Industrial decarbonisation technologies: what are they and how to choose the most suitable one

Industrial decarbonisation technologies are energy solutions that reduce CO2 emissions by improving energy efficiency, electrification of processes, the use of renewable fuels, heat recovery, renewable hydrogen or carbon capture. The right combination depends on the production process and the needs of each industry. 

What you need to know about decarbonization technologies:

• There is no single universal solution; Each industrial process (depending on its temperature and load profile) requires a specific technology or combination.
• Industrial biomass and waste heat recovery today offer the highest technical maturity, lower risk and a return on investment (Payback) faster to generate thermal energy.
• Heat pumps are efficient at low and medium temperatures (150ºC), but for high temperatures (400ºC) or difficult processes, biomass, green hydrogen and CCcus are the key vectors.
• The most cost-effective roadmaps integrate the simultaneous combination of various technologies (for example, thermal efficiency + bioenergy + renewable electrification).

What are decarbonisation technologies?

Industrial decarbonisation technologies are a set of equipment, engineering processes and renewable energy solutions designed to reduce or eliminate CO2 greenhouse gas emissions in industrial activities. 

Its main objective is to replace the use of fossil fuels (natural gas, coal, fuel oil, etc.) with clean energy vectors, improve the thermal efficiency of production processes and capture residual emissions to achieve climate neutrality or Net Zero.

How to choose the most suitable decarbonization technology?

Selecting the optimal solution for a manufacturing plant does not depend on technological fashions, but on a rigorous analysis of the operating parameters of the installation. Each factory has a unique thermal and productive profile.

Required temperature in the process

The temperature required by the machinery is the key factor in choosing the right decarbonization technology for your plant. For low temperature processes (less than 100°C), electric heat pumps are the most efficient option. At average temperatures (between 100°C and 400°C), industrial biomass is the most competitive alternative, especially for generating steam. Finally, for extreme heat (over 1,000°C), biomass combustion, green hydrogen or direct electrification by electric arc furnaces should be used.

Type of fuel used

Evaluate whether the installation burns natural gas channeled, LNG, fuel oil or coal allows calculating the impact of the change on existing boilers or burners, analyzing the degree of retrofitting or complete replacement that the plant will require.

plant energy consumption

The load curve and operational continuity (24/7 vs. discontinuous shifts) condition the choice. Technologies that offer manageable energy on demand (such as biomass or thermal storage) are essential for continuously operating processes.

Availability of renewable resources

It is key to analyze the geographic location of the factory. The proximity to sustainable sources of biomass of proximity, access to electrical networks with sufficient dumping/absorption capacity or proximity to hydrogenerators or transport tubes will condition logistics profitability.

Investment and expected return

Balance the initial investment (capex) with operational savings (OPEX) is essential to maximize Economic benefits of industrial decarbonization from the first year of operation. 

Regulatory requirements and ESG objectives

The level of exposure of the company to the EU emissions trading regime (RCDE), the payment of climate taxes and the demands of customer sustainability determine the urgency and scope of the project.

Main Technologies for Industrial Decarbonisation

To address decarbonisation in the manufacturing sector, a range of solutions adapted to each type of energy demand, thermal process and existing infrastructure is required. Below are the technologies with the greatest impact and implementation in the current market:

1. Industrial biomass: one of the most mature technologies

The Industrial biomass It is the most consolidated renewable solution for the generation of heat and process steam in the intensive industry. By using organic matter of forest or agricultural origin, it provides a continuous supply (24/7), fully manageable and independent of weather conditions.

• How it works: It consists of the controlled combustion of solid biofuels (forest chips, pellets, straw or agricultural pruning remains, olive bones, agricultural by-products) in high-efficiency boilers. The heat released is transferred to a carrier fluid (water, high pressure steam or thermal oil) that is distributed to the production process equipment.
• Industrial Applications: Generation of saturated and overheated steam for reactors, distillation towers, sterilization autoclaves, cooking and continuous drying batteries.
• Ventajas: Direct reduction of scope 1, economic savings against natural gas and guaranteed management 24/7 without flashing.
• Limitations: It requires physical plant space for the storage silo and truck maneuver, in addition to a guaranteed biomass logistics and supply plan.
• sectors of greater value: Food, paper, chemical, pharmaceutical, lumberjack and textile.

