Economic feasibility of high-temperature electrothermal storage for European industrial heat

Industrial steam accounts for a substantial share of European industrial energy use and greenhouse gas emissions. Electrification via high-temperature electrothermal storage (HTES) is becoming a valuable technology for its decarbonization. Yet whether HTES pays off in practice depends on market conditions that vary substantially across Europe. This study develops an optimization framework that co-determines HTES sizing and operation as a supplement to gas boilers, such that the gas-electricity split is determined endogenously. The model is applied to industrial steam production in Finland, France, Germany, the Netherlands, and Spain, which together account for roughly 59% of EU27 industrial steam demand. Performance is assessed through a range of technical, economic and environmental parameters. The results indicate a range of outcomes: Finland reaches complete electrification with a payback below two years and 88% CO 2 reduction compared to gas, while Germany's high electricity prices limit the HTES to cover 36% of demand with a payback approaching nine years and only 18% emission reduction. France, the Netherlands, and Spain occupy intermediate positions. Levelized cost of heat ranges from 39 €/MWh in France to 87 €/MWh in Germany. Across the studied markets, HTES most often emerges as a complement to existing gas boilers rather than a replacement, and sensitivity analysis confirms that viability is most fragile where baseline economics are tight. These findings demonstrate that the viability of HTES-based electrification is highly context-dependent, with market conditions emerging as the dominant factor shaping both economic performance and decarbonization potential.