Assessment of Corporate Carbon Footprint and Energy Analysis of Transformer Industry

Transformers have been a part of the electrical grid since its early stages in the development of the grid. It supports the integration of new renewable resources into the system by ensuring that energy is transported efficiently over long distances from production stations to users. Transformers have reached high efficiency levels thanks to material and technological development. They also have a long lifespan of 30 to 40 years, and most of their materials can be recycled at the end of their life, making them a product suitable for the circular economy concept in many respects. The high value of some of these materials, such as copper and electrical steel, has made them easier to dispose of, recycle, or reuse, in many cases seeking an economic return rather than for reasons of circularity. There are other cases where transformers are recycled, not only for financial and cost reasons but also to reduce environmental impact. It is possible to recycle up to 99% of old transformers, with 64% as material recycling, 35% as clean, low-emission efficient energy burning, and the remaining 1% as disposal waste [1].

Electrical power systems are one of the main sources of CO₂ emissions, and it is estimated that approximately 4% of the current greenhouse gas emissions from the electrical power system, i.e., 730 million tons/year, originate from transformers [2]. The ever-increasing demand for electrical energy requires the production of new transformers every year, further increasing emissions in the energy sector. Focusing on increasing renewable energy production and efforts to increase transformer efficiency are expected to reduce the impact of future emissions. Therefore, calculating the carbon footprint of transformers is a useful tool in the strategic planning and design for stakeholders such as manufacturers, consumers, and policymakers.

Companies and organizations in the energy sector must calculate their carbon footprint to achieve sustainability goals. Lower carbon emissions reduce environmental impacts and enable more sustainable use of natural resources. Many countries have regulations that require energy companies to reduce or report carbon emissions. Therefore, carbon footprint calculation is important for legal compliance and can help companies avoid criminal sanctions. Today, consumers are increasingly turning to environmentally friendly products and services. Energy companies investing in low-carbon energy sources and reducing carbon emissions can influence consumers’ preferences and enable companies to gain a competitive advantage. In the literature, studies have begun to calculate the carbon footprint in the field of energy and to determine strategies in this context.

Xie et al. (2020) analyzed carbon emissions across three wind power plants, finding a significantly lower CO₂ emission factor of 3.9 g/kWh compared to alternative power generation systems. This highlights wind power’s efficacy in reducing CO₂ emissions, making it a preferable option for clean energy production [3]. Nassar et al. (2024) focused on wind energy’s environmental impact in Libya, particularly in importing wind turbine technology. They found that most greenhouse gas emissions (85%) stemmed from manufacturing and transporting turbines. The study emphasizes wind energy’s potential as a sustainable alternative, urging policymakers to prioritize its development for greener energy systems [4]. Dong et al. (2013) assessed the carbon footprint of an industrial park in China using a tiered hybrid LCA method. They found the total carbon footprint to be 15.29 million metric tons, with the chemical and machinery manufacturing sectors being the largest contributors [5]. Kaldellis and Apostolou (2017) reviewed offshore and onshore wind energy technologies’ carbon footprints. While offshore installations generally have a larger footprint, the superior wind resources offshore often result in higher renewable electricity yields, mitigating the difference [6]. Goldstein et al. (2020) analyzed greenhouse gas emissions from residential energy use in the US, finding that wealthier Americans tend to have higher per capita emissions due to larger homes, especially in affluent suburbs. To meet emission reduction targets, deeper measures like energy retrofits and low-carbon energy adoption are necessary [7]. Zhao et al. (2011) developed a model to estimate carbon emissions in different regions of China in 2007. They found that fossil energy accounted for 89% of emissions, with high emission intensity in living/industrial commercial spaces and transportation sectors. Despite this, available lands were insufficient to offset industrial activities’ carbon footprint. Additionally, the carbon footprint per unit area decreased from East to West China across different industrial spaces [8]. Temizel et al. (2023) explore recent strategies for transitioning to greener energy solutions, with a focus on diversifying energy portfolios to include renewables like wind, solar, and hydrothermal sources. Efforts to enhance renewable energy efficiency have led to increased contributions to national energy requirements [9]. Sizirici et al. (2021) aimed to raise awareness of the carbon footprint sources in the construction sector, identifying energy-intensive processes in mining and manufacturing as the primary contributors to CO₂ emissions. They highlighted techniques for carbon reduction [10]. Zhao et al. (2019) investigated energy usage and carbon emissions in the forestry and pulp paper industry, identifying coal and black liquor as primary energy sources. They found significant energy consumption in the material transportation and papermaking processes, with emissions mainly from coal and biomass combustion. The study emphasized areas for conservation and emission reduction efforts [11]. Onat et al. (2020) reviewed the global carbon footprint in the construction industry from 2009 to 2020, highlighting the influence of countries like Japan, Canada, and the USA on global supply chains. They emphasize the importance of understanding these impacts for effective carbon reduction policies, particularly in light of international collaboration efforts such as the COP 21 Climate Change Conference and the Paris Agreement [12]. Davutluoğlu et al. (2024) presented greenhouse gas emission inventories from the municipality’s main service building operations. In 2022, the municipality’s carbon footprint totaled 10,862.46 tons of CO₂-eq, underscoring the need for sustainable initiatives to mitigate emissions [13]. Tekin et al. (2024) investigated carbon emissions in a textile company’s production process, focusing on Tricia fabric. Approximately 6.00 tons of carbon dioxide equivalent emissions were generated during the fabric transformation up to the sewing room stage [14]. Demirdelen et al. (2023) conducted a comparative analysis of carbon emissions from the complete life cycles of polyester and polypropylene products exported by Ulusoy Textile Company. The study aimed to inform more effective government policies for reducing greenhouse gas emissions and regulating synthetic yarn production in Türkiye [15].

