Industrial Electrification Growth Opportunities

Industrial Electrification Growth Opportunities

Continued concerns over global warming and increasing CO2 levels in our atmosphere undoubtedly transform how we generate, consume, and distribute energy. Governments worldwide are grappling for solutions to mitigate climate change and pave a pathway towards decarbonization. Our transition towards a sustainable future depends on developing alternative energy sources that are renewable and environment friendly.

Since 2010, industrial carbon emissions have continued to increase compared to other segments (energy sector, transport, buildings and agriculture, forestry and other land uses). Currently, industrial CO2 emissions represent an average of 29% of the global CO2 emissions during an average year. The industrial sector largely depends on fossil fuels to meet their energy demand. Heat makes up two-thirds of industrial energy demand across all industrial processes and almost one-fifth of global energy consumption, almost entirely powered by fossil fuels. Decarbonization of the industrial sector thus requires replacing the fossil fuel-based heating systems. However, this change is difficult across many industrial segments (steel, cement and other metals). Those industrial processes require high temperatures, which can be attained only using a fossil-fuel-based system.

To decarbonize the industrial segment, electrification of industrial processes is a promising alternative. It enables high process temperatures to be achieved in a tailor-made and efficient way and allows the utilization of RES. Electri?cation can be de?ned as the adoption of electricity-based technologies that replace technologies currently fuelled by non-electric sources, typically fossil fuels. The development of electrification technologies, including electric heat pumps, boilers, and furnaces powered by RES, can reduce emissions from the industrial sector. In addition, electri?cation of industrial processes also enables a reduction in ?nal energy use and has social and economic bene?ts, including a reduction in local air pollution, water consumption reduction and optimized production processes. Depending on the application, certain electrification technologies are commercially available, while others are still in development stages.

Concerning grid operations, electrification of the industry sector would mean increased pressure and load on the system. Increased industrial electrification would enable grid investments to expand electricity transmission and distribution networks. In addition, it would also lead to the development of aggressive and sustained supportive policies supporting research & development, demonstration, and new electrification technologies to run intensive thermal processes and meet net-zero carbon emissions goals.

In this study, we present a detailed analysis of the electrification of the industry sector, which includes a thorough introduction to the industrial sector and the established thermal processes across different industrial segments. Notably, the study presents other electrification technologies and their application across various industries in detail. The study also shows a detailed regional analysis of strategies for the electri?cation of sectors. Lastly, a roadmap for electrification of hard to abate industries, including steel, cement, chemicals and petrochemicals, are presented.