This paper takes into account various effects the use of wind energy has on different levels of the environment. The most promising benefits and pressing challenges will be presented to allow for a differentiated assessment of the sustainability performance of wind energy as a power source. This will also be done in comparison to other forms of energy generation both fossil and renewable ones.
From supply chain perspective, the paper will focus on the supply of rare earths as an input material to wind turbine manufacturing. The reasons for which this is to be considered the most questionable aspect of the supply chain will be explained as well as solutions proposed for how effective supply chain management can help improve the situation.
Table of Contents
1. Introduction
1.1. Background motivation and aim of the paper
1.2. Scope of the assessment
1.3. Structure of the paper
2. Sustainability in Supply Chain Management – Literature review
2.1. Definitions of sustainability
2.2. Motives for sustainable conduct in business
2.3. Sustainability from supply chain perspective
3. The wind energy industry – Case study
3.1. Overview of global wind energy industry
3.2. Functionality of a wind turbine
4. Sustainability in the wind energy industry – Analysis
4.1. Benefits of wind energy
4.1.1. CO2-emissions reduction
4.1.2. Stable energy prices and bigger autonomy in the long-run
4.1.3. Decentralisation of energy production
4.1.4. Advantages of new PMG technology over DFIG
4.2. Negative aspects about wind energy
4.2.1. Rare earths mining
4.2.1.1. Definition of rare earths and their economic use
4.2.1.2. Supply of rare earths
4.2.1.3. Ecologic and social harm caused by mining in China
4.2.2. Increased need for backup capacity
4.2.3. Increased bird mortality due to wind parks
4.3. Assessment of sustainability performance
4.3.1. Economic sustainability
4.3.2. Social sustainability
4.3.3. Ecologic sustainability
5. Possible solutions to the REE dilemma
5.1. Reduced use of rare earths
5.2. Closed-loop supply chains for permanent magnets
5.3. Biomining of REE
6. Summary and Conclusion
Objectives and Research Focus
The core objective of this thesis is to assess the sustainability performance of the global wind energy industry by examining its supply chain, specifically focusing on the critical role of rare earth elements (REE) used in modern wind turbine manufacturing.
- Sustainability assessment of the global wind energy industry.
- Evaluation of the environmental impact of REE mining in China.
- Comparison of turbine technologies (DFIG vs. PMG).
- Development of sustainable supply chain management solutions for wind energy.
Excerpt from the book
4.2.1.3. Ecologic and social harm caused by mining in China
Even though the use of REE in many green technologies can benefit the environment (comp. chapter 4.2.1.1.) there is another side to their increased use, which is not nearly as beneficial in terms of ecology and societal welfare. In fact, it can be said that the mining of REE, as it is currently conducted in China, is disastrous for the surrounding area. Not only requires the mining of REE vast amounts of delicate chemicals, but there are also other environmental impacts in terms of water pollution, dust and even nuclear waste (Hurst, The Rare Earth Dilemma: China’s Rare Earth Environmental and Safety Nightmare, 2010).
The majority of China’s REE mining happens in the Bayan Obo mine in Inner Mongolia. The raw materials excavated there are then transported to nearby Baotou City, where they are being refined (1st European Rare Earth Resource Conference, 2014, pp. 1-3). However, there are also other mining districts in China which are even more damaging to the environment (Hurst, The Rare Earth Dilemma: China’s Rare Earth Environmental and Safety Nightmare, 2010). For these reasons the following description of REE mining’s impacts on the environment and society will mainly focus on the mining and refining processes in Inner Mongolia, while also being valid for other mines in China.
