Transformation strategies and system effects in the industry

Germany aims to become climate-neutral by the middle of the century. In order to achieve the climate protection targets in the industrial sector, more renewable energy sources and low-emission technologies must be used. In a new study, the Fraunhofer Institute for Solar Energy Systems ISE shows cost-effective transformation paths for industry and the associated effects on the energy system. 14 industrial sectors and the effects on the electricity market and grids are examined. There is also a social empirical analysis of voices from industry. The complete study can be downloaded via QR code or link.

Heat distribution and measurement systems of an air conditioning system (Photo: Fraunhofer ISE)According to the study, the direct electrification of processes and the use of emission-free fuels such as hydrogen are key components of a sustainable industry. The results are confirmed by a comprehensive survey of companies. The study is part of the research focus "Climate-neutral industry", with which Fraunhofer ISE supports companies in their transformation.

As part of the research project "IND-E" (Decarbonization and Electrification Potentials in German Industry), Fraunhofer ISE, together with its partners Öko-Institut, Albert-Ludwigs-Universität Freiburg and Offenburg University of Applied Sciences, analyzed the decarbonization of German industry from various perspectives. To this end, the team combined a qualitative and quantitative company survey (stakeholder analysis) with a quantitative model-based analysis.

To this end, the energy and electricity system models used by Fraunhofer ISE - REMod, DISTRICT, PowerFlex and flexAble - were expanded and applied. Thanks to the further development of the models, the project team now has tools with which analyses can be carried out with regard to cost-optimized transformation strategies, the economic efficiency of investments and the effects on the electricity system.

Heat pumps, electrode boilers, hydrogen

Exemplary result of the cost-optimized conversion of the heat supply of a paper manufacturer in southern Germany - with (Ref.) and without availability of hydrogen (n.a.). Legend: CHP: Combined heat and power plant; PtH: Power-to-Heat (Graphic: Fraunhofer ISE)According to the study results, the (high-temperature) heat pump is an important technology option for the provision of process heat in temperature ranges up to 200 °C (more on this in the "Energy technology" section). "At temperatures above 200 °C, for example, the electrode boiler is a key technology, as higher temperature levels can be achieved than with the high-temperature heat pump - but with lower efficiency," says project manager Dr. Charlotte Senkpiel. The use of hydrogen in industry makes sense in the area of material use, in steel production and in high-temperature processes such as the production of non-ferrous metals, glass and ceramics or metal processing. "In the energy-intensive steel, chemical and cement industries, entire process chains often have to be redesigned for the transformation - the technical options differ depending on the industry," explains co-author Markus Kaiser from Fraunhofer ISE. In steel production, for example, according to the analyses, it is important to expand the electricity-based recycling of steel scrap and to switch from coal-based blast furnaces to hydrogen-based direct reduction in primary production. In basic chemicals, the focus is on switching from fossil fuels to hydrogen for material use. The electrification of steam crackers for the production of high-quality chemicals is also an important option. In the cement industry, on the other hand, the increased use of biogenic energy sources together with direct electrification is an option for the provision of heat. In addition,_{CO2 capture} is necessary here to avoid process-related emissions. In other sectors such as metal processing, the paper and food industries, the analyses show that major differences in the transformation paths are to be expected. The proportion of self-supply through combined heat and power plants is likely to fall and a shift towards significantly higher electricity procurement from the grid is foreseeable.

The stakeholders' view of the transformation

Many companies in the energy-intensive industry are aiming to electrify their industrial processes. In order for them to invest in electrification measures, they need planning certainty regarding the availability of (low-cost) electricity and sufficient grid connection capacities, according to the companies surveyed. In addition, various factors determine whether investments in transformation measures are actually made. These include political framework conditions, future energy price developments, the availability of technologies and energy for transformation and securing international competitiveness. Some of the companies surveyed also emphasized the relevance of visionary and committed management in order to develop and implement ambitious transformation strategies.

Key topic "Climate-neutral industry"

The "IND-E" project is part of the key topic "Climate-neutral industry", under which Fraunhofer ISE supports companies in switching to a_CO2-neutral energy supply. The project results are intended to help plan measures more robustly and make better investment decisions. By converting their energy supply to renewable energies, companies can reduce their dependence on fossil fuels and meet current and future regulatory requirements.