Decarbonization of industry was mentioned as the third objective of the Polish Hydrogen Strategy by 2030 with a view to 2040. However, it is already foreseeable that this will be extremely difficult. Both Polish and European industries continue to be one of the most emissions-intensive industries, with more than 70% of their energy needs supplied by conventional fuels.
Decarbonization of industry is a difficult but feasible goal
The industries generating the highest levels of emissions include chemicals, refineries, and metals. The biggest challenge is the decarbonization of heavy industry, where electrification remains completely uneconomic due to the need to use high temperatures (high energy intensity of processes).
The National Inventory Report published in 2021 by the National Centre for Balancing and Emission Management (KOBiZE) brings together the five largest sources of GHG emissions in Poland – the energy sector, the industry under review, agriculture, waste, and land use. The report analyzes changes in the emissivity of these areas between 1988 and 2019. It is perhaps encouraging to note that all of the listed sectors saw significant reductions in emissions over this period. The largest for agriculture (over 34%) and the waste sector (about 45%).
The National Inventory Report published in 2021 by the National Centre for Balancing and Emission Management (KOBiZE) brings together the five largest sources of GHG emissions in Poland – the energy sector, the industry, agriculture, waste, and land use. The report analyzes changes in the emissivity of these areas between 1988 and 2019. It is perhaps encouraging to note that all of the listed sectors saw significant reductions in emissions over this period. The largest for agriculture (over 34%) and the waste sector (about 45%).
According to the report, the energy sector and industry are doing much worse. The energy sector is responsible for over 82% of the total GHG emissions in Poland, which amount to approx. 390 million tonnes CO2eq. Industry, in turn, is responsible for about 6.2%. However, these are the emissions coming directly from the industrial processes. In order to consider how big a problem the emissivity of this area is, it should be remembered that the prevailing part of the total demand for energy in Poland is consumed by the industry.
Europe also sets its sights on the decarbonizing industry – at first its steel industry
Europe is also grappling with the problem of the high emissivity of industry. According to the Annual European Union Greenhouse Gas Inventory, covering the period from 1990 to 2019, the energy sector is responsible for about 77% of total emissions in Europe, and industrial processes directly account for over 9%. Poland is responsible for about 10% of emissions on a European scale.
The first area of European companies’ fight against emissions will be heavy industry, particularly metallurgy. Back in August, we wrote that Swedish company SSAB, in collaboration with LKAB and Vattenfall, had produced the world’s first fossil fuel-free steel for delivery to its first customer, the Volvo Group. The steel is produced using the innovative Hybrit technology. It is based on replacing conventional fuels used in production with hydrogen. Hydrogen is to be produced by electrolysis using renewable energy and will thus be completely emission-free. The company assumes that thanks to Hybrit it will completely abandon production using fossil fuels already in 2045.
Supporting decarbonization of industry – Poland bets on hydrogen
Not surprisingly, seeing the success and huge opportunities offered by hydrogen, the goals of industrial energy transition in Poland are focused on expanding the possibilities of its application. Already today, the majority of hydrogen produced in the country is used in the chemical industry (production of ammonia) and in refineries (the raw material used in the refining process). Apart from them, it also finds its application in the food and processing industry, textile industry, pharmaceutical industry, and in the production of plastics. However, it should be remembered that this is hydrogen produced using fossil fuels, mainly by steam reforming and coal gasification. Consequently, its production itself is burdened with strong emissions.
Therefore, the Polish Hydrogen Strategy emphasizes the need to move away from the use of gray hydrogen and to increase the production of low- and zero-emission hydrogen that will serve the decarbonization of industry in Poland. A chance for the realization of the goal is seen in the forecasts predicting a decrease in the price of renewable energy in the coming years and, consequently, a decrease in the cost of production of green hydrogen. Given the rising prices of conventional fuels and their dependence on the current geopolitical situation, green hydrogen produced locally promises energy security not only for the industrial sector but for the entire economy.
In the short term to 2025. The Polish Hydrogen Strategy sets out four key actions. First of all, support for the acquisition and application of low-carbon hydrogen for petrochemical production processes. Introduction of a carbon contract as an instrument to support the climate transformation of industry. Initiation of pilot technology projects for sectors where climate neutrality is difficult to achieve, particularly in the area of steel production. In addition, financial and organizational support for feasibility studies of industrial hydrogen valleys as part of building industrial closed-loop processes. In the next five years (until 2030), five hydrogen valleys are planned with a significant component of hydrogen transmission infrastructure (pipelines).
At the end of 2021. Ireneusz Zyska, Government Plenipotentiary for Renewable Energy Sources, emphasized that industry is an area that will particularly benefit from the hydrogen transformation and where large financial outlays are to be allocated. Not surprisingly, the Polish industry such as chemicals and refining are strategic for the development of the national economy and achieving a strong position in the international arena.