EYODER President Onur Ünlü: "Unplanned fuel conversion in industry could turn Türkiye into an energy equipment dump."

The Border Carbon Adjustment Mechanism (BAC) and emissions-focused regulations in export markets have accelerated steps to reduce carbon emissions in industry, particularly in recent years. A wide range of businesses, from large industrial enterprises to SMEs, both within the scope of the BAC and in export sectors like the automotive and ready-to-wear sectors, are considering fuel conversion to achieve carbon neutrality. However, unplanned projects undertaken during this process also carry the risk of investments becoming dysfunctional in a short time. Onur Ünlü, President of the Energy Efficiency and Management Association (EYODER), warned that failure to manage fuel conversion with strategic planning could result in significant resource waste, both environmentally and economically.

“The investment that should have been made in 80 years is now being made in 4 years.”

Ünlü, noting that businesses are panicking and making unplanned investments due to carbon-neutral expectations, said, “Companies are focusing on rapid fuel conversion to avoid interrupting their exports and losing market share abroad. For example, to switch from coal, they replace coal boilers with natural gas boilers. The following year, they install solar power plants on the factory roof and invest in electric boilers. Then, they switch to heat pumps. This equipment has an economic lifespan of around 20 years; in other words, the investment that would normally take 80 years for four pieces of equipment is made in just four years. Another aspect of this is that foreign companies are often preferred when making these investments. Consequently, our national wealth is being wasted due to these unplanned investments, which risk turning Türkiye into an energy equipment dump.”

“Supply chains demand planning and reporting”

Ünlü emphasized that the priority for international supply chains is not immediate investment, but strategic planning and regular reporting. Recalling that the European Union has set a carbon neutrality target for 2050 and Türkiye for 2053, Ünlü said, “While even countries have set long-term goals, no international supply chain expects companies to zero out their emissions overnight. What is expected is the provision of a clear roadmap for the transformation process and transparent reporting of this journey. For example, targets such as completing energy efficiency investments in the first two years, taking steps towards fuel transition in the fifth year, and reducing emissions by 50 percent in the tenth year should be set. Every step taken throughout the process—studies completed, proposals received, and contracts signed—should be regularly reported. This approach ensures more efficient use of resources and prevents companies from becoming technology wastelands with unnecessary and short-lived investments.”

“Converting fuel without making it energy efficient is a waste of money.”

EYODER President Ünlü emphasized that not making a rushed decision on fuel conversion doesn't mean there aren't any plans or projects in this area. Ünlü continued: “Making a business energy efficient is a long, multi-stage process. Fuel conversion is a part of energy efficiency and must be implemented when the time comes. However, before fuel conversion, businesses need to reduce their consumption by saving money and make investments that will lead to energy efficiency. Fuel conversion and renewable energy investments made without making a factory energy efficient, if not planned correctly, can lead to excessive investments and may not have the expected impact. Installing solar energy on a factory roof undoubtedly reduces electricity costs. However, if efforts to reduce consumption aren't made beforehand, emissions will still be high. Therefore, first reducing consumption through savings and efficiency measures, then making fuel conversion and renewable energy investments—in other words, proceeding in line with the roadmap—would be the strategically sound approach.”

“The cost of the unplanned investment is approximately 40 million lira.”

Ünlü explained the cost of unplanned investments to businesses with an example: “Let's consider a medium-sized textile company. This company invests around 3 million Turkish Lira to switch from coal to natural gas. Then, they spend 7 million Turkish Lira switching to an electric boiler and around 30 Turkish Lira for a heat pump. In other words, the majority of the approximately 40 million Turkish Lira investment quickly becomes idle.”

“Invest in the technologies of the coming years, not today”

Ünlü emphasized that technologies for energy transformation are constantly being developed, saying, “Significant advancements are taking place in energy equipment technology, and the world's leading companies are developing new and advanced products in this field. Therefore, companies that have already innovated their technologies should continue to utilize them. However, for companies that haven't yet made this transformation, it would be more prudent to make long-term investments rather than investing in today's technology. In this process, companies can seek support from experienced and knowledgeable energy service companies that closely follow global developments in this field.”