Marisol Oropeza - Heat Changers Blog

15. November 202415. November 2024

Renewable energy in industry: three steps to reduce costs and emissions

Renewable energy sources like solar thermal should be part of any factory

Transition to renewable energy is an opportunity, a necessity and, in an increasing number of countries, an obligation for the industry.

Clean technologies are a vast universe and the range of available innovations includes solutions to supply water, gas, insulation, drainage and, of course, energy needs. There are many options for domestic use, for the service sector and even for industrial processes.

To meet the energy demand, one of the most important, but little exploited, renewable resources is solar thermal energy. As heat consumption represents a large part of the energy demand, integrating solar thermal into industrial processes offers a path towards sustainable and cost-effective operations, an important role in the energy transition.

Three steps to reduce costs and emissions in industry

1. Identify the area with the greatest potential for decarbonization.

To drastically reduce costs and carbon emissions in companies in the industrial sector, the key is to focus on heat demand. Globally, about half of energy use is heat (#HeatIsHalf!) and, of that heat, 53% of final consumption is used in industrial processes, according to data from the International Energy Agency (IEA).

Thermal energy (heat) is essential for a wide range of industrial processes: from boiling, pasteurization, sterilization, material transformation processes, moving turbines or chemical reactions that require high temperatures.

We do have the technology to generate it from renewable sources such as solar thermal, geothermal or biomass. However, gas continues to be the main fuel used and heat generation from renewable sources has grown only 2.6% in a decade, far from what is needed to reduce the consequences of climate change.

Although electricity consumption can also be covered by renewable energy sources such as solar (photovoltaic), heat is the area with the greatest potential for decarbonization.

2. Optimize and make processes more efficient

Before considering to invest in clean technologies, companies must first identify improvement areas in order to reduce energy consumption. Iván Acosta Pazmiño, specialist in energy generation projects, Senior Project Manager at MG Sustainable Engineering in Sweden and associate researcher of the Energy and Climate Change Group of the Tecnológico de Monterrey, explained this three-step process:

1. Energy sufficiency: an important step in the energy transition is, first, the reduction of energy consumption to the maximum based on each user.

2. Energy efficiency: evaluate devices in order to choose those that allow the most efficient energy consumption.

3. Energy generation with renewables: once the previous steps have been completed, it is then established how to supply consumption with renewables.

First we seek to reduce consumption in terms of the user - energy efficiency - and then the device part, what we can change - energy efficiency, and until that moment, you question how to do it with renewables.

Iván Acosta Pazmiño

Senior Project Manager at MG Sustainable Engineering

3. Integrate solar heating systems to industrial processes

Having identified the actual energy demand for heat-requiring processes, the next step is to integrate renewable energy sources to supply it, if possible, in its totality. The question lies in how to achieve this.

This shift must come from all fronts. Strong efforts are clearly required to reach an ideal share and overcome the trend of the last decade. To achieve this, industrial solar heating systems are a great alternative due to their efficiency, versatility, smaller space required for installation (compared to photovoltaic systems) and their great contribution to reduce emissions.

Solar thermal collectors use sunlight to directly generate heat. They are capable of supplying temperatures of up to 400°C to multiple processes, meeting many industrial needs, besides uses such as sanitary hot water and space heating. Currently, there are 68 suppliers of turnkey SHIP plants worldwide, 74% of them produce their own collector technology in-house or on-site.

A major challenge is the lack of knowledge about the benefits of solar thermal systems, which implies a slow adoption. Therefore, it is imperative to highlight the following points:

Customized configuration:each system is tailored to the company’s needs. Requirements are assessed and custom options are offered. For example, solar heating technologies range from flat-plate or vacuum tube collectors, which are ideal for low-temperature processes, to concentrating solar collectors which can generate steam.
Savings and investments to cover the demand: the financial cost is one of companies’ biggest concerns, it is important for them to know that it is possible to finance the entire system by deducting the cost of the investment, obtaining governmental grants, or buying the energy through a contracting scheme (Heat Purchase Agreement, HPA).
Durability: the useful life of the systems is up to 25 years and their maintenance requirements are relatively low.

