EDP and Paper Prime bring pioneering industrial heat electrification project into operation in Portugal
An electric boiler enables part of the natural gas consumption used in industrial steam production to be replaced with electricity, reducing emissions, increasing energy flexibility and strengthening industrial competitiveness.
EDP and Paper Prime have commissioned a pioneering industrial heat electrification project in Portugal by installing a 2.7 MW electric boiler at Paper Prime's manufacturing facility in Vila Velha de Rodão, in central Portugal. The solution allows part of the natural gas consumption used to produce the steam required for the industrial process to be replaced with electricity, helping to decarbonise one of the most energy-intensive aspects of the paper industry.
Paper Prime produces and markets more than 33,000 tonnes of tissue paper products annually for both domestic and international markets. The company operates 24 hours a day and relies on a continuous steam supply, making heat generation a critical component of its operations.
The new solution provides flexibility in managing electricity and natural gas use, enabling operations to adapt to changing energy market conditions. When the electric boiler is in operation, Paper Prime can benefit from electricity prices that are competitive with natural gas prices. This flexibility reduces exposure to market volatility and allows electricity to be used during more favourable periods, without compromising the continuity and reliability of the industrial process.
More than 830 tonnes of CO₂ emissions avoided in just three months
The first results highlight the potential of heat electrification as an effective decarbonisation tool for industry. During the first three months of operation, the solution reduced natural gas consumption by more than 4.5 GWh and avoided over 830 tonnes of CO₂ emissions. During the same period, the boiler consumed around 4 GWh of electricity.
During the first half of 2026, the average electricity price in the Iberian market was lower than the average natural gas price for more than half of the time, allowing the facility to produce steam in fully electric mode for approximately 50% of its operating hours. The ability to switch between the two energy sources enables operations to adapt to market conditions while balancing environmental and economic benefits.
A heat electrification solution with no upfront investment
The solution is provided by EDP under a Heat-as-a-Service model, under which EDP assumes the initial investment and responsibility for the installation, operation, and maintenance of the electric boiler. This enables Paper Prime to benefit from heat electrification technology without requiring any upfront capital investment, helping overcome one of the key barriers to adopting electrification solutions in industry.
"Industrial decarbonisation cannot be achieved through a single solution, but through a combination of technologies tailored to the needs and operational realities of each company. Heat generation remains one of the major challenges in the industrial energy transition, and with Dual Heat, we provide a solution that enables companies to electrify processes progressively and flexibly, reducing emissions without compromising operational continuity or business competitiveness," said António Araújo, Head of Business segment in the Iberian Peninsula at EDP.
For Paper Prime, the project marks another step forward in its strategy to improve energy efficiency and decarbonise its industrial operations.
"Our partnership with EDP allows us to take a concrete step towards reducing our dependence on natural gas while retaining the flexibility required for continuous industrial operations. The initial results demonstrate that it is possible to combine decarbonisation and competitiveness by using electricity intelligently and in line with market conditions. This is an important milestone in our energy transition strategy and in our ongoing search for solutions that make our production more efficient and sustainable," said Paulo Lobo Correia, Board Member at Paper Prime.
Heat electrification offers significant potential for reducing industrial emissions, particularly in processes that rely on fossil fuels to produce steam and heat. EDP has been developing solutions in this area and was also a pioneer in introducing the first thermal battery to the Portuguese market, a technology that stores energy as heat and enables the electrification of industrial steam production.