• Energy Research

The need for deep decarbonisation in the energy intensive basic materials industry is increasingly recognised. In light of the vast future potential for renewable electricity the implications of electrifying the production of basic materials in the European Union is explored in a what-if thought-experiment. Production of steel, cement, glass, lime, petrochemicals, chlorine and ammonia required 125 TW-hours of electricity and 851 TW-hours of fossil fuels for energetic purposes and 671 TW-hours of fossil fuels as feedstock in 2010. The resulting carbon dioxide emissions were equivalent to 9% of total greenhouse gas emissions in EU28. A complete shift of the energy demand as well as the resource base of feedstocks to electricity would result in an electricity demand of 1713 TW-hours about 1200 TW-hours of which would be for producing hydrogen and hydrocarbons for feedstock and energy purposes. With increased material efficiency and some share of bio-based materials and biofuels the electricity demand can be much lower. Our analysis suggest that electrification of basic materials production is technically possible but could have major implications on how the industry and the electric systems interact. It also entails substantial changes in relative prices for electricity and hydrocarbon fuels.

The need for deep decarbonisation in the energy intensive basic materials industry is increasingly recognised. In light of the vast future potential for renewable electricity the implications of electrifying the production of basic materials in the European Union is explored in a what-if thought-experiment. Production of steel, cement, glass, lime, petrochemicals, chlorine and ammonia required 125 TW-hours of electricity and 851 TW-hours of fossil fuels for energetic purposes and 671 TW-hours of fossil fuels as feedstock in 2010. The resulting carbon dioxide emissions were equivalent to 9% of total greenhouse gas emissions in EU28. A complete shift of the energy demand as well as the resource base of feedstocks to electricity would result in an electricity demand of 1713 TW-hours about 1200 TW-hours of which would be for producing hydrogen and hydrocarbons for feedstock and energy purposes. With increased material efficiency and some share of bio-based materials and biofuels the electricity demand can be much lower. Our analysis suggest that electrification of basic materials production is technically possible but could have major implications on how the industry and the electric systems interact. It also entails substantial changes in relative prices for electricity and hydrocarbon fuels.

AbstractEnd-use efficiency, demand response and coupling of different energy vectors are important aspects of future renewable energy systems. Growth in the number of data centres is leading to an increase in electricity demand and the emergence of a new electricity-intensive industry. Studies on data centres and energy use have so far focused mainly on energy efficiency. This paper contributes with an assessment of the potential for energy system integration of data centres via demand response and waste heat utilization, and with a review of EU policies relevant to this. Waste heat utilization is mainly an option for data centres that are close to district heating systems. Flexible electricity demand can be achieved through temporal and spatial scheduling of data centre operations. This could provide more than 10 GW of demand response in the European electricity system in 2030. Most data centres also have auxiliary power systems employing batteries and stand-by diesel generators, which could potentially be used in power system balancing. These potentials have received little attention so far and have not yet been considered in policies concerning energy or data centres. Policies are needed to capture the potential societal benefits of energy system integration of data centres. In the EU, such policies are in their nascent phase and mainly focused on energy efficiency through the voluntary Code of Conduct and criteria under the EU Ecodesign Directive. Some research and development in the field of energy efficiency and integration is also supported through the EU Horizon 2020 programme. Our analysis shows that there is considerable potential for demand response and energy system integration. This motivates greater efforts in developing future policies, policy coordination, and changes in regulation, taxation and electricity market design.

AbstractEnd-use efficiency, demand response and coupling of different energy vectors are important aspects of future renewable energy systems. Growth in the number of data centres is leading to an increase in electricity demand and the emergence of a new electricity-intensive industry. Studies on data centres and energy use have so far focused mainly on energy efficiency. This paper contributes with an assessment of the potential for energy system integration of data centres via demand response and waste heat utilization, and with a review of EU policies relevant to this. Waste heat utilization is mainly an option for data centres that are close to district heating systems. Flexible electricity demand can be achieved through temporal and spatial scheduling of data centre operations. This could provide more than 10 GW of demand response in the European electricity system in 2030. Most data centres also have auxiliary power systems employing batteries and stand-by diesel generators, which could potentially be used in power system balancing. These potentials have received little attention so far and have not yet been considered in policies concerning energy or data centres. Policies are needed to capture the potential societal benefits of energy system integration of data centres. In the EU, such policies are in their nascent phase and mainly focused on energy efficiency through the voluntary Code of Conduct and criteria under the EU Ecodesign Directive. Some research and development in the field of energy efficiency and integration is also supported through the EU Horizon 2020 programme. Our analysis shows that there is considerable potential for demand response and energy system integration. This motivates greater efforts in developing future policies, policy coordination, and changes in regulation, taxation and electricity market design.

