IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i9p2408-d542106.html
   My bibliography  Save this article

Towards Deep Decarbonisation of Energy-Intensive Industries: A Review of Current Status, Technologies and Policies

Author

Listed:
  • Anissa Nurdiawati

    (Department of Industrial Economics and Management, KTH Royal Institute of Technology, 114-28 Stockholm, Sweden
    Department of Sustainable Production Development, KTH Royal Institute of Technology, 114-28 Stockholm, Sweden)

  • Frauke Urban

    (Department of Industrial Economics and Management, KTH Royal Institute of Technology, 114-28 Stockholm, Sweden)

Abstract

Industries account for about 30% of total final energy consumption worldwide and about 20% of global CO 2 emissions. While transitions towards renewable energy have occurred in many parts of the world in the energy sectors, the industrial sectors have been lagging behind. Decarbonising the energy-intensive industrial sectors is however important for mitigating emissions leading to climate change. This paper analyses various technological trajectories and key policies for decarbonising energy-intensive industries: steel, mining and minerals, cement, pulp and paper and refinery. Electrification, fuel switching to low carbon fuels together with technological breakthroughs such as fossil-free steel production and CCS are required to bring emissions from energy-intensive industry down to net-zero. A long-term credible carbon price, support for technological development in various parts of the innovation chain, policies for creating markets for low-carbon materials and the right condition for electrification and increased use of biofuels will be essential for a successful transition towards carbon neutrality. The study focuses on Sweden as a reference case, as it is one of the most advanced countries in the decarbonisation of industries. The paper concludes that it may be technically feasible to deep decarbonise energy-intensive industries by 2045, given financial and political support.

