{"id":18711,"date":"2026-01-08T11:00:00","date_gmt":"2026-01-08T10:00:00","guid":{"rendered":"https:\/\/giconmes.es\/strategic-steam-electrification-in-the-dairy-industry-analysis-of-tco-technical-feasibility-and-regulatory-future\/"},"modified":"2026-01-16T08:54:41","modified_gmt":"2026-01-16T07:54:41","slug":"strategic-steam-electrification-in-the-dairy-industry-analysis-of-tco-technical-feasibility-and-regulatory-future","status":"publish","type":"post","link":"https:\/\/giconmes.es\/en\/strategic-steam-electrification-in-the-dairy-industry-analysis-of-tco-technical-feasibility-and-regulatory-future\/","title":{"rendered":"Strategic steam electrification in the dairy industry: analysis of TCO, technical feasibility and regulatory future."},"content":{"rendered":"\n

The European dairy industry<\/strong>, responsible for processing more than 150 million tons of raw milk annually<\/strong>, is facing a historic turning point<\/strong>.<\/p>\n\n

The traditional reliance on natural gas<\/strong> for steam<\/strong> generation – essential in pasteurization<\/strong>, UHT sterilization<\/strong> and CIP cleaning<\/strong>processes –<\/strong>has become a strategic liability<\/strong> due to volatile energy markets<\/strong> and the imminent implementation of<\/strong> more aggressive carbon pricing mechanisms<\/strong>, such as the ETS2.<\/strong><\/p>\n\n

This white paper<\/strong>, designed for plant engineers<\/strong> and financial managers<\/strong>, presents a comprehensive analysis<\/strong> of the feasibility of replacing combustion boilers<\/strong> with Power-to-Heat systems.<\/strong><\/p>\n\n

Through a detailed Total Cost of Ownership (TCO) breakdown<\/strong>, the analysis demonstrates that the convergence of thermal efficiency above 99%<\/strong>, 80% lower maintenance costs<\/strong> and the monetization of energy savings<\/strong> in Spain reverses the traditional economic equation<\/strong>.<\/p>\n\n

While the unit cost of electricity<\/strong> has historically been a barrier, the integration of thermal storage (TES)<\/strong> and active demand management<\/strong> allows for price arbitrage<\/strong> in an electricity market with high renewable penetration<\/strong>, offering new dairy plants<\/strong> a competitive advantage<\/strong> in operating costs<\/strong> and regulatory resilience<\/strong> for decades to come.<\/p>\n\n

1. The imperative of decarbonization in dairy processing.<\/strong><\/h2>\n\n

1.1. The Sector’s Thermal Footprint<\/strong><\/h3>\n\n

The dairy processing sector<\/strong> is characterized by a heat-intensive energy demand<\/strong>. Unlike other manufacturing industries where motive power<\/strong> (engines, compressors) dominates consumption, in a typical dairy plant<\/strong>, approximately 70 % of the total energy<\/strong> is consumed in the form of heat<\/strong>, mostly<\/strong> generated by natural gas combustion<\/strong>. <\/p>\n\n

This energy profile is responsible for the emission of approximately 20 million tons of CO\u2082 equivalent per year in Europe<\/strong>, a figure comparable to the annual emissions of 4 to 5 million passenger vehicles<\/strong>.<\/p>\n\n

The thermodynamics of dairy processing<\/strong> are particularly complex due to stringent food safety requirements<\/strong>. Critical unit processes<\/strong> operate in temperature ranges that, although technically considered “low temperature” (<150 \u00b0C)<\/strong>, present specific challenges<\/strong> for electrification technologies such as conventional heat pumps<\/strong>. <\/p>\n\n

