Financing and realising energy efficiency and renewable energy projects in industry

Discover process heating

TrustEE prepares and finances energy efficiency and renewable energy projects that supply industrial process heating demands.

 

Why focus on industrial process heating?

Industry accounts for about 25% of the EU28 final energy demand. Of the total industrial energy demand, process heating consumes 1920 Terawatt hours or about sixty percent (60%). (1)

 


What is industrial process heating?

Steam, warm water, hot water or other warm/hot media is produced for use in industrial processes.

Fuels such as natural gas, coal, petroleum products, and biomass supply these processes.

 

Particle board manufacturing example 

 

 

Five industry sectors...

iron and steel, chemical and petrochemical, non-metallic minerals, pulp and paper, and food and beverage...
...account for over two-thirds of EU28 heat consumption(1)

 

 

 

 

 

 

And, five countries...

...account for almost 60% of process heating demand: Germany, Italy, UK, France and Spain. (1) 

 

  

 

 

Small & Medium Enterprises (SMEs)

Small and medium size enterprises (SMEs) represent: (1,5)

Why is TrustEE focused on SMEs?

As major contributors to Europe's economy, SMEs demand a significant amount of process energy. While European industry has cut energy intensity significantly since 2000, SMEs face challenges investing in energy efficiency and renewable projects, including:

  • Limited human and financial resources
  • Reduced access to capital and financing, and
  • Perceived/real risks.(5)

 

Share of SMEs (% total) for select industry sectors (1)

Sector# of Enterprises# of EmployeesValue added
Industry average 99.0 57.1 42.3
Mining & quarrying 99.2 81.1 74.8
Food & beverage 99.1 63.0 47.1
Textiles 99.2 71.5 72.3
Pulp & paper 97.3 53.4 41.5

 

Read TrustEE’s report for further information on SMEs. Learn more about TrustEE financing and services targeting SMEs…

 

  

 

Energy efficiency potential

Our challenge: Fossil fuels dominate

Fossil fuels, including natural gas, coal, fuel oil and others, supply:

  • >85% of industrial process heating

Biomass is the only significant renewable source supplying process heating (about 10%). 

 

Are there economical energy efficiency opportunities?

Yes, there are myriad opportunities for industry to generate a significant return on investment with energy efficiency!

If EU industry invested in all economic energy efficiency measures (<5 yr simple payback), the potential in 2030 is

  • 8-10% of final consumption. (4)

The table shows business as usual consumption through 2030 and two economic energy savings scenarios for the same period. Every industrial sector has promising opportunities!

SectorBAU consumption (MTOE/yr)Economic potential <2yr payback (MTOE)Economic potential <5yr payback (MTOE)
Pulp and paper 37.3 1.1 (2.9%) 1.4 (3.8%)
Chemical  66.4 2.6 (4%) 3.2 (4.9%)
Food & beverage 26.4 1.4 (5.2%) 1.7 (6.5%)
Machinery 19.8 2.0 (10.5%) 2.5 (13.3%)

 

 

Renewable energy potential

There is high economical and technical potential for renewable systems to supply industrial thermal processes.

Temperature requirements of the industrial process is an important consideration when determining which renewable systems are appropriate: 

  • Solar thermal with tracking systems can supply up to 250°C
  • Biogas systems with steam boilers can provide heat recovery up to 380°C
  • Biomass systems can supply process heating up to 2000°C.

 

Impact summary

Energy efficiency and renewables could supply 60% of industrial process heating energy. That is the energy equivalent of about 86,400,000 mid-to-large size EU homes! 

 

While fossil fuels dominate the supply of process heating energy in Europe today, the potential for economical energy efficiency is:

  • 8-10% (payback <5 yrs) or 192 TWh savings (4)

And the technical potential for solar thermal, biogas, and biomass systems in industry is:

  • Up to 50% of total process heating energy 

 

Advantages of efficiency and renewable investments

  • Enhanced process reliability

  • Reduced energy costs

  • Improved energy security

  • Mitigated risks including CO2 footprint reduction 

 

 

 

 

 

 

 

References

1. "Status of process heating in Europe: Sectors, processes, distribution, systems, and sources". 2017. TrustEE project report. 

2. "Conventional and process heat efficiency and sustainability (PHES) production: Technologies, system layouts, and renewable energy resources". 2017. TrustEE project report.

3. "Process heat collectors: State of the art and available medium temperature collectors". 2016. Horta, Pedro. Solar Heating and Cooling Programme, International Energy Agency.  

4. "Study on Energy Efficiency and Energy Saving Potential in Industry and on Possible Policy Mechanisms". 1 December 2015. ICF International under contract to the European Commission DG Energy.

5. "Accelerating Energy Efficiency in Small and Medium Enterprises". 2015. International Energy Agency, Policy Pathway Series.

6. Definition of small and medium enterprises: European Commission