The literature study shows that as energy supply increases day by day, carbon emissions must be reduced as energy production increases in terms of sustainability. In the energy sector, transformer production is one of the basic components of electrical transmission and distribution systems. It is used to convert electrical energy and ensure energy transmission between high and low voltage. Therefore, the share of transformer production in the energy sector is quite important and may vary depending on the size of energy demand and infrastructure investments. Factors such as countries’ energy policies, modernization of electricity networks, and transition to renewable energy sources increase transformer production. When electricity from renewable energy sources is often transported to remote areas, the use of transformers may be necessary. This becomes especially evident with the increase in wind and solar energy projects. The rise in transformer production is directly related to the increase in energy needs and reflects the growth and development in the energy sector.

The carbon footprint of the transformer industry refers to the greenhouse gas emissions resulting from the production of large and complex equipment used in the conversion and transmission of electrical energy. Since this industry is one of the key components of the energy sector, its carbon footprint is quite important. Additionally, the large size and complexity of transformers increase energy consumption in production and transportation processes. Reducing the carbon footprint of the transformer industry is possible through various methods such as increasing energy efficiency, optimizing materials and production processes, switching to renewable energy sources, and recycling.

Reducing the carbon footprint of the transformer industry contributes to the carbon emission reduction targets of the energy sector in general and is important for sustainability. Therefore, this study provides a detailed and comprehensive breakdown of greenhouse gas emissions resulting from operations in the Beta Energy/Adana-Türkiye factory area in 2023. In calculating the carbon footprint for Beta Energy, “Cradle to Gate” limits were taken into account. The research aim of this paper is to calculate the carbon footprint of the transformer manufacturing industry and set reduction targets. Within the scope of this study, the general goals of the transformer manufacturing industry to reduce its carbon footprint will be presented. Successful implementation of these targets will contribute to making industrial processes more sustainable.

This study includes the complete greenhouse gas emissions inventory of Beta Energy for 2023. Beta Energy’s carbon footprint calculation procedures and emission classifications comply with international regulations and standards. This research assesses Beta Energy’s corporate carbon footprint using ISO 14064-1 standards [16], encompassing all transformers manufactured and distributed. CO₂-eq is calculated per transformer. Emissions are evaluated based on material procurement quantities from 2023. This study provides a guide for determining, monitoring, and evaluating Beta Energy’s greenhouse gas emissions and monitoring its compliance with climate change policies and regulations. The study can be used in the management of climate-focused investments and greenhouse gas emission indicators declared in sustainability reports. This study provides a guide for determining, monitoring, and evaluating Beta Energy’s greenhouse gas emissions and monitoring its compliance with climate change policies and regulations. In the calculations for the facility, activities for the time period of 1 January 2023–31 December 2023 were taken into account.

Carbon footprinting (CF) is a method used to assess the environmental impacts of an organization’s operations. It involves measuring various factors such as greenhouse gas emissions, energy usage, waste management practices, and other environmental considerations. The process typically includes several steps: scoping, collecting data, calculating emissions, reporting and monitoring, implementing mitigation measures, and devising improvement strategies. By gathering relevant data, organizations can determine the quantities of greenhouse gas emissions and other environmental factors produced as a result of their activities, typically measured in metric tons of carbon emissions. The amount of stationary and mobile combustion process emissions for 2023 is shown in Table 3.

