• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home World News Europe

European industry grapples with shift to green power for factories

August 7, 2025
in Europe
Reading Time: 7 mins read
A A
0
European industry grapples with shift to green power for factories
4
SHARES
9
VIEWS
Share on FacebookShare on Twitter


Thyssenkrupp’s Hohenlimburg steel processing plant in Germany’s industrial heartland uses as much energy as a small city, as metal bars are heated to well above 1,000C and rolled into coils to be used by carmakers’ suppliers and other buyers. 

While it burns natural gas to heat its furnaces, the plant is also a heavy user of electricity — and was the first in Germany to derive it directly through wind power, provided by four 160m-high turbines installed last year on a hill a few kilometres away. 

European industry is having to think differently about how it sources its energy, amid sustained pressure to cut carbon emissions and as wind and solar power play a bigger role in supplying electricity.

For some, that means installing wind turbines or rooftop solar panels. For others, it means being smart about when machinery is run, to make the most of spot market electricity prices that swing wildly depending on the strength of the wind and the sun. 

Wind is a good solution at the Hohenlimburg plant because of its setting, according to Dennis Grimm, chief executive of Thyssenkrupp’s steel business, but it cannot be used everywhere. He fears that the investment required for new power stations and electricity cables will mean that high electricity costs for businesses such as his will persist, while complicating efforts to switch away from fossil fuels.

“It’s unsolvable at the moment,” Grimm told the Financial Times, arguing that plans to shift to cleaner energy needed to be realistic and to leave companies in a competitive position.

Hohenlimburg steel plant was the first in Germany to derive it directly through wind power © Arne Piepke/FT

The cost of energy is a huge concern in Europe, where manufacturers must compete with cheaper imported products from China as well as tariffs when selling to the US. Energy-intensive industries in Germany faced a power price of $92 per megawatt/hour in 2024, according to data from the International Energy Agency, compared with $70 in China and $45 in the US.

European steel producers also have to pay for their carbon emissions, although at present they receive most of their allowances free from their respective governments to deter them from moving production abroad.

It was under these and other pressures that Thyssenkrupp announced it would cut 5,000 steel jobs by the end of the decade, amid a wider restructuring of the group in which it will separate and seek outside funding in some business divisions to try to make itself more agile and boost investment.

But companies also see a competitive advantage in producing greener products as customers also come under pressure to decarbonise.

“Without any doubt we have to go in this direction,” said Christoph Evers, head of the Hohenlimburg plant’s hot-rolling mill. “This is really the potential for differentiation. You’ll never win a race simply on a cost basis.”

Christoph Evers
Christoph Evers: ‘You’ll never win a race simply on a cost basis’
Steel coils from the Thyssenkrupp factory in Hohenlimburg, Hagen
The turbines connected to Hohenlimburg supplied about 40% of the site’s electricity last year © Arne Piepke/FT

As well as direct connections to wind farms, Thyssenkrupp and others are increasingly striking deals with renewable power developers for electricity that goes into the shared national grid. The amount of renewable electricity sold to companies under long-term power purchase agreements climbed 35 per cent last year, according to energy research firm BNEF. 

“In the old days, consumers were only interested in the cheapest possible package,” said Domenico Franceschino at energy trader Axpo. “But the importance of the green transition has increased.”

That requires careful management of weather-related risks to electricity supply. Some contracts “are delivered as a baseload product with the risk of low sun or wind lying with the developer itself”, said Sonia Thimmiah, senior director for global sustainability at Dutch beer group Heineken, which wants to source entirely renewable electricity by 2030. “With some, we bear a bit more of the risk. It’s not one size fits all.”

The wind turbines connected to Hohenlimburg supplied about 40 per cent of the site’s electricity over the past year. But it could not do the same at all its sites.

A Thyssenkrupp employee in Hohenlimburg works in a room for operating and monitoring the blast furnaces
The room for operating and monitoring the blast furnaces in Hohenlimburg
A heated slab, a semi-finished product made of cast steel
Metal bars are heated to well above 1,000C, a process that requires large amounts of energy © Arne Piepke/FT

The company makes steel in coal-fired blast furnaces in Duisburg, using the byproduct gases to generate its own electricity. It would need “more than 80 wind turbines”, said Grimm, to meet that plant’s electricity demand with wind instead. Given that power plants directly connected to a factory cannot be more than 5km away under German law, industrial deployment of wind turbines on this sort of scale is virtually impossible.

