Will making industrial processes more energy efficient lead to decarbonisation?
Energy efficiency contributes to decarbonisation, but is not sufficient to reach zero emissions. It should be part of a broad set of decarbonisation strategies that include fundamental process innovations, new value chains and sectorial couplings.
Cost savings have been a strong driving force for energy efficiency for several decades, especially in the energy-intensive industry. Energy efficiency aims to reduce energy consumption in industrial processes by developing and using new methods or technologies, and also optimising existing industrial processes. Government energy efficiency policies have been used for decades to further incentivise and support energy efficiency in industry (e.g., through R&D, audit programs, standardised energy management systems, and voluntary agreements) and is an established policy field.
Energy efficiency is one possibility in a broader menu of options to decarbonise industry, including materials demand management and efficiency [see DOCOL case study], circular economy, fuel switching [see Lime kiln case study], direct and indirect electrification [see HYBRIT case study] and carbon capture, utilisation and storage (CCUS). Energy efficiency should always be a priority, as recognised by the “energy efficiency first” principle adopted in the EU Industrial Strategy. Using less energy reduces strain on the energy system and energy sources, whether renewable or other. It leads to emission reductions when fossil fuels are used, directly or indirectly. However, energy efficiency does not in itself lead to zero emissions.
In most cases, energy efficiency will help decarbonisation. The pulp and paper industry is case in point – energy efficiency has helped kraft pulp mills become self-sufficient, using biomass by-products for energy, and eliminated the need to purchase extra fuel. Another example is strip casting [see Castrip case study], which by casting steel to near final shape avoids fossil fuel use during hot rolling. High temperature industrial heat pumps are an energy efficiency technology that can facilitate electrification by reducing the cost of electricity-based heat production. However, care should be taken so that energy efficiency does not create lock-in into existing processes. Energy efficiency may help reach short-term emission reduction targets but does not necessarily pave the way for deep decarbonisation through entirely new processes and feedstocks.
To transform to a climate-neutral economy in 2050, the question is how more fundamental process innovations can be applied in industry and implemented on a large scale. This may include new value chains and new couplings between industry and the electricity sector as well as new couplings between industrial sub-sectors.