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A PERTE of industrial decarbonization that will allow to modernize and improve the competitiveness of the industry. The Spanish Government approved on December 27 the Strategic Project for Economic Recovery and Transformation (PERTE), which will have a public investment of €3,100 million to optimize the competitiveness of the industry in the medium and long term, through improving its energy efficiency, while at the same time reducing its greenhouse gas emissions.
The industrial decarbonization PERTE “will contribute to modernizing the industrial fabric to successfully face the ecological transition by promoting the use of renewable energy, reducing the consumption of natural gas in industry, protecting the environment and moving towards circular economy”, thus allowing the viability of industries in the medium and long term.
With this PERTE, the Government wants to support and accompany the industry in its decarbonization process to reduce its greenhouse gas emissions and improve its energy efficiency with “more sustainable processes that contribute to improving its competitiveness at an international level” .
The approval of the Strategic Project for Economic Recovery and Transformation (PERTE) for industrial decarbonization by the Council of Ministers is thus part of the commitment to support the industry in its transition towards models and processes that are more respectful of the environment and contribute to the goal of climate neutrality in 2050.
Investment of 11,800 million euros
The project foresees a public investment of 3,100 million euros that will allow the mobilization of up to 11,800 million euros of total investment. It is estimated that the investments in decarbonization and modernization of the manufacturing industry promoted through this PERTE will increase the competitiveness of the sector by around 10% and will mean the creation of some 8,000 jobs. In addition, a reduction in emissions is expected that could reach 13 million tons of CO2 per year.
The subsidy item is specified in 600 million euros corresponding to the PERTE Comprehensive Action line, 450 million euros for the participants in the IPCEI of the Hydrogen industrial chain and 150 million to support the Development of Highly Efficient Manufacturing Facilities and Decarbonized.
This PERTE will contribute to modernizing the Spanish industry to successfully face the ecological transition by promoting the use of renewable energy, reducing the consumption of natural gas in industry, protecting the environment and moving towards the circular economy”.
This government priority is aligned with the European Industrial Strategy and with the REPowerEU Plan to save energy, produce clean energy and diversify energy supplies. It also responds to the planning promoted by the Government both in terms of investments through the Recovery, Transformation and Resilience Plan as well as agendas and reforms such as the Integrated Energy and Climate Plan (PNIEC) 2021-2030 and the Long-term Decarbonization Strategy term 2050. Finally, the PERTE is included within the Plan +Seguridad Energética (Plan +SE) as part of the Plan’s measures to mitigate the impact on energy prices, protect consumers and advance in a structural reduction of the external energy dependence, encompassing support for the value chain of the energy transition.
The PERTE industrial decarbonization will have the following objectives:
1- Decarbonization of production processes, allowing the viability of industries in the medium and long term, to tackle legal restrictions regarding the emission of greenhouse gases and atmospheric pollutants. Reducing these emissions will allow the long-term viability of the industry and will improve air quality and people’s health.
2- Improvement of energy efficiency, through the incorporation into the industry of the best available technologies and implementation of energy management systems. Since industry is an energy-intensive sector, energy efficiency needs to be improved to help decarbonise.
3- Improvement of the competitiveness of the manufacturing sector in its race to face an important challenge of reducing emissions, which requires support in investments in decarbonization to remain competitive. The objective is to maintain the contribution of the manufacturing sector to the industry, so that it can continue to be competitive, investing in the reduction of emissions and the development of technology through R+D+i.
4- Promotion of energy security in Spain. The manufacturing industry is responsible for approximately 30% of natural gas consumption, and 59% if electricity generation is excluded. Therefore, reducing this consumption of natural gas will be essential to guarantee the country’s energy security.
5- Promotion of the use of renewable energies. With this formula to increase the weight of renewable energies in industrial processes, it is expected to reduce emissions, while contributing to reducing dependence on fossil fuels.
6- Promotion of environmental improvement, through support for the use of by-products and the recovery of waste to integrate them into other processes and thus reduce the environmental impact of products throughout their life cycle
7- Creation of employment with high added value. The decarbonization of the industry will be accompanied by greater training of professionals to obtain the necessary skills to be able to implement less polluting technologies.
Mesures for industrial decarbonization PERTE
EThe PERTE is based on four transformer-type measures:
- Comprehensive Action Aid for decarbonization, which includes aid for the decarbonization of energy sources, through the electrification of processes and the incorporation of hydrogen; as well as the Comprehensive Energy Management of industrial processes, the Reduction of the Use of Natural Resources or Carbon Capture.
- Aid line for manufacturing companies participating in the IPCEI on the industrial chain of renewable hydrogen.
- Study and evaluation of the development of a support fund for carbon difference contracts and implementation of a pilot project.
- Line of support for the development of new highly efficient and decarbonized manufacturing facilities. The priority objective is the support of possible investment projects with a special tractor effect for industrial facilities that use the best decarbonisation technology in their sectors
In addition to these four transformative measures, which constitute the core of PERTE, the plan contemplates facilitating measures, such as those of a regulatory and training nature, promotion of R+D+i, a Carbon Fund for a Sustainable Economy, promotion of Financing through the ICO, Support Fund for Productive Industrial Investment, National Energy Efficiency Fund, Activa Industria, 4.0, etc.
PERTE industrial beneficiaries
The beneficiaries of this Industrial Decarbonization PERTE are the manufacturing industry sectors, among which the manufacturing sectors of non-metallic mineral products (ceramics, cement, glass...), the chemical industry, oil refining, metallurgy and paper and pulp manufacturing, as well as large combustion plants in sectors such as the food and beverage industry.
The planned actions will be carried out between 2023 and 2026, although the projects could end later.
Contribution of E&M Combustion to decarbonization
E&M Combustión is an engineering and manufacturing company focused on industrial combustion processes. Since its creation in 2004, it has focused its activity on the development of R+D+i to obtain Combustion Systems, with reduced polluting emissions that allow, at the same time, significant energy savings. As a result of the process of innovation and investment in R+D+i, the company is a benchmark in the use of renewable energies as biogas, biomass and other types of alternative fuels as an energy resource. “Our technological developments have the purpose of offering first-line knowledge in terms of energy efficiency and reduction of polluting emissions, contributing to the sustainable development of our environment. An example of this is our contribution in the design and manufacture of hydrogen burners.