Industrial sustainability requires a differentiated approach
The phasing out of natural gas, driven by climate objectives and geopolitical realities, is forcing companies in the Netherlands to review their energy infrastructure. Where for decades gas was the dominant energy source for industrial processes and heat supply, companies are now exploring sustainable alternatives.
Wind and solar energy seem obvious replacements, but the transition is proving to be more complex than simply installing solar panels or building wind farms. Attempts to reduce gas consumption and replace it with sustainable energy are encountering bottlenecks in various layers of the energy system.
Challenges and critical points
On the production side, the intermittent nature of wind and solar energy is a major hurdle. That the continuous and reliable supply of energy from these sources is not a given, becomes evident during the gloomy, dark, and windless days of November and December. For energy-intensive companies, this complicates fully relying on these sources while backup or storage solutions are not yet in place.
The distribution of green energy is another critical point. The Dutch electricity grid is struggling with grid congestion, which limits the capacity to absorb peak loads and transport sustainable energy. This manifests notably in areas where a significant amount of sustainable energy is generated, or where the demand for electricity is rapidly increasing.
On the demand side, the willingness and feasibility of rapid electrification, especially among large energy consumers, sometimes seems to lag behind the ambitions of energy producers. The high initial investment costs for new electrical installations, the need to adjust existing processes and the uncertainty about future energy prices can form barriers. According to Vattenfall, the key to solving these problems lies in a combination of flexible energy use and a diverse mix of technologies.
Flexible energy consumption
The ability to match energy demand to the variable supply of sustainable sources is crucial. This means that companies shift their energy consumption – where possible – to times when there is an abundance of green electricity and prices are low. This is comparable to ‘avoiding rush hour’ on the motorway. The electricity grid tends to be seen, mistakenly, as a sort of motorway where every user can keep driving at full speed, disregarding the reality that unabated increase in use will invariably lead to congestion.
The multi-national grid operator TenneT recently re-emphasised that unchecked increase in use is not realistic. TenneT advocates for more flexible power consumption by consumers, with more attention to ‘avoiding rush hour.’ This means using the existing grid more efficiently by concentrating electricity usage during off-peak hours. According to TenneT, flexible energy use can potentially free up nine gigawatts of power on the high-voltage grid. This, of course, requires consumers to be more aware of the time of day at which they use electricity.
Technological solutions
The authors emphasize Vattenfall’s position that there is no single technological solution for the sustainability of industry. Similar to the sustainability of homes, where some houses are more suitable for heat pumps and others for green gas or other solutions, industrial sustainability also requires a differentiated approach. A number of technologies other than the well-known solutions such as solar and wind energy, are believed to have meaningful potential. First, energy storage (heat storage, storage of electricity in batteries) can contribute to the flexibilization of electricity use, where stored energy can be used during peak hours while energy gets ‘stored’ during off-peak hours, thus not only reducing energy costs, but also contributing to the stability of the electricity grid. Battery technology will need to be further developed for effective large-scale use.
Hydrogen can play an important role in specific industries in the long term, especially for processes that require very high temperatures. Heat pumps have potential for industrial applications, especially for processes where such high temperatures are not required. In this range of solutions, the e-boiler can also make a valuable contribution to the further sustainability of energy consumption in the Netherlands.
A closer look at the e-boiler
Vattenfall has a long history with e-boilers in Sweden, where there is no extensive gas network and where electricity has traditionally played an important role in energy supply. The e-boiler is essentially a large-scale electric kettle that produces heat with electricity instead of gas. The device is technically relatively simple and can be installed next to existing gas installations. The e-boiler can be used strategically at times when abundant low-priced, sustainable electricity is available, contributing to stabilising the electricity grid and minimising the use of fossil backup power stations.
E-boilers have more advantages. Installation is relatively simple and fast compared to more complex alternatives, such as large-scale heat pumps, and requires no gas connection or flue gas outlet. Electric boilers are also low-maintenance thanks to fewer moving parts, which can lead to a longer lifespan. Finally, eliminating gas-fired processes increases safety as it does not carry the risk of gas leaks or carbon monoxide poisoning. The e-boiler is particularly suitable for large industrial companies that use steam or heat in their processes. In terms of heat production, an e-boiler is roughly comparable to what 4,000 households consume in a year. Several large Dutch companies, such as Vopak, Avebe and Sappi, have recently invested in e-boilers. Vattenfall itself is using e-boilers, alongside other sustainable sources such as residual heat and geothermal energy, as part of the sustainability of its heating networks in the Netherlands.
The market for e-boilers in industry is however still in an early phase. Vattenfall is actively in conversation with potential customers to inventorize their specific needs and determine to what extent they require assistance in the areas of engineering, financing, and project management. The positive experiences in Sweden and the recent successes in the Netherlands suggest that the e-boiler can play a significant role in accelerating the sustainability of the business community and the way to a fossil-free future.
Essay by Boudewijn Tjeertes, Business Development Manager Decarbonisation B2B at Vattenfall, and Maurice Vlek, Senior Business Developer at Vattenfall. Published in Management Scope 05 2025.