May 2024 | Engineering and architecture consultancy Sweco outlines in its latest expert report the progress of European industries in their efforts to become more resilient and move toward net zero.
According to Sweco, the steel industry is at the forefront, followed by the cement industry. The chemical and transport industries are also in the process of transforming toward net zero. As significant investments are made and new technologies such as hydrogen, CCS, and electrofuels are tested on an industrial scale, the report presents opportunities and risks for companies and decision makers to consider.
The industry sector is responsible for 25–30 per cent of total global CO2 emissions and companies and countries are now investing heavily to transform their operations. Demand for industrial products is expected to increase significantly over the next three decades. Demand for steel is expected to grow by 30%, cement and ammonia by 40%, and aluminium by 80%. Companies in those hard-to-abate-industries are now required to deliver on that demand in a sustainable manner.
“Sweco’s analysis is based on the Leadership Group for Industry Transition (LeadIT) database and shows that Europe is taking the global lead in the green transition of the industry sector, as 95% of the full-scale projects in cement worldwide are conducted in Europe, as well as 61% of all fossil-free steel projects. There are a number of reasons why this is happening right now: Higher prices for CO2 emissions, new investments, regulations, the EU Net-Zero Industry Act and stronger demand for sustainable products from end customers,” says Erik Skogström, Division Director Industry and Energy at Sweco in Finland.
Sweco is the trusted advisor to some of Europe’s most ambitious large-scale industrial projects within decarbonisation including energy supply and efficiency, hydrogen and hydropower energy storage such as battery technology, CCS and industrial circularity.
Key topics of the report
Sweco’s new report covers the following key insights:
• Regulations and capital are falling into place — but is it enough?
• The steel industry at the forefront, followed by the cement industry
• CCS/ CCU — a necessary complementary solution
• The electrification revolution, spurred by renewables, hydrogen and batteries
• Resource efficiency and circular industrial processes
• Industrial symbiosis and new business models
About Urban Insight
Sweco is a European engineering and architecture consultancy, with sales of approximately SEK 29 billion (EUR 2.5 billion) in 2023. The company is listed on Nasdaq Stockholm. Urban Insight is a series of insight reports written by Sweco experts on various aspects of urban development from a citizen perspective. More information at swecogroup.com.
