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Electrifying Europe’s Factories Would Slash Emissions by 2050

Electrifying Europe’s Factories Would Slash Emissions by 2050

(Bloomberg) -- The widespread electrification of some of the most polluting industries could dramatically reduce the amount of greenhouse gases spewed into the atmosphere.

Moving transport, buildings and industrial sectors toward using electricity instead of fossil fuels as an energy source could cut emissions in Europe by 60% between 2020 and 2050, according to a report BloombergNEF published on Tuesday with the Norwegian utility Statkraft AS and power management company Eaton Corp.

Electrifying Europe’s Factories Would Slash Emissions by 2050

The report adds to the focus on industrial heating as a source of pollution damaging the atmosphere and encourages policymakers to adopt new tools that tackle emissions from that area.

Electrifying Europe’s Factories Would Slash Emissions by 2050

The report draws attention to lesser-noticed parts of the economy whose carbon dioxide output are a big part of the global total. It suggests that reaching net-zero emissions that European Union leaders are targeting will be impossible without overhauling the way cement and steel are made.

Those industries are starting to look at hydrogen as an alternative to coal, both as a fuel and for their chemical processes.

Changing how the population heats its homes and fuels its cars also will have big consequences for Europe’s power grids, according to the report.

BNEF estimates that about 75% more generation capacity will be needed by 2050 in a world where more things are driven by electricity. Power systems will also have learn to become more flexible as consumption patterns shift.

“Policy makers will have to support the reinforcement and extension of the grid to handle higher power volumes and more renewables, and the deployment of batteries and other sources of flexibility to balance the system,” said Albert Cheung, head of analysis at BNEF, said.

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To contact the reporters on this story: Jeremy Hodges in London at jhodges17@bloomberg.net;William Wilkes in Frankfurt at wwilkes1@bloomberg.net

To contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net, Will Wade

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