AbstractIn a future fossil-free circular economy, the petroleum-based plastics industry must be converted to non-fossil feedstock. A known alternative is bio-based plastics, but a relatively unexplored option is deriving the key plastic building blocks, hydrogen and carbon, from electricity through electrolytic processes combined with carbon capture and utilization technology. In this paper the future demand for electricity and carbon dioxide is calculated under the assumption that all plastic production is electricity-based in the EU by 2050. The two most important input chemicals are ethylene and propylene and the key finding of this paper is that the electricity demand to produce these are estimated to 20 MWh/ton ethylene and 38 MWh/ton propylene, and that they both could require about 3 tons of carbon dioxide/ton product. With constant production levels, this implies an annual demand of about 800 TWh of electricity and 90 Mton of carbon dioxide by 2050 in the EU. If scaled to the total production of plastics, including all input hydrocarbons in the EU, the annual demand is estimated to 1600 TWh of electricity and 180 Mton of carbon dioxide. This suggests that a complete shift to electricity-based plastics is possible from a resource and technology point of view, but production costs may be 2 to 3 times higher than today. However, the long time frame of this paper creates uncertainties regarding the results and how technical, economic and social development may influence them. The conclusion of this paper is that electricity-based plastics, integrated with bio-based production, can be an important option in 2050 since biomass resources are scarce, but electricity from renewable sources is abundant.

AbstractIn a future fossil-free circular economy, the petroleum-based plastics industry must be converted to non-fossil feedstock. A known alternative is bio-based plastics, but a relatively unexplored option is deriving the key plastic building blocks, hydrogen and carbon, from electricity through electrolytic processes combined with carbon capture and utilization technology. In this paper the future demand for electricity and carbon dioxide is calculated under the assumption that all plastic production is electricity-based in the EU by 2050. The two most important input chemicals are ethylene and propylene and the key finding of this paper is that the electricity demand to produce these are estimated to 20 MWh/ton ethylene and 38 MWh/ton propylene, and that they both could require about 3 tons of carbon dioxide/ton product. With constant production levels, this implies an annual demand of about 800 TWh of electricity and 90 Mton of carbon dioxide by 2050 in the EU. If scaled to the total production of plastics, including all input hydrocarbons in the EU, the annual demand is estimated to 1600 TWh of electricity and 180 Mton of carbon dioxide. This suggests that a complete shift to electricity-based plastics is possible from a resource and technology point of view, but production costs may be 2 to 3 times higher than today. However, the long time frame of this paper creates uncertainties regarding the results and how technical, economic and social development may influence them. The conclusion of this paper is that electricity-based plastics, integrated with bio-based production, can be an important option in 2050 since biomass resources are scarce, but electricity from renewable sources is abundant.

This paper examines policy processes surrounding the rise and fall of the proposed EU-wide policy instrument designed to help achieve the EU's renewable energy targets—the trading of Guarantees of Origin (GO). It discusses its origins and examines factors in the policy processes over time leading first to its development and then to its abandonment. A first analysis looks at the near-term policy-making process before and after the proposal on GO trading in January 2008, focusing on the European policy-making institutions and influences of interest groups and member state governments. It then takes a step back and looks over a longer time period at how competing policy frames have shaped the agendas underlying the debate. Results show how a strong internal market frame acted as a primary driving force in the Commission to promote the GO trading instrument. The rejection of the GO trading proposal in the Council and Parliament can be largely attributed to the lack of a strong lobby in favour of GO, the accumulated experience with and institutionalisation of national RES support policies such as feed-in tariffs, and growing general political concerns for supply security, innovation and competitiveness.