Thermal demand profile in dairy processes<\/h4>\n\n\n\n\n\n\n\n\n\n\n
Process<\/th>\nTemperature range<\/th>\nFluid<\/th>\nChallenge<\/th>\n<\/tr>\n<\/thead>\n
HTST Pasteurization<\/strong><\/td>\n72-75 \u00b0C<\/td>\nWater \/ LP Steam<\/td>\nPrecise control and fast response<\/td>\n<\/tr>\n
UHT sterilization<\/strong><\/td>\n135-150 \u00b0C<\/td>\nDirect steam<\/td>\nOutside the efficient range of heat pumps<\/td>\n<\/tr>\n
CIP<\/strong><\/td>\n60-85 \u00b0C<\/td>\nSteam<\/td>\nAggressive peak demand<\/td>\n<\/tr>\n
Drying (milk powder)<\/strong><\/td>\n160-200 \u00b0C<\/td>\nAir \/ Steam AP<\/td>\nHigh enthalpy<\/td>\n<\/tr>\n
Thermalization<\/strong><\/td>\n63-65 \u00b0C<\/td>\nHot water<\/td>\nIdeal base load for recovery<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

Saturated steam<\/strong> remains the heat transfer fluid of choice<\/strong> due to its high energy density<\/strong>, excellent heat transfer coefficient<\/strong> and food safety<\/strong> when generated as culinary steam<\/strong>.<\/p>\n\n

However, the generation of this steam by natural gas-fired shell boilers<\/strong> introduces systemic inefficiencies<\/strong> and economic vulnerabilities<\/strong> that new facilities must avoid<\/strong>.<\/p>\n\n

1.2 Structural vulnerability of the fossil model<\/h3>\n\n

Designing a new factory (2025-2026)<\/strong> based on gas-fired boilers<\/strong> implies taking structural risks<\/strong> that did not exist a decade ago.<\/p>\n\n

Volatility in the gas market<\/strong>, exacerbated by geopolitical tensions<\/strong>, has shown that operating costs (OPEX) can triple in a matter of months. In addition, the European Union has set out a clear roadmap to make the use of fossil fuels more expensive. <\/p>\n\n

The emissions trading system (EU ETS)<\/strong> and its expansion to the building sector and small\/medium industry(ETS2<\/strong>) from 2027-2028 will create a carbon price signal that will directly impact the waterline of heat-intensive industries. <\/p>\n\n

he forecasts indicate that the price of carbon could escalate from current levels (~60-70 \u20ac\/tCO\u2082) to more than 120-130 \u20ac\/tCO\u2082<\/strong>in the 2030s, which would represent an unbearable operating cost overrun for plants that have not transitioned to clean technologies.<\/p>\n\n

2. Technological anatomy: electric vs. gas boilers<\/h2>\n\n

For the plant engineer, the choice between a gas and an electric boiler is not just a question of fuel, but of design<\/strong> and operating<\/strong> philosophy<\/strong>. The electric boiler represents a radical simplification of the plant’s thermal infrastructure. <\/p>\n\n

2.1 Inevitable combustion inefficiencies<\/h3>\n\n

A modern gas boiler<\/strong>, even equipped with economizers<\/strong>, operates under unavoidable physical limitations<\/strong>. The nominal thermal efficiency<\/strong> (over the Lower Heating Value – LHV<\/strong>) can approach 95 %<\/strong> under laboratory conditions, but the actual seasonal efficiency<\/strong> in a dairy plant<\/strong> usually drops to 75-85 %<\/strong> due to various operational factors<\/strong>: <\/p>\n\n

Chimney losses<\/h4>\n\n

Even with heat recovery<\/strong>, a significant amount of thermal energy<\/strong> is expelled to the atmosphere with the flue gas<\/strong>. The stack temperature<\/strong> must be kept above the acid dew point<\/strong> (<\/strong> except in very specific condensing boilers<\/strong>) to avoid corrosion<\/strong>, which limits heat recovery<\/strong>. <\/p>\n\n

2. Blowdown losses<\/h4>\n\n

Gas combustion<\/strong> does not directly affect water, but Total Dissolved Solids (TDS) management<\/strong> in shell boilers<\/strong> requires continuous and bottom blowdowns<\/strong>. These blowdowns expel water at saturation temperature<\/strong> (e.g. 10 bar at 184 \u00b0C<\/strong>), wasting energy<\/strong> as well as treated water and chemicals<\/strong>. <\/p>\n\n

