Achieving Circular Economy Depends on Faster Energy Transition

The planet is at a critical juncture that demands urgent action, not just contemplation, on accelerating the implementation of a circular economy. This approach is crucial to mitigate the severe meteorological effects of climate change and effectively address resource scarcity.

In this stage of redefining a model that eliminates waste and pollution, keeps products and materials in use, and regenerates natural systems, technology plays a crucial role. It is reshaping how we produce and consume the goods and services essential for economic growth and social development.

The pursuit of a prosperous, inclusive, and resilient future requires a collective effort to restructure the energy sector and its associated economic activities.

Accelerating the energy transition is a global priority, one that we at Honeywell are advancing through ongoing technological development integrated into our solutions. These innovations aim to diminish industries’ environmental footprint, including those with intricate transformation processes while maintaining their productivity and product quality intact.

At Honeywell, we are actively advancing this initiative with innovation and sustainable approaches to the complex landscape of sustainable aviation fuels (SAF). One of the current challenges in SAF production is the increasing demand that has led to shortages in raw materials crucial for these fuels, including vegetable oils, animal fats, and waste oils.

Our response to this challenge includes our hydrocracking technology, which can produce SAF from biomass. This innovation allows us to manufacture 90% less carbon-intensive fuels than traditional fossil-based ones.

This new technology is essential for advancing toward a circular economy. It enables us to increase SAF production by between 3% and 5%,, reduce costs by up to 20% and minimize waste streams of by-products compared to other commonly utilized hydro processing technologies.

Furthermore, carbon capture, utilization, and storage stands as a pivotal technology in the effort to decrease greenhouse gas emissions. According to the International Energy Agency, the capacity for carbon capture must grow more than twentyfold by 2030 to achieve the goal of capturing 840 million metric tons of CO₂ annually on a global scale.

At Honeywell, we provide a reliable range of technologies, including solvents, membranes, adsorbents, and cryogenics, which help industry capture CO2 emissions. Honeywell CO₂ solutions capture 15 million metric tons of CO₂ annually worldwide, equivalent to the emissions of more than 3 million cars on the road, with additional installed capacity prepared for further deployment.

In Mexico, we are accelerating the energy transition by implementing cutting-edge sustainability technologies. By continuing to drive innovation in the industry as we have for the past 80 years, we are committed to long-term progress.

This approach and understanding of industrial evolution have allowed us to divide our portfolio into automation, the future of aviation and the energy transition. This division aligns with what we consider mega-trends and will reinforce our commitment and track record of delivering consistent results. With this change, we can strategically adjust operations and ensure the efficient implementation of the changes that the market requires. 

Our inventors, chemists, and engineers consistently push the boundaries of technology. We propel the energy transition through collaboration within the industry, showcasing technological leadership built upon a century of experience and an unwavering commitment to shaping the future.

Indeed, in this respect, the future holds promise only if we envision a scenario where products are reused, repaired, and recycled, as exemplified in a genuine circular economy.

Our vision entails transforming industries by developing plans to construct new plants and refurbish existing ones to boost efficiency, all while effectively managing related costs. In reconfiguring these facilities, we prioritize technologies centered on hydrogen, utilities, water management, and emissions control, thus minimizing losses.

In this journey toward energy transition, our efforts are directed toward utilizing renewable sources that support the circular economy, aiming squarely for decarbonization and independence from finite resources. 

Promoting the adoption of clean energies such as solar, wind, hydroelectric, and geothermal power reduces the environmental impact of our industrial and daily operations and it lead us towards a healthier and more habitable planet, both today and for future generations.

Renewable energy holds the potential to catalyze the development of sustainable supply chains by encouraging practices such as integrating renewable energy into the manufacturing and transportation of circular products.

According to data from the National Council of Humanities, Sciences, and Technologies (Conacyt), only 7.5% of Mexico's energy comes from renewable sources, while 47.9% is obtained from natural gas and condensate, 37% from crude oil and petroleum products, 6.8% from coal and 1% from nuclear energy.  

Accelerating Mexico's energy transition is crucial for advancing toward a more sustainable and resilient economy. Adopting innovative technological solutions in industry plays a central role in reducing greenhouse gas emissions, optimizing resource use and strengthening the circular economy.

Implementing advanced technologies such as carbon capture and storage, solar and wind energy, and efficient resource utilization through circular economy practices are strategic pillars for achieving these objectives. 

These innovations drive competitiveness and efficiency in key industrial sectors and foster the creation of green jobs and the development of local technological capabilities.

Like many other countries blessed with abundant natural resources, Mexico broadly supports its economic and social development through its energy wealth. This is evidenced by the government's commitment to modernize combined-cycle power plants, the 16 hydroelectric plants, and the investment to construct the Puerto Peñasco photovoltaic park, the largest in Latin America.

Effective collaboration between the public and private sectors, alongside active involvement from civil society and academia, is not just essential, it's a shared responsibility. It will be crucial to accelerate the energy transition inclusively and equitably, ensuring a more prosperous and environmentally sustainable future for Mexico.

(This document may contain statements including future product direction and does not create any binding obligations on us to develop or sell any product, service or offering. Any descriptions of future product direction intended updates or new or improved features or functions are intended for informational purposes only and are not binding commitments on us and the sale, development, release, locations of availability, or timing of any such products, updates, features or functions is at our sole discretion.)