This week, Eurelectric swapped desks for boilersuits. Members of our Working Group on Industrial Competitiveness and Innovation donned hard hats and gloves to get a close-up look at what industrial electrification looks like in action with a field trip to Budel in the Netherlands, home to one of Europe’s leading zinc smelters operated by Nyrstar.
Zinc smelting is already one of the most electrified and decarbonised heavy industrial processes. It’s a shining example of how the electricity and energy-intensive industries are collaborating to integrate renewable energy sources on a large scale and secure competitive electricity prices for industrial consumers.
To top it all off, the visit culminated in a joint statement calling for greater support and investment in industrial flexibility. The aim? Boosting cost savings, enhancing grid resilience, and accelerating decarbonisation.
Zinc: the unsung hero of the energy transition
Nyrstar’s Budel smelter produces around 300,000 tonnes of zinc annually – a vital material for the energy transition, used in wind turbine coatings, zinc-based batteries, and some solar technologies.
Electrified since 1973 and powered entirely by renewables since 2021, the Budel plant stands as a compelling case study in sustainable industrial practice. But recent energy price shocks (especially after Russia’s invasion of Ukraine) have pushed the company to go a step further: embracing flexibility at the heart of its operations.
Now the company is considering investing in ‘virtual battery’ system. This would allow to shift energy use based on supply and demand, reducing consumption when electricity is scarce and increasing it when renewable power is available. This smart flexibility could slash electricity costs, cut indirect CO₂ emissions, and unlock up to 135 MW of flexible capacity and 7,000 MWh of storage – all without affecting output.
Flex and the City (of Industry)
Indeed, flexibility is the key to enhance Europe’s industrial competitiveness. As Europe accelerates its shift to renewable energy, the need for daily, weekly, and seasonal flexibility in the power system will more than double by 2050. To adapt to these variations in energy supply, and to preserve and enhance industrial competitiveness, vast investments will be needed on top of electrification incentives.
However, this isn’t just a technical challenge – it’s a major economic opportunity for industry. In Belgium, shifting away from the traditional baseload model and leveraging flexible electricity consumption could cut electricity commodity costs by 12% in 2024, with millions in savings through smarter market participation.
Flexibility makes an economic case for electrification. For this reason, Eurelectric and Nyrstar issued a joint statement encouraging:
- Electricity generators and industrial consumers to assess if, where and how they can further increase system flexibility.
- System operators to keep ensuring grid security and flexibility through investments and grid development.
- Authorities to develop supportive electricity market rules and incentives for all technologies that allow to better integrate renewable production in a cost-competitive way.
- Policymakers to maintain the voluntary nature of investment in industrial flexibility, recognising different processes have different capabilities.
Conclusion
This on-site visit demonstrated that flexibility and competitiveness go hand in hand. Budel’s zinc smelter is not only producing a vital material for the energy transition: it’s also showcasing what the future of energy-smart industry can look like.
As the EU accelerates its energy transition, encouraging such forward-looking approaches will be key – through the right frameworks, strong market signals, and recognition of differing industrial realities.
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Disclaimer: This article is for communication purposes only and may not reflect Eurelectric positions. Any positions taken in this article shall not be attributable to Eurelectric’s official positioning. Official Eurelectric positions are reflected only in position papers published here.