Challenge

Edilians, a European tile manufacturer, identified tunnel kilns as the main source of CO2 emissions after conducting a carbon assessment. Edilians has outlined a decarbonization roadmap across all its sites to cut Scope 1 CO2 emissions by 30% by 2030. On top of performance optimization and improvement of its industrial equipment, Edilians identified the development of a new kiln as a critical lever to reach its decarbonization target. Partnering with an original equipment manufacturer (OEM) that had an early-stage kiln concept promising 30% energy savings, they needed to prove this technology’s industrial viability. This required an upfront investment of €10 million with high associated risks and unclear returns on investment and would financially commit the company over 15-20 years.

Solution

To mitigate project risks and unlock external investment, Edilians sought public funding from European and French governments and consulted the French Environment and Energy Management Agency (ADEME), a public industrial and commercial establishment, on its decarbonization funding possibilities.

Edilians and the OEM selected DEMIBaC, a call-for-projects supporting demonstrators of low-carbon production technologies, which provides funding for projects led by partnerships between low-carbon solution providers and demand-side manufacturers. Edilians and the OEM submitted their grant application in 2022, aiming to secure 40% of the investment.

In 2023, Edilians and the OEM secured the grant, receiving €3.6 million to develop the kiln. Edilians then paused its operations for three months and gradually resumed production while performing tests to maintain product quality, which led to lower productivity for that quarter.

Impact

Since then, the company has reduced gas consumption (and, therefore, Scope 1 CO2 emissions) of its kiln by 33%. Despite the high costs, Edilians plans to annually convert one production line to meet its decarbonization goals. Eventually, Edilians and the OEM aim to share the technology through patent licenses to help decarbonize the sector. In partnership with Capgemini, the tiles manufacturer has deployed its decarbonization plan and has already identified funding opportunities in all its operating countries to de-risk its investments.