The European Climate Law makes a clear statement: CO2 emissions in the EU must be lowered by at least 55% by 2030 and reduced to zero by 2050. The “Green Deal” and “Fit for 55” package of measures are intended to help pave the way for industry to achieve this goal. This means reducing CO2 emissions from existing systems and abandoning fossil fuels entirely in time to meet the target. But what does this mean for process heat generation in concrete terms? What are the options? And is now the right time to switch to renewable energy? We take stock of the situation.
In process heat generation with a classic gas-fired heater, the combustion process inevitably produces carbon dioxide (CO2) and nitrogen oxide (NOx), which is harmful to the environment. Running this type of system also requires electrical energy. For a WTÖ 1250, for instance, the following characteristic values emerge:
Electrical heaters (WTE) can be operated without using fossil energy sources. If sustainably sourced electricity is used, system operation is fully climate-neutral. We are already offering a practical option for climate-neutral process heat generation with the WTE. For instance, when run using green energy, the WTE 1250 produces these characteristic values:
The WTÖ is currently cheaper to run compared to the WTE in most European countries, with the exception of Sweden. In the first half of 2021, according to information from Eurostat, without taking into account recoverable taxes, using a WTE cost between EUR 400,000 and 600,000 more than a WTÖ. In Germany the figure was nearly EUR 998,000. However, in its study “Effective Carbon Pricing”, the Centre for European Politics cep predicts that carbon prices in emissions trading and carbon taxes in the individual EU countries will rise significantly. Accordingly, energy and gas prices are expected to increase, while prices for electricity from renewable sources ought to be kept constant by subsidies.
From a gas price of approximately 10 ct/kWh, the WTE is better for operating costs than WTÖ, providing electricity prices remain constant. This constitutes a three-fold increase in the price of gas on the European average price from early 2022. Taking gas price trends in recent years into account, this type of scenario is not unrealistic.
Finally, and significantly, the switch to LNG suppliers following the war in Ukraine has led to a rapid rise in the price of natural gas. It is currently unclear whether and at which level gas prices will stabilise – the only thing that’s certain is uncertainty.
It is conceivable that policy will gradually move towards further regulatory measures in addition to carbon pricing to help achieve net zero by 2050. A ban on fossil fuels is not out of the question. Operating a WTÖ in its current form would then no longer be permissible. Furthermore, a worldwide reduction in nitrogen oxide limits is likely in the long term. This will result in expensive conversion measures for gas-fired heaters. Considering a heater’s average 30-year lifespan, purchasing a WTE therefore appears environmentally and economically beneficial on balance.
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