Great savings potential for process heat

08.04.2026

Source: E & M powernews

Companies have considerable opportunities to reduce their energy expenditure. An Agora study addresses a particularly topical issue.

Medium-sized companies can save up to a third of their ongoing energy costs by electrifying industrial process heat - compared to using natural gas. This is the result of a study conducted by Agora Industrie together with the Research Association for Energy Economics, which examined specific application examples.

For temperature ranges below 100 degrees, such as for drying processes in the food industry, the purchase of a heat pump pays for itself after just five years. However, for temperature requirements above 100 degrees, such as for firing processes in ovens, the payback periods are longer due to higher investment costs and lower efficiency gains: Here, the acquisition costs for a heat pump or an electric boiler only pay for themselves after more than ten years. At the same time, however, companies also benefit from significantly lower ongoing energy costs.

Progress in moving away from fossil fuels is slow

"The question of economically viable alternatives to natural gas is particularly relevant for industrial SMEs," says Julia Metz, Director of Agora Industrie, pointing out that around 40 percent of industrial natural gas demand - in terms of energy use - is accounted for by SMEs. Rising gas prices, as is currently the case as a result of the war in the Middle East, therefore hit SMEs particularly hard. In addition, they would hardly be able to cushion price fluctuations. Switching from natural gas to electricity not only reduces dependence on fossil fuel imports, but also lowers energy costs.

"Although German SMEs are characterized by innovative market leadership in many places, the move away from fossil fuels is only progressing slowly. Yet electrification opens up considerable potential for security of supply, competitiveness and climate protection - provided the right political framework conditions are created," says Metz.

The study sees one reason for the decision against the electrification of heating processes in the fact that although the investments lead to high cost savings over the lifetime, payback periods of more than five years are above what is usually considered economically attractive in practice. "What is needed here is a policy that creates targeted incentives - pragmatically and reliably."

Creating investment incentives through funding

Targeted financing and funding offers could cushion high initial investments, simplified CO2 difference contracts could secure the electricity/natural gas price ratio and enable resilient business models. At the same time, consulting services could help small and medium-sized companies in particular to align their processes more flexibly with favorable electricity prices. Standardization and economies of scale are also important for heating technologies in order to reduce investment costs in the long term.

The study Strengthening SMEs with electrical process heat - opportunities for lower energy costs and greater resilience is available online. An accompanying expert workshop complements the analysis and enables a practical assessment of the opportunities, challenges and profitability of corresponding investments.

Author: Günter Drewnitzky