3. On and off cycles<\/h4>\n\n

The dairy industry<\/strong> has varying demands<\/strong>. A gas-fired boiler<\/strong> that cycles frequently suffers from pre-flush<\/strong> (introduction of cold air<\/strong> to clean the combustion chamber before firing, cooling the boiler) and post-flush<\/strong> losses<\/strong>. <\/p>\n\n

4. Excess air<\/h4>\n\n

To ensure complete and safe combustion<\/strong> (avoiding CO<\/strong> formation), burners<\/strong> operate with excess air<\/strong>. This air (mainly unreacted nitrogen and oxygen<\/strong>) enters at ambient temperature<\/strong> and exits hot through the chimney<\/strong>, acting as a thermal energy thief<\/strong>. <\/p>\n\n

2.2 Electric boilers: 99.5 % efficiency<\/h3>\n\n

Industrial electric boilers<\/strong>, such as those developed by GICONMES<\/strong>, operate under radically different physical principles<\/strong>, virtually eliminating all losses associated with combustion.<\/p>\n\n

2.2.1. Resistive boilers<\/strong><\/h4>\n\n

In these units, typically used for power ratings up to 3-5 MW<\/strong>, the conversion from electrical to thermal energy<\/strong> occurs by means of direct immersion shielded resistors<\/strong>.<\/p>\n\n

Efficiency<\/h5>\n\n

Virtually 100 %<\/strong>. All current flowing through the heating element<\/strong> is dissipated as heat in the surrounding water<\/strong>. The only losses are radiation losses through the insulation of the boiler body<\/strong>, which are minimal (<<\/strong> 0 .5 %)<\/strong> due to the use of high-density<\/strong>, low surface temperature<\/strong> insulation<\/strong>. <\/p>\n\n

Modulation (Turndown Ratio)<\/h5>\n\n

Unlike gas burners<\/strong>, which have limited modulation ratios<\/strong> (e.g. 1:4 or 1:10<\/strong>), an electric boiler with thyristor control (SSR)<\/strong> can modulate its output almost infinitely<\/strong>, from 1 % to 100 %<\/strong>, adapting exactly to the demand of the pasteurization process<\/strong> without wasting energy<\/strong> in hysteresis cycles<\/strong>.<\/p>\n\n

2.2.2. Electrode boilers (high voltage)<\/strong><\/h4>\n\n

For massive steam demands<\/strong> (><\/strong> 5MW up to 50 MW or more<\/strong>), jet or immersion<\/strong> electrode boilers<\/strong> are used. In this type of equipment, water acts as a conductive resistance<\/strong> between electrodes connected to medium or high voltage<\/strong>(6 kV-25 kV<\/strong>). <\/p>\n\n

Dynamic response<\/h5>\n\n

These boilers can go from minimum load to full load in a matter of seconds<\/strong>, a critical capability<\/strong> for responding to peak start-ups<\/strong> of large evaporators<\/strong> or drying towers<\/strong> in the dairy<\/strong> industry.<\/p>\n\n

Compactness<\/h5>\n\n

By eliminating the need for low-voltage transformers<\/strong> for the main power<\/strong>, the physical footprint<\/strong> of the system is significantly<\/strong> reduced as well as electrical transformation losses<\/strong>.<\/p>\n\n

2.3 Direct technical comparison<\/h3>\n\n\n\n\n\n\n\n\n\n\n\n
Feature<\/th>\nGas<\/th>\nElectric<\/th>\n<\/tr>\n<\/thead>\n
Actual efficiency<\/strong><\/td>\n75-85 %<\/td>\n>99 %<\/td>\n<\/tr>\n
Local emissions<\/strong><\/td>\nYes<\/td>\nZero<\/td>\n<\/tr>\n
Steam quality<\/strong><\/td>\nStandard<\/td>\nPure \/ culinary<\/td>\n<\/tr>\n
Noise<\/strong><\/td>\nHigh<\/td>\nQuiet<\/td>\n<\/tr>\n
Plant footprint<\/strong><\/td>\nHigh<\/td>\n-40 %<\/td>\n<\/tr>\n
Response to load<\/strong><\/td>\nSlow<\/td>\nSnapshot<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