It plans to move away from coal-fired blast furnaces and is investing in technology to retrieve iron from its ore using hydrogen instead. In the longer run, it may move to electric arc furnaces, requiring much more electricity — the equivalent of “hundreds” of turbines, according to Grimm.

While companies plan new equipment for the longer term, they must also grapple with wild swings in spot market electricity prices because of the growth of wind and solar power.

Prices increasingly fall below zero at particularly windy and sunny times as there is limited cable capacity to move power to where it is needed. Traders say some factories are trying to find ways to adjust their output to take advantage of the sub-zero rates and avoid the spikes.

The extent to which companies are doing this is limited but impactful, according to Franceschino. “If you can shift 1 per cent of your production when prices are negative compared to paying €1,000, that’s a huge saving,” he said. 

Thyssenkrupp factory hall
Thyssenkrupp fears high electricity costs will persist, making it harder to ditch fossil fuels
A steel coil at the end of the production line at the Thyssenkrupp plant
Metal bars are rolled into coils to be sent to carmakers and other buyers © Arne Piepke/FT

Grimm said businesses like Thyssenkrupp Steel needed “to find the right operational spots where energy costs are lower than at other times. This is something where, as the steel industry, you have to change your thinking.”

Shifting to greener electricity is far from the only challenge ahead. The company in March had to pause a tender for “green” hydrogen, made by passing electricity through water, because of high prices as the market for the gas struggles to take off.

As well as at Duisburg, it is also interested in using hydrogen instead of natural gas inside the furnaces at Hohenlimburg that heat steel bar, which account for the vast majority of the total energy use at the site.

Thyssenkrupp said it would discuss the situation with the German and EU governments with a view to using the gas as soon as “technically and economically feasible”. It added it could use hydrogen in place of natural gas at Duisburg and still cut emissions compared with coal.

Germany’s energy department acknowledged that high electricity costs were denting competitiveness, and said it was working to lower energy prices as well as develop a hydrogen economy.

Despite the challenges, the company said it was determined to stay the course. “All of us are committed to carbon neutrality — there is no other view on that,” says Grimm.



Source link

Previous Post

US-made bombs used in deadly Israeli strikes on Gaza schools, HRW says

Next Post

Hong Kong’s Swire Pacific warns of uncertain outlook after posting 2% interim profit drop

Related Posts

Did Swiss gold refiners fuel the crisis? – DW – 08/07/2025

Did Swiss gold refiners fuel the crisis? – DW – 08/07/2025

August 7, 2025
6
Why Trump-Putin talks unlikely to bring rapid end to Ukraine war

Why Trump-Putin talks unlikely to bring rapid end to Ukraine war

August 7, 2025
9
Next Post
Hong Kong’s Swire Pacific warns of uncertain outlook after posting 2% interim profit drop

Hong Kong’s Swire Pacific warns of uncertain outlook after posting 2% interim profit drop

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Police ID man who died after Corso Italia fight

December 23, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0

How to Create Better Content With AI — Plus 11 Tools to Get You There todayheadline

August 7, 2025
YouTube Thumbnail

An Astrophysicist Proposes We Send a Spacecraft to Visit a Black Hole : ScienceAlert todayheadline

August 7, 2025
Proba-3 Creates Artificial Solar Eclipse to Study Sun's Corona

Proba-3 Creates Artificial Solar Eclipse to Study Sun’s Corona

August 7, 2025
eye doctor

Researchers create first AI tool for treating age-related macular degeneration

August 7, 2025

Recent News

How to Create Better Content With AI — Plus 11 Tools to Get You There todayheadline

August 7, 2025
0
YouTube Thumbnail

An Astrophysicist Proposes We Send a Spacecraft to Visit a Black Hole : ScienceAlert todayheadline

August 7, 2025
4
Proba-3 Creates Artificial Solar Eclipse to Study Sun's Corona

Proba-3 Creates Artificial Solar Eclipse to Study Sun’s Corona

August 7, 2025
5
eye doctor

Researchers create first AI tool for treating age-related macular degeneration

August 7, 2025
4

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Cybersecurity
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

How to Create Better Content With AI — Plus 11 Tools to Get You There todayheadline

August 7, 2025
YouTube Thumbnail

An Astrophysicist Proposes We Send a Spacecraft to Visit a Black Hole : ScienceAlert todayheadline

August 7, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co