#insights

The chemical industry is one of Europe’s key energy and industrial pillars and, at the same time, a particularly complex sector to decarbonise due to the diversity of its processes and its dependence on natural gas. Nevertheless, there are clear opportunities to accelerate its transition towards a more efficient, low‑carbon model.

Within the framework of the Net‑Zero Basque Industrial Super Cluster (NZBSIC)—an initiative led by the Basque Government’s Department of Industry, Energy Transition and Sustainability through SPRI (the Basque Business Development Agency)—an initial energy characterisation of the chemical sector in the Basque Country has been developed in collaboration with AVEQ‑Kimika (the Basque Chemical Companies Association).

The NZBSIC aims to accelerate the pathway to net‑zero emissions in the Basque Country by promoting the decarbonisation of energy supply, industrial energy efficiency, and the scaling up of new technologies and innovative services. The conclusions of this study serve as both a sectoral diagnosis and a basis for defining possible decarbonisation roadmaps.

Decarbonising the chemical sector: a technical, gradual and achievable transition

The chemical industry encompasses highly heterogeneous activities—from electrochemical processes to high‑temperature furnaces and the manufacture of plastics, paints and varnishes—resulting in diverse energy profiles. However, an aggregated assessment makes it possible to identify common patterns that shape the decarbonisation agenda.

Energy consumption in the sector is largely structured around thermal demand, which accounts for around 60% of total consumption and is mainly driven by the use of natural gas in furnaces, steam boilers and dryers. Heat generation at temperatures above 400°C—common in melting furnaces, certain distillation units and regenerative thermal oxidisers (RTOs)—constitutes one of the main barriers to direct electrification.

At the same time, roughly 60% of the sector’s emissions are Scope 1, almost entirely associated with the combustion of natural gas in fixed thermal equipment. There are also process emissions linked to certain chemical reactions. Their largely unavoidable nature points towards the future need for carbon capture, utilisation or storage (CCUS) solutions.

Steam demand is particularly significant in processes involving product heating and tanks, potentially accounting for around one third of natural gas consumption. This makes it a priority focus for efficiency and electrification measures.

In terms of electricity use, consumption is dominated by electrochemical processes (such as electrolysis and electrodeposition), which are highly electricity‑intensive and whose efficiency depends on the technology employed. Many of these processes generate hydrogen as a by‑product with potential for valorisation. In addition, there are mechanical drives, refrigeration systems and air compressors.

A transition combining efficiency, electrification and heat recovery

Analysis of measures implemented in recent years shows that decarbonisation initially progresses through energy efficiency. Notable actions include replacing boilers with more efficient equipment, upgrading motors, pumps and compressors, and installing variable frequency drives.

Waste heat recovery represents another significant lever. There are already examples of utilising heat from furnaces to generate steam, harnessing exothermic reactions for cogeneration, and recovering heat from compressors and condensates. Even so, more than half of the sector still identifies untapped potential.

Electrification is beginning to gain traction, particularly in lower‑temperature steam generation. At the same time, opportunities are emerging, such as the use of residual hydrogen and growing interest in industrial heat pumps, although their deployment remains limited. On‑site electricity generation is progressing at a moderate pace, constrained by technical and insurance-related restrictions, although the expansion of photovoltaic systems could accelerate its adoption.

The final challenge: integrating process solutions and new technologies

Decarbonising the chemical sector requires going beyond conventional efficiency measures. Electrifying steam generation using solutions with thermal storage, integrated with renewable generation, exemplifies the type of approaches needed.

The chemical sector faces a profound transition: technically demanding and economically gradual, yet with strong potential for feasibility. Its diversity presents challenges, but also opportunities, enabling the combination of solutions to move towards a more efficient and decarbonised energy model.