Hitachi is targeting the carbon neutral market by developing a system that would monitor energy consumption and the use of renewables in an effort to address a niche in the green market.
The new system will measure and optimize energy use in factories and will aim to cut greenhouse gas emissions for carbon neutral companies that want to achieve actual green credentials. The company plans to implement the system in at least three of its factories this year. It is expected to be available for other manufacturers and suppliers from 2022.
It is part of Hitachi’s efforts to reduce its scope 1 and 2 emissions. It will be able to prove carbon neutrality in the supply chain – especially necessary for companies in need to justify their carbon dioxide reduction claims. The market is open for such devices that provide some sort of carbon reduction authentication.
Being Carbon Neutral Translates Into Opportunities
Hitachi company also plans to spend 60 billion yen ($543 million) on reducing energy consumption and 24 billion yen ( roughly $220 million) on renewable energy for its own facilities by 2030. The company’s goal is to make all of its factories carbon neutral in the next 10 years in an effort to cut direct and indirect emissions from purchased energy by 100% from 2010 levels.
The Japanese giant also plans to cut 80% of emissions in its entire value chain by 2050. Three of its facilities are already carbon neutral as they switched to 100% renewable energy and factories in Japan are expected to generate zero emissions after 2025.
“If we don’t invest to become carbon neutral, we won’t be competitive in the future,” said Chief Environmental Officer and Executive VP Alistair Dormer. He also tied up energy optimization with cost reductions
Hitachi is also open to dip into other clean energy technologies such as hydrogen and carbon capture utilization and storage. Mr. Dormer confirmed the company is researching how it can create something from CO2. It is also focusing on electric vehicles, hydrogen blending, and a more efficient electricity network for the next few years.
Hitachi seems to be thinking forward and taking advantage of the need many companies are facing to monitor and prove their carbon dioxide reduction progress. The company also shares it sees climate ambitions in Europe as opportunities as money is poured into decarbonization actions.