by Analia Troncoso | Global Head of Strategy, Business Development, Sustainability |
ABB Motion
As industry leaders gather to discuss the future of clean energy at CERAWeek, it is timely for me to reflect on how ABB is uniquely positioned to provide solutions that enhance efficiency and resilience, with lower emissions. By leveraging legacy and innovation, expertise in automation, electrification, and digitalization, ABB can help customers navigate the complexities of clean energy manufacturing, helping industries outrun - leaner and cleaner. Below, I summarize how ABB tackles supply chain challenges to turn them into competitive advantage opportunities.
Managing the Cost of Procurement and Resource Sourcing
The cost of procuring materials and components for clean energy manufacturing is a critical challenge. Fluctuations in raw material prices, supply chain disruptions, and tariffs on certain imports are all factors that increase costs.
ABB’s approach:
- Local Manufacturing and Sourcing: ABB’s global footprint allows it to localize production and sourcing strategies, reducing dependency on volatile international markets and minimizing transportation costs.
- Strategic Partnerships: ABB collaborates with suppliers and industry stakeholders to ensure a stable supply of critical components such as semiconductors, power electronics, and battery materials.
- Supply Chain Optimization: ABB’s digital supply chain solutions, powered by AI and machine learning, enable predictive analytics to forecast demand, mitigate risks, and optimize procurement strategies.
Leveraging Technology for Operational Efficiency
Manufacturers must embrace advanced technologies to improve production efficiency, reduce costs, and enhance sustainability.
ABB’s approach:
- Discrete Automation & Robotics: ABB’s robotics solutions streamline production processes, increasing precision and reducing waste in the manufacturing of solar panels, wind turbines, and battery systems.
- Process Automation: Integration of power and process automation enables a higher share of inherently more volatile renewable sources in their energy mix – without compromising reliability.
- Digital Solutions: ABB Ability™ digital solutions integrate AI, IoT, and cloud computing to optimize energy consumption, predict equipment failures, and improve overall productivity.
ABB Motion, a global leader in industrial motors and drives, is at the core of accelerating a more productive and sustainable future. With digitally enabled drives, motors and services we support our customers and partners to achieve better performance, safety and reliability.
The approach:
- Energy Efficiency: our technologically advanced industrial motors and drives enhance operational efficiency and generate energy savings, lowering operating costs, with less emissions.
- Advanced Grid Integration solutions enable the adoption of renewable and low carbon energy accelerating decarbonization of power networks.
Mitigating Assets Investments Risks
Regulatory uncertainties, geopolitical shifts, and market fluctuations pose risks to long-term investments in clean energy.
ABB’s approach:
- Cybersecurity and Resilience: ABB’s industrial cybersecurity solutions embedded in our products protect critical infrastructure from cyber threats, ensuring the reliability of energy systems.
- Flexible and Scalable Solutions: ABB’s modular and scalable manufacturing solutions enable companies to adapt quickly to changing policies and market conditions.
- Risk Assessment and Predictive Maintenance: ABB’s AI-powered monitoring systems help identify potential failures before they occur, reducing downtime and maintenance costs
Navigating Carbon-Related Policies (e.g., CBAM) in Cleantech Supply Chains
The introduction of carbon border adjustment mechanisms (CBAM) and other climate policies will impact supply chain strategies, particularly for companies sourcing materials from high-emission regions.
ABB’s approach:
- Decarbonization Strategies: ABB supports manufacturers in reducing their carbon footprint by implementing energy-efficient solutions, electrification, and renewable energy integration.
- Lifecycle Carbon Tracking: ABB’s digital platforms enable real-time tracking of carbon emissions across the supply chain, ensuring compliance with CBAM and other regulations.
- Low Carbon Manufacturing: ABB’s energy-efficient motors, drives, and automation solutions help companies minimize emissions in manufacturing processes.
As clean energy manufacturing scales up globally, ABB’s innovations in automation, electrification, and digitalization will be instrumental in overcoming procurement challenges, enhancing efficiency, managing risks, and navigating new regulatory landscapes. By providing cutting-edge technologies, domain expertise and strategic insights, ABB is helping shape a more sustainable, resilient, and cost-effective clean energy supply chain for the future.
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