Using Materials Manufacturing Localisation

Material manufacturing localisation adjusts the environmental impact of a material to account for the differences in electricity production in the country where it's used.

Here's why that's important:

• Environmental data varies by location: The carbon footprint of electricity generation depends heavily on the local energy mix (coal, nuclear, renewables, etc.). A product made in a coal-heavy region will have a higher impact than one made where renewable energy is dominant.
• More accurate results: By adjusting for the location where the material is used, you get a more realistic picture of its environmental impact on your specific project.

In simpler terms: Imagine a resource for a steel beam manufactured in a country with coal power. If you use that same steel beam resource to represent a similar material in a country with mostly hydropower, its actual carbon footprint in your project would be lower as the impacts are adjusted for you to represent the grid electricity mix difference between the two manufacturing countries.

How it works:

1. Data Collection: The system relies on a database of Life Cycle Assessment (LCA) data for various materials. This data includes environmental impacts (like carbon emissions) associated with each stage of a material's life, from raw material extraction to manufacturing and transportation.

2. Electricity Consumption Estimation: For each material subtype (e.g., plastic flooring, XPS insulation), the system estimates the amount of electricity consumed during its manufacturing. This estimation is based on data specific to that material and its production process.

3. Localisation Factor Calculation: The core of the localisation process lies in calculating a "localisation factor". This factor represents the difference in environmental impact between the electricity used in the material's origin country and the electricity used in the target country (where the material will be used in a project).

• • The formula for the localisation factor considers:
    • A: Electricity use efficiency in both the original and target countries.
    • B: Electricity impacts (in CO2-equivalent) in both countries.
    • C: The amount of electricity required to manufacture the specific material subtype.

4. Impact Adjustment: The calculated localisation factor is then subtracted from the original environmental impact of the material. This results in a "localised impact" that more accurately reflects the material's impact in the context of the project's location.

5. Negative Impact Prevention: In cases where the difference in electricity mixes between the two countries is significant, a "backup mechanism" prevents the adjusted impact from becoming negative. This ensures that the localisation process doesn't artificially reduce the environmental impact below realistic levels.

6. Transparency: Anyone with the appropriate license can delve into the detailed calculations behind the adjusted impact values, providing transparency and allowing for deeper analysis. Read more on the feature here.

Key things to remember:

• Focus on electricity: This method only adjusts for differences in electricity sources, not the fuel used in the actual manufacturing process.
• Not mandatory, but recommended: It's especially useful when data for your region is limited or when aiming for more accurate assessments.
  • Localisation is used for all One Click LCA generic resources, as these are modeled with world-average energy mixes. 
• Built-in, but adjustable: The latest version (2.1) is applied automatically but can be adjusted or disabled if needed.
• Row-by-row adjustments are possible with the corresponding Expert license feature. 

Recommended vs older versions

The recommended Material Manufacturing Localisation setting enhances accuracy by using improved data for electricity consumption in manufacturing and factoring in the product's mass for more precise calculations, which older versions lacked. It also includes a check to prevent unrealistic results when comparing countries with vastly different energy mixes and incorporates the latest electricity profiles for the most precise adjustments.

Your existing projects using older versions remain unaffected, but you can update them by changing the project parameters. It's recommended to use version 2.1 for new projects. If you're already well into an ongoing project, it's generally best to stick with the version you're currently using.

Countries with energy mixes that deviate significantly from the average will experience the most noticeable adjustments from this method.