The industry sector is highly energy intensive, as many processes are reliant on heat. Sourcing this energy from electricity, particularly renewable sources, can substantially mitigate greenhouse gas emissions.

The industry sector is highly energy intensive, mainly because many industrial processes are reliant on heat. Direct greenhouse gas (GHG) emissions from fossil fuel combustion in industry generated 7.1 gigatonnes of carbon dioxide equivalent (GtCO2e) in 2019. But by sourcing that energy from electricity, which can be generated from renewable sources, GHG emissions can be substantially mitigated.

To achieve our climate goals, we need to move quickly to electrify industrial energy generation and decarbonize the power supply. Because the electrification of industrial heat does not yield energy efficiency gains, electrification only makes sense when it’s coupled with the decarbonization of the power supply. However, the promotion of electrification at an early stage can reduce the risk of locking in fossil fuel-based heating technologies, even when the power supply is not yet decarbonized.

Technologies to electrify low- and medium-temperature heat are already commercialized

Most electrification in industry has focused on non-heating machinery such as pumps, robotic arms and conveyor belts, but generating low- and medium-temperature heat (up to 1000 degrees C, or 1832 degrees F) electrically is commercially feasible, and the electrification of heat generation holds significant potential for decreased emissions. Existing technologies could electrify almost half of the energy use in the industry sector today.

Some of the main barriers to electrification are economic — namely, the price of fuel and the capital cost of equipment. Switching to electric power makes economic sense when electricity is cheaper than the fuel used in conventional equipment, but this is currently not the case in most places.

This being said, the declining cost of renewable electricity, a price on carbon and/or removal of fossil fuel subsidies, and research and development to improve the energy efficiency of electrical equipment could enable a shift to widespread electrification throughout the industry sector. 

Accelerated technical development and commercialization is needed to electrify high-temperature heat 

A separate challenge is electrifying high-heat processes (above 1000 degrees C, or 1832 degrees F). Although this is technically possible, it will require increased efforts in technological development, pilots and demonstrations, as well as considerable investment and policy support.

Other approaches are possible. For instance, industrial thermal batteries running on clean electricity can provide heat for industry and novel electricity-based technologies could reduce the need for high-temperature heat in steel production. Sustainable biomass and other low-carbon fuels could be sources for high-temperature heat. However, these resources are limited in supply, meaning that electrification will remain an important part of decarbonization.

Tracking progress on global outcomes

Key enablers and barriers to change

Data challenges

Centralized and comprehensive data on the electrification of industry and the changes needed in policy and investment to accelerate its scale up are limited. That is partly because the electrification of industry is reliant on emerging technologies, and partly because insufficient data is being collected and publicly published in a comprehensive manner. Some of the data shown throughout the electrification of industry shift is based on manual aggregation across many sources and only represents what information is publicly available, so may not be fully representative of everything that is happening on the ground.

Other shift Other shifts needed to transform the system

Reduce demand for cement, steel and plastics

To curb rising demand for industrial products that increase greenhouse gas emissions, we need to mainstream material efficiency and circular economy principles in climate policies, alongside adopting regulations incentivizing efficient resource use.

Improve industrial energy efficiency

Energy efficiency can power net-zero climate goals — it has the potential to mitigate over 40% of energy-related greenhouse gas emissions by 2040 across all sectors.

Commercialize new solutions for cement, steel and plastics

Since industrial process emissions that result from chemical reactions cannot be eliminated by decarbonizing the energy supply, new solutions and production methods are critically needed.

Reduce methane emissions from oil and gas operations as they are phased down

Methane is an extremely potent climate pollutant. In the short term, it’s much more potent than carbon dioxide, which is the most common greenhouse gas. To cut methane emissions in oil and gas operations, we need to adopt better monitoring techniques, take action to end flaring and venting, and identify and fix methane leaks.