Powering a Cleaner and More Competitive European Industry

EU-funded technologies are helping European industries reduce fossil fuel use, improve energy efficiency and strengthen their competitiveness.

Europe’s industrial transition is gaining momentum, with innovative technologies offering new ways to reduce emissions while improving energy efficiency and competitiveness. A new European Commission publication highlights how EU-funded projects are helping accelerate the electrification of industry and move promising solutions closer to widespread deployment.

Industry accounts for approximately one quarter of the EU’s final energy consumption. Reducing its reliance on fossil fuels is therefore essential to achieving Europe’s climate objectives, strengthening energy security and maintaining a competitive industrial base.

189 demonstrations showcasing industrial innovation

The publication, Industrial Electrification and Energy Efficiency – Technological Success Stories from EU Programmes, showcases 189 technology demonstrations across 21 EU Member States. Supported by programmes including Horizon Europe, LIFE and the Innovation Fund, these initiatives represent approximately €1 billion in investment, including around €600 million in EU funding.

The projects focus on five key areas with significant potential to transform industrial energy use:

• Industrial heat pumps and mechanical vapour recompression, enabling more efficient heat generation and reuse.
• Electric furnaces and boilers, offering alternatives to fossil-fuel-based industrial heating.
• Flexible electricity demand and renewable energy integration, supported by energy storage to make better use of clean electricity.
• Waste heat recovery and industrial symbiosis, helping businesses recover unused energy and make better use of resources.
• Energy efficiency improvements, through audits, efficient motor systems, insulation, sensors and automation.

Together, these approaches demonstrate how technological innovation can help industries reduce energy consumption, cut emissions and make their operations more resilient.

From successful demonstrations to wider deployment

The publication also presents 20 success stories illustrating how these technologies are being tested and deployed in different industrial settings across Europe. Their experiences highlight the benefits of combining electrification, renewable energy, energy efficiency and greater flexibility in industrial energy demand.

According to the European Commission, deploying these technologies could halve the share of fossil fuels in industrial energy consumption by 2040. Achieving this potential will depend on accelerating the adoption of mature solutions and expanding their implementation across industrial sectors.

EU funding driving the transition

EU funding plays a crucial role in helping innovative technologies progress from demonstration to large-scale deployment. Through programmes implemented by the European Climate, Infrastructure and Environment Executive Agency (CINEA), including Horizon Europe, the LIFE Programme and the Innovation Fund, projects receive support to demonstrate the viability of cleaner industrial energy solutions.

Scaling up these technologies can deliver benefits beyond emissions reduction. It can help European businesses manage energy costs and risks, strengthen industrial competitiveness and improve energy security, while supporting the integration of growing amounts of renewable electricity.

Europe’s industrial transition is not only about developing new technologies, but also about accelerating the deployment of solutions that are already available.