Electrification of industry represents a fundamental shift towards a more sustainable model, especially in sectors where thermal intensive processes are essential, such as steel, metal, chemicals and cement. Traditionally, these industries have relied on fossil fuels to reach high temperatures, namely 50% of the heat used in industry is produced by the direct burning of fossil fuels and only 32% comes from electricity.
This situation puts the European economy on alert. By 2050, electricity demand is set to soar in all industrial sub-sectors. Steel and aluminium production will require almost 20% more electricity, and industries such as paper and pulp will double their electricity needs by 2050.
The role of thermal processes in electrification
One of the biggest challenges in industrial electrification is the supply of heat on a large scale, as processes such as metal smelting or cement production require very high temperatures.
Unlike fossil fuels, electricity allows for more precise temperature control, which increases process efficiency, reduces energy consumption and minimises waste. By 2035, it is projected that direct electrification could meet up to 90% of the not yet electrified energy demand of European industry.
This not only represents a saving in production costs, but also significantly reduces the carbon footprint, since, by relying on renewable electricity, greenhouse gas emissions are virtually eliminated. The most advanced countries in this respect, France and the United States, have already announced measures to help industry reduce its carbon footprint and have started on the path towards electrification.
Benefits of electrification: innovation and competitiveness
Electrification offers a clear competitive advantage by enabling industries to adapt to increasingly stringent environmental regulations and, in turn, foster a circular economy model.
Investment in electrification also translates into the development of cutting-edge technologies, which can position a region as a leader in innovation and an exporter of sustainable solutions. However, barriers to electrification include the relative cost compared to fossil gas and the limits of existing renewable electricity generation and transmission capacity.
Some of the solutions being promoted by the European Union are funding schemes such as Horizon Europe and the EU ETS Innovation Fund, which prioritise direct electrification projects and address grid access for industry. There is talk of 800 billion of investment, the minimum needed for grid investment.
The falling costs of renewable energy and its increasing availability are about to change this paradigm, turning electricity into a viable alternative that can definitively relegate costly and polluting fossil fuels, but first the aforementioned investment will be necessary to ensure the viability of this change in trend.
Challenges for Spain and the need for a solid infrastructure
In Spain, progress in electrification is limited by the current infrastructure and government support. While energy transition policies are in place, there is still a long way to go to develop electricity grids capable of supporting a fully electrified industry.
Proof that sufficient efforts are still not being made is the 3.1 billion euro industrial decarbonisation programme, focused on reducing carbon emissions in the industrial sector, which has attracted twelve cement projects, with an investment of 234.7 million euros, which would avoid the emission of 572,000 tonnes of CO2 per year, barely 10% of the emissions of the applicant companies.
Electrification as a pillar of decarbonisation and the green economy
Ultimately, the electrification of industry is an opportunity to transform emission-intensive sectors, reduce dependence on fossil fuels, and move towards a greener and more competitive economy. At the same time, it represents a major challenge that requires adequate infrastructure and sound support policies. Overcoming these challenges will allow Europe, and Spain in particular, not only to meet its climate commitments, but also to consolidate its position as a leader in the transition to a sustainable future.