Jesper Ejenstam, Vice President and Head of R&D, Kanthal.Kanthal, a global leader in industrial heating technology, is at the heart of this transition, with practical solutions available to minimize emissions today and many more in the offing.
"If we are going to meet the sustainability targets in the world, we need to make a shift. And electric heating is here to support that. If we do it correctly and target the right industries, we are not only making a little dent in carbon emissions; we are moving the needle in terms of tens of percent in carbon emissions. And we can achieve that with electric heating," explains Jesper Ejenstam, Kanthal’s Vice President and Head of R&D.
Recognizing this potential, businesses are turning to electrification as a strategic move — not just to stay competitive, but to achieve meaningful progress toward sustainability.
Let’s explore five critical trends driving this shift.
Sustainability as a core business strategy
For businesses to maintain a leading position, sustainability is no longer a peripheral concern but a central mandate. Companies are increasingly committed to this shift, setting ambitious goals and rethinking their operations, making sustainability a key business strategy. As part of this transformation, electrification presents a compelling business case for reducing greenhouse gas emissions in line with broader environmental, social, and governance (ESG) goals. By replacing fossil-fuel-based systems with electric alternatives, companies can significantly lower their emissions and align with global sustainability initiatives.
Beyond environmental benefits, electrification also optimizes energy use, as electric processes often offer greater precision, control, and efficiency, leading to less waste. This increased efficiency not only benefits the planet but also improves the bottom line by reducing energy consumption and lowering costs.
Rising costs and unreliable supply of fossil fuels
Geopolitical tensions, market volatility, unpredictable supply chains, and the finite nature of fossil fuel reserves have contributed to significant price instability. For manufacturers, this unpredictability can lead to volatile operational costs, which in turn affects profitability and long-term planning.
Arthur Moslow, Global Electrification Project Manager, Kanthal.Electrification offers a solution to this challenge. With the proliferation of renewable energy sources such as wind, solar, and hydropower becoming more prevalent and cost-effective, electricity is emerging as a more stable and affordable energy source for industrial processes.
By investing in electric technologies, manufacturers can ensure a more consistent energy supply, which is crucial for maintaining continuous production and meeting customer demands.
"However, when making the shift, it is imperative to prioritize sourcing electricity from clean and renewable energy sources. While utilizing renewable energy is ideal, it is essential to acknowledge that electricity stands as a more efficient alternative compared to oil or gas," suggests Arthur Moslow, Global Electrification Project Manager at Kanthal.
Innovation driving industrial electrification
Technological innovation is a key enabler of the electrification trend in manufacturing. Advances in technology have made it possible to electrify processes that were previously dependent on fossil fuels. Besides resistance heating solutions, breakthroughs like electric arc furnaces, induction heating, and plasma technologies are now viable alternatives to traditional gas-fired or coal-based processes in industries such as steelmaking, chemicals, and ceramics
"Electric heating can help industries reduce their carbon footprint and become more sustainable," says Dilip Chandrasekaran, Business Development Manager at Kanthal. He highlights the growing trend of transitioning from gas to electric heating and heat treatment across various industries, noting, "Electric technologies offer several advantages beyond just reducing carbon emissions, including greater precision and control over manufacturing processes, leading to higher product quality and reduced waste."
Dilip Chandrasekaran, Business Development Manager, Kanthal.Kanthal has identified several heating processes in downstream steel production that are ready for electrification – the Continuous Annealing Line (CAL), Continuous Galvanizing Line (CGL), and Roller Hearth Furnaces to name a few.
All current industrial processing needs can be met with electric heating, presenting an opportunity to solve many of the challenges we face today.
Chandrasekaran emphasizes the versatility of electric heating, stating, "All current industrial processing needs can be met with electric heating, presenting an opportunity to solve many of the challenges we face today.
Additionally, electric systems are typically easier to integrate with digital tools and automation technologies, allowing manufacturers to optimize energy use in real time, further enhancing efficiency and sustainability. These technological advancements not only make electrification feasible but also provide a pathway to smarter, more resilient manufacturing operations.
Government regulations and policy initiatives
To meet the goals set by the Paris Agreement, governments worldwide are implementing stringent regulations and policy initiatives aimed at reducing industrial emissions. Key policies like the European Green Deal, the United States Clean Power Plan, and China’s 14th Five-Year Plan for Energy have all included industrial electrification as a crucial strategy for achieving emissions reductions. Electrification, especially when combined with renewable energy, is one of the most effective ways for manufacturers to reduce their carbon footprint.
In many regions, governments are introducing carbon pricing mechanisms that create financial incentives for reducing emissions and impose penalties for non-compliance.
Additionally, governments are offering financial support for electrification through grants, subsidies, and tax incentives. These programs are designed to offset the initial costs of adopting electric technologies, making the transition more economically viable for manufacturers. By leveraging these incentives, companies can accelerate their electrification efforts while also benefiting from long-term cost savings and gaining competitive advantages.
Resilience and flexibility in production
Electric systems are often more adaptable to changes in production demand and can be easily scaled or adjusted to meet evolving needs. This flexibility is particularly important in a global economy characterized by rapid technological change and shifting market conditions.
Electric processes can be more easily integrated with renewable energy sources, allowing manufacturers to dynamically adjust their energy use based on availability and cost. This adaptability not only supports sustainability goals but also enhances operational resilience by reducing dependence on a single energy source.
Elaborating on flexibility, "With Kanthal solutions, in many cases, you can retrofit an existing furnace simply by replacing the gas burners in the furnace with electric heating elements, and making a few small modifications," adds Chandrasekaran.
Furthermore, electrified systems tend to have lower maintenance requirements and longer lifespans compared to their fossil-fuel-based counterparts. This reliability reduces downtime and ensures that production can continue uninterrupted.
As these trends gather momentum, companies that adopt electrification may find themselves in a stronger position to thrive in an evolving industrial landscape. By incorporating electric technologies and integrating them with digital solutions, manufacturers can attain significant environmental and economic advantages, thereby ensuring their competitiveness and sustainability in the years ahead.