Electrification to support industrial emissions reductions

Meeting societal needs while reducing environmental impact

The challenge of climate change is no longer just a warning; it is a present-day reality. Meanwhile, global demand continues to rise for many materials, goods and services whose production is associated with substantial CO₂ emissions. Vattenfall works with industrial partners and offers long-term power purchase agreements (PPAs) in relevant markets. Depending on the electricity source, contractual arrangement and customer application, these activities may support reductions in greenhouse gas emissions.

Reducing industrial emissions requires collaboration across companies, sectors and public institutions. Vattenfall works with industrial partners to assess where electricity, hydrogen and heat from fossil-free sources could replace fossil-based energy or feedstocks while supporting competitive and affordable solutions. 

The broader picture

Today, we are living in a paradox. Although humanity has made significant advances in health, technology and infrastructure, we are facing mounting pressure from climate change, resource depletion and inequality. Current population projections suggest that the global population could approach 10 billion around the middle of the century.

Continued urbanisation is associated with growing demand for housing and transport infrastructure, including railways and electric vehicle charging networks. It is also leading to greater demand for consumer electronics and food. Without changes in production methods, material efficiency and consumption patterns, rising demand could lead to higher industrial greenhouse gas emissions. 

Global production of cement, steel and plastics has increased substantially over recent decades. The challenge is to meet societal demand while reducing the greenhouse gas emissions and other environmental impacts associated with production.

We are building cross-sector partnerships to support emissions reductions and climate objectives.

Electrification as a means to reduce emissions from industry and transport

Circular systems and products designed for longer use, reuse and resource efficiency can reduce demand for primary raw materials, depending on how they are implemented and used. Cross-sector partnerships, electrification and PPAs can support the development and deployment of lower-emission industrial technologies. Their emissions impact depends on factors including the electricity source, contractual structure, technology used and the conventional alternative replaced.

Vattenfall works with partners in sectors including steel, chemicals, refining, cement, logistics and food production to assess and develop solutions for reducing fossil-fuel use and greenhouse gas emissions. Depending on the application, direct electrification and indirect electrification using hydrogen produced with electricity from fossil-free sources may reduce emissions when they replace higher-emission conventional energy sources or feedstocks. Long-term PPAs can form part of the commercial arrangements that support these pathways.

Potential industrial emissions reductions depend on factors including access to qualifying electricity and hydrogen, suitable technology, long-term collaboration, stable policy frameworks, competitive energy costs, and appropriate infrastructure, including electricity networks and hydrogen transport and storage. Vattenfall works with customers, suppliers and public institutions on several of the conditions that can support the deployment of these solutions.

A customer’s perspective

In addition to working with industrial customers on potential emissions-reduction measures, Vattenfall considers the emissions associated with the goods and services it procures. As a purchaser of steel, cement, fuels and components, Vattenfall engages with suppliers and supports the development of alternatives intended to have lower greenhouse gas emissions than specified conventional products.

This perspective allows Vattenfall to address emissions through both its customer relationships and its procurement activities. Through initiatives such as HYBRIT, which develops hydrogen-based ironmaking, and the collaboration with Cemvision on cement with potentially lower production-related emissions, Vattenfall aims to support industrial innovation and assess how lower-emission materials can be used in its own projects.

Vattenfall is a founding member of the First Movers Coalition (FMC), which was launched at COP26 by the World Economic Forum and the U.S. State Department. Through the coalition, Vattenfall has made procurement commitments relating to specified emerging lower-emission technologies and materials. 
More information about the FMC and other supply chain initiatives can be found here.