Editor’s Note
This interview with German Foundry Association (BDG) experts explores the sector’s detailed roadmap to achieve greenhouse gas neutrality by 2045, building on foundational research and economic modeling.
Interview on Sustainability & CO2 Neutrality
With the roadmap “Greenhouse Gas Neutrality for the German Foundry Industry,” the BDG (German Foundry Association) has presented a decarbonization plan for the sector until 2045. This work was preceded by the “InnoGuss” project funded by the state of North Rhine-Westphalia, whose findings were expanded through extensive modeling to include economic aspects. EUROGUSS 365 asked BDG experts Elke Radtke and Dr. Christian Schimansky about possible transformation pathways and how current decisions, for example on electricity tax and hydrogen economy, affect them.
The Roadmap’s Surprising Findings
“For our medium-sized companies, which have had to operate under unfavorable conditions for years, the question naturally arises: What will the transformation cost me? It’s clear that switching a fossil-fueled melting unit, including rebuilding the infrastructure, is no bargain. However, the modeled costs for the continuous application of ‘Best Available Techniques’ or the state of the art are surprising. Keeping the equipment at the site up to date to achieve continuous efficiency gains already generates significant financial expenditure. Of course, this is usually booked under maintenance – but the use of new, energy- and resource-saving technology contributes significantly to CO2 reduction and thus already offers a lever for transformation that should not be underestimated.”
The Crucial Role of Affordable Green Electricity
The roadmap shows: Without affordable green electricity, greenhouse gas neutrality cannot be achieved. The federal government has backed away from its promise to lower the electricity tax for all companies. What does this mean for the foundry industry?
“Taxes are only one part of the electricity and fuel bill – and not even the largest. Since companies have the option to apply for tax reductions, lowering the German energy tax to the European minimum is nothing more than maintaining the status quo. It would be much more difficult if the federal government also breaks its promises to cap grid fees and introduce an effective industrial electricity price.”
Support Needed for Electrification Investments
Electrification is considered a technically feasible ideal solution – but also the most expensive one. What support must medium-sized businesses receive so that investments are not slowed down?
“Due to the high electricity costs, measures to switch from fossil fuels to electricity are currently not profitable. For example, the coke-fired, continuously operating hot blast cupola furnaces of large series foundries are extremely efficient and economical. Such a cupola furnace would have to be replaced by several electrically powered induction crucible furnaces to achieve the same melting capacity. Due to the costs for new installation and for electrical energy, the cast products would become significantly more expensive to manufacture – but these additional costs cannot be passed on to the customer. Therefore, it would make sense to introduce a subsidy for process heat generation equipment that covers both investment costs (CAPEX) and operating expenses (OPEX). These – possibly temporary – transformation subsidies could actually bring drive to planning and implementation.”
Elke Radtke
The Hydrogen Perspective for Foundries
Politics is increasingly focusing on hydrogen. The Hydrogen Acceleration Act brings relief. Is this a good perspective for foundries?
“In the long term, hydrogen as a substitute for natural gas can indeed be just that: a good perspective. However, a lot of research and infrastructure expansion lies ahead until then. The need for research stems from the fact that, for example, it is not yet sufficiently clear how hydrogen affects the metallic materials and refractory materials in melting plants. Moreover, foundry locations are far from the planned hydrogen core network. For this reason, decentralized electrolyzers could be an interesting option in the medium and long term, producing hydrogen from surplus renewable energy and simultaneously serving a storage function. Hydrogen produced abroad and imported at high costs will reasonably be primarily available to the basic materials industry.”
Early Involvement in Local Grid Planning
In the roadmap, you call for the early involvement of foundries in local grid planning. Do you have the impression that policymakers have understood this necessity?
Christian Schimansky
