Refineries are responsible for the production of transportation fuels and other products, such as petrochemicals and lubricants, but they also contribute significantly to global GHG emissions. According to the U.S. Environmental Protection Agency (EPA), refinery GHG emissions in 2023 amounted to 160 million metric tons CO2 equivalent (MMT CO2e), with over 70% resulting from fuel combustion and the rest from process-related activities.
As global decarbonization efforts continue to gain momentum, refiners face growing pressure to reduce GHG emissions and comply with regulatory requirements. For instance, in the U.S., Renewable Fuel Standards (RFS) and Low Carbon Fuel Standards (LCFS) in California push refiners to produce fuels with low carbon-intensity. Similarly, carbon pricing such as the Emissions Trading System (ETS) in Europe and carbon taxes in Canada, Norway, and Sweden impose financial penalties on refiners for their GHG emissions.
Decarbonizing refineries can be a complex process which requires strategic planning. In the following sections, we discuss several key strategies to address refineries’ GHG emissions from both fuel combustion and process operations.
Strategies to reduce 70% of refineries’ GHG emissions from fuel combustion
There are several effective strategies to reduce GHG emissions from fuel combustion in refineries, including (1) improving energy efficiency, (2) switching to cleaner fuels, (3) electrification, and (4) incorporating renewable energy (see Exhibit 1).
Exhibit 1: Decarbonization strategies to reduce refineries’ GHG emissions from fuel combustion
Below, we delve in detail into each of the strategies and options to reduce refineries’ GHG emissions from fuel combustion outlined in Exhibit 1, highlighting their maturity and use cases at refiners.
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