The amount of leakage gases and the CO₂-eq values of these gases are given in Table 4.

Scope 2 emissions are primarily associated with the consumption of grid electricity. When organizations use electricity from the grid, they indirectly contribute to the greenhouse gas emissions generated by the power plants that produce that electricity. Table 5 presents electricity consumption data and its ton CO₂-eq value.

Emissions that are not under the company’s direct control in the transportation of groups of goods, but arise when the company receives an external transportation service for its own activities and performs this service, indirectly contribute to the company’s total carbon footprint. Table 6 presents indirect greenhouse gas emissions from transportation.

When evaluating domestic and international product transportation emissions, items for which the transportation belongs to the company sending the product, not the company, were evaluated. Since there are no vehicles with direct Beta Energy limits, both cash payment and subcontracted payment methods were evaluated. It is stated that a total of 400 personnel will use the shuttle service in 2023 within the scope of personnel transportation to and from work, and a total of 22 shuttles are actively serving. Emission values covered by personnel commuting and business trips are given in Table 7.

In evaluating the scope of the purchased goods, all Beta Energy and refund payment data have been taken into consideration. Since the number of purchased data were quite large, a materiality assessment was made within the scope of the ISO 14064-1 standard [16]. In this evaluation, all measurement groups among the purchased goods were included in the evaluation, but the product and commodity groups that must be present in transformer manufacturing were determined and evaluated and 90% of the data were included in the calculations. Emissions related to the manufacturing of the product, service procurement, and emissions resulting from capital goods are given in Table 8.

Also, Scope 4 typically encompasses indirect greenhouse gas emissions associated with waste disposal, including industrial waste. This category includes emissions resulting from the disposal of waste materials generated during the production process or as a byproduct of industrial activities. It involves emissions generated during waste collection, transportation, treatment, and disposal processes. By accounting for these emissions, organizations gain a more comprehensive understanding of their overall environmental impact and can identify opportunities for waste reduction and mitigation strategies. Table 9 presents the indirect greenhouse gas emissions from waste disposal.

While calculating the greenhouse gas emission output resulting from the operational processes of transformers, transformers sold by Beta Energy in 2023 were taken into consideration. Before all calculations and results are given, a pilot calculation study was carried out for two types of oil-based transformers produced and sold in 2023, and the modeling of the study is shown in Table 10. Operation modeling is modeled according to the 30-year lifespan of the 160 kVA 33/0.4 kV transformer (approximately 0.900 tons) and 400 kVA 33/0.4 kV transformer (average 2.5 tons).

When the study stated in Table 10 is carried out for the 6044 transformers that Beta Energy sold in 2023, the emission of the transformers resulting from the 30-year operational processes results in 1,696,647.92 tons of CO₂-eq.

Scope 6, indirect greenhouse gas emissions, typically refers to emissions associated with fuel- and energy-related activities outside the organization’s direct control but related to its operations. This includes emissions from activities such as extraction, production, and transportation of fuels and energy sources used by the organization. These emissions are given in Table 11.

Product end-of-life emissions include emissions that occur during the product lifecycle and post-disposal processes. Greenhouse gas emissions that occur during the use of the products sold by the company, emissions that occur during the destruction of the products by end users, or during recycling processes are evaluated within this scope. Table 12 presents end-of-life emissions.

Refining used oil can reduce the environmental impact of waste and contribute to more efficient use of energy resources. Waste oil must be recycled according to local rules and legal requirements using an authorized waste carrier. Recycled used oil has many uses. It is assumed that used transformer oil can be cleaned and reused through refining processes. The metals contained in transformers (e.g., copper and iron) can be recycled. Metal recycling facilities recover valuable metals by processing parts of used transformers. However, recycling rolled metal parts is quite difficult. Therefore, considering the two cases, it is assumed that more than half of the metal parts used in transformers are recyclable. Plastic, rubber, or other non-metal parts of transformers must also be processed appropriately. These materials must be recycled or disposed of safely. A total of 6044 products were sold during the year. Considering all transformer types, the average transformer weight sold is assumed to be 5 tons. The distribution of total emissions according to sub-scopes is given in Table 13.

