The path to a CO2-neutral production in industry

The path to a CO₂-neutral production in industry

According to the Danish Government's climate plan, Denmark must reduce its CO₂ emissions by 70 percent by 2030 compared to the emissions in 1990. Danish industry must, therefore, begin its green transition. This can be done, for example, by phasing out natural gas and replacing it with electricity – including electric high-temperature heat pumps. Earlier this year, Danish Technological Institute held a symposium on the use of the new high-temperature heat pumps. Some of the most important conclusions from the symposium are presented here.

Danish industry uses a large amount of natural gas in its production. The "black" natural gas emits large amounts of CO₂ into the atmosphere, and it is, therefore, necessary to phase out natural gas in the coming years. This means that the industry must switch to more renewable and climate-friendly energy sources such as electricity from solar cells and wind turbines. It is expected that the combination of electricity and high-temperature heat pumps will be able to completely phase out natural gas within the next few years.

Can heat pumps play a decisive role in the green transition of industry?
The short answer is yes. Currently, there are several projects underway in Europe where high-temperature heat pumps are implemented in large companies and cover their energy needs, for example, at a major sugar factory in Belgium – Tiense Suiker – where one of the production lines successfully has been completely converted from gas to electricity.

So yes, in practice, it is possible to turn your back on gas and only use renewable energy sources – including heat pumps. At the moment, we are, however, only talking about pilot projects, i.e., prototypes that the machine builders do not yet offer as off-the-shelf products. But it is expected that the off-the-shelf products will be ready within the next few years.

At present, there are commercially available heat pumps that can deliver temperatures between 120°C and 150°C. However, these temperatures are not sufficient in all industries. Another issue is the capacity of these heat pumps. They must of course be able to produce enough energy to cover the energy needs of the factory – also at peak loads. It is of no use that the production must stop because the heat pumps cannot keep up. But these requirements for temperatures and capacities will soon be met.

- We expect that the development of the heat pump technology will be fully matured within a few years, and then it will be possible to cover the energy needs of most industries, says Director Claus Schøn Poulsen from Danish Technological Institute, and he continues:
- In a few years, machine builders can deliver heat pump technology that can deliver steam at 10 bar, which is equivalent to around 180°C. Then, both the temperature and the capacity requirements will be met, and large parts of industry will be able to switch from natural gas to electricity as the primary energy source.

The tax structure needs to be changed

Oddly enough, the current tax system is working against the green transition because of the somewhat uneven taxes on gas and electricity. The tax on gas is relatively low, and the tax on electricity is high. This favors the black and CO₂-emitting gas, which works against the government's climate ambitions.

To make the green transition happen in the coming years, politicians must review and harmonize energy taxes, so it becomes genuinely profitable for companies to produce in a more climate-friendly way, for instance, by using green electricity instead of gas. It should also be economically viable for companies to transition from gas to electricity-driven production. Here, politicians bear a significant responsibility if their climate goals for 2030 are to be achieved. Therefore, if the green transition is to be pushed seriously forward, the framework conditions must be changed.

Advice before buying is crucial
In Europe, several large international companies and groups are in the process of planning the green transition, for example, by switching from gas to heat pumps. Danish Technological Institute is busy helping these companies so that the transition occurs smoothly and with the lowest possible costs in the long run. There are many pitfalls along the way as it is expensive to make wrong decisions and wrong purchases. The basis for decision-making must be in order from the start, and here, Danish Technological Institute can help.

- We are happy to take companies by the hand and help them on their way into the green transition, says Director Claus Schøn Poulsen from Danish Technological Institute. He continues:
- We have the necessary experience and know-how. We are also impartial and can provide factual and objective advice, so that the right decisions can be made at management level and to avoid that wrong investments are made when switching from gas to electricity. If we are to help the companies effectively, we need be involved from the start, i.e., already when the fundamental decisions are made. Only in this way, we can ensure that the basis for decision-making is in order, and that no expensive wrong investments are made. The companies need a green and efficient solution that works from day 1.

Claus Schøn Poulsen also points out that the transition needs to be economically viable, and here, the current uneven tax system on gas and electricity can actually slow down the green transition.

The heat pump technology is in the middle of a historic development, and the first systems are now being demonstrated. In the coming years, there will be a focused development and demonstration of solutions for higher temperatures and higher capacities – and most importantly, we need to get the end users to accept heat pumps as a green and climate-friendly alternative to gas. The framework conditions, i.e., the tax structure, therefore need to be rethought, so it becomes more economically attractive to electrify the production.

More than 400 people from all over the world participated in the High-Temperature Heat Pump Symposium 2024 about the use of heat pumps in the industry. End users were also represented among the participants. It is the end users who ultimately drive the green transition, and it is, therefore, positive to see that the end users have a desire to turn their backs on gas and focus on a greener and more climate-friendly technology in the future. The symposium was held in collaboration with Danish Technological Institute, DTU Compute, and SINTEF.

Contact: Claus Schøn Poulsen, Danish Technological Institute, e-mail: csp@teknologisk.dk, Phone: +45 72 20 25 14.