From gas to grid: why industry is changing

Etienne Fourie makes the case that electric boilers are no longer niche technologies, but a core enabler of competitiveness, innovation, and resilience in the low-carbon industrial economy

The UK’s industrial landscape is undergoing a profound transformation. Driven by government policy, market forces, and the urgency of decarbonisation, manufacturers are rethinking how they produce heat – one of the most energy-intensive aspects of industrial operations. At the forefront of this change is the move away from gas-fired boilers towards electric alternatives, a shift that promises to reshape the very foundations of process heating in the UK.

Policy drivers for electrification

The government’s Modern Industrial Strategy, published in June 2025, sets a clear course for the next decade, with a central focus on clean energy and net zero growth. It explicitly links the competitiveness of advanced manufacturing, chemicals, and other energy-intensive industries to their ability to decarbonise.

Electricity is expected to play a pivotal role. By reducing dependence on volatile gas imports and harnessing the UK’s growing portfolio of renewable generation, electrified technologies are viewed as a route to long-term resilience and competitiveness. Policy commitments such as the British Industrial Competitiveness Scheme – which will reduce industrial electricity costs by up to £40/MWh from 2027 – and reforms to accelerate grid connections, demonstrate the government’s intent to make electrification viable for industry.

Beyond government, research hubs such as the Industrial Decarbonisation Research & Innovation Centre (IDRIC) are highlighting electrification as a key pathway to net zero. By coupling low-carbon electricity with industrial processes, they argue, the UK can cut emissions at scale while opening new opportunities in digitalisation, grid flexibility, and clean technology exports.

Historically, industrial boilers have been synonymous with fossil fuels. Natural gas became the default choice in the late 20th century thanks to its relatively low cost and convenience. But as the UK accelerates its transition away from fossil fuels, gas-fired boilers – even the most efficient condensing models – are increasingly seen as transitional rather than future-proof assets.

The financial case for switching is also strengthening. While electricity prices in the UK remain higher than those in some European counterparts, volatility in global gas markets has undermined the assumption that gas is always cheaper. For businesses exposed to long-term decarbonisation costs, including the forthcoming UK Carbon Border Adjustment Mechanism (CBAM), electric boilers provide a hedge against future regulatory and market risks.

Equally important are operational benefits. Electric boilers offer efficiencies above 99%, rapid response times, and precise control, which can improve process stability and product quality. Unlike gas systems, they require no chimneys, combustion management, or emissions monitoring, reducing maintenance and compliance burdens.

Types of electric boilers

The range of electric boiler technology now available reflects the diversity of industrial needs. Solutions span from compact, low-voltage systems suitable for modest applications to high-capacity electrode boilers capable of meeting the most demanding steam and hot water loads.

High-voltage electrode boilers are increasingly viewed as the flagship technology for heavy industry, capable of replacing large fossil-fired units in sectors such as chemicals, paper, and food processing.  Babcock Wanson’s range has outputs of up to 75MW and the ability to generate high-pressure steam at up to 85barg.  Their fast start-up times and modulation from 4–100% load make them ideal for integration with renewable power and for participation in grid balancing services.

For smaller and medium-scale requirements, immersion heater boilers offer a versatile and efficient option. Available in steam, hot water, and thermal fluid configurations, these units can deliver outputs from just a few hundred kilograms of steam per hour up to several tonnes. They are particularly attractive for decentralised boiler houses, sites with fluctuating demand, or hybrid operations where electricity complements an existing fossil system.  Our LV-Pack low-voltage electric boiler, for example, has steam outputs from 600kg/h to 8400kg/h and a design pressure of up to 18barg.  It is easy and economical to use, whilst also providing precise pressure control with multiple power stages which enables it to react quickly to load changes. This makes it possible to make quick starts to absorb available grid power when needed.

Hybrid boilers, meanwhile, are emerging as a pragmatic stepping-stone. By integrating electrical elements into conventional gas or oil boilers, they allow operators to flex between fuels depending on price signals, carbon intensity, or grid availability. Hybrid Condor boilers from Babcock Wanson Group company VKK Standardkessel, for example, incorporate flanged electric heaters alongside traditional combustion.  For many, this is an appealing way to reduce emissions while preserving continuity of service during the energy transition.

Challenges and opportunities

The path to widespread electrification is not without obstacles. Chief among them is cost: industrial electricity prices remain high relative to gas, despite recent government relief schemes. The Industrial Strategy acknowledges this barrier and commits to long-term reforms to reduce energy costs, accelerate grid connections, and expand corporate power purchase agreements (CPPAs) to secure affordable low-carbon electricity.

Infrastructure is another hurdle. Significant investment is required to ensure grid capacity keeps pace with industrial demand, particularly in clusters such as Teesside, Humberside, and the Humber where heavy industries are concentrated. Encouragingly, reforms to planning and grid connection processes are expected to cut waiting times by up to seven years, potentially unlocking faster deployment of electric boilers across the UK.  This is much needed, as we have witnessed first-hand with customers who have invested in our electric boilers yet are still waiting for grid connection.

Yet the opportunities are substantial. Electrification can help industry achieve zero on-site emissions, a critical requirement for net zero targets. It also creates the conditions for greater integration of industry with the power system, enabling businesses to benefit from demand-side response and grid services markets. In a world of increasingly digital, decentralised energy systems, the electric boiler is not simply a replacement for a gas unit – it becomes an active participant in the wider energy transition.

Looking ahead

The UK is positioning itself to become a leader in clean industrial technologies, with process heating a critical piece of the puzzle. The Industrial Strategy’s commitment to reduce industrial electricity costs, expand clean energy, and create secure, competitive conditions for investment is already shifting boardroom calculations. At the same time, innovations in electric boiler design – from high-capacity electrode systems to compact immersion units and hybrid solutions – are ensuring that every industrial sector has a pathway to electrification.

The next decade will determine how quickly and comprehensively this transition takes place. For some businesses, hybridisation may provide an interim step; for others, full electrification is already a compelling option. What is clear is that electric boilers are no longer niche technologies but central to the UK’s industrial decarbonisation strategy.

As industry, government, and research institutions align around net zero, the growth of electric boilers is set to accelerate – not just as a response to regulation, but as a driver of competitiveness, innovation, and resilience in a low-carbon economy.

Etienne Fourie is Technical Sales Manager, Babcock Wanson.