Suggested Citation

  • Anissa Nurdiawati & Frauke Urban, 2021. "Towards Deep Decarbonisation of Energy-Intensive Industries: A Review of Current Status, Technologies and Policies," Energies, MDPI, vol. 14(9), pages 1-33, April.
  • Handle: RePEc:gam:jeners:v:14:y:2021:i:9:p:2408-:d:542106
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/9/2408/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/14/9/2408/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lechtenböhmer, Stefan & Nilsson, Lars J. & Åhman, Max & Schneider, Clemens, 2016. "Decarbonising the energy intensive basic materials industry through electrification – Implications for future EU electricity demand," Energy, Elsevier, vol. 115(P3), pages 1623-1631.
    2. Ana-Maria Cormos & Simion Dragan & Letitia Petrescu & Vlad Sandu & Calin-Cristian Cormos, 2020. "Techno-Economic and Environmental Evaluations of Decarbonized Fossil-Intensive Industrial Processes by Reactive Absorption & Adsorption CO 2 Capture Systems," Energies, MDPI, vol. 13(5), pages 1-16, March.
    3. Kirschen, Marcus & Badr, Karim & Pfeifer, Herbert, 2011. "Influence of direct reduced iron on the energy balance of the electric arc furnace in steel industry," Energy, Elsevier, vol. 36(10), pages 6146-6155.
    4. Johanna Arlinghaus, 2015. "Impacts of Carbon Prices on Indicators of Competitiveness: A Review of Empirical Findings," OECD Environment Working Papers 87, OECD Publishing.
    5. Fischer, Carolyn & Newell, Richard G., 2008. "Environmental and technology policies for climate mitigation," Journal of Environmental Economics and Management, Elsevier, vol. 55(2), pages 142-162, March.
    6. Frauke Urban & Johan Nordensvärd, 2018. "Low Carbon Energy Transitions in the Nordic Countries: Evidence from the Environmental Kuznets Curve," Energies, MDPI, vol. 11(9), pages 1-17, August.
    7. Filip Johnsson & Jan Kjärstad & Johan Rootzén, 2019. "The threat to climate change mitigation posed by the abundance of fossil fuels," Climate Policy, Taylor & Francis Journals, vol. 19(2), pages 258-274, February.
    8. Alexander Otto & Martin Robinius & Thomas Grube & Sebastian Schiebahn & Aaron Praktiknjo & Detlef Stolten, 2017. "Power-to-Steel: Reducing CO 2 through the Integration of Renewable Energy and Hydrogen into the German Steel Industry," Energies, MDPI, vol. 10(4), pages 1-21, April.
    9. Johansson, Maria T. & Söderström, Mats, 2011. "Options for the Swedish steel industry – Energy efficiency measures and fuel conversion," Energy, Elsevier, vol. 36(1), pages 191-198.
    10. Oscar Svensson & Jamil Khan & Roger Hildingsson, 2020. "Studying Industrial Decarbonisation: Developing an Interdisciplinary Understanding of the Conditions for Transformation in Energy-Intensive Natural Resource-Based Industry," Sustainability, MDPI, vol. 12(5), pages 1-21, March.
    11. Rehfeldt, M. & Worrell, E. & Eichhammer, W. & Fleiter, T., 2020. "A review of the emission reduction potential of fuel switch towards biomass and electricity in European basic materials industry until 2030," Renewable and Sustainable Energy Reviews, Elsevier, vol. 120(C).
    12. Ferreira, A.F. & Soares Dias, A.P. & Silva, C.M. & Costa, M., 2015. "Evaluation of thermochemical properties of raw and extracted microalgae," Energy, Elsevier, vol. 92(P3), pages 365-372.
    13. David Popp, 2010. "Innovation and Climate Policy," NBER Working Papers 15673, National Bureau of Economic Research, Inc.
    14. Rootzén, Johan & Johnsson, Filip, 2015. "CO2 emissions abatement in the Nordic carbon-intensive industry – An end-game in sight?," Energy, Elsevier, vol. 80(C), pages 715-730.
    15. Leung, Dennis Y.C. & Caramanna, Giorgio & Maroto-Valer, M. Mercedes, 2014. "An overview of current status of carbon dioxide capture and storage technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 426-443.
    16. Frédéric Branger, Philippe Quirion, Julien Chevallier, 2017. "Carbon Leakage and Competitiveness of Cement and Steel Industries Under the EU ETS: Much Ado About Nothing," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    17. [multiple or corporate authorship]., 2014. "Cities chapter: better growth, better climate: the new climate economy report," LSE Research Online Documents on Economics 60480, London School of Economics and Political Science, LSE Library.
    18. David Popp, 2010. "Innovation and Climate Policy," Annual Review of Resource Economics, Annual Reviews, vol. 2(1), pages 275-298, October.
    19. Chris Bataille, 2020. "Low and zero emissions in the steel and cement industries: Barriers, technologies and policies," OECD Green Growth Papers 2020/02, OECD Publishing.
    20. Nataly Echevarria Huaman, Ruth & Xiu Jun, Tian, 2014. "Energy related CO2 emissions and the progress on CCS projects: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 31(C), pages 368-385.
    21. Thomassen, Gwenny & Van Passel, Steven & Dewulf, Jo, 2020. "A review on learning effects in prospective technology assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 130(C).