Solar thermal’s role in decarbonizing industry

Solar thermal’s role in the decarbonization of the sector is becoming more relevant as more industries discover the potential of generating heat on-site and directly with solar energy. The most recent Solar Heat Worldwide report from the International Energy Agency Solar Heating and Cooling Program (IEA SHC) states that there are at least 1,209 solar heating systems installed in the industrial sector, mainly in the food, agricultural and chemical industries.

The installed capacity of such systems has tripled in the last two years with the largest solar thermal system installed in the industry in 2023 at Heineken in Seville with 30 MW of capacity.

Article written by Laura Yaniz Estrada with contributions from Marisol Oropeza.

19. September 202420. September 2024

Heat: Understanding its Role in the Energy Transition

Let’s start answering to the question: what do we use energy for?

Electricity
Transport
Sanitary hot water, pool heating, space heating and cooling, industrial processes, etc.
All of the above

The correct answer is “4) All of the above”.

According to the Renewables 2024 Global Status Report [1] of REN21, the share of the energy carrier in each case in the global final energy supply is the following:

Electricity: 23%
Fuel for transport: 29%
Heat for sanitary hot water, space heating and cooling, industrial processes, etc: 49%

This is where the hashtag #HeatIsHalf comes from. Indeed, half of the energy that is supplied globally, is for heat!

Renewable energy sources for heat

Considering that 79% of our energy supply is fossil fuel-based [2], the next question is what share of energy comes from renewable sources in each case?

The report of REN21 also has the answer:

Electricity: 30%
Fuel for transport: 3.9%
Heat for sanitary hot water, pool heating, space heating and cooling, industrial processes, etc.: 9.9%

It gets clearer where we shall work a bit harder in order to be more effective in terms of decarbonization. Now, what renewable energy sources are included in each share?

Electricity: solar energy (photovoltaic -PV and concentrated solar thermal power – CSP), wind energy, hydropower, ocean power, bioenergy, geothermal power, nuclear power.
Fuel for transport: biofuels and, potentially, green hydrogen.
Heat for sanitary hot water, pool heating, space heating and cooling, industrial processes, etc: solar thermal energy, geothermal, biomass, biogas.

In conclusion, renewable heat energy sources are key elements of the energy transition, because “heat is half” of the global final energy consumption and we must reduce carbon emissions immediately, and not only in the electrical sector.

Our favourite renewable energy source is solar thermal. Therefore, we advocate for policies, programs and projects that accelerate the decarbonization of the heat supply with solar heating and cooling technologies.

Solar thermal facts and figures

The report Solar Heat Worldwide 2024 [3] from the International Energy Agency Solar Heating and Cooling Programme (IEA SHC) provides an overview of the general trends in the solar thermal industry and documents the installed solar thermal capacity across key global markets.

Global solar thermal capacity in 2023: 560 GW_th
Annual solar thermal energy yield: 456 TW_h
Mitigation: 158.4 million tons of CO₂
New solar thermal capacity in 2023: 21 GW_th

Markets with growth 2022/2023:

United Kingdom 66%

Mozambique 40%

India 27%

South Africa 12%

Greece 10%

Mexico 5%

Brazil 3%

Article written by Marisol Oropeza, Business and Marketing Strategist at matters and founder of Heat Changers.

Sources:

[1] REN21, Renewables 2024 Global Status Report – Energy Supply, 13, https://www.ren21.net/wp-content/uploads/2019/05/GSR2024_Supply.pdf

[2] REN21 (2024), Renewables 2024 Global Status Report – Global Overview, 16, https://www.ren21.net/wp-content/uploads/2019/05/GSR2024_Supply.pdf

[3] IEA SHC (2024), Solar Heat Worldwide 2024, 10-11, https://www.iea-shc.org/Data/Sites/1/publications/Solar-Heat-Worldwide-2024.pdf

Connecting the dots to industrial decarbonization

The good news is that industrial decarbonization is possible, and the even better news is that there is more than one way to achieve it.

We are now living three moments defining the pathways to industrial decarbonization: need, share and availability. Each of these moments deserves an analysis; however, how they converge gives us the key to tie up the dots and be able to observe the complete scenario in which industrial decarbonization is developing.

These moments respond to the motivations, the responsibility for greenhouse gas emissions and the feasibility of an energy transition in the sector. However, structuring the path to be taken is left to the context defined by public policies, regulations and access to benefits and technology. This gives us as a wide range of possibilities, where companies can make strategic, informed and practical decisions.