Also, Figure 3 presents the scopes with the highest greenhouse gases (GHG) emissions. The majority of emissions from Beta Energy’s operations, amounting to about 94% of the total, come from the operational phase of its products after sale. During this phase, emissions primarily stem from the energy consumption when customers use the products, such as electricity or fuel. Detailed emissions data, including transformer no-load and load losses over a 30-year lifespan, are outlined in Table 10. These operational emissions constitute a significant portion of greenhouse gas emissions in the transformer industry, totaling 1,696,647.92 tons of CO₂-eq for the 6044 transformers sold in 2023. Disposing of transformers after they reach the end of their useful life accounts for 5% of the overall carbon footprint. In the past year, 6044 transformers were sold, with an average weight of 5 tons each. Refining used oil reduces the environmental impact of waste and contributes to more efficient use of energy resources. Waste oil must be recycled according to local rules and legal requirements using an authorized waste carrier. Recycled used oil has many uses. Used transformer oil can be cleaned and reused through refining processes. The metals contained in transformers (e.g., copper and iron) can be recycled. Metal recycling facilities recover valuable metals by processing parts of used transformers. However, recycling rolled metal parts is quite difficult. Therefore, considering the two cases, more than half of the metal parts used in transformers are recyclable. Plastic, rubber, or other non-metal parts of transformers must also be processed appropriately. These materials must be recycled or disposed of safely. Emissions from purchased raw materials, which correspond to approximately 0.84% of the total emissions, have a significant share proportionally, as is encountered in similar sectors. The main raw materials of transformers are steel, insulation paper, mylar, and aluminum. It is also seen that aluminum as a raw material has a higher carbon footprint. Copper performs better but costs more. This choice is usually made according to customer preference. For this reason, copper will be preferred by customers by highlighting its performance.

As a result of the corporate carbon footprint study, the location-based carbon footprint resulting from all activities of Beta Energy was calculated and hot spots were determined. Location-based carbon footprint is a gross carbon footprint and does not include electricity savings generated from any renewable power plants within Beta Energy. When the data provided by Beta Energy was collected completely and the relevant evaluations and calculations were made, the framework of the emission intensities was determined. When the emission source values are listed from largest to smallest, the top three titles are shown in Figure 4.

Emissions arising from the operational operating processes of the product after it is produced and sold within Beta Energy, which correspond to approximately 94% of the total emissions, constitute the highest slice of total emissions. Most greenhouse gas emissions from the transformer industry are caused by the operational use phase. This stage produces the maximum CO₂ emissions because the transformer’s no-load losses and load losses have been taken into account over its expected lifespan of 30 years. In calculating the emissions resulting from the operational processes of transformers, it is assumed that the transformer operates at 50% load factor throughout its entire useful life and that no-load losses do not change during this period. The calculations assume that the CO₂ emission rate/kWh remains unchanged throughout the lifetime. Disposal processes after the operational processes of sold transformers, which correspond to approximately 5% of the total emissions, have a significant share, as is also encountered in similar sectors. Due to the long life of transformers, there is a large time difference between the manufacturing phase and the end-of-life phase. Long-lasting products are generally valued for their enhanced resource efficiency and the increased potential for reuse, repair, and refurbishment, which can further amplify their positive impact. The time lag can also cause several problems. For example, the original manufacturers may no longer be in business and the original drawings and product components may become unusable. This can make it difficult both to repair products and to reuse individual components after their end of life. In this context, considering the disposal processes, the biodegradable and recyclable properties of transformer metal parts and transformer oils are accepted as 100%. Emissions from purchased raw materials, which correspond to approximately 0.84% of the total emissions, have a significant share proportionally, as is encountered in similar sectors. Raw material purchasing is an emission item that directly concerns the production phase of raw materials. Emissions are calculated based on the quantities of materials purchased in 2023. In some cases, only one emission factor has been used for all materials in the same functional class, such as some chemicals, coil varnish, resin, and hardener. The emission factor was chosen based on the most commonly used compound in that category. The total carbon footprint of transformers produced by Beta Energy is 1,799,482.72 tons of CO₂-eq based on location, in the scenario where greenhouse gas emissions resulting from operational processes and end-of-life processes are also included. Considering the total of 6044 transformers sold in 2023, it is 297.72 tons CO₂-eq/transformer per product.

The total transformer purchasing cost concept does not impose an additional cost in terms of energy efficiency savings of transformers, as high-efficiency products are more cost-effective over their lifetime than low-efficiency units. Higher capitalized loss cost leads to lower losses and higher efficiency, and the higher acquisition cost is paid back over years. To ensure that both current and future greenhouse gas emissions are as minimal as possible during transformer production, there are several factors that can be taken into consideration during the R&D phase:

In order to reduce greenhouse gas emissions that may occur during the transportation phase:

To reduce greenhouse gas emissions that may occur during the service life phase:

