“An industry that invests in decarbonisation today will be more resilient tomorrow,” said economy minister Lex Delles at the press conference on 25 March. (Photo: Romain Gamba/archives)

“An industry that invests in decarbonisation today will be more resilient tomorrow,” said economy minister Lex Delles at the press conference on 25 March. (Photo: Romain Gamba/archives)

€102m, six projects and implementation to begin within three years: at a press conference held on 25 March, the ministry of the economy presented a new stage in the decarbonisation of manufacturing industry. The scheme aims to electrify processes in order to reduce CO2 emissions and dependence on imported gas over a ten-year period.

€102m in public support over ten years, a reduction of 271,107 tonnes of CO2 and six industrial projects to be implemented within three years: the Ministry of the Economy is launching a targeted operation to reduce the use of gas in manufacturing industry. The call for projects, open from 22 August to 31 October 2025, aims to decarbonise industrial processes while reducing dependence on imported gas. The mechanism is based on a precise criterion: each project must enable a reduction of at least 40% in direct greenhouse gas emissions compared with the period 2020-2024, with annual monitoring.

Seven projects were submitted, six of which have been selected. The government is committing €102.2m over ten years, against an initial budget of €132.25m. The selected projects are expected to reduce CO2 emissions by 271,107 tonnes over ten years, or around 27,110 tonnes per year, at an average cost of €377 per tonne. “The industry [...] is directly feeling the repercussions of global energy markets”, explains the minister of the economy, SME and energy, Lex DellesLex Delles (DP), who insists on direct exposure to gas prices and decisions taken outside Europe.

We are completely vulnerable to decisions that are taken neither in Luxembourg nor in Europe.
Lex Delles

Lex Dellesminister of the economy, SME, energy and tourism

Electrifying without stopping the factories

The projects selected concern Amer-Sil, ArcelorMittal (Bissen and Bettembourg), Avery Dennison, Goodyear (Colmar-Berg and Dudelange) and Tarkett. All are based on the same principle: to replace the use of gas by electricity in industrial processes, without interrupting production. At ArcelorMittal, the galvanisation of wires is being switched to an all-electric power supply. At Goodyear, steam production for tyre manufacturing is partly based on electric boilers. At Tarkett, heat production follows the same logic. The aim of these transformations is to reduce gas consumption while maintaining industrial activity, in a context where energy constraints are weighing more and more heavily on sites.

Amer-Sil: aligning production and energy transition

In Kellen, Amer-Sil produces components for industrial batteries that are exported worldwide. “We are a building block in the global energy value chain,” explains managing director Fabrice Marcotty. The company is faced with a direct tension between its role in the energy transition and its dependence on gas in its own processes. “We need to reconcile our industrial positioning and our practices.”

At the press conference, Amer-Sil presented an industrial polymer battery separator, characterised by its honeycomb structure. This component is used to isolate the positive and negative plates inside batteries, while allowing electrolytes to circulate. It is used in particular in the manufacture of energy storage systems for industrial use. (Photo: Paperjam)

At the press conference, Amer-Sil presented an industrial polymer battery separator, characterised by its honeycomb structure. This component is used to isolate the positive and negative plates inside batteries, while allowing electrolytes to circulate. It is used in particular in the manufacture of energy storage systems for industrial use. (Photo: Paperjam)

The project is based on a hybrid solution combining electricity and gas, with priority given to electricity. The aim is to reduce emissions without changing the product or the industrial process. “In our industry, any change needs to be validated over the very long term,” explains Ihsan Göksü, head of growth. The aim is to reduce emissions by up to 70%, or around 19,000 tonnes of CO2. This approach maintains production stability while reducing the carbon footprint. “The value of the battery no longer lies solely in its performance, but in its CO2 impact,” he adds, referring to the introduction of the battery passport.

Avery Dennison: reducing gas on key lines

Avery Dennison in Rodange is focusing its project on its drying ovens, the main gas consumers in the production of labelling materials. “Our products must play a part in recycling,” says plant manager Adrien Villani. The company has already reduced its emissions by 61% in terms of scopes 1 and 2, and now uses 78% carbon-free electricity. The project aims to replace the gas burners with electric systems on the main production line, with a clear objective: “To remove more than 40% of gas consumption and transfer it to electricity.”

The expected reduction is around 1,600 tonnes of CO2 per year. The director insists on a strong technical constraint: “We cannot switch to electricity if we are not efficient in our current consumption.” He also mentions an industrial continuity issue, with the prospect of seeing “the most productive machine in the world [...] running without a gas supply”.

Three years to transform sites and extend the transition

Companies have three years to implement their projects, with a mechanism for reducing aid if commitments are not met. “There will be a ten-year check to ensure that the objectives have been achieved”, says Lex Delles. The scheme is part of a wider strategy aimed at maintaining industrial activity in Luxembourg against a backdrop of volatile energy prices and dependence on imports. “These are not just investments for today’s Luxembourg industrial site, but also a guarantee of the sustainability and future of industrial facilities in Luxembourg.”

At the same time, the ministry is highlighting schemes aimed at SMEs, with calls for projects for photovoltaic installations, charging stations and zero-emission vehicles, as well as programmes such as SME Packages and Fit for Sustainability. “We want to bring all businesses into this transition, including SMEs”, says the Minister, with a view to extending decarbonisation to the entire economic fabric.