“Anything that can be electrified should be electrified.” This is how Kristian Jensen, CEO of the Danish trade association Green Power Denmark, formulates the task that the EU countries will face in the coming decades to make Europe green, safe and competitive. A recently published report from Agora Industry now proves that this is actually possible: technologies for the direct electrification of industrial processes are already well developed and can already meet more than 60% of demand. This will increase further to 90% in the coming years. To achieve this, solid choices must be made quickly.
Action needed
According to research by Green Power Denmark, the EU's climate targets require electricity consumption of 4,500,000,000,000 kilowatt hours by 2030. While, according to the same research, the share of electricity in Danish industry has been largely unchanged since 2020 stayed; it has only increased by 0.4 percentage points – from 38.2 percent in 2020 to 38.6 percent in 2022. That development in no way corresponds to our climate ambitions and the security policy situation we find ourselves in, says Green Power Denmark: that requires for a new political focus on the use of green energy – both in Denmark and in the EU.
"I've designed and built many, many process plants and been involved in the design and construction of every industrial process you can imagine. In that history, with the dozens and dozens of plants I've been involved in, we used fire to heat in exactly one of the cases, in all other situations heat could be generated by means of electricity"
The technology is already there
Direct electrification of industry is not a prospect. A report was recently published by Agora Industry : Direct electrification of industrial process heat. An assessment of technologies, potentials and future prospects for the EU . Fraunhofer ISI (2024), which shows that it is already technically possible. Thanks to rapid innovation, a wide range of electrification technologies are already viable. The report concludes that the potential for using green energy directly from the grid as a means to accelerate the industrial transition has been underestimated compared to hydrogen and carbon capture and use/storage and examines current and upcoming opportunities for direct electrification.
Conclusions from the report
The most important conclusion from the Agora report is that technologies for direct electrification of European industry that are already available, such as industrial heat pumps and electric arc furnaces, can already be sufficient in 60% of the cases. Technology that is expected to become available in 2035 can meet 90% of the energy demand that has not yet been electrified by European industry.
According to Agora, the following technologies are eligible for electrification:
- Three-quarters of industrial CO2 emissions result from the combustion of fossil fuels that provide process heat for the production of industrial goods, such as chemicals, steel, paper, food and drinks. Process heat is the most important energy consumption in industry.
- A wide range of electrification technologies exist to meet specific process needs. Heat pumps and electric boilers can generate temperatures of up to 200 and 500 degrees Celsius respectively for chemical processes. Electric arc furnaces are widely used for steel production at 1800 degrees. Technologies such as resistance heating, induction heating and electric steam crackers will become available in the coming years and cover all ranges from 100 to 2500 degrees.
- The chemical industry has significant potential when it comes to the electrification of process heating, especially in electrified steam cracking and steam production, which is at least 18 percent of the final energy demand for steam generation and 26 percent for steam cracking. Carbon Black also has potential, albeit on a smaller scale. Significant efficiency gains are possible, especially at temperatures where heat pumps can be used. Induction and resistance heating also offer efficient alternatives to fuel-based heat.
- Electricity already accounts for a large part of the energy consumption of the non-ferrous metal sector. Even at high temperatures, including the production of primary aluminum from alumina and the processing of non-ferrous metals in electric furnaces. A large part (36 percent) of the remaining fossil fuel consumption produces temperatures below 500°C and can easily be electrified.
Agora's research provides an overview of the heating technologies that are already possible and that are expected to become available in the coming years:
An overview of the capacity of the various heating technologies that will be available by 2035 and the temperature that the applications can generate is as follows:
After 2035
The development of electrification technology will reach its full potential after 2035. However, the graph below does not provide accurate predictions, according to the Agora report. Electricity demand will vary and electric technologies achieve different efficiency values than current fossil fuel-based technologies. The graph estimates the differences in efficiency and illustrates the potential demand for electricity per electrification technology.
Recommendations
For the authors of the Agora report, stimulating demand is essential: without demand there is no new supply, and without new supply there is no opportunity for companies to become greener.
“Make direct electrification of industry a top priority in the upcoming EU policy strategy. Give a prominent role to renewable electricity in this. The technology is already largely available. Electrification of EU countries' energy consumption will support jobs and exports, it is the cheapest climate solution from an economic perspective and it will reduce companies' exposure to fluctuations in global energy prices.”
Such an action plan would include the formation of an industrial alliance to facilitate the market introduction of electrified heating technologies, for example by setting targets or targets for the deployment of heat pumps and e-boilers to enable investments. The action plan should also ensure financing schemes, such as Horizon Europe and the EU ETS Innovation Fund , prioritize direct electrification projects, address accelerated access to the grid for industry and ensure that industrial heat electrification is integrated into grid planning.
Agenda NSEC
Denmark is this year's co-chair of the North Sea Cooperation (NSEC). According to discussions between the Danish trade association and important European parties in the wind industry, the topic of electrification is also on the agenda of NSEC.
CEO of Green Power Denmark and former Minister of Finance, Kristian Jensen said this about it on LinkdIn:
"We need much more electrification. Both directly and indirectly. Fossil fuels must be replaces with green electrons and hydrogen from wind and solar. Transportation, heating and industry are falling behind the targets and the upcoming commission must present a common European plan for the transition away from black energy to green, locally produced and affordable power."
New cabinet
In addition to this portfolio, Sophie Hermans (VVD), the new Minister of Climate and Green Growth, will also be responsible for the tailor-made agreements with the industry. Until now, the Minister of Economic Affairs and Climate Policy (Micky Adriaansens) has done these negotiations. With the addition of the tailor-made agreements to the tasks of the minister who is also responsible for energy, a wish of the wind industry is being fulfilled, reports Energeia.
The wind industry has been talking for some time about the need to better coordinate energy and industrial policy. Due to a dynamic policy in stimulating offshore wind, but the lack of concrete tailor-made agreements, the supply of wind power is increasing faster than the demand. The hope is that with a minister who has both dossiers in his portfolio, policy can be better aligned.
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