The following explains what these three moments are, their challenges and how to create that scenario of energy transition in the industrial sector where solar thermal energy plays a very important role in the path.

Necessity: new hopes and new rules for industry

Why decarbonize the industrial sector? In 2022, the industrial sector was responsible for a quarter of global carbon dioxide emissions. It is not without reason that, albeit slowly, more and more pressure is coming from different sides to shift industry away from fossil fuels.

However, the motivation to join targets for decarbonization can come from immediate factors that make this process a necessity:

Investors: these often have climate or decarbonization goals set out in their ESG (environmental, social and governance criteria). To accomplish these goals, they put pressure on the entities under their investment.
Public entities: they establish local, regional or international regulations, in some cases forcing the disclosure of emissions. For example, the NDCs of each country or the European Union regulations that contemplate in their goals the decarbonization of the industry.
The market: the decarbonization of the industry may also generate a boost in profits or may position companies in markets where they are not, with the benefit of staying where they already are.

These three factors feedback on each other and can strongly guide the industry’s decisions in its need to decarbonize its processes.

Share: #HeatIsHalf and the case of the energy transition

In the race towards zero emissions, it is urgent to address the problems at the source. The data come back again and again to confirm that a large part of the energy transition must be gestated from thermal energy.

The supply of electricity has a fair share of 30% from renewable sources. However, the overall need accounts for less than one third of the total final energy consumption.

"The transition is more complex than just changing the fuel, it's changing the energy system, and with changing the system, it's changing the energy supply and demand as well."

Rana Adib

Directora Ejecutiva de REN21

“The transition is not happening fast enough, the demand for energy is growing faster than the adoption of renewables. There are continued investments and subsidies for fossil fuels that prevent renewable energy from coming” says Rana in a podcast of The smarter E.

In addition to this, Rana also mentioned that another challenge is concentration. First, of technology, which continues to focus on developing more photovoltaics; and, second, geographically, leaving aside regions such as Africa, Asia – not including China, the Middle East and Latin America.

Availability: options for decarbonizing industry

Proportionally, the industrial sector has a significant impact on final energy consumption. Of that total thermal energy use, 53% is used for industrial processes, 44% in buildings to heat water and spaces, and 3% for agriculture, according to 2023 data from the International Energy Agency (IEA). In other words, proportionally, a quarter of all energy end use is purely in the hands of the industrial sector.

Specifically, in the industrial sector, the IEA believes that improvements towards decarbonization have been “modest” and “very slow,” largely due to the low development and implementation of new technologies. In the Zero Emissions scenarios for 2050, they consider technologies that have been proven to be effective but are not yet commercially available.

Here is where visibility plays a crucial role. According to the report Solar Heat Worldwide 2024 from the IEA SHC, there are at least 1,209 plants that deliver Solar Heat for Industrial Processes (SHIP) at low, medium and high temperature levels around the world.

A survey that is carried out annually, monitors the development of this market segment. The results from the 2023 survey, show that there are qualified suppliers with a remarkable track of systems installed in three continents: Asia, Europe and America.

There are multiple types of solar thermal technologies suitable for the specific needs of the factories. The survey also indicates that most of the suppliers produce the collectors in-house or assembly them on-site to deliver tailored-made clean heat solutions to clients from several industrial sectors around the world.

The thread that connects all: public policies and the market

We have already noted the proportional weight that thermal energy has in energy consumption, does this reflect in the world’s policies?

No, in REN21’s most recent report on the global status of renewables in 2024, of the 182 countries with renewable energy targets, only 43 have targets for heating and cooling. Meeting those targets will be the result of a series of guidelines and public policies that incentivize the inclusion of renewable technologies in the industry.

Public policies and the market are the context which shape the scenario for the industry to achieve its decarbonization. And in the need to move away from fossil fuels, transforming the origin of thermal energy, given its proportion, is a wise decision. The strategy lies in the ability to manage the availability of technology within the context that the market and policies provide.

