Driving the Value Chain to Achieve Net Zero Through the Three Pillars of Green Engineering

Echoing to the trend of  global warming and sustainable development, CTCI Group has built "Green Engineering" through three major pillars: "Green Technology, Green Contracting, and Green Investment." These outstanding efforts have not only led to significant achievements in expanding low-carbon and environmentally-friendly engineering projects but also helped clients achieve energy savings, carbon reduction, and cost efficiency. By leveraging its engineering expertise, CTCI creates a win-win situation for both the economy and the environment, driving the value chain towards  net zero.

Green Technology: Introducing Net Zero EPC Services

From the planning phase, CTCI integrates green technology throughout the entire lifecycle of factories and engineering projects. By leveraging multidisciplinary technologies and expertise, CTCI incorporates building methods, energy management, resource recycling design, and artificial intelligence to continuously create environmentally-friendly benefits for global clients, such as energy savings, electricity savings, water conservation, carbon reduction, and waste minimization. This accelerates the effectiveness of energy conservation and emissions reduction. Following is the summary of the Group’s effort:

• Power Saving Solutions: By selecting high-efficiency equipment and utilizing variable frequency control technology, the effectiveness of electrical energy usage is significantly improved. Green technologies, such as energy-efficient, ventilation, and air conditioning (HVAC) systems for green buildings, the use of wind turbine arrays for energy savings in air conditioning systems, and power factor optimization, are also employed. These efforts save clients 31,274 MWh annually during the operational phase.

• Water Conservation Solutions: By implementing processes such as water reclamation and reuse, the efficiency of water resource is enhanced to achieve water-saving goals. Multiple green technologies are applied:  measures like rainwater and reclaimed water recycling are estimated to save 9,000 tons of water annually during the operational phase. Additionally, using water from sedimentation ponds for dust suppression and greenery at construction sites helps save 120,000 tons of water during the construction phase.

• Thermal & Cold Energy Recovery Solutions: By optimizing process technology to recover and reuse thermal energy, energy waste is effectively reduced, resulting in significant carbon reduction benefits. The introduction of energy-saving technology through heat recovery boiler systems in natural gas power plants generates a carbon reduction of 462,383 tons of CO₂e per year.

• Material Reduction Solutions: Through optimization strategies to reduce material usage and streamline construction efforts, material quantities are conserved, and carbon emissions are minimized. CTCI has established a surplus material control platform and along with a purchase/repurchase mechanism, to ensure transparent, real-time information on surplus materials and effective management. Reducing  surplus materials has resulted in a carbon reduction of to 151 tons of CO₂e.

• Low-Carbon Material Solutions: Replacing traditional materials with the latest low-carbon alternatives available on the market delivers significant carbon reduction benefits. Using  alternative green materials reduce carbon emissions by 26,520 tons of CO₂e. 

Green Contracting: Environmentally Friendly Projects Driving Business Growth

Green contracting covers environmentally friendly EPC projects awarded to CTCI, emphasizing on environmentally-friendly and low-carbon initiatives. Notable examples include the CPC Kuantang Third LNG Terminal Station Gasification Facility Turnkey Project, Guanyin, Zhong Neng, and CFXD Offshore Wind Farm Underwater Foundations, Yunlin Offshore Wind Farm Transition Pieces Fabrication Work, various solar power plants, and the Molie Quantum Energy Hi-Tech Battery Plant Project.  In recent years, CTCI's performance in green, low-carbon, and environmentally-friendly engineering has grown significantly, rising from 23% in 2015 to 56% in 2023, with the backlog increasing by 346%.

Notably, the "Molie Quantum Energy Corp.’s Lithium Battery Plant" received the U.S. LEED Gold Certification in April 2024. This marks the first battery factory in Taiwan to achieve LEED certification. The advanced processes implemented at the facility contribute to the development of Taiwan's energy storage industry. Additionally, the plant produces high-end, high-capacity, and high-charge/discharge rate nickel-cobalt-manganese (NCM) batteries, which will increase Taiwan's market share in the global super battery market and the electric vehicle supply chain.

Green Investment: Creating a New Business Model for a Stable Revenue Growth.

Green investment refers to CTCI's involvement in environmentally focused projects through models such as build-operate-transfer (BOT) and build-operate-own (BOO). For example, in the Energy-from-Waste (EfW) sector, CTCI recently secured the Chiayi Green Energy Sustainable Circulation Center BOT Project, which involves tearing down an existing EfW plant with a new one. This initiative not only addresses carbon reduction needs but also generates long-term, stable revenue, making it a highly promising business model. In the water resources sector, CTCI is also leading the Southern Taiwan Science Park Water Reclamation Plant project under the Design, Build, Own, and Operate (DBOO) model, where it is responsible for investment, design, construction, and 20 years of operation. This project successfully reclaims industrial wastewater for semiconductor manufacturing, setting a global benchmark.

Through green investment, the Group’s performance and achievements in 2023 span across three major areas: EfW and electromechanical maintenance, recycling and reuse. The results are shown as follows:

• Waste-to-Energy and Electromechanical Maintenance: The waste incineration plants generated 1.306 billion kWh of electricity, enough to supply approximately 360,000 households’ annual usage in Taiwan.
• Recycling and Reuse: The wastewater treatment volume was 73.05 million tons, and the amount of waste solvents (waste isopropanol) treated was 15,886 tons.
• Renewable Energy: The solar photovoltaic power plants generated 123.21 million kWh of electricity, enough to supply approximately 34,000 households’ annual usage in Taiwan.

Setting SBTi Goals for Net Zero in Line with the 1.5°C Pathway

In addition to partnering with clients to reduce carbon emissions through the three pillars of green engineering, we are actively moving towards net zero, while also driving the supply chain to accelerate carbon reduction and continuing to expand our sustainable influence. Recently, CTCI’s short-term and long-term carbon reduction target align with the Paris Agreement’s goal of limiting global warming to 1.5°C has been validated by "Science-Based Target Initiative", the first engineering company in Taiwan been validated by SBTi, with a goal of reaching net-zero carbon emissions by 2050.

CTCI set a target of reducing carbon emissions by 45% by 2030 for Scope 1 (direct emissions) and Scope 2 (indirect emissions from electricity), exceeding the 42% reduction target set by SBTi. The Company is also actively promoting sustainable supply chain management, engaging with suppliers to establish carbon reduction goals, aiming to accelerate the supply chain's journey toward net zero. CTCI has developed a carbon reduction plan and is working together with upstream and downstream value chains to implement reduction initiatives, disclose the progress regularly, and track and review carbon reduction performance, to achieve net-zero targets through scientific carbon reduction management.

Looking ahead, CTCI will continue to expand its engineering business into an ESG-focused field. By leveraging advanced green engineering techniques, we aim to help clients achieve their net-zero emissions goals while collaborating with suppliers to drive carbon reduction across the supply chain. CTCI is committed to making a significant contribution to global sustainability, aligning with our ESG vision of becoming the "Guardian of Sustainable Earth."