Industrial Decarbonisation: The Road to a Cleaner Future
13/05/2025 SGT Ltd
By Andrew King, Founder of SGT
Andrew King is the founder of SGT, a Buckinghamshire-based firm helping businesses across the UK find commercial energy tariffs that meet their needs while keeping costs low. Andrew explores industrial decarbonisation and the solutions available to achieve a cleaner future.
Picture this: A sprawling steel mill, its towering smokestacks reaching into the sky, pumping out heat, light, and – unfortunately - tonnes of carbon emissions. This factory has been running the same way for decades and the world has relied on it for everything from skyscrapers to bridges. But the rules of the game have changed. Climate change is no longer a distant threat. It’s at our doorstep. Now, the industries that built the modern world must reinvent themselves.
Manufacturing and heavy industry have been the engines of progress, delivering the materials that shape our daily lives. But there is a problem. These industries also happen to be some of the biggest culprits when it comes to carbon emissions. In fact, the industry sector is estimated to have been responsible for 14% of greenhouse gas emissions in the UK in 2022. That number is even higher on a global scale. While the power sector has been making great strides in cutting emissions, the industry has largely stayed the same. Something must change.
So, how do we fix it? The answer isn’t a single silver bullet. Instead, it’s a combination of powerful solutions working together: electrification, green hydrogen and alternative fuels. Each of these plays a critical role in transforming the industry into a cleaner, more sustainable force.
Electrification: Powering the Future
Imagine walking into that same steel mill, but instead of roaring blast furnaces, you see electric arc furnaces humming quietly, powered by renewable energy. This isn’t science fiction - it’s happening today. Electrification is one of the most promising ways to cut emissions in the industry. It means replacing traditional, fossil-fuel-burning machines with electric alternatives. The best part? Many industrial processes, especially those that require low-to-medium heat, can already switch to electric solutions today.
Take heat pumps, for example. These highly efficient machines can replace old-school boilers in industries like food processing, plastics and furniture manufacturing. Meanwhile, induction heating is making metalworking more precise and energy efficient. And steelmakers using electric arc furnaces powered by clean energy can slash emissions by up to 75%. The benefits are clear: electrification not only reduces emissions but also improves efficiency, enhances worker safety and lowers long-term costs.
Green Hydrogen: The Key to Hard-to-Decarbonise Sectors
But what about industries that need extreme heat for example, cement, steel, and chemicals? That’s where green hydrogen comes in. Think of it as the clean-burning fuel of the future. Made by splitting water with renewable electricity, green hydrogen produces zero emissions, only water vapour when burned.
One of the most exciting breakthroughs is happening in steel production, where green hydrogen can replace coal in the Direct Reduced Iron (DRI) process. This can dramatically cut emissions from one of the world’s most polluting industries. Green hydrogen is also essential for making chemicals like ammonia and methanol - vital ingredients in everything from fertilizers to plastics.
Of course, there are hurdles. Right now, green hydrogen is expensive to produce and the infrastructure to transport and store it is still in development. But here’s the good news: as renewable energy gets cheaper and electrolyser technology improves, green hydrogen is becoming more affordable. It’s not a question of if but when this fuel takes off.
Alternative Fuels: Bridging the Gap
Not everything can be electrified, and not every industry can switch to hydrogen overnight. That’s where alternative fuels come in. Biofuels like biodiesel, ethanol, and biogas offer a near-term solution. Many of these can be used in existing engines with minimal modifications, making them an easy way to cut emissions.
Then there’s ammonia. When produced using renewable energy, green ammonia could become a key fuel for heavy industries and even shipping. But it’s not perfect. Burning ammonia can release nitrous oxide, a potent greenhouse gas, unless carefully managed. Still, with the right engineering, it could become a major player in the clean energy transition.
The Roadmap to a Low-Carbon Industry
How do manufacturers make this shift? It all starts with understanding their emissions. Step one: measure everything. Once companies know their carbon footprint, they can set clear, ambitious targets. From there, they need to build a roadmap, identifying which solutions work best for their operations.
Energy efficiency is often the easiest and most cost-effective place to start. Simple upgrades, like optimising processes and switching to more efficient equipment, can make a big impact. Then comes the bigger transformation: investing in electrification, hydrogen, or alternative fuels. Let’s not forget the financial side. Governments and industry leaders are rolling out tax credits and incentives to help businesses make the switch.
A Future Built on Innovation
The shift to low-carbon manufacturing isn’t just about reducing emissions, it’s about staying competitive in a world that’s rapidly changing. Companies that adapt now will be the leaders of tomorrow. They’ll be the ones attracting investment, cutting costs and securing long-term sustainability.
Industrial decarbonisation isn’t an option; it’s a necessity. While the path forward is complex, it is also full of opportunities. By embracing electrification, unlocking the potential of green hydrogen and integrating smart fuel alternatives, the industrial sector can lead the charge toward a cleaner, more resilient future.
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SGT Ltd
Stoneycroft
South Maundin
High Wycombe
Bucks
HP14 4LZ
Tel: 07711 051433
Email: andrew@sgt-ltd.co.uk
Web: https://sgt-ltd.co.uk
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