Some examples of policies and regulations:

The case of CBAM in the European Union: the EU approved the Carbon Border Adjustment Mechanism, a tax in which the importer will have to declare the emissions linked to the production processes and, if they exceed the European standard, will have to purchase an “emissions certificate” with the EU CO2 price. If there is a carbon market in the exporting country, it will only pay the difference.
Nearshoring in Mexico: In recent years in Mexico, the advance of nearshoring has slowed down because the country does not provide enough energy from renewable sources. Some industries have not been able to locate in Mexico because they could not meet the percentage of clean energy established in their goals.
U.S. tax credits: The extension of clean energy tax credits that support the development of solar and wind energy now includes an additional 10% credit for the inclusion of U.S.-made materials.

Embracing solar thermal in the path of decarbonizing the industry

As we connect the dots of industrial decarbonization, it becomes clear that proactive steps are essential. Solar thermal technologies offer a viable and immediate solution to the need for decarbonization. Industries are urged to take advantage of the technological advancements and economic incentives available today. By integrating solar heating and cooling systems into their operations, businesses can significantly cut their carbon footprint and enhance their sustainability credentials. Let’s work together—industries, policymakers, and consumers—to accelerate the adoption of solar thermal energy and create a sustainable future for all.

Author: Laura Yaniz Estrada, Communications Consultant.

29. April 202414. June 2024

Decarbonizing the Service Sector with Solar Thermal

You may not know it, but solar energy is also heat! This is a call to action for hotels, spas, restaurants, hospitals, educational, leisure and sports facilities! Are you ready to include solar thermal energy in your facilities?

Businesses and organizations in the service sector are quick to source their electricity from renewable sources such as photovoltaics, but they are not so quick when it comes to thermal energy or heat. Today, there are affordable and reliable solutions that accelerate the transition to clean energy across the board in the service industry. Basically, it is about using the same sun to cover their heat demand (hot water) with solar heating technologies. However, this most in-demand use is being overlooked in the energy transition efforts.

Imagine a cake divided into three different sized pieces, and everyone wants the smallest piece and leaves the biggest one aside. The cake represents the final energy use, divided into three: electricity, transport and heat.

Although it is the smallest segment, electricity is the main target, with up to a third of electricity generation being covered by renewable energies. This is followed by energy generation for transportation, which poses other challenges. But thermal energy, which is the largest share – almost half of the cake– is still dependent on fossil fuels, as it has only managed to cover slightly less than 10% with renewables.

Solving this problem is our specialty.

Solar Thermal Energy for All Needs

First, what is solar thermal energy for? To get the same as we get with any fossil fuel: heat. Solar thermal technologies supply energy for different temperature requirements:

Low temperatures: For processes that require no more than 302°F (150°C), such as cooking, cleaning, pasteurizing, sterilizing, drying, steaming, simmering and pickling.

Medium temperatures: Ranges from 302°F to 752°F (150°C to 400°C) and is ideal for distillation, nitrate melting, dyeing and compression processes.

High temperatures: Yes, it can generate the heat needed for material transformation processes or to drive turbines that require more than 752°F (400°C).

Where Can Solar Thermal Be Used in the Service Sector?

The majority of the service sector’s heat demand is in the low temperature range and can be met by long-life, low-maintenance solar thermal systems.

Here are some examples:

Hotels, resorts and spas: for pool heating, water heating, laundry, kitchen and space heating.

Sports and leisure centers: similar to above, for pool heating, hot water for showers and steam baths, laundry service, cleaning and disinfection.

Restaurants and cafeterias: for hot water for sanitization, for brewing and for cleaning and disinfection processes.

Healthcare centers: Hot water for sanitary use, space heating, disinfection, cleaning and sterilization.

Decarbonizing with solar thermal is a goal of Will Giese, Senior Director of Government Affairs at Solaray Corporation, the parent company of SunEarth. We spoke to him in our podcast about the potential applications and scale of solar thermal in the United States. He points out how businesses leaders have started to think hard about where energy in commercial buildings comes from whether its renewable or not, whether its low-carbon or not.

“Solar thermal is kind of the ultimate energy efficiency measure through thermal generation. It makes everything better! If you go and look at solar thermal systems paired with gas backup systems, the greenhouse gas emissions reduction is quite a lot because the solar thermal system is working most of the time and your gas system really works as back up.”

Will Giese

Senior Director of Government Affairs at Solaray Corporation

What Benefits Can Business Expect with Solar Heating?

The most important: a better world. Committing to these changes in the private and public sector means accepting that our contribution will help tackle climate change by moving towards the goals we need in the world. Switching to solar thermal leads to an immediate reduction in greenhouse gas emissions, making our carbon footprint smaller and smaller.