    22. Kan, Xiaoming & Hedenus, Fredrik & Reichenberg, Lina, 2020. "The cost of a future low-carbon electricity system without nuclear power – the case of Sweden," Energy, Elsevier, vol. 195(C).
    23. Löfgren, Åsa & Wråke, Markus & Hagberg, Tomas & Roth, Susanna, 2013. "The Effect of EU-ETS on Swedish Industry's Investment in Carbon Mitigating Technologies," Working Papers in Economics 565, University of Gothenburg, Department of Economics.
    24. Shon Ferguson & Mark Sanctuary, 2019. "Why is carbon leakage for energy-intensive industry hard to find?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(1), pages 1-24, January.
    25. Hu, Jing & Crijns-Graus, Wina & Lam, Long & Gilbert, Alyssa, 2015. "Ex-ante evaluation of EU ETS during 2013–2030: EU-internal abatement," Energy Policy, Elsevier, vol. 77(C), pages 152-163.
    26. Alla Toktarova & Ida Karlsson & Johan Rootzén & Lisa Göransson & Mikael Odenberger & Filip Johnsson, 2020. "Pathways for Low-Carbon Transition of the Steel Industry—A Swedish Case Study," Energies, MDPI, vol. 13(15), pages 1-18, July.
    27. Krausmann, Fridolin & Gingrich, Simone & Eisenmenger, Nina & Erb, Karl-Heinz & Haberl, Helmut & Fischer-Kowalski, Marina, 2009. "Growth in global materials use, GDP and population during the 20th century," Ecological Economics, Elsevier, vol. 68(10), pages 2696-2705, August.
    28. Hasanbeigi, Ali & Price, Lynn & Lin, Elina, 2012. "Emerging energy-efficiency and CO2 emission-reduction technologies for cement and concrete production: A technical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 6220-6238.
    29. Rissman, Jeffrey & Bataille, Chris & Masanet, Eric & Aden, Nate & Morrow, William R. & Zhou, Nan & Elliott, Neal & Dell, Rebecca & Heeren, Niko & Huckestein, Brigitta & Cresko, Joe & Miller, Sabbie A., 2020. "Technologies and policies to decarbonize global industry: Review and assessment of mitigation drivers through 2070," Applied Energy, Elsevier, vol. 266(C).
    30. Max Åhman & Lars J. Nilsson & Bengt Johansson, 2017. "Global climate policy and deep decarbonization of energy-intensive industries," Climate Policy, Taylor & Francis Journals, vol. 17(5), pages 634-649, July.
    31. Michael Hanemann, 2010. "Cap-and-trade: a sufficient or necessary condition for emission reduction?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 26(2), pages 225-252, Summer.
    32. Quader, M. Abdul & Ahmed, Shamsuddin & Ghazilla, Raja Ariffin Raja & Ahmed, Shameem & Dahari, Mahidzal, 2015. "A comprehensive review on energy efficient CO2 breakthrough technologies for sustainable green iron and steel manufacturing," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 594-614.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qingling Yu & Jing Li & Xinhai Lu & Liyu Wang, 2023. "A Multi-Attribute Approach for Low-Carbon and Intensive Land Use of Jinan, China," Land, MDPI, vol. 12(6), pages 1-22, June.
    2. Sun, Yong & Liu, Baoyin & Sun, Zhongrui & Yang, Ruijia, 2023. "Inter-regional cooperation in the transfers of energy-intensive industry: An evolutionary game approach," Energy, Elsevier, vol. 282(C).
    3. Furszyfer Del Rio, Dylan D. & Sovacool, Benjamin K. & Griffiths, Steve & Bazilian, Morgan & Kim, Jinsoo & Foley, Aoife M. & Rooney, David, 2022. "Decarbonizing the pulp and paper industry: A critical and systematic review of sociotechnical developments and policy options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    4. José Ramón Fernández, 2023. "An Overview of Advances in CO 2 Capture Technologies," Energies, MDPI, vol. 16(3), pages 1-4, February.
    5. Lieberwirth, Martin & Hobbie, Hannes, 2022. "Decarbonizing the Industry Sector and its Effect on Electricity Transmission Grid Operation - Implications from a Model Based Analysis for Germany," EconStor Preprints 261839, ZBW - Leibniz Information Centre for Economics.
    6. Bożena Gajdzik & Radosław Wolniak & Wies Grebski, 2023. "Process of Transformation to Net Zero Steelmaking: Decarbonisation Scenarios Based on the Analysis of the Polish Steel Industry," Energies, MDPI, vol. 16(8), pages 1-36, April.
    7. Christoph Loschan & Daniel Schwabeneder & Matthias Maldet & Georg Lettner & Hans Auer, 2023. "Hydrogen as Short-Term Flexibility and Seasonal Storage in a Sector-Coupled Electricity Market," Energies, MDPI, vol. 16(14), pages 1-35, July.
    8. Daniele Dadi & Vito Introna & Miriam Benedetti, 2022. "Decarbonization of Heat through Low-Temperature Waste Heat Recovery: Proposal of a Tool for the Preliminary Evaluation of Technologies in the Industrial Sector," Sustainability, MDPI, vol. 14(19), pages 1-28, October.
    9. Vasileios Alevizos & Ilias Georgousis & Anna-Maria Kapodistria, 2023. "Towards Climate Neutrality: A Comprehensive Overview of Sustainable Operations Management, Optimization, and Wastewater Treatment Strategies," Papers 2308.00808, arXiv.org.