In general, it is hard to gain insight into details about the pollution caused by Chinese REE mines. However, the following statement from a report by Cindy Hurst is often quoted when trying to assess the extent of pollution caused by REE mining17: “Every ton of rare earth produced, generates approximately 8.5 kilograms (18.7lbs) of fluorine and 13 kilograms (28.7 lbs) of dust; and using concentrated sulfuric acid high temperature calcination techniques to produce approximately one ton of calcined rare earth ore generates 9,600 to 12,000 cubic meters (339,021 to 423,776 cubic feet) of waste gas containing dust concentrate, hydrofluoric acid, sulfur dioxide, and sulfuric acid, approximately 75 cubic meters (2,649 cubic feet) of acidic wastewater, and about one ton of radioactive waste residue (containing water)” (Hurst, China’s Rare Earth Elements Industry: What Can the West Learn?, 2010, p. 16).
Chapter Summary
1. Introduction: This chapter establishes the motivation and scope, emphasizing that a true sustainability assessment requires an end-to-end supply chain perspective, specifically looking at rare earth elements in wind turbines.
2. Sustainability in Supply Chain Management – Literature review: This section reviews definitions of sustainability and identifies the business motives for sustainable conduct, ultimately framing sustainability as an improvement process across social, economic, and ecological dimensions.
3. The wind energy industry – Case study: This chapter provides an overview of the global wind market and details the functional differences between wind turbine technologies, specifically introducing the distinction between DFIG and PMG drive systems.
4. Sustainability in the wind energy industry – Analysis: This analytical section weighs the benefits of wind energy, such as emission reductions and energy price stability, against the environmental and social costs associated with rare earth mining.
5. Possible solutions to the REE dilemma: This chapter suggests industry solutions including the reduction of material usage, the implementation of closed-loop supply chains, and the potential of experimental biomining techniques.
6. Summary and Conclusion: The final chapter concludes that while wind energy is highly sustainable, the industry must address the environmental burden of its supply chain to maintain its positive reputation and impact.
Keywords
Wind Energy, Supply Chain Management, Sustainability, Rare Earth Elements, REE, Permanent Magnet Generator, PMG, DFIG, Mining, Ecology, Environment, Closed-loop Supply Chain, Carbon Emissions, Biomining, Renewable Energy
Frequently Asked Questions
What is the primary focus of this thesis?
The thesis focuses on the sustainability performance of the wind energy industry by examining the extended supply chain, specifically identifying the environmental and social dilemmas caused by the mining of rare earth elements (REE) used in permanent magnet generators.
What are the central themes of the research?
Key themes include the comparative sustainability of different wind turbine technologies, the environmental impacts of raw material extraction in China, and the development of supply chain management strategies to improve the overall sustainability of wind energy.
What is the main research question or goal?
The goal is to assess whether the wind energy industry, despite its role in reducing carbon emissions, maintains its sustainable reputation when the entire supply chain, particularly the mining of rare earth elements for turbine components, is taken into account.
Which scientific methodology is used?
The work utilizes a literature-based analysis and a case study approach, drawing upon management literature, energy industry reports, and specific ecological impact studies regarding mining practices.
What is addressed in the main body?
The main body presents a literature review of sustainability concepts, provides a technical overview of wind turbine drive trains (DFIG vs. PMG), analyzes the benefits and environmental disadvantages of wind energy, and proposes improvements for the supply chain.
Which keywords best characterize the work?
Key terms include Wind Energy, Supply Chain Management, Rare Earth Elements (REE), Permanent Magnet Generator (PMG), Ecological Sustainability, and Closed-loop Supply Chains.
Why is the mining of rare earth elements considered a dilemma?
It is a dilemma because while REE are essential for the high efficiency and lower maintenance costs of PMG turbines (which help fight global warming), the current mining and refining processes, especially in China, cause severe ecological destruction and create toxic and radioactive waste.
What role does the "closed-loop supply chain" play in the author's proposed solutions?
The author proposes closed-loop supply chains to facilitate the recycling and reuse of permanent magnets after a turbine's life cycle, thereby reducing the necessity for continuous new mining of rare earth elements.
- Quote paper
- Thomas Hillmann (Author), 2015, Sustainable Supply Chain Management in the Wind Energy Industry, Munich, GRIN Verlag, https://www.grin.com/document/455543
