WEC NL Report: Future of energy-intensive industry 2025
Following the 2024 report on "The Future of Energy-Intensive Industry in North-Western Europe," the World Energy Council Netherlands (WEC NL) has re-examined the significant challenges facing energy-intensive industry (EII) in North-Western Europe (NW Europe) as a result of higher energy prices and the costs of the energy transition.
Energy-intensive industry in North-Western Europe
This new study highlights the existential challenges facing businesses in Northwest Europe, including declining production and factory closures. It questions whether relocating EII activities to other parts of the world is beneficial for long-term well-being and whether there is societal value in retaining substantial portions of them.
Need for a social cost-benefit analysis
To inform societal discussions about the future of the EII, the report emphasizes the need for a thorough, empirical social cost-benefit analysis (SCBA). It outlines three methodological options for conducting a SCBA: 1) defining scenarios, 2) defining the market, and 3) selecting private and social costs and benefits.
The report introduces four scenarios for 2040:
- full conservation with renewable energy and green hydrogen;
- full conservation with natural gas and CCS;
- partial displacement;
- complete displacement.
About World Energy Council
The World Energy Council is the foremost nonpartisan network of energy leaders and professionals promoting an affordable, safe, and environmentally responsible energy system that benefits everyone. Founded in 1923, the Council is a UN-recognized global energy body representing the entire energy spectrum. It has over 3.000 member organizations from more than 90 countries, including governments, private and state-owned enterprises, academia, NGOs, and energy stakeholders.
This report was published by the World Energy Council Netherlands in collaboration with various project partners, including Rabobank, Shell, EBN, TNO, Vopak, Port of Rotterdam, Gasunie, Vattenfall, PwC, Nouryon and New Energy Coalition.
