France has established an ambitious roadmap for industrial decarbonization, based on two key pillars: reducing energy consumption through efficiency and sobriety, and boosting carbon-free energy, where nuclear energy and renewables converge.

According to Noémie Papon, Director of energy and decarbonation projects at GreenFlex,the priority is to optimize energy consumption first before implementing renewable solutions.

“The use of renewable energy comes into play only after efficiency and sobriety mechanisms have been exhausted,” Papon stated in an interview with Strategic Energy Europe. This strategy allows properly sizing facilities and minimizing the environmental footprint of the industrial sector.

The French government supports a diversified energy mix, with a special emphasis on biomass, geothermal energy, industrial waste heat, and decarbonized electricity from nuclear, solar photovoltaic, and wind energy. The goal is to ensure that 60% of the energy used in 2030 comes from decarbonized sources.

Government and Private Incentives for Decarbonization

The French government has deployed various financial support mechanisms to accelerate the industry’s energy transition.

“Industries have access to a wide range of subsidies, including support for studies and investment projects in decarbonization, as well as guaranteed feed-in tariffs for photovoltaic electricity or biogas,” Papon explains.

Among the most relevant incentives are:

• Subsidies for decarbonization projects: Financial aid for studies and investments in clean technologies.
• Guaranteed feed-in tariffs for photovoltaic and biogas projects.
• Energy Savings Certificates (CEE): Private financing that can cover up to 100% of investments in energy efficiency.
• EU Emissions Trading System (EU-ETS): Gradual reduction of free carbon allowances, making fossil fuel use more expensive and renewable energy more attractive.
• Strict regulations: The APER Law requires companies to install solar panels on buildings over 500 m² and to solarize at least 50% of parking lots over 1,500 m².

These incentives have boosted the growth of renewable heat and electrification projects, especially after the energy crisis triggered by the conflict in Ukraine.

Most Used Renewable Energy Sources in the French Industry

Although France already has a high proportion of decarbonized electricity due to nuclear energy, the growth of renewables has been key to the transition.

“The growth of solar photovoltaic energy is mainly due to regulatory incentives. Solar energy is easy to implement, does not interfere with industrial processes, is visible, and improves corporate image. On the other hand, wind energy is less commonly used due to installation challenges,” says the GreenFlex representative.

Arnal also highlights that since the increase in gas prices triggered by the war in Ukraine, biomass and biogas projects have grown significantly.

According to a GreenFlex analysis of 205 industrial sites, 64% of the scenarios include at least one renewable energy project or waste recovery initiative.

Barriers and Challenges in the Energy Transition

The decarbonization process in France faces technical, financial, and regulatory obstacles that slow down the adoption of renewables in the industry.

“Some renewable energy sources do not reach the temperatures required by certain processes, and sources like biomass cannot be easily shut down, limiting their use in industries with intermittent operations,” Papon explains.

Among the financial challenges, she points out that the initial investment and operational management can be more complex than with fossil fuels, although long-term savings and subsidies improve the return on investment.

“Permit processes can be long and bureaucratic, slowing down implementation,” she adds.

Challenges in Decarbonizing Highly Emitting Industries

The steel and cement industries face significant challenges in their decarbonization process, mainly due to the complexity of their production processes and the high investment costs required for the transition to clean energy.

However, various solutions are being explored to reduce their environmental impact, including:

• Increased material recycling.
• Implementation of green hydrogen and electrification in industrial processes.
• Development of carbon capture and storage (CCS) technologies.

In the case of the steel industry, it is estimated that achieving its decarbonization goals will require investments ranging from €2.6 to €12.9 billion, underscoring the scale of the effort needed to transform these highly emitting sectors.

Industries with the Highest Emissions

The industrial sector accounts for 20% of greenhouse gas emissions in France and a similar proportion of energy consumption, concentrated in specific high-emission sectors.

Papon points out that 64% of France’s industrial greenhouse gas emissions come from the raw materials processing sector, which relies on high-energy-demand processes.

The main industrial emitters in France include:

• Chemical industry (25%)
• Steel industry (22%)
• Cement industry (12%)
• Glass manufacturing (3%)
• Sugar industry (3%)
• Paper and cardboard industry (2%)

These sectors rely on energy-intensive thermal processes, making the transition to renewable sources more complex.

“Many industrial processes depend on intensive heat use, which poses challenges in integrating renewables that do not always reach the required temperatures,” Papon emphasizes.

To address this issue, the French government, in collaboration with ADEME, has developed Sectoral Transition Plans (PTS), establishing specific roadmaps to reduce emissions in each industry.

The Road to 2030 and 2050

Efforts to reduce industrial emissions are already showing results. In recent years, industrial emissions in France have decreased by 8.1% in 2022 and 8.7% in 2023.

Additionally, in December 2023, 50 of the country’s highest-emitting industrial sites set a target to reduce emissions by 45% by 2030.

The industrial sector faces significant challenges, but the government and business commitment to decarbonization is clear. A combination of economic incentives, strict regulations, and technological advances will enable France to accelerate its transition toward a cleaner and more sustainable industry.