Huge Energy-Saving Potential in Industry
German Industry Can Heat Your Home This Winter And Simultaneously Drive the Green Energy Transition
According to a study conducted by Etanomics, simple efficiency measures can reduce enterprise fossil energy consumption by 67% - a saving of €31 billion in enterprise energy costs
- The savings potential of German industry and commerce amounts to 21 billion cubic meters (bcm) of natural gas, which corresponds to almost half of Germany’s buildings heating requirements
- German industry can make a significant contribution to both, Europe’s geopolitical energy independence and to reducing greenhouse gas emissions by 60%
Mörfelden-Walldorf, Sep 26, 2022 – Etanomics, a Viessmann Group company, has announced the findings of its internal research into potential fossil energy savings in German industry. The analysis of 25 out of a total of 130 energy efficiency projects in 2021 showed that the industrial sector could reduce enterprise energy requirements by a huge 67% through fossil fuel reduction measures alone.
In absolute terms this meant a total reduction in demand annually for these 25 customers of 267 GWh (Gigawatt hours), or just over 25 million cubic metres of natural gas. Using the natural gas price from the end of March 2022 ($42 per MMBtu), this represents savings of €38 million and an additional reduction in taxes. Another way of looking at it is that this would have been a reduction of 0.06% of Germany’s total requirements for buildings (2021 39.6 bcm).
Timm Rössel (Managing Partner Etanomics): “The findings may seem unremarkable at first, but the study only considered 25 projects. Extrapolate this to Germany's entire industrial and commercial landscape and the significance becomes clear; we are looking at over 50% of Germany’s gas requirements for buildings. And a corresponding reduction in greenhouse gas emissions, this would be an amazing step forward in reaching multiple national gas and emission targets”.
German industry and commerce consumed approximately 325,000 GWh of natural gas in 2020. This is not pure science, but if the 25 Etanomics customers are representative of the national average we are looking at a national reduction of demand of approximately 220,000 GWh, or nearly 21 bcm of gas. And a saving of over €31 billion in corporate costs based on the March 2022 gas price.
The importance of efficiency as a fundamental first step in the green transition is backed up by the International Energy Agency (IEA). According to Fatih Birol, IEA Executive Director: "We consider energy efficiency to be the ‘first fuel’ as it still represents the cleanest and, in most cases, the cheapest way to meet our energy needs".
In tandem with natural gas reduction goes greenhouse gas emission reduction. A second analysis of a quarter of Etanomics’s projects in 2021, showed a nearly 60% reduction in greenhouse gas emissions for customers at little cost. The big picture is even more startling: This represents an incredible 0.04% of all German industrial global warming gas emissions in 2021. This is the total result from 36 enterprises only. Extrapolating this across all industrial concerns in Germany shows a potential reduction of 104 million tonnes. This is just over half the current shortfall predicted for Germany as it attempts to hit its 2030 greenhouse gas reduction targets. Through energy efficiency measures, German industry has the potential to make an important contribution to both Europe's geopolitical energy independence and to combating climate change.
As part of the Viessmann Group, Etanomics has been advising its customers from various industries on reducing energy costs and maximizing resource conservation for ten years. In this way, the company contributes to the common purpose of the Viessmann Group to create living spaces for generations to come.
Etanomics Service GmbH stands for minimum energy costs and maximum resource conservation. Founded in 2012 as a wholly owned subsidiary of the Viessmann Group, it is now a leading specialist in the energy optimization of companies, holistic energy concepts and decarbonization. With more than 800 projects carried out, Etanomics has acquired broad, cross-industry consulting expertise - in both new and existing buildings - and supports its customers with practical and proven technical energy conservation measures in the areas of energy design, energy management and efficiency enhancement.
Viessmann is the leading provider of climate solutions for all living spaces. The ‘Integrated Viessmann Solutions Offering’ enables users to connect products and systems seamlessly via digital platforms and services for climate (heating, cooling, air quality) and refrigeration solutions. All solutions are based on renewable energy and maximum efficiency. All activities of the family company, founded in 1917, are based on its purpose. “We create living spaces for generations to come” – that is the responsibility of the global Viessmann family with 13,000 members.
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Vice President Corporate Communications