Energy-Intensive Process Industries

How does the EU support research and innovation on energy-intensive process industries?

Energy-intensive industries comprise sectors, such as steel, cement, lime, chemicals, aluminium, ceramics, glass, pulp and paper. These industries and their products are embedded in many strategic value chains and their presence in the EU is an important part of global European resilience from a policy, economic and societal perspective. 

At the same time, energy-intensive industries represent around 19% of greenhouse gas emissions in the EU and make up more than half of the energy consumption of EU industry. For these industries, reaching climate neutrality in line with major global climate commitments and to ensure their long-term sustainability and competitiveness is a challenging but, with the deployment of the right instruments and strategies, a possible goal (see IPCC 2022 report on mitigation of climate change).  

Research and innovation plays a significant role in the industrial climate neutrality transition of energy-intensive and hard to abate industries. It supports the development and adoption of new energy efficient production processes and technologies enabling the switch from fossil fuels to renewable energy, e.g. via electrification related to hydrogen use or development of Carbon Capture and Utilisation technologies for hard to abate industrial CO2 emissions. 

The European Green Deal and the Industrial Strategy are setting the policy framework for sustainable and future proof development of the EU economy. Apart from responding to societal challenges, together with the more recent Green Deal Industrial Plan, they also aim to boost the competitiveness of Europe’s industry while accelerating the transition to climate neutrality. 

Horizon Europe's role in industrial transformation

Horizon Europe, in closely partnering with industry via dedicated partnerships such as Processes4Planet and Clean Steel, is investing in research and innovation to boost transformation of energy-intensive industries into competitive net-zero industries. 

EU investment in research and innovation helps the flourishing of net-zero industrial value chains across Europe. Part of the research and innovation policy role is facilitating the deployment of new clean technologies and production processes that are still at the pilot or near-commercial scale. 

The Commission report on the Scaling up innovative technologies for climate neutrality maps over 180 demonstrators in energy-intensive industires, that develop technologies towards climate neutrality and have been financed by EU instruments (mostly Horizon Europe, Horizon 2020 and the Innovation Fund) or individual EU countries through Important Projects of Common European Interests. An interactive map on demonstrators for clean innovative technologies in energy-intensive industries available. 

In parallel, increasing the circularity of industrial processes and reducing waste generation are also important aspects of the industrial transformation. They have a broader impact on EU industrial sustainability including not only the  relevance for climate neutrality but also the efficient use of resources, i.e. materials, energy and water) via circularity and more sustainable industrial life cycles. 

As an example of targeted action, the Hubs4Circularity European Community of Practice (ECoP), focusing on deployment of demonstrators linked to sectorial collaboration and reduction and optimisation of the use of resources in a profitable way, was launched in summer 2022. The aim is to exchange knowledge, human capital and development of learning resources. Discover the infographic and get involved. 

Furthermore, dedicated European Research Area (ERA) Industrial technology roadmaps have been produced in 2022 on low-carbon technologies in EIIs and in 2023 on circular technologies and business models in EIIs to support the industrial decarbonisation agenda. 

Horizon Europe Partnership Processes4Planet (P4Planet)

P4Planet is a Horizon Europe co-programmed partnership with an overall budget of €2.6 billion, €1.3 billion from Horizon Europe and €1.3 billion for the private partners.

It is the successor to the Horizon 2020 SPIRE Partnership. The partnerships private partners are represented by A.SPIRE, with more than 150 members.

P4Planet‘s ambition is to make European energy intensive process industries circular and climate neutral by 2050 and enhance their global competitiveness.

At least 10 leading sectors of the European Process Industry will be engaged in the implementation of the partnership. These include cement, steel, ceramics, chemicals, engineering, minerals and ores, non-ferrous metals, water, refineries, and pulp or paper.

The partnership works on emerging technologies and on the scaling up of already developed technologies at higher technology readiness levels (TRLs) to deliver expected CO2 emission reductions by 2030 and achieve their full impact by 2050.

Proactive and continuous engagement with EU countries, regions, civil society, other research and innovation partnerships and initiatives, and other relevant stakeholders is crucial.

The P4Planet project portfolio contains more than 180 projects. The portfolio evolved from the first calls of Horizon 2020 where the focus was on Energy Intensive Industries energy efficiency to a richer approach where aspects such as the integration of renewables, e.g. via electrification or use or hydrogen, carbon capture and utilisation, circular economy, including Hubs for Circularity, digitalisation or industrial competitiveness in general are also considered.

