Climate Neutral Player
Energy consumption
Primary energy consumption decreased slightly from 85.6% in 2022 to 85.1% in 2023 (with respect to the 2001 reference year).
Even though this may seem like a positive trend, it should be considered that the lower production rates of 2022-2023 has allowed electrolysers to run at lower current densities, thus requiring less energy per tonne produced.
If one calculates the energy consumption using the higher current densities needed at higher production rates (e.g. in 2021), the 2023 number would have increased to around 88.1% compared to 2001. This is shown by the grey section in the graph.
Electricity and steam consumption
The weighted average electricity consumption slightly declined compared to 2022 levels. Again, this electricity consumption would have increased had we compared it to the same production utilisation rate as 2021 (see explanation above).
Steam consumption remained stable in 2023.
Grid balancing
To prevent blackouts amidst increasing production of (volatile) renewable electricity sources (e.g. wind and solar), there is a growing need for grid stability solutions.
For years, Euro Chlor has been discussing its role in this and many companies are already adapting their production levels according to the grid’s needs. This support however is limited by the fact that companies need to ensure product availability for their customers whilst respecting the restricted volumes of chlorine that are allowed to be stored.
In our third Sustainability Programme, we began reporting on the grid balancing support provided by our members as a percentage of the total installed electricity demand capacity. In 2023, 17.5% of this capacity was available for grid balancing, a notable increase from 14.8% in 2022 (see graph).
As the chlor-alkali sector can play a role in flexible production, Euro Chlor is exploring ways to further enhance flexibility to assist Europe’s roll out of renewables.
FCR = Frequency Containment Reserve
aFRR = Automatic Frequency Restoration Reserve
mFRR = Manual Frequency Restoration Reserve
Carbon footprint reduction
In 2023, our carbon footprint/ CO2 emissions decreased by 17.6% compared to 2022. In 2022, we already noted a 7.4% decrease. This is due to a combination of factors: the integration of more low-carbon electricity into the overall EU-wide grid, members who have switched from fossil-based to carbon-neutral electricity, and the utilisation rate still being at a lower rate in 2023.
We now report Scope 1 and 2 emissions of CO2 from member production units for chlor-alkali and hydrogen.
Chlor-alkali hydrogen utilisation
Euro Chlor produced around 240,000 tonnes of hydrogen in 2023. Hydrogen utilisation remained stable, at 85.1% in 2023 (versus 84.9% in 2022).
However, it remains challenging to reach our Mid-Century Strategy goal of 100% utilisation. In the past 12 months, our Energy and Climate Change Committee has repeatedly discussed the hurdles and these have been conveyed to the European authorities. For example, members have flagged that it is not always possible to obtain the permission for a physical connection to an existing hydrogen pipeline. In addition, the number of hydrogen pipelines is currently insufficient. The need for improvement of the European gas and electricity infrastructure remains an issue for all industrial sectors.
Finally, to adequately value our hydrogen, reaching the RFNBO criteria and/ or obtaining a special status for our very low-carbon hydrogen is indispensable but not evident in the current legislative framework.