Modern economies are enabled by the industrial production of key materials. This industrial production process is often accompanied by high carbon dioxide emissions. In 2020, the industry sector accounted for 36% of the global final energy consumption. Most of this energy consumption is through fossil fuels, making industry responsible for one fourth of the global energy-related emissions, right behind the power sector as the leading emitter. It is no surprise that industry in Europe finds it harder and harder not to look for settlement elsewhere, since climate policies suffocate investments in industry. Innovation in industrial production is therefore not only vital in the climate transition, but for Europe’s economy as well.
The International Renewable Energy Agency (IRENA) suggests five pillars to reduce industrial emissions:
- Reduced energy demand
- Improved energy efficiency
- Improved material efficiency
- Circular economy practices
- Structural changes
The last pillar (i.e., structural changes) refers to the use of clean energy and renewable heat, among other things. This obviously has the biggest impact on the whole supply chain of material production since it directly influences the production process. A striking example of innovation enabling structural change in the future can be found in petrochemistry.
This sector is one of the biggest industrial polluters due to its production process. Lighter alkenes, commonly known as olefins, are made with a process called steam cracking. Here, a gaseous or liquid hydrocarbon feed like naphtha, LPG or ethane is diluted with steam and briefly heated in a furnace at 850 °C, in the absence of oxygen. The produced olefins are later used to manufacture plastics and industrial solvents. Unfortunately, this process comes with considerable emissions: for each metric ton of ethylene, 1 to 1.6 metric tons of are produced. This means an annual emission of more than 300 million metric tons of CO2 of which 70% to 90% can be attributed to the combustion of fossil fuels. This is as much as the annual
emissions of France in 2022.
This inspired Shell and Dow to form a start-up for an e-cracking furnace experimental unit, located at the Energy Transition Campus in Amsterdam. As the name suggest, the e-cracking furnace is a way to electrically heat steam, decarbonizing the whole cracking procedure. 90% of scope 1 emissions could be reduced at costs economically competitive with conventional crackers. The experimental unit will be used to test a theoretical electrification model developed for retrofitting the gas-fired steam cracker furnaces of today, making eventual deployment on a commercial scale even faster. The next phase will be the design and construction of a multi-megawatt pilot plant, which is expected to be up and running in 2025. The Dutch government has already expressed their confidence in the program by awarding €3.5 million in funds.
Figure: Difference between a regular steam cracking furnace and an eFurnace (Source: Econopolis Strategy)
The e-cracking furnace is just one of many innovations seeking to help the climate transition in industry. Steel production through electrolysis and solar clinker production are other exciting hopes to transform this sector. Reimagining the industrial landscape is not only a necessity to combat climate change, it is as of equal importance to keep industry in Europe and make the European economy more resilient.
