Managing the Decarbonization of Coal-based Energy Value Chain: Empirical Findings from Lusatia, Germany

Decarbonization is causing structural changes that exert pressure not only on the companies and their employees in the lignite industry, but also on other companies along the value chain across multiple sectors. As a result, companies have an urgent need for change. They are challenged to take action to build a sustainable new existence as the markets collapse. For this purpose, we investigate the structural changes due to decarbonization and what factors can be part of a successful business transformation to manage the decarbonization of the coal-based energy value chain. This paper presents empirical insights from several semi-structured interviews with the key actors i.e., energy companies, service providers, logistics companies, suppliers, etc. in the Lusatia mining region as well as a conceptual model for a successful business transformation in the region. We used the Gioia method to analyze the interview data in order to obtain a meaningful data structure. This resulted in a conceptual model that shows how success factors have to be combined to manage the decarbonization measures within a region.

I. Introduction

European and global energy production has always been dominated by fossil fuels, which are the main cause of global warming [1]. Many countries have committed to decarbonize their electricity sector by the end of 2038 at the latest [2]. They have also set targets to achieve the emissions reductions needed to limit global warming to 1.5 degrees Celsius by 2050, as set out in the Paris Agreement [3].