a preference to use this fuel as a precursor for methanol and ammonia.

Over 90% of energy generated in Brazil is from renewable sources: hydraulic, wind and solar, among others. The country is ideally placed to make the most of this natural abundance to become a major producer and exporter of green hydrogen and its derivatives, extremely relevant for other nations seeking decarbonization but which lack both capacity and natural resources, such as Germany for example.

There are other options linked to e-fuels, which are expected to gradually replace aviation kerosene in the coming years, or gas for cars, making a short-term solution with high growth potential extremely likely.

As SAF is projected to replace 50% of conventional aviation fuels by 2030 in Brazil, Techint E&C is investing in projects to optimize existing fuel production infrastructure and reduce costs. “We are extremely optimistic about the potential offered by SAF in Brazil. There is already considerable demand, and market forecasts reveal a sound and favorable environment for solid and lasting investments,” comments Otoni.

 

International knowledge, local implementation

For Otoni, one of Techint E&C's biggest differentiators in the flourishing energy transition market is its ability to combine global know-how with local execution capabilities. The company actively participates in key industry events and maintains ongoing discussions with major global players. This engagement ensures it stays at the forefront of emerging trends and technologies.

Another of Techint E&C’s distinctive feature takes a comprehensive approach to its Engineering, Procurement and Construction (EPC) projects, drawing talent from its own teams at all stages of construction, which not only ensures sustained quality control, but also means that the team can respond quickly and efficiently to changing customer needs.

As the demand for clean and sustainable energy solutions continues to grow, Techint E&C remains well positioned for this transformation in Brazil and around the world.

In Italy, for example, Techint E&C recently took part in experimental testing to use green hydrogen at a steel plant, specifically to process steel in a reheating furnace at the TenarisDalmine plant in Bergamo. In collaboration with Tenaris, Snam and Tenova. Techint E&C focused on the conceptual and detail engineering involved in installing the equipment, developing risk analyses and ensuring compliance with legal requirements and safety standards.

In Uruguay, Techint E&C is developing conceptual and basic engineering for the first industrial-scale efuels plant for HIF Global, the world's leading efuels company. The plant, which is being built in Paysandú, will have the capacity to produce up to 173,600 metric tons per year of e-Methanol and 70,000 tons per year of e-Gasoline.

With international projects ranging from carbon capture and storage to the production of green hydrogen and biofuels, the company is strengthening its commitment to sustainability. In particular, it’s working hard to acquire knowledge that can be applied in similar operations in the future in Brazil.

“The energy transition is far more than just a trend; it’s a global priority. And at Techint E&C, we are ready to tackle this challenge and seize the opportunities involved as they arise,” concludes Otoni.

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