Our technical briefing for policymakers this morning focused on one of Europe’s biggest decarbonization challenges: industrial heat, which accounts for ~50% of Europe’s final energy consumption.
Key points discussed were:
- Low-temperature heat (<200 °C) solutions are already technologically mature. High-efficiency heat pumps can help offset elevated electricity prices.
- High-temperature solutions remain more challenging both technically and economically. However, a more favorable business case for it is possible with flexibility through integration of thermal energy storage.
- Hybrid heat systems (partial electrification of heat loads) offer a pragmatic transition pathway. They allow industry to reduce emissions today, while de-risking investment and maintaining operational resilience.
- Deployment remains constrained by project-level economics. Creating stronger investment signals will be critical to accelerate uptake.
- The most important factor for decarbonization is ultimately the relative price of electricity and natural gas. High electricity prices remain a key barrier to widespread adoption.
The 45-minute session was co-led by Peter Schniering, Marlène Siméon, James Lazenby, and Antoine Koen.
Thank you to all participants for the thoughtful discussion!