Here are some benefits of switching to solar thermal in the service sector:

Economic: Although some businesses may dread this financial decision, switching to solar thermal immediately reduces the cost of electricity or gas for hot water by up to 70% over a period of up to 25 years. In addition, in many countries there are benefits and subsidies for those who opt for renewable energy. In the USA for example, thanks to the Inflation Reduction Act users can get an additional 10% a tax credit for installing US-made solar heating systems.

Environmental: Yes, we’ve already said that it helps to be part of building a better world, but reducing the company’s carbon footprint goes beyond ending direct consumption, it also extends to shortening supply chains and cleaner air and water.

Social: The benefits extend to the communities and cities we live in, to those working in the solar industry, promoting technology development, boosting a local and decentralized economy, demonstrating an interest in contributing to our society, leading by example and championing change.

Reputation: Heat Changers do not like greenwashing and reputation goes beyond a label saying “eco” or “organic”. Actions that significantly reduce the negative impact of economic activities on the environment not only help to meet global emissions reduction goals, but also demonstrate the commitment of companies to offer a truly sustainable service, which is preferred by more and more customers.

Another example of the benefits of solar thermal that goes beyond the service industry is its use in low-income housing. Will Giese pointed out the importance of using solar thermal in this sector. While this is a challenge because it is difficult to finance, these projects can improve the efficiency of multifamily buildings and reduce costs for people, bringing social, economical and environmental benefits.

If There Are Two Solar Technologies, Do You Have to Choose One?

No. It is all a question of correct energy diagnosis and dimensioning. There are suppliers who install both technologies to make the best use of the space and the solar resource. Another big advantage of solar thermal is its efficiency, i.e. how much heat the collectors can provide with the available solar energy and space.

The efficiency of solar thermal collectors is between 70 and 80 % (i.e. they use almost all of the solar radiation to do their job), whereas the efficiency of photovoltaic modules is 20 % at best. Therefore, solar thermal collectors require much less space to meet the largest demand (the biggest slice of the cake) and thus make room for electricity generation (the smallest slice of the cake).

How Do You Offer a High Quality and Sustainable Service?

Switching to solar energy offers freedom and security, even if some companies are reluctant to take this step. However, if we have convinced you, we recommend to get closer to specialists in this field who are part of our community. It is important that you evaluate the offers of the different providers in your area so that they can make a correct diagnosis of your consumption and processes, resolve your doubts and explain the technology that best suits your needs.

The solar market is as diverse as the needs that companies and people have. Will Giese give us an example: in Hawaii, solar thermal sector is the strongest than any other US state because energy prices are high and dependent on fossil fuels. There is no natural gas in Hawaii, so heating needs must be met with electricity, making the switch to solar thermal a smart decision.

However, the context of the needs can be different, from the commercial activities to the industrial ones. For example, according to Will Geise, companies such as Amazon, Wal-Mart or Target can fully convert their warehouses to solar thermal more quickly. Yet, for industrial companies whose production is highly dependent on energy prices, it can be more difficult to decide on a single energy source, as many other decisions have to be made, such as location, prices or taxes.

So, if you are in the process of switching to solar thermal, there will be always a solution for your business that will be personalized and efficient.

Author: Laura Yaniz Estrada, Communications Consultant.

26. March 202428. March 2024

Wanted: Women with green minds who care and dare

Women’s participation accelerates environmental decision-making.

CEOs, entrepreneurs, engineers, managers, marketers… the world needs a strong network of women with green strategic minds. To achieve sustainable goals, the industrial sector needs to transform its energy supply, and it has been proven that women’s participation accelerates environmental decision-making.

The industrial sector needs more women with green skills and green minds, women who know that caring is a strength, not a weakness.

Caring means thinking strategically to plan for the future, to be aware of the needs around us, to consider how many resources we have and how we can manage them. Caring also means being creative, finding solutions and passionately pursuing the projects that we know will improve our lives.

Throughout human history, caring has been delegated to women as unpaid, unrecognized and undervalued work. It became an undesirable trait that defined the professional paths of women, usually in subordinate and service positions. But now the world needs leaders who care… and women care.

