A new Danfoss Impact paper argues that “competitive decarbonisation” is central to achieving market competitiveness, empowering industries to both lower their environmental impact and sharpen their competitive advantage.
“The paper tackles already existing products and solutions which can be applied immediately across MENA industry to limit energy waste, promote electrification and boost competitiveness, especially in energy-intensive industries”, highlighted Ziad Al Bawaliz, regional president at Danfoss Türkiye, Middle East and Africa.
Electric motors drive key industrial technologies like fans, pumps, compressors, and conveyor belts, and they represent more than two-thirds of industrial electricity use. In the EU, optimising motor efficiency could lead to annual savings of US$10bn-US$11.3bn in electricity costs and prevent 12.5-14.1 million tonnes of CO₂ emissions—equivalent to the annual footprint of nearly two million Europeans.
Energy efficiency
In the EU, only about one-third of the energy mix is currently electrified. However, expanding electrification in industries is crucial to easing pressure on an already maxed-out energy grid. The paper advocates for an Electrification Action Plan with explicit targets for demand-side electrification to ensure a sustainable energy future.
Kim Fausing, president and CEO, Danfoss, said, “I remain a stubborn optimist when it comes to Europe’s future, but we need to reestablish the growth mindset of the past. Mario Draghi’s report on EU competitiveness has crucially identified many areas in which Europe can improve including our elevating energy bills as a case for a massive overhaul of how Europe does business. Lowering energy consumption, cutting emissions and driving down the energy bills through energy efficient and cost-competitive electrification solutions could very well be European industry’s greatest growth opportunity.”
“Our Danfoss Impact paper takes this a step further by outlining a clear guide for immediately taking action to harvest the lowest hanging fruits in industry to limit energy waste, promote greater rates of electrification and boost competitiveness, especially in energy-intensive industries. Rather than dismissing decarbonisation in the pursuit for greater productivity, our research shows that decarbonising industries is critical for making them more resilient and increasing economic competitiveness,” added Fausing.
The Danfoss Impact paper reveals that by adopting energy efficiency and decarbonisation measures, manufacturing industries could save significantly on energy bills while increasing the gross value added. The cost-efficient measures can both prepare the industry for deep electrification, and free up vital funds needed for investments in R&D and innovation – two key areas where Europe is falling behind.
Industrial motor efficiency cuts costs and CO2, Danfoss report shows
In the EU, only about one-third of the energy mix is currently electrified. (Image source: Danfoss)