Horizon Europe Partnership Clean Steel (CSP)

Clean Steel partnership (CSP) is a co-programmed partnership for the years 2021 to 2027 dedicated to the steelmaking sector in the framework of Horizon Europe and the Research Fund for Coal and Steel (RFCS). It has a combined public budget of €700 million, with additional contribution from the private side of €1 billion.

The partnership aims to decarbonise the European steel sector and transform it into a competitive, sustainable, and circular industry. It tackles 2 major challenges: fighting against climate change and ensuring sustainable growth for the EU. 

By 2027 it will implement at least 2 demonstration projects leading to a 50% reduction in CO2 emissions and achieve technology readiness level 8 by 2030 in at least 12 areas funded by the partnership. The final ambition is to reduce CO2 emissions by 80-95% by 2050 (compared to 1990), ultimately achieving carbon neutrality. 

The partnership's private side is represented by ESTEP, a technology platform devoted to steel and counting about 70 members. The CSP is implemented through a portfolio of 32 projects (as of 2024) under both the involved programmes of Horizon Europe Cluster 4 topics for Clean Steel and the RFCS. The projects funded target the 6 specific objectives listed in the partnership’s Strategic Research and Innovation Agenda (SRIA).

Research and Innovation Deployment Agenda for climate neutrality of energy-intensive industries 

There are many ongoing public and private research and innovation activities further supporting the industrial transformation process by stimulating, guiding, and accompanying energy-intensive industries on the path to climate neutrality. Their general focus is on making the necessary low-carbon industrial technologies available and ready for deployment in time to meet the targets towards the 2050 climate neutrality.  

The Research and Innovation Deployment Agenda is tracking these activities and actions with a view to enhance transparency and cooperation in monitoring, gap analysis and understanding of investment needs related to industrial transformation. 

By concentrating these elements, the agenda promotes the acceleration of the development and deployment of low-carbon technologies, building viable business cases, supports public and private investments, showcases the opportunities related to the decarbonisation of the energy intensive industrial sectors, and helps efficiently address potential gaps and barriers.  

At the same time, the Research and Innovation Deployment Agenda helps reinforce and develop links between private and public industrial stakeholders and supports active dialogue among the EU, national, regional, and private industrial stakeholders, and projects.

 It can be further enhanced based on the results of actions such as dedicated Mutual Learning Exercise on Industrial decarbonisation and focus on the development of industrial technology roadmaps and knowledge valorisation related to the research and innovation industrial portfolio can be further enhanced based on a coordinated and transparent approach.

Examples of relevant activities:  

• Modelling Energy Intensive Industries transition to climate neutrality, sustainability and circularity ​ 
  • Horizon Europe Cluster 4, Research and innovation actions: TRANSCIENCE, AMIGDALA projects 
  • Projects should deliver a robust, forward-looking analytical basis for decarbonization strategies interlinked with macro-economic and energy system trends​
  • Timeline: January 2024 - December 2026​ 
• Mapping and monitoring of the EII transition to climate neutrality
  • European Commission/JRC​ administrative agreement  
  • Strongly interlinked with the ​European Innovation Centre for Industrial Transformation and Emissions (INCITE)​ 
  • Project aims to enhance and enrich the energy-intensive industry demonstrator dataset, development of sectorial transition factsheets as well as case studies
  • Timeline: June 2024 – May 2026
• Boosting Horizon Europe and Innovation Fund synergies on EII and low carbon technologies/CCU​ 
  • Horizon Europe Cluster 4, CSA: 2DPLOY - Development of an innovation pipeline to facilitate and promote funding proposals for deployment of energy-intensive industries low carbon technologies; LEADS - Creating and managing a pipeline of H2020 projects for the Innovation Fund on CCU(S). 
  • Timeline: January 2024 – December 2026
• Furthermore, exchanges and knowledge sharing on industrial decarbonisation strategies, programmes and policy instruments have been explored through the European Research Area (ERA) Action 12 on “Accelerating the twin transition of Europe’s key industrial ecosystems” and will continue implementation through ERA Action 20 in the next phase of the ERA Policy Agenda 2025-2027.