3. Economic Analysis: Total Cost of Ownership (TCO)<\/h2>\n\n

The traditional argument against electrification<\/strong> has been the price differential between gas and electricity<\/strong>(spark spread<\/strong>). However, a rigorous 20-year Total Cost of Ownership (TCO) analysis<\/strong> reveals that, for a new plant<\/strong>, the electric boiler<\/strong> is often the most cost-effective option<\/strong>. <\/p>\n\n

TCO<\/strong> fully integrates CAPEX<\/strong>, energy OPEX<\/strong>, maintenance OPEX<\/strong> and future regulatory costs<\/strong>.<\/p>\n\n

3.1 CAPEX: the error of looking only at the equipment<\/h3>\n\n

When comparing budgets<\/strong>, one often makes the mistake of looking only at the price of the equipment<\/strong> (“the iron<\/strong>“). However, the installation of a gas boiler<\/strong> involves massive peripheral infrastructure costs<\/strong> that an electric boiler completely eliminates<\/strong>. <\/p>\n\n

Comparative Breakdown of Initial Investment (New Project)<\/h4>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Investment Item<\/th>\nGas Boiler (3,000 kg\/h)<\/th>\nElectric Boiler (3,000 kg\/h)<\/th>\nDifferential Analysis<\/th>\n<\/tr>\n<\/thead>\n
Generating Equipment<\/strong><\/td>\n80.000 \u20ac – 150.000 \u20ac<\/td>\n120.000 \u20ac – 300.000 \u20ac<\/td>\nElectric is more expensive due to materials and power electronics.<\/td>\n<\/tr>\n
Gas Network \/ Connection<\/strong><\/td>\n30.000 \u20ac – 100.000 \u20ac+<\/td>\n0 \u20ac<\/td>\nCritical savings.<\/strong> Includes ERM, trenches, welded pipe, x-rays.<\/td>\n<\/tr>\n
Fireplace<\/strong><\/td>\n15.000 \u20ac – 25.000 \u20ac<\/td>\n0 \u20ac<\/td>\nCritical savings.<\/strong><\/td>\n<\/tr>\n
Evacuation<\/strong><\/td>\n–<\/td>\n–<\/td>\nStainless steel, insulation, slab passage, sampling.<\/td>\n<\/tr>\n
Electrical Infrastructure<\/strong><\/td>\n5.000 \u20ac<\/td>\n40.000 \u20ac – 60.000 \u20ac<\/td>\nCost of transformer and medium voltage switchgear.<\/td>\n<\/tr>\n
Boiler Room (Civil Works)<\/strong><\/td>\n50.000 \u20ac (ATEX requirements)<\/td>\n20.000 \u20ac<\/td>\nElectrical does not require fire walls or explosive ventilation.<\/td>\n<\/tr>\n
Legalization and Projects<\/strong><\/td>\n10.000 \u20ac (Complex)<\/td>\n3.000 \u20ac<\/td>\nSignificant administrative simplification.<\/td>\n<\/tr>\n
TOTAL ESTIMATED<\/strong><\/td>\n~190.000 \u20ac – 340.000 \u20ac<\/td>\n~183.000 \u20ac – 383.000 \u20ac<\/td>\nTotal installed investment may be less for the electric option.<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

Note: Estimates based on industrial engineering standards for average installations in Spain. The cost of gas connection varies greatly depending on the distance to the distribution network. <\/em><\/p>\n\n

3.2 OPEX: maintenance changes the rules<\/h3>\n\n

Maintenance<\/strong> is the “silent” cost<\/strong> that erodes the profitability<\/strong> of gas boilers<\/strong>. A combustion boiler<\/strong> is a complex machine<\/strong>, with moving parts<\/strong>, ignition systems<\/strong>, fans<\/strong> and elements exposed to high temperatures and acid corrosion<\/strong>. <\/p>\n\n

According to technical data provided by GICONMES<\/strong> and comparative studies<\/strong>, the difference between technologies is abysmal<\/strong>:<\/p>\n\n

Gas boiler maintenance<\/h4>\n\n

Usual tasks:<\/strong><\/p>\n\n