2. Industrial electrification: Replacing fossil fuels with renewable electricity

Electrification consists of replacing equipment that burns fossil fuels in the factory itself with systems powered by clean electricity from photovoltaic self-consumption or green PPA contracts.

• Electrified processes: All those that require driving force, cold generation, pumping, compression and, progressively, low and medium temperature heat.
• Industrial heat pumps: Highly efficient equipment that captures low-temperature residual heat and raise it by consuming little electricity, reaching high yields (COP between 3 and 5).
• Electric boilers: They generate hot water or process vapor passing current through resistors or submerged electrodes. They have a performance close to 100% and fast response, although their viability depends on very low electrical costs.
• Electric ovens: They replace the gas burners with resistance, induction or electric arc for very high temperature processes (metallurgy, glass or heat treatment).
• Advantages and challenges: It provides zero direct emissions in the plant and clean integration without waste management, but it faces challenges such as the high cost of electricity against solid thermals, the need for contracted power increases and bottlenecks in the network.

3. Green hydrogen for difficult to electrify processes

Green hydrogen is an energy vector produced by the electrolysis of water using electricity from 100% renewable sources (wind, solar).

• What is Green Hydrogen: A carbon-free fuel gas that only emits water vapor when burned, offering a high energy density per unit mass.
• When to use it: It is the ideal solution for thermally intensive sectors where direct electrification is not technically viable or where it is required as raw material (feedstock) Chemistry.
• Industrial Applications: High temperature combustion in furnaces (steel, metallurgy, glass), direct reduction of iron ore (DRI) and synthesis of fertilizers (green ammonia).
• Limitations and development: It presents a high production cost in electrolysers, lower efficiencies in the complete conversion cycle and lack of large-scale transport networks, although it is expected to reach cost parity with gray hydrogen by the end of the decade.

4. Recovery and use of residual heat

It consists of capturing the thermal energy that is lost by exhaust chimneys, liquid effluents, boiler purges or condensates to reintroduce it into the production cycle.

• What is waste heat: It is the unused heat generated as a by-product in industrial processes, representing one of the greatest inefficiencies of the plant.
• Recovery Technologies: Heat exchangers (economizers and preheaters), heat recovery boilers (HRSG) to produce steam and organic cycles Rankine (ORC) to transform medium/low temperature heat into electricity.
• Energy benefits: Increases overall installation performance, reduces primary fuel consumption with no additional costs of supply and immediately lowers CO2 emissions.
• Application Cases: Ceramic ovens, condensed in the paper industry and liquid effluents from laundries and textile plants.

5. Carbon capture, utilization and storage (CCUS)

the set of CCcus technologies (Carbon Capture, Utilization and Storage) allows trapping the CO2 emitted by industrial chimneys before it reaches the atmosphere.

• What does it consist of: The CO2 present in the flue gases is separated by chemical solvents (amines), membranes or cryogenics. Once captured, it is compressed and transported for permanent geological storage in deep saline aquifers or reused in industrial processes.
• When is it necessary: It is essential in industries with process emissions inherent to the chemical transformation of raw materials (such as the decarbonation of limestone in the production of cement or lime).
• Advantages and challenges: Allows to address the decarbonization of industrial sectors hard-to-abate, although it requires a high initial investment (capex), requires a high energy consumption to regenerate the solvent and depends on the development of transport and storage infrastructures.

Unlike fossil CO2, which comes from fuels such as oil, gas or coal, the biogenic CO2 that is captured after the combustion of renewable biomass can generate a negative net climate impact. 

