Exploring the effects of energy transition on the industrial value chains and alternative resources: A case study from the German federal state of North Rhine-Westphalia (NRW)

Abstract

Defossilizing the energy and industrial systems and transformation towards a circular economy have versatile impacts on the availability and demand of alternative resources. However, systematic analyses on these interrelations are very sparse. Thus, this paper investigates the interlinkages between the energy transition and the transformation towards a circular economy in Germany. The study is based on material flow analysis models of the steel and cement industries as well as the coal and lignite power plants in order to depict a comprehensive description of the material, energy and emission flows of these sectors and their interdependencies.The analyses prove the inherent interrelation between energy transition and circular economy. On the one hand, energy transition does not only bear various techno-economic challenges and have substantial effects on the production costs, but it also affects the availability of secondary materials. For instance, the coal phase-out and the introduction of green steel imply that the current supplies of blast furnace slag, fly ash and FGD gypsum cannot be maintained.On the other hand, circularity approaches can also influence the energy transition. For example, banning single-use plastics and increasing recycling rates of plastics can deprive the cement industry from significant amounts of energy resources with low-carbon footprint. Contrariwise, CO2 recycling can promote the energy transition by means of mitigating CO2 emissions via carbonation. Therefore, the study can help policymakers to understand the indirect effects of existing and future policies. Also, it can help to develop future strategies to handle associated impacts and avoid material shortages.