    10. Stefan M. Buettner, 2022. "Roadmap to Neutrality—What Foundational Questions Need Answering to Determine One’s Ideal Decarbonisation Strategy," Energies, MDPI, vol. 15(9), pages 1-24, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Skoczkowski, Tadeusz & Verdolini, Elena & Bielecki, Sławomir & Kochański, Max & Korczak, Katarzyna & Węglarz, Arkadiusz, 2020. "Technology innovation system analysis of decarbonisation options in the EU steel industry," Energy, Elsevier, vol. 212(C).
    2. Buchholz Wolfgang & Heindl Peter, 2015. "Ökonomische Herausforderungen des Klimawandels," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(4), pages 324-350, December.
    3. Alla Toktarova & Ida Karlsson & Johan Rootzén & Lisa Göransson & Mikael Odenberger & Filip Johnsson, 2020. "Pathways for Low-Carbon Transition of the Steel Industry—A Swedish Case Study," Energies, MDPI, vol. 13(15), pages 1-18, July.
    4. Sandberg, Erik & Toffolo, Andrea & Krook-Riekkola, Anna, 2019. "A bottom-up study of biomass and electricity use in a fossil free Swedish industry," Energy, Elsevier, vol. 167(C), pages 1019-1030.
    5. Ren, Lei & Zhou, Sheng & Peng, Tianduo & Ou, Xunmin, 2021. "A review of CO2 emissions reduction technologies and low-carbon development in the iron and steel industry focusing on China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    6. Alessandra Colombelli & Jackie Krafft & Francesco Quatraro, 2021. "Firms’ growth, green gazelles and eco-innovation: evidence from a sample of European firms," Small Business Economics, Springer, vol. 56(4), pages 1721-1738, April.
    7. Raphael Calel & Antoine Dechezleprêtre, 2016. "Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market," The Review of Economics and Statistics, MIT Press, vol. 98(1), pages 173-191, March.
    8. Lazkano, Itziar & Pham, Linh, 2016. "Do Fossil fuel Taxes Promote Innovation in Renewable Electricity Generation?," Discussion Paper Series in Economics 16/2016, Norwegian School of Economics, Department of Economics.
    9. del Río, Pablo, 2012. "The dynamic efficiency of feed-in tariffs: The impact of different design elements," Energy Policy, Elsevier, vol. 41(C), pages 139-151.
    10. Sinha, Rakesh Kumar & Chaturvedi, Nitin Dutt, 2019. "A review on carbon emission reduction in industries and planning emission limits," Renewable and Sustainable Energy Reviews, Elsevier, vol. 114(C), pages 1-1.
    11. Quader, M. Abdul & Ahmed, Shamsuddin & Ghazilla, Raja Ariffin Raja & Ahmed, Shameem & Dahari, Mahidzal, 2015. "A comprehensive review on energy efficient CO2 breakthrough technologies for sustainable green iron and steel manufacturing," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 594-614.
    12. Tilmann Rave & Ursula Triebswetter & Johann Wackerbauer, 2013. "Koordination von Innovations-, Energie- und Umweltpolitik," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61.
    13. Carolyn Fischer & Garth Heutel, 2013. "Environmental Macroeconomics: Environmental Policy, Business Cycles, and Directed Technical Change," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 197-210, June.
    14. Martin Larsson, 2017. "EU Emissions Trading: Policy-Induced Innovation, or Business as Usual? Findings from Company Case Studies in the Republic of Croatia," Working Papers 1705, The Institute of Economics, Zagreb.
    15. Furszyfer Del Rio, Dylan D. & Sovacool, Benjamin K. & Foley, Aoife M. & Griffiths, Steve & Bazilian, Morgan & Kim, Jinsoo & Rooney, David, 2022. "Decarbonizing the glass industry: A critical and systematic review of developments, sociotechnical systems and policy options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 155(C).
    16. Nicolli, Francesco & Vona, Francesco, 2016. "Heterogeneous policies, heterogeneous technologies: The case of renewable energy," Energy Economics, Elsevier, vol. 56(C), pages 190-204.
    17. Ida Karlsson & Johan Rootzén & Alla Toktarova & Mikael Odenberger & Filip Johnsson & Lisa Göransson, 2020. "Roadmap for Decarbonization of the Building and Construction Industry—A Supply Chain Analysis Including Primary Production of Steel and Cement," Energies, MDPI, vol. 13(16), pages 1-40, August.
    18. Atkinson, Robert D. & Hackler, Darrene, 2010. "Economic Doctrines and Approaches to Climate Change Policy," MPRA Paper 29718, University Library of Munich, Germany.
    19. Dugoua, Eugenie & Dumas, Marion, 2021. "Green product innovation in industrial networks: A theoretical model," Journal of Environmental Economics and Management, Elsevier, vol. 107(C).
    20. Rissman, Jeffrey & Bataille, Chris & Masanet, Eric & Aden, Nate & Morrow, William R. & Zhou, Nan & Elliott, Neal & Dell, Rebecca & Heeren, Niko & Huckestein, Brigitta & Cresko, Joe & Miller, Sabbie A., 2020. "Technologies and policies to decarbonize global industry: Review and assessment of mitigation drivers through 2070," Applied Energy, Elsevier, vol. 266(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:14:y:2021:i:9:p:2408-:d:542106. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.