Goodbye reinforced concrete: the impact of the energy transition in the construction industry

Housing construction is one of the activities that keeps the dynamism going all over the world, and Argentina is no exception: only in the city of Buenos Aires, there are currently more than 40,000 works in progress.

But since it is one of the industries that consumes the most energy and one of the major sources of greenhouse gas (GHG) emissions, the ongoing energy transition on a global scale will have a very significant impact on it.

To understand what comes in the matter, infobae he consulted Roman Schulerone of the country’s most recognized experts in the field of finance in the energy industry, with extensive experience of nearly 30 years leading in top-level companies in Latin America, the United States and Europe.

Schuler has created mathematical models to evaluate structured debt and has raised more than $6,000 million in financing for energy projects from international capital markets, multilateral development organizations such as the International Finance Corporation (IFC) and the European Union, and government credit agencies such as ExImBank of USA and Export Development Bank of Canada (EDC). . He is also responsible for the contracting and annual renewal of large risk insurance policies in the US energy sector and at Lloyd’s Market in London.

Currently focused on promoting renewable energies, the expert provided his opinion on the biggest challenges facing the construction industry in relation to the energy transition.

How will the energy transition process affect the construction industry?

The energy transition aims to move to an economy based on energy efficiency, by replacing traditional energy sources with other sustainable, green, or clean and non-polluting sources. According to the United Nations through the 2022 Environment Programme, construction is currently responsible for 37% of greenhouse gas (GHG) emissions into the atmosphere in relation to the energy used. This is why governments are imposing new building regulations that are in line with the energy transition and reduce emissions. And that represents a sea change: construction companies will have to adapt to new standards that meet energy efficiency requirements, especially carbon reduction.

How will construction adapt to these new energy transition regulations?

It is estimated that material production and construction activities cause about 10% of global greenhouse gas emissions. It will change the type of materials used by others who respect the environment, such as recycled cement, sustainable steel and glass: they will also change traditional building practices to sustainable ones to reduce the carbon footprint.

– How can the carbon footprint in the production of building materials be reduced?

– Emissions must be reduced in the production of all materials with alternative manufacturing methods. The most polluting cases are cement and steel: currently for the production of cement and steel fossil fuels are used that consume a lot of energy and release – in the case of concrete – about 8% and in the case of steel 7% of the greenhouse gases released into the atmosphere. New technologies for capturing carbon from the atmosphere during cement production, and storing carbon dioxide in some devices, are currently being studied. For steel production today, coke is used as a fuel, in a thermochemical process of pyrolysis of highly polluted coal; To remove carbon from the steel sector, the use of green hydrogen produced by electrolysis, from renewable energies, has been studied.

In terms of practices, what other changes should the industry implement to reduce emissions?

– Some of the important factors affecting the environmental impact are the means of transportation, the method of waste management and the design of the building project. In the case of transportation, in terms of vehicles that can be used electric or hybrid, new alternatives to carbon-neutral fuels have emerged in recent years, such as e-fuel and hydrogen. In terms of waste, circular concepts involving recycling, recovery and reuse of materials must be implemented. As for the building project to be constructed, an ecological construction must be implemented using sustainable materials and processes.

– How should an energy efficient building be built?

– By incorporating new building technologies and materials, smart buildings will optimize energy. Thermal performance can be improved with new insulation materials and lighting systems that maximize the use of natural light. Using renewable energies such as solar panels or ground-based heat pumps means less energy consumption for heating, cooling and lighting; All of this would reduce greenhouse gas emissions during the useful life of the building. There will be new building codes imposing performance and energy efficiency requirements, compliance with which will be essential to compete in a market where the demand for energy efficient buildings will increase.

– If these changes are made. Could traditional construction workers lose their jobs?

– No, on the contrary, the energy transition would create new jobs in the industry. Architects, engineers and contractors will need to acquire and impart new knowledge related to green building. It is expected that there will be a high demand for skilled workers for new construction and for implementing changes in existing buildings that will need to modify and upgrade systems to improve energy efficiency and reduce carbon emissions. next to There will be more infrastructure construction projects that generate renewable energy, such as solar panels, wind turbines, new energy storage systems, charging stations for electric vehicles, and others, which will require a lot of labor.

– What changes will the machines used in construction see?

– We are currently developing engines and fuels using new energy sources such as electricity, hydrogen or e-fuels. Electric power, through cables or lithium batteries, is a sustainable alternative but today it has limitations such as recharge times and low energy densities which mean its use in large construction machinery is still being studied.

– How can the industry in the future achieve the goal of zero emissions?

– Bill Gates proposes three steps, first, electrification of all possible processes, and electrification consists of using electricity instead of fossil fuels in some industrial processes: second, obtaining electricity from a carbon-free network; and finally carbon capture for absorption and storage of emissions for removal from the atmosphere.

But for that, new technology is required, much of which is in beta, at various stages of development and not yet commercially available. Without policy support and economic incentives, such as tax cuts, it will be difficult for the business sector to rely on sustainable building materials and technology. It is necessary in a joint effort of governments and the construction sector to implement the necessary changes to protect the environment by reducing emissions.

– In Argentina, when can these changes be seen in the industry?

Technological transformation is occurring unbalanced globally. While European countries or the United States have made a lot of progress on this matter, this progress in less developed economies is threatened by other priorities that mean that important issues such as climate change, which affect the quality of life of the population, are not being dealt with. with. or to come down.

Energy efficiency in building not only leads to lower energy consumption and lower costs: reducing the carbon footprint of buildings allows for better environmental performance.

“Reducing greenhouse gas emissions will be a critical contribution of the sector to mitigating climate change, for the benefit of humanity so that future generations can live on a clean planet,” Schuller concluded.

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