University of Oxford researchers have argued that going electric could help manufacturers avoid becoming "victims of the next [energy] crisis."

What's happening? 

The report is drawing attention as oil and gas markets once again swing with global conflict, according to Canary Media. 

Recent energy shocks — from Russia's 2022 invasion of Ukraine to the war in Iran that has restricted fuel flows through the Strait of Hormuz — have pushed up costs for factories producing everyday goods like steel, sweatshirts, trucks, smartphones, candy bars, and beer.

Oxford energy and climate policy professor Jan Rosenow, who co-authored the report, put the point plainly: "The industries that electrify fastest will stop being victims of the next crisis." 

He added that "every unit of fossil fuel eliminated from an industrial process is a unit that can no longer be held hostage by a pipeline shutdown, a strait closure, or a price spike."

Many policymakers and industry leaders still see the main route to cleaner factories as replacing polluting nonrenewable sources, such as gas, coal, and oil, with alternatives such as biomass, biogas, or hydrogen. 

But Rosenow and co-author Cassandra Etter-Wenzel found that a broader set of electric options — from large heat pumps and thermal storage to resistance, induction, and plasma systems — may be able to do much more of the work than many people assume, according to Canary.

Drawing on technical research plus more than 1,600 global decarbonization pathways, the researchers estimated that roughly 85% of industrial energy use could be electrified by 2050, with the share eventually rising above 90%. As Etter-Wenzel framed it, the key question is whether policy moves quickly enough to support that shift.

Why is it important? 

For consumers, the implications are significant. When prices surge for non-renewable energy sources, the effects can ripple through the cost of basic goods, including packaged food, clothing, and electronics. 

Electrifying factories would not only cut climate pollution from industry — which Canary Media said produces almost one-third of global carbon dioxide pollution — but also make industrial production less exposed to the kinds of fuel shocks that drive up prices across the economy.

There are health benefits as well. Burning less oil and gas in industrial processes would mean less smog-forming pollution and cleaner air for communities living near factories. 

While zero-pollution electric equipment can come with higher upfront costs, policymakers have options for improving the economics.

One example comes from Massachusetts, where a seasonal electricity rate let 140,000 heat pump users save more than $250 on average this winter, according to Canary Media. 

If you're ready to electrify your household, EnergySage can help connect you with trusted HVAC installers through its free tools. If you're not ready to invest in the upfront costs, Palmetto's $0-down HVAC leasing program can lower your energy costs by up to 50%. Even less expensively, Merino makes single-room ultra-efficient HVACs that can be installed in under an hour.

Spain offers a strong example on the industrial side. Canary Media noted that Spanish industry went from paying 32% above the European average for electricity in 2018 to 21% below it by 2024 as solar expanded quickly.

The biggest obstacles are often structural rather than technical. Grid connection queues are backed up worldwide, making it harder for factories to secure the electricity needed to move away from non-renewable power. 

What's being done about it? 

According to Canary Media, the United Kingdom is trying to address that by moving away from the traditional first-come, first-served approach and instead ranking projects by factors such as readiness and fit with national energy goals — a shift expected to shrink the reordered queue by two-thirds and unlock billions in annual investment.

Other governments are using different tools. Southern California regulators approved rules last year that will phase out the sale of new gas-burning light-industrial and commercial boilers, steam generators, and process heaters in the region. 

States including California, Colorado, and Pennsylvania are supporting industrial decarbonization with subsidies, while Germany's Carbon Contracts for Difference program helps cover the profitability gap for cleaner projects for up to 15 years.

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