Navigating the cost reality of industrial decarbonisation in the metal sector

As the Director of Corporate Energy & Climate Affairs at Aurubis AG, a leading European copper producer and multimetal company headquartered in Germany, Dr Holger Klaassen understands the state of play of industrial decarbonisation in Europe.

Ahead of the European Industrial Energy Days, we asked Klaassen to share his insights on the hurdles and opportunities for decarbonising the metal sector.

What is at the top of your energy transition agenda for 2026?

Our focus is on increasing flexibility in energy use, which is currently limited by our 24/7 production processes. We are therefore exploring flexibility options such as battery systems. In parallel, we are diversifying our energy procurement portfolio by increasing the share of green electricity through PPAs, on-site generation, and other renewable sourcing solutions.

What are the biggest hurdles to implementing low-carbon solutions at scale?

The single biggest barrier is the very high cost of energy in Europe, particularly in Germany. Rising electricity prices — especially network charges — are a major show-stopper for electrification projects. At the same time, these costs further increase the price of green hydrogen, on top of already overly strict and unnecessary RFNBO criteria.

Which new technologies or innovations have the most potential to support industrial decarbonisation?

From a technical perspective, hydrogen and synthetic gases have strong potential, depending on the metallurgical process. In addition, nuclear technologies — including Small Modular Reactors (SMRs) and, in the longer term, fusion power — could play a significant role. Process-specific technologies such as hydrogen burners, induction furnaces, and plasma burners are also promising pathways.

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What could policymakers do to accelerate your energy transition plans?

First and foremost, policymakers need to lower the costs of green electricity and hydrogen. They should consistently apply technology neutrality and avoid ideological restrictions on CO₂-free technologies such as nuclear and fusion power. A pragmatic application of the Pareto principle (80:20) is essential, rather than forcing a transition to 100% volatile renewables at any cost. Finally, enabling more market-based instruments and innovation-friendly regulatory frameworks would significantly accelerate progress.

Why are the European Industrial Energy Days important for industries navigating the energy transition?

The European Industrial Energy Days provide a crucial platform and collective voice to remind policymakers that a global energy transition will not succeed without a level playing field. If Europe undermines its own industrial competitiveness by pushing too hard, too fast, it risks losing its industrial base — and with it, its role as a credible frontrunner. Beyond that, the exchange of best practices, technologies, and experiences across industries is invaluable.

How does Aurubis integrate climate strategy into operational and corporate energy decisions?

Aurubis has a group-wide decarbonisation strategy, including a climate transition plan and a detailed decarbonisation roadmap. Clear group-level targets are broken down to site level, ensuring accountability and implementation. A dedicated group function steers the process and supports the sites in developing and executing decarbonisation projects.

What has been the most surprising insight from your efforts to decarbonise metal production?

While not surprising to us, it is often underestimated externally that hydrogen is not a simple one-to-one replacement for natural gas. In metallurgy, natural gas is not only used as a fuel but also as a reduction agent. Hydrogen is far more chemically reactive, making process stability and control significantly more challenging.

Which initiatives are you most proud of in advancing sustainable energy use across Aurubis facilities?

A flagship project is our industrial heat recovery initiative in Hamburg. We supply 60MW of CO₂-free industrial heat into the city’s district heating network, providing heat for up to 28,000 households and saving up to 120,000 tonnes of CO₂ annually.

Dr Holger Klaassen will be participating in the panel 'Integrated Industrial Energy: Balancing Power, Heat, and Efficiency for a Decarbonised Future, taking place on 4 March', 14:30 - 15:30.