How industrial companies can use the electrification of their heat generation as an additional source of revenue

Industry | Technology
How industrial companies can use the electrification of their heat generation as an additional source of revenue

The industry is facing major challenges in terms of energy and decarbonization strategies.
The war in Ukraine has increased the urgency of reducing fossil fuels, especially natural gas.
Despite the stabilization of the energy supply, competitive energy prices remain a problem.
Germany sources 90% of its fossil fuels from abroad, but would like to reduce this share to 30% through renewable energies.
A key question remains as to how industry can generate process heat cost-effectively and CO₂-free.
— Note: This is a summary of the article “Power-to-Heat as an opportunity for the industry” which appeared in VIK Magazine 2/24.
You can find the complete article at the bottom of the page as a PDF —

Importance of electrification for the industry

Germany aims to be climate-neutral by 2045.
The industrial sector currently emits the second-highest greenhouse gas emissions after the energy sector.
A rapid switch to sustainable heat generation in industry is crucial in order to meet the obligations to reduce natural gas consumption under the REPowerEU plan.
A study by Agora Industrie (Power-2-Heat, 09/2022) shows that industrial sites in Germany could save up to 90 TWh of natural gas and 12.5 million tons of CO₂ through electrification, which accounts for 18% of Germany’s sector target for industry.

Installed capacities and additional electricity consumption
Installed capacities and additional electricity consumption; source: Agora Industrie, FutureCamp (2022)

Sector-specific potential

The potential for electrification is particularly high in the paper, food and plastics industries for temperatures up to 500 degrees Celsius, which account for around 45% of industrial process heat requirements.
Companies can reduce their CO₂ emissions through electrification by reducing fossil fuels.
Power-to-heat enables CO₂-neutral generation of process heat through the use of renewable energies.
Modern thermal storage and power-to-heat systems can replace gas boilers or CHP plants and thus ensure security of supply.

Important contribution to the decarbonization strategy

Electrode boiler, source: Kraftanlagen Energies & Services
Electrode boiler, source: Kraftanlagen Energies & Services

The integration of heat pumps and electrode boilers in industry must go hand in hand with the decarbonization of the electricity sector.
Flexible electricity consumption enables better integration of renewable energies and helps to efficiently achieve the target of 80% renewable energies by 2030.

Sector coupling through power-to-heat

Power-to-heat plays an important role in the integration of renewable energies by converting excess supply on the electricity market into heat and thus increasing the share of renewable energies in the heating sector.
Flexible electrode boilers supplement capital-intensive heat pumps and respond to peaks in heat demand and flexibility incentives.

Flexibility of electrode boilers

Electrode boilers, which can be used up to 500 degrees Celsius, offer exceptionally good flexibility properties as they can react quickly to load changes and price fluctuations on the electricity market.
This speed is crucial in day-ahead and intraday trading and enables the use of various marketing options.
They are also suitable for control reserve products such as FCR and aFRR and contribute to the stability of the energy system.

Use of large heat pumps in industry

Large-scale heat pumps can be used for temperatures up to approx. 200 degrees Celsius and make efficient use of environmental or waste heat sources.
They are not as flexible as electrode boilers, but are well suited for base load-oriented optimization.
Their development for applications above 100 degrees Celsius offers great potential for further progress.

Different application possibilities in the use of flexibility

Both types of system offer flexible operation and are important building blocks for future energy concepts. They enable local optimization, system and grid-supporting measures as well as market-supporting balancing measures in short-term trading. Electrode boilers are characterized by their fast response times and are particularly suitable for balancing power markets and intraday trading.

Live visualization of Entelios AG
Live visualization of Entelios AG

Conclusion

Electrode boilers are a versatile tool for flexibility marketing due to their fast response and flexible adaptability and can be regarded as the Swiss army knife of flexibility marketing. They are ideal for participation in balancing power markets and contribute to the integration of renewable energies into the energy system.

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