Europeans face an urgent challenge: decarbonising its industries to remain competitive and meet climate goals. As extreme weather events become more frequent, the pressure is mounting for Europe to deliver on its 2050 NetZero commitments. So far, transport and household emissions have been key targets, though the industrial heat sector – which accounts for 60% of industrial energy demand, a quarter of global energy consumption, and 20% of global GHG emissions – remains largely underexplored. Addressing that gap through technological innovation is now possible and necessary.

Industrial heat: The missing link in Europe's energy transition

Electric cars, wind turbines, and solar panels have dominated mitigation conversations, though essential supply-side industries like steel, cement, chemicals, and food processing all require enormous amounts of industrial heat. The need to decarbonise these sectors is substantial, but high temperatures are difficult to electrify. Industry has historically depended on fossil fuels to reach temperatures of 150°C and above, the cost of transitioning to a different mechanism is huge. Industrial processes are often stubbornly integrated with traditional energy sources. Until recently, the lack of scalable, cost-effective alternatives has slowed progress in the field. Now innovations are changing the game, offering a viable path forward for industries to reduce emissions without compromising their core performance. Technologies like Magaldi Green Thermal Energy Storage (MGTES), which can cover 90% of heat needs for industries requiring temperatures up to 600°C by 2030, are leading by using renewable thermal energy to replace fossil fuels.

Magaldi’s MGTES offers a scalable solution to reduce industrial emissions while driving down energy costs. By storing renewable energy in a sand-based system, MGTES ensures industries have a reliable, 24/7 heat source.

At the macro scale, grid stability is a direct benefit of industrial decarbonisation, and crucial to integrating renewable energy into Europe’s mode of operating. The EU’s ambitious renewable energy targets hinge on the grid’s ability to handle variable inputs from sources like wind and solar. Magaldi’s thermal energy storage (TES) technology is key to this, storing surplus renewable energy during off-peak hours and releasing it when demand peaks. In addition to decarbonising industrial heat, TES provides balancing services to the grid, reduces peak demand, and alleviates pressure on energy infrastructure, enabling faster renewable energy deployment. This smooths fluctuations, maintaining grid stability while supporting the expansion of renewable energy projects.

Without reliable TES systems, Europe as a bloc risks grid instability as renewable energy use grows. The aim is to not only ensure stability but also secure energy supplies for the continent’s most energy-intensive industries, allowing them to regain competitiveness. As Mario Draghi notes, Europe has been falling behind the US and China in clean technology and innovation. Decarbonising industrial heat through new technologies like long duration energy storagecould help close this gap and once again position Europe as a leader in sustainable industrial practices.

A new strategy for Europe

Decarbonising industrial heat is not just a technical challenge. It is a strategic priority. Industrial heat is one of Europe’s largest sources of greenhouse gas emissions and as such offers the greatest potential for transformative change. At the same time, clean heat technologies will create jobs, reduce energy costs, and ensure energy independence. This transformation should be integral to Europe’s broader energy strategy, as outlined in the EU’s Clean Industrial Plan, which must prioritise industrial heat if Europe is to meet its climate goals and maintain global competitiveness.

The clean energy transition has the potential to create thousands of new jobs and revitalise lagging industrial sectors. The heat pump industry, with over 250 EU manufacturing sites, is set to generate €14.5 billion and support around 500,000 jobs by 2030. Expanding clean industrial heat technologies like MGTES could further increase these employment prospects. At the highest level, high-temperature industries will benefit from reduced energy costs, improving their competitiveness in a global market. Magaldi’s patented fluidized sand bed technology enables large-scale decarbonisation of heat-intensive industries without the additional cost that had thus far slowed down industrial decarbonisation.

Moving forward

Decarbonising industrial heat is one of the most significant and underdeveloped Europe’s clean energy transition. Magaldi’s TES technology offers a practical, scalable solution to reduce emissions, boost energy security, and create sustainable jobs. Industrial heat is not “just” an environmental issue. It’s a strategic and economic imperative.

Addressing industrial emissions opens the door to a more resilient, energy-independent Europe. The bloc’s dependence on imported fossil fuels has long been a vulnerability, underscored by the effects of the 2022 invasion of Ukraine. Last year, over 90% of Europe’s fossil gas was imported, and much of it was used for industrial heat. Decarbonisation of industrial heat addresses immediate energy security concerns while positioning the continent as a leader in industrial innovation. 

Clearly, the race for climate leadership is accelerating, and Europe’s ability to decarbonise its industrial base will determine whether it leads this transition or falls behind. As demonstrated by Magaldi’s progress in accelerating TES, Italy has the potential to lead Europe’s clean industrial transition. By aligning policy, capital, and innovation, the continent can seize this moment to drive global leadership in clean technology. The time for action is now.

illuminem is proud to partner with Magaldi Green Energy in advancing sustainable industrial heat solutions.