Poland still lacks a strategy for decarbonising industry. Without it, the use of EU funds in the new financial perspective and support for energy-intensive industries may be difficult, according to a recent report by the Reform Institute Energising industry #3. Electrification on the map of zero-emission solutions for energy-intensive industries.

The report is the third in a series covering industry in Poland, this time focusing on the possibilities for decarbonising energy-intensive sectors – from steel and cement to chemicals and glass.

An essential pillar of the economy
Although energy-intensive industry accounts for less than 1.7% of Poland's GDP (data for 2023), its importance is strategic: it employs over a quarter of a million people and contributes to European value chains. Poland is the third largest cement producer in the EU and the seventh largest producer of chemicals.

Decarbonisation is a prerequisite for maintaining the competitiveness of industry, especially energy-intensive industry. However, this is a major challenge requiring many years of investment. Today, investment decisions are blocked by the limited availability of clean energy and commercially mature zero-emission technologies. Another barrier is the lack of clear regulatory guidelines. To accelerate the transformation of energy-intensive industries, we urgently need a national industrial strategy, explains Klaudia Janik, lead author of the report.

Industrial decarbonisation – different paths, common goal
Due to the diversity of production processes, each sector must develop its own path to decarbonisation. Among the most important zero-emission solutions for industry are: green hydrogen, CCS/U installations, biomass, biomethane, SMR and direct electrification technologies. Although the target technology mix will vary from sector to sector, direct electrification will be a viable path to transformation for many industries, from chemicals and cement to glass and steel.

Much more energy from nuclear and renewables is needed
However, the common ground for decarbonisation across all industries continues to be the high demand for zero-emission electricity from renewable energy sources or nuclear power. Additional demand will be generated not only by direct electrification, but also by hydrogen production and the development of infrastructure for the transport and storage of captured CO2.

Meanwhile, as stated in the Reform Institute's report, national strategies are neither ready (hydrogen, CCS/U) nor do they sufficiently take into account the additional demand for clean energy resulting from the decarbonisation of industry (NECP). This, in turn, creates the risk that individual sectors of the economy (district heating, heating, transport) will compete for it, which may result in energy shortages for energy-intensive industries.

The solution: industrial policy and sectoral strategies

The decarbonisation of energy-intensive industries is not a sprint, but a marathon. It requires strategic planning, perseverance and a phased approach. In the 2025-2028 perspective, the priority is to prepare a national industrial strategy that will map out the electricity demand for alternative decarbonisation paths in a structured manner. As some technologies will not be commercially available until 2040-2050, it is necessary to determine the pace of development of the power system, realistic assumptions for individual sectors, and the possibilities for consumption and production of fuels needed for indirect and direct electrification. The decarbonisation of energy and industry are interconnected, points out Marta Anczewska, co-author of the report.

The experts emphasise that this marathon must begin today if Poland is to retain its key industries and make effective use of national and EU funds in the new financial perspective (e.g. the European Competitiveness Fund).

If Poland wants to remain an industrial country, it must develop a coherent set of sectoral strategies and a national industrial strategy, which should result in the assumptions of the hydrogen strategy and the CCS/U strategy. The objectives and actions planned in these documents should be reflected in the ongoing update of the ambitions in the National Energy and Climate Plan, and then in the preparation of Poland's Energy Policy until 2040, according to the report's conclusions.

The report can be downloaded in Polish here with brief available in English below.