The Role and Impact of Energy Efficiency in the Decarbonization of Industry

Abstract

Energy efficiency - Critical for the green transition Energy efficiency means using less energy to make the same product. Most industrialised countries will continue to increase their industrial activity with time. This means increased power consumption and an even greater need to reduce industrial greenhouse gas emissions to reach climate goals set for 2030 and 2050. In addition to this comes the current push to develop EU industries for strategic automony (the Critical Raw Materials Act and the Net Zero Industry Act). Industries using fossil fuels must speed up their green transition markedly compared to current efforts. However, a lack of solar and wind capacity, network constraints, as well as a lack of lowcarbon fuels, such as hydrogen and fuels from biogenic sources, will be barriers to greenhouse gas emissions cuts in the industry. This makes energy efficiency essential for the green transition, since it reduces future demand for renewable energy and reduces grid constraints, making the transition both more feasible and more affordable. Within energy circles, it is often said that the energy we don’t use is the most sustainable. Increasing energy efficiency may be the easiest and most cost-effective decarbonisation strategy for many industrial sectors and is a critical toolbox of solutions when introducing carbon-free value chains. Implementing energy efficiency measures in industrial sectors can be a low-hanging fruit, in terms of technological maturity, costs and speed, and is also a clean energy pathway without controversies related to nature and biodiversity. The benefits of maximising energy efficiency in industrial sectors are clear. Implementing energy efficiency measures will reduce the demand for energy, providing more security in our energy supply. It will lead to less grid constraints, lower renewable installed capacity requirements and smaller energy and climate footprints per unit of industrial production. Depending on the energy mix, energy efficiency directly reduces CO2 emissions and mitigates climate change. Flexible, efficient, and decarbonised energy in Europe will increase Europe’s economic competitiveness, boost local economies, and uphold a strong workforce. There are several strategies to increase energy efficiency in industrial processes. Industries can benefit from utilising recycled feedstocks, which significantly reduces energy demand compared to primary production. Developing more energy-efficient processes, such as those operating at lower temperatures and pressures or with improved catalysts can lead to substantial efficiency gains. Implementing waste heat recovery techniques and process integration methods, involving heat pumps and heat integration, can recover and upgrade heat, reducing energy consumption. Another approach involves heat exchange within industrial clusters and maximising syngergies across industrial sectors, allowing excess heat to be shared with nearby users. Additionally, optimising cooling processes, improving separation and drying techniques, and adopting more efficient mechanical drive can further enhance energy efficiency. Lastly, monitoring energy use and employing digitalisation, can improve informed desisionmaking on energy efficiency in complex industrial systems. Despite past efforts in terms of innovative technologies and legislative and regulatory frameworks to enable the transition in the industrial sector, the potential for energy efficiency has yet to be fully realised. Therefore, in an effort to identify opportunities and challenges, this white paper will: •outline the current state of energy use and energy efficiency in industry, •present key solutions for improving energy efficiency, •outline the barriers to implementing these measures, •provide examples of real-life energy efficiency applications, and •provide recommendations for increasing energy efficiency in industrial sectors. frameworks to enable the transition in the