Green care, green decisions

“Caring” is beyond the discourse of women having it like a natural “gift”, but a set of skills that are useful for people when making decisions: Supervision, vigilance, to look after, concern and responsibility, management skills, judgment, and more.

All these interpersonal skills are absolutely necessary to create a whole network of empowered people who can drive the energy transition that society needs to tackle climate change and achieve the Sustainable Development Goals (SDGs). We need more women to take these steps. It has already been proven that female leaders are more likely to support climate action and sustainability decisions.

Worldwide, the countries with a bigger share of women in their parliaments are more prone to ratify environmental treaties and adopt policies to address climate change. And we observe the same behavior in the private sector. According to a study by Bloomberg NEF and the Sasakawa Peace Foundation, companies with a higher proportion of women on their boards are more likely to improve energy efficiency, reduce the environmental impact of their businesses and invest in renewable energy

Women play a key role as promoters of a sustainability approach in their workspaces. Women’s leadership is, usually, long-term orientated which helps taking decisions to tackle issues like waste of energy and promoting the shift to renewable energy, according to a study conducted by the University of Urbino, Italy.

Energy sufficiency and efficiency and the integration of renewable energy sources are three processes women can lead in the corporate world.

It takes guts to become truly sustainable

Perhaps female leadership would take the green revolution to a deeper level: into the engine room of the factory, the heart and guts of any business. Using renewable energy sources from the origin to make products with a low carbon footprint or to offer clean services should be relatable to their very nature. Conventionally, decision makers in the industry have not dared to move away from fossil fuels in various stages of production. Apparently, the traditional option is reliable, efficient and cheap enough.

However, climate change and the geopolitical crisis have proven the opposite. Moreover, the development of clean technologies is mature enough to compete with the highly polluting options. Maybe the renewable energy lobby is not as powerful and aggressive as the fossil fuel lobby, and leaders still lack confidence in moving away from gas, oil or coal. More than 70% of global final energy consumption in the industrial sector is for heat generation, and 95% of this is met by burning fossil fuels. We, like humanity, must care about of this data. What if women change that?

There is a wide range of solar heating technologies that complement and synergize with other renewable energy sources to become the dream team of clean heat for industrial users from almost all sectors: food and beverage, chemical, pharmaceutical, automotive, mining, etc. The options range from plastic absorbers or air heating collectors that reach the temperatures required for drying processes in the agro-industry, to high-efficiency flat plate solar thermal collectors combined with heat pumps that reliably supply up to 90 °C for various processes, to concentrating solar systems that deliver heat above 350°C.

The shift to the relatively unknown solar heat may seem scary and risky. But if it takes guts, female leaders who care may be the ones daring to change. Alexandra Sutu from Solar Heat Europe is one of the female leaders in the renewable energy sector pushing for a better policy landscape in the European Union. Katrin Sprenger is the CEO of AKOTEC, a leading solar thermal collector manufacturing from Germany. Marisol Oropeza is the founder of the Heat Changers, the founder of the Heat Changers, an international initiative raising awareness about the market readiness, reliability, and potential of solar heating technologies for residential, commercial and industrial users. Take 17 minutes to listen what they have to say about decarbonization with solar in Europe.

Are you one of the female leaders in the industrial sector daring to become a heat changer and use solar heat in your factory? Reach out and, together, we can figure out how to take your sustainability efforts to a deeper level. There are plenty of female and male experts in the solar energy industry who will be more than glad to connect with leaders on the demand side to design tailored-made solutions.

Growing a green web

Despite women are half of the population, worldwide, only one-third is part of the renewable energy workforce, according to the International Renewable Energy Agency (IRENA). According to IRENA, there are some reasons why this is the case: firstly, there are cultural and social barriers based on perceptions of gender roles that can put girls off STEM careers from a young age. Then, the lack of flexibility in the workplace can lead to women hitting the glass ceiling and finally, the lack of mentorships.

However, there is data which backs the necessity to bring more women into the world of decision making. To bring about the necessary changes in companies towards renewable energy, we need women with STEM skills, but also CEOs who are convinced of the benefits of these decisions, women marketers, women salespeople, women managers – they can all act as mentors and collectively contribute to a strengthened green network.

The future will grow out of the green minds of women who really care.

Pass on the message to a woman who cares and is making a difference!

Written by Laura Yaniz Estrada, Communications Consultant.

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Author: Marisol Oropeza