Manufacturers have focused on enhancing the efficiency of transformers to reduce energy losses during operation. This includes improvements in core materials, such as using high-efficiency silicon steel or amorphous metals, which can significantly reduce no-load losses. Innovations in insulation materials, such as advanced papers and polymers, contribute to reducing the overall size and weight of transformers while improving performance and reducing energy consumption. Transformers are increasingly being integrated into smart grid systems, allowing for better management of energy flows and reducing overall energy wastage. There is a shift towards using eco-friendly insulating fluids, such as biodegradable oils and ester fluids, which have a lower environmental impact compared to traditional mineral oils. Manufacturers are also focusing on improving recycling processes for transformer components, including metals like copper and aluminum, as well as non-metallic materials, to minimize waste and promote sustainability. The adoption of digital technologies such as remote monitoring systems and digital twin technology for condition monitoring and predictive maintenance helps optimize transformer performance, reduce downtime, and extend lifespan, thereby reducing the need for frequent replacements and associated environmental impact. Overall, these technological and material innovations not only aim to improve the performance and reliability of transformers but also contribute significantly to reducing their carbon footprint throughout their lifecycle.

Governments around the world enforce emission standards that mandate limits on greenhouse gas emissions from industrial processes, including transformer manufacturing. Compliance with these standards affects how manufacturers measure, report, and mitigate their carbon emissions. It also influences the adoption of cleaner technologies and practices. Many countries have introduced energy efficiency regulations that require transformers to meet minimum efficiency standards. This study directly impacts the design and manufacturing processes, encouraging the use of materials and technologies that reduce energy losses during operation, thereby lowering the carbon footprint over the transformer’s lifetime. Regulations governing the disposal and recycling of transformer components, such as oils and metals, affect how manufacturers handle end-of-life products. Compliance with these regulations ensures that recyclable materials are recovered efficiently, reducing environmental impact and contributing positively to carbon footprint calculations. Carbon pricing initiatives, such as carbon taxes or cap-and-trade systems, incentivize companies to reduce their greenhouse gas emissions. Manufacturers factor in these costs when assessing the economic implications of carbon emissions associated with transformer production and operation.

The emission reduction measures proposed for the transformer manufacturing industry encompass a range of strategies aimed at minimizing greenhouse gas emissions across the lifecycle of transformers. Feasibility depends on customer preferences and regulatory requirements. Copper’s higher efficiency and lower carbon footprint justify its higher initial cost over the operational lifespan. Designing transformers with reduced load losses by choosing efficient conductors (e.g., copper over aluminum) is practical and widely implemented. Manufacturers can optimize designs to balance between performance and cost effectiveness, reducing operational energy losses and thereby lowering greenhouse gas emissions during the use phase of transformers. Manufacturers can integrate recyclable materials and minimize non-recyclable components. Implementing design concepts to enhance safety, such as reducing the risk of tank puncture, is practical with modern engineering techniques. Reducing the risks of operational failures and environmental hazards, such as oil spills or fires, minimizes the environmental impact. Implementing preventive maintenance programs is practical and widely adopted to optimize transformer lifespan. Integrating digital technologies for real-time monitoring and dynamic operation adjustments is increasingly practical with advancements in IoT and data analytics. Many of the proposed emission reduction measures are practical and feasible with current technology and industry practices. Manufacturers are already implementing these strategies to various extents depending on regulatory requirements and market demands.

This study offers a thorough analysis of the greenhouse gas emissions associated with the activities conducted in the Beta Energy/Adana-Türkiye factory region in 2023. Specifically focusing on the transformer manufacturing industry, the study calculates its carbon footprint and establishes reduction objectives. It outlines overarching goals aimed at mitigating the carbon footprint within the transformer manufacturing sector. In the scenario where the greenhouse gas emissions arising from the operational processes and end-of-life processes of the transformers produced within Beta Energy are in the process, 1,799,482.72 tons of CO₂-eq, considering the total of 6044 transformers sold in 2023, results in 297 tons of CO₂-eq/transformer per product. The highest share in total emissions, over 90%, is the emissions resulting from the operational processes of transformers. Transformers are used in different applications and field conditions. Uniform transformer production does not match every customer’s demand. In transformer production, it is best to include input from users and other stakeholders (e.g., customers, suppliers, industry experts, and local communities) in the development of the product, service, or solution and to create a common value chain and design with the aim of creating maximum value. Successful implementation of the targets to be achieved within the scope of this study will contribute to making industrial processes more sustainable. This study covers the action plan that provides effective measures to be taken by preparing a carbon footprint inventory for the base year 2023. In the future study, a carbon footprint inventory will be presented by collecting data for 2024 and will take into account carbon reduction efforts. Thus, the effectiveness of the implemented plan will be revealed.