Decarbonising Europe’s heavy industry, it’s not ‘Mission Impossible’

There’s no single path to reducing the industrial carbon footprint, but according to a new report, by focusing on high-impact actions at the right pace, businesses can enhance efficiency, reduce costs, and contribute to productivity in a low-carbon future.

A recent Fraunhofer IPA report articulates that hard-to-abate industries can still achieve net zero. Sponsored by the ABB Group, a global technology leader in electrification and automation, the analysis highlights how significant heavy industry is as part of the European economy, with sectors such as iron and steel, cement, chemicals and mining not only providing essential materials, but also boosting European industrial competitiveness.

Despite the environmental challenges faced by heavy industry, the report outlines how net zero can be attained. To discuss this challenge, the ABB Group organised a recent policy discussion at Euractiv.

The event discussion took place against the background of the European Commission’s Industrial Decarbonisation Accelerator Act, which aims to speed up industrial access to energy and decarbonisation.

ABB says businesses must be involved in policymaking to address renewables, electrification and energy efficiency, as NGOs can’t do it alone. Electrification is viable, and enacting key components can help achieve the 2050 goals. Progress is key, they say, and the Commission needs to know about the report’s existence.

Decarbonise urgently

Dr. Markus Kröll, Head of Business Division Circular Economy and Carbon Neutral Production, at the Fraunhofer Institute for Manufacturing Engineering and Automation IPA, highlighted the necessity of decarbonisation as well as the urgency for reducing greenhouse gas emissions in heavy industry.

He said that this presented not only challenges, but also opportunities, so long as industry was open-minded regarding the use of competing technologies.

There are, of course, different strategies for decarbonisation and other associated challenges, but innovations in resource utilisation can deliver effective efficiency gains, Kröll remarked. The importance of electrifying processes, especially in heat production, was also a key point.

Clear strategy, clear objectives

Brigitte van den Berg, Renew MEP and Shadow Rapporteur on the Resolution on energy-intensive industries in the European Parliament, said the EU needs a clearer European industrial strategy.

The strategy, she said, must be “one that sets clear objectives for green production and resilience. This should be a regular exercise that allows for adjustment and measures progress."

"The affordable energy action plan, as presented right now, does not address more fundamental issues with the governance of the Energy Union. It leaves room for an uneven playing field within Europe, and it does not address the ability of some Member States to slow down the development of European grids.”

According to van den Berg, “We need to explore new instruments in order to create demand for green products. This should cover public procurement, but also private markets. The Industrial Decarbonisation Accelerator Act should cover these measures.”

Van den Berg noted that “We need to rethink supporting industries. Direct support should primarily come from the EU or be very closely aligned with an EU strategy. It should preferably be allocated through competitive mechanisms like auctions.”

“The EU should support industrial ecosystems more, especially where current industries might leave. This means a stronger focus on key industrial regions and supporting enabling conditions there, like infrastructure and attracting the right workforce, through skilling and housing.”

Emerging technology

Chris Poynter, Division President for System Drives at ABB Motion, focused on the role emerging technologies can play in the decarbonisation of Europe’s heavy industry and manufacturing.

“According to the IEA, total emissions must fall by at least 50% by 2050 to meet climate goals. As industry is a main contributor to greenhouse gas (GHG) emissions, companies face pressure to invest in reduction efforts, said Poynter, adding, “However, some sectors are more challenging to address than others, and the necessary technology is not always available or even known,” he explained.

“We have partnered with Fraunhofer Institute to identify existing and mid- to long-term solutions that industries can adopt to tackle their emissions. The key message is that there are readily available solutions that can help today, while companies like ABB continue to partner with industry sectors to innovate and scale,” Poynter said.

Around 40% of energy demand today comes from industry, and heating is the largest energy consumer in industrial sectors (55%). Industry sectors need heat to manufacture their products, including glass, metals and food, which is often generated by burners, boilers or other machines that are fossil-fuel based.

Poynter said that heat could be produced by electricity coming from renewable sources.

“Existing technologies are available today to decarbonise certain hard-to-abate industries – we don’t need to wait 10 years. Innovating in the decarbonisation space is possible, and electrification is key. Technology is existing or under development, but policymakers’ support is instrumental for boosting renewable energy production and the reuse of the energy saved to decarbonise hard-to-abate sectors.”

Poynter explained the business case, saying, “Industries need to remain competitive. Companies like ABB work towards demonstrating tangible benefits not only for the environment, but also for their business.”

“Some of these technologies have a ‘side effect’ to increase productivity – we had a case in North America for heat electrification where the company gained 40% in productivity. We can achieve the same, but faster, more efficient and ultimately less harmful for the environment,” he explained.

[Edited By Brian Maguire | Euractiv's Advocacy Lab ]