May 22, 2025
Europe's utilities are strategizing for a path to 2050 in the electrifying industry.
The European Union aims to achieve climate neutrality by 2050, necessitating significant reductions in greenhouse gas emissions, especially from industry and transport, which are major contributors to the EU’s carbon footprint. Electrification, the shift from fossil fuel systems to electric alternatives, is seen as a vital strategy for decarbonization.
Recently, the French utility EDF presented its vision, stating that electrification is not only beneficial but essential for reaching the EU’s 2050 climate targets. The projection includes a fully decarbonized energy sector by 2050, with electricity accounting for 57%. However, other molecules like hydrogen will still be important for certain industrial sectors and international transport.
Currently, the chemicals sector is the largest energy consumer in Europe, followed by steel, non-metallic minerals, food, paper, and aluminum, which together make up 80% of industrial energy use. The analysis highlights that processes requiring less than 150 degrees Celsius of heat, like those in chemicals, steel, minerals, and aluminum, are easier to electrify compared to food and paper industries.
Aurélie Orcibal from EDF noted that focusing on easier processes could yield quick decarbonization wins, with a potential increase in electrification from 30% today to 95% by 2050, although the realistic target might be around 85%.
Three main obstacles to achieving electrification goals have been identified: technological challenges due to insufficient innovation, economic issues from inadequate CO2 price signals, and organizational problems stemming from a lack of information-sharing. Orcibal emphasized the need for developing technologies like electrical furnaces.
The sectoral scenario aligns with EDF’s broader net-zero vision for Europe, which indicates that achieving carbon neutrality by 2050 requires a 40% reduction in energy consumption and a transition to decarbonized fuels, with electrons making up 57% of the final energy mix.
Alexandre Paquot from the European Commission highlighted that the transition could enhance industrial competitiveness and emphasized the necessity of creating a business case for electrification to decarbonize industry, transport, and buildings.
To address financing challenges, Paquot is leading the development of an industrial decarbonization bank. He raised concerns about the current carbon price being too low to drive investment and suggested a carbon contract for difference as a potential solution, although it is difficult to implement under the current EU budget.
Industry representatives, including Philippe de Lastic from Clairefontaine, expressed frustration with existing obstacles, such as lengthy delays in grid connections and a shortage of high-voltage transformer manufacturers.
Overall, electrifying industry is not just a technical upgrade but a crucial element for the EU's decarbonization and climate objectives, with a focus on the unique needs of each sector being essential for successful transition.
Recently, the French utility EDF presented its vision, stating that electrification is not only beneficial but essential for reaching the EU’s 2050 climate targets. The projection includes a fully decarbonized energy sector by 2050, with electricity accounting for 57%. However, other molecules like hydrogen will still be important for certain industrial sectors and international transport.
Currently, the chemicals sector is the largest energy consumer in Europe, followed by steel, non-metallic minerals, food, paper, and aluminum, which together make up 80% of industrial energy use. The analysis highlights that processes requiring less than 150 degrees Celsius of heat, like those in chemicals, steel, minerals, and aluminum, are easier to electrify compared to food and paper industries.
Aurélie Orcibal from EDF noted that focusing on easier processes could yield quick decarbonization wins, with a potential increase in electrification from 30% today to 95% by 2050, although the realistic target might be around 85%.
Three main obstacles to achieving electrification goals have been identified: technological challenges due to insufficient innovation, economic issues from inadequate CO2 price signals, and organizational problems stemming from a lack of information-sharing. Orcibal emphasized the need for developing technologies like electrical furnaces.
The sectoral scenario aligns with EDF’s broader net-zero vision for Europe, which indicates that achieving carbon neutrality by 2050 requires a 40% reduction in energy consumption and a transition to decarbonized fuels, with electrons making up 57% of the final energy mix.
Alexandre Paquot from the European Commission highlighted that the transition could enhance industrial competitiveness and emphasized the necessity of creating a business case for electrification to decarbonize industry, transport, and buildings.
To address financing challenges, Paquot is leading the development of an industrial decarbonization bank. He raised concerns about the current carbon price being too low to drive investment and suggested a carbon contract for difference as a potential solution, although it is difficult to implement under the current EU budget.
Industry representatives, including Philippe de Lastic from Clairefontaine, expressed frustration with existing obstacles, such as lengthy delays in grid connections and a shortage of high-voltage transformer manufacturers.
Overall, electrifying industry is not just a technical upgrade but a crucial element for the EU's decarbonization and climate objectives, with a focus on the unique needs of each sector being essential for successful transition.