Now Boarding: A Productive Journey to Airport Decarbonization
In 2021 the aviation sector accounted for more than 2% of global greenhouse gas emissions. Airport emissions volume is also growing faster than the road, rail and shipping industries (IEA). Not surprisingly, airports worldwide are facing increased public scrutiny about the seriousness of their ESG initiatives and plans to get to net zero. Yet, airports have tangible opportunities to decarbonize as part of normal operations.
Airports impact 3 types of emissions (FAA):
Scope 1 emissions are generated by airport-owned assets, such as onsite energy generation sources and vehicles that use gasoline or conventional fuels.
Scope 2 emissions are indirect emissions from the airport that result from purchased energy via a supply contract.
Scope 3 emissions include indirect emissions from influenceable sources, such as tenant emissions, aircraft emissions, and on-site passenger traffic / ride-hailing services.
There are good examples of airports that have demonstrated material commitments and success. Zurich Airport, Delhi Indira Gandhi International Airport and Singapore Changi Airport have all set net zero or carbon neutrality goals and made progress on achieving those goals. Denver International Airport features the largest solar power farm at a commercial airport in the U.S., and Stockholm Arlanda Airport uses an aquifer as an energy storage unit, and is gradually replacing its fleet with Electric Vehicles (EVs).
Building an Actionable ‘Flight Plan’ for Decarbonization
For many airports, one of the most difficult challenges to decarbonization is knowing where to start. We recommend defining practical decarbonization plans along two paths: in-air and on-ground solutions. This approach acknowledges that in-air and on-ground emissions are very different problems to solve. It also provides a more transparent method by which the solutions can be tracked and compared to established baseline figures.
On-ground solutions address energy consumption by the buildings and fleets that operate at the airport. These solutions can address Scope 1, 2, and 3 emissions and include the following:
Energy optimization solutions leverage data about energy consumption to identify consumption volumes and patterns of various energy ‘consumers,’ such as building systems, tenants, or fleets. Airports may be able to change patterns in how energy is used to reduce consumption, particularly at peak times, and decrease associated costs and emissions.
Building electrification refers to replacing older, energy-inefficient assets, such as converting to LED lighting. This can also include switching to assets that use electricity (e.g. electrified heat pumps) instead of higher-carbon fuels, such as natural gas.
Adding submetering to tenant-occupied spaces gives airports a more granular view of how much energy is consumed and by whom in each site segment. Depending on local power regulations, airports that submeter may be able to generate additional revenue: they can buy electricity supply at lower commercial rates and sell it to tenants at retail’s higher rates.
Onsite renewable power generation (e.g. solar) and battery energy storage systems can provide airports with clean, onsite energy generation that supports energy resiliency and reduces their carbon footprint.
Renewable power purchase agreements (PPAs) and renewable energy credits (RECs) allow airports to offset a portion of their carbon emissions by paying for clean energy supply and renewable attributes that are not produced at the airport. These options can help airports indirectly support emissions reductions early in their carbon-reduction strategies while more immediate, permanent solutions can be implemented.
EV charging stations and fleet electrification also reduce emissions. They are valuable future-proofing technologies for airport-owned vehicles and passenger traffic to and from the airport, as the industry progressively adopts more carbon-conscious operations.
Each solution supports decarbonization of the airport’s ‘mini-city’ ecosystem. Furthermore, many of these solutions can create and contribute flexible energy capacity to the local utility and wholesale energy markets that will compensate asset owners (via electricity bill savings or revenue) for providing flexible capacity to the grid – which can bring in new economic benefits to airports.
In-air solutions address airplane scope 1 emissions. These solutions can include:
Using sustainable aviation fuel (SAF) to fuel airplanes, which can reduce CO2 emissions by up to 80% over the fuel lifecycle (Air bp).
Purchasing renewable energy credits (RECs) to help cover any difference required to meet carbon neutrality goals in the short-term, until more permanent clean energy solutions replace the need for REC offsets. Air bp has a pilot program with customers, such as United and Microsoft, to provide them with SAF sustainability credits associated with their corporate travel. Specific carbon accounting rules need to be finalized, but the pilot offers excellent headway for the industry (RSB).
Avoiding Potential Turbulence in Implementation
Although reducing carbon emissions is achievable, it’s helpful to prepare for and mitigate common challenges around implementation.
Airports need detailed, trustworthy energy consumption data about their energy use volumes, patterns, and impacting factors (e.g. weather) so they can adequately baseline current operations, appropriately size new clean energy solutions, and measure and report on progress in the future. Blueprint Power’s proprietary DIGBOX® metering hardware is designed to fill this need.
Capital requirements, such as upfront capital expenditures or financial return thresholds, are another consideration for which owners and developers should plan ahead of time. Some geographies offer programs to compensate building owners for providing flexible capacity to the electrical grid, which can help offset investment costs. And, new programs and legislation are constantly rolling out in favor of these resources and improving economics. Many governments offer tax credits and other incentives to offset capital expenditures, such as what was included in the U.S. Inflation Reduction Act in August 2022.
Land and electrical grid substation capacity constraints can also be a challenge. For example, some airports might need more land to install solar, so they should look at other options: e.g. installing solar on building rooftops and parking lots and using data-driven insights and energy efficiency solutions to reduce peak demand. Blueprint Power can help airports implement a phased approach to reduce grid power consumption and create ‘headroom’ for initial electrification and decarbonization projects, while longer-term solutions are being implemented. Blueprint Power DIGBOX data can also provide information to help planners prevent unnecessary oversizing of asset upgrades and associated capital outlays.
Consistent measurement and reporting of outcomes are essential to demonstrate progress on net zero and carbon-neutrality goals. Airports must often navigate varied or ambiguous ‘standards’ on how best to track and detail their progress, which can pose administration and credibility challenges. The Blueprint Power DIGBOX and Portal can help by providing consistent, downloadable data on energy usage that enables various ESG reporting frameworks.
Getting a Program Off the Ground - Initial Actions
Each airport has its unique motivations for creating and executing decarbonization plans. While certain airports may be more focused on financial returns given their financial sponsor ownership, others may be keen to reduce negative press regarding carbon emissions or decrease their carbon footprint to help achieve ESG goals. Usually, airports have a combination of objectives with varying priority levels.
Considering those motivations, Blueprint Power can help airports maximize the economic, energy resiliency, and decarbonization benefits of planning and implementing net zero and carbon-neutral strategies. We take a phased approach so that our customers can benefit both in the near term and over time. The first steps generally include baselining energy usage, assessing the relevant regulatory landscape, and developing an initial opportunity assessment of where on-ground and in-air solutions may apply and could impact the airport’s objectives most.
Decarbonization is a journey. It can be a productive one, where airports can achieve many short and long-haul benefits.