Other technologies that drive industrial decarbonisation

Apart from the large thermal and electrical technologies, there are cross-sectional solutions that optimize the overall performance of the energy system:

• Digitization and energy monitoring: Implementation of SCADA systems and SGE platforms (based on ISO 50001) to measure consumption in real time and detect inefficiencies.
• Artificial intelligence: Use of machine learning algorithms to optimize combustion curves and adjust operations automatically, minimizing consumption.
• Energy storage: Application of electric batteries and thermal storage systems to manage peaks of demand and take advantage of renewable surpluses.
• Renewable heat networks: Centralized infrastructures that allow the sharing of thermal energy or residual heat between various plants of an industrial estate.
• Renewable fuels and biogas: Use of biomethane and e-Fuels as direct substitutes (drop-in) of natural gas, avoiding changes in boilers or internal networks.

Comparison of the main decarbonization technologies

The following table summarizes the degree of maturity, the scope of reduction and the applicability of each technology vector:

Can several technologies be combined?

Yes. In fact, practically all of the industrial plants that achieve climate neutrality do so by executing a Industrial Decarbonization Plan, since a single technology rarely meets all the energy demands of the factory.

• Hybrid strategies: Combine biomass (as continuous base load) with electric boilers (to take advantage of photovoltaic surpluses), solar thermal or thermal and electrical accumulation systems, among others, thus optimizing operating costs.
• Energy integration: Apply Pinch Analysis to recover all the residual heat and minimize the need for primary energy.
• Decarbonization roadmaps: Prioritize efficiency to reduce demand, replace the main fuel (biomass/electrification) and reserve higher cost technologies (hydrogen/CCUS) for the final phase of the plan.

To learn how to structure these steps in your company’s corporate strategy, you can consult our guides on What is Industrial Decarbonization.

How does ENSO help select the best technology?

On ENSO We help manufacturing companies navigate between the different technological options, acting as an integral energy partner from the conceptual diagnosis to the continuous operation of the installation.

• Neutral technical analysis: We objectively evaluate the mass and energy balances of your plant to determine which technology (or combination of them) fits optimally with your production process.
• Economic evaluation and ESE model: We study the profitability of the project under the Energy Services Company (ESE) model. We assume the initial investment (ZERO CAPEX for the customer), supplying renewable thermal energy under contracts for the purchase of energy and comprehensive energy services in the long term.
• Engineering and implementation: We develop detailed engineering, license processing, construction and hydraulic and steam integration with your existing boiler room without interfering with production.
• Results and operation tracking: We manage fuel supply, preventive maintenance and real-time monitoring of emission savings and reduction indicators.

If you want to analyze what is the optimal technological solution to decarbonize your factory, we invite you to know our services of Industrial decarbonisation Or contact our energy consulting team.

Frequently asked questions about decarbonization technologies

Why are they essential to reach the Net Zero?

Because the industry is responsible for about a third of global CO2 emissions. Without the transformation of industrial thermal processes through renewable technologies, it is impossible to achieve international climate neutrality targets by 2050.

What industrial sectors need them most urgently?

Those with high intensive consumption of thermal energy and exposed to the EU emissions trade regime (RCDE) of the EU: paper, agri-food, chemical, ceramic, steel, cement and lumber.

How do they help reduce CO2 emissions?

By replacing the combustion of natural gas or other petroleum derivatives with neutral sources in carbon (biomass) or renewable electricity, eliminating direct emissions through the chimney (scope 1).

What is the difference between electrification and green hydrogen?

Electrification uses renewable electricity directly to generate heat or strength (high efficiency global). Green hydrogen uses that renewable electricity to break the water molecule and generate a fuel gas that is then burned or reacted (lower overall efficiency, but necessary for very high temperatures or specific chemical processes).

What technology requires the least initial investment?

For the client company, any technology implemented under an ESE model (such as biomass plants or energy efficiency developed by ENSO) requires a initial investment of zero euros, since development and infrastructure are fully financed by the energy partner.