The master thesis “Direct Electrification of Industrial Companies in Austria: Drivers, Barriers, Strategies” investigates the transition from fossil fuel-based systems to electrically powered technologies in Austrian industries, focusing on the economic, regulatory, and technological drivers and barriers, as well as strategic responses to this transformative shift. Here is the abstract:

Direct electrification refers to the process of transitioning from fossil fuel-based energy systems to electrically powered technologies. The direct electrification of industrial processes represents a key strategy for achieving decarbonisation in energy-intensive sectors. This transition is of critical importance in meeting Austria’s ambitious climate targets, which aim for net-zero emissions by 2040. Nevertheless, the extensive implementation of direct electrification is constrained by a multitude of economic, regulatory, and technological barriers. This thesis examines the drivers that promote and the barriers that hinder the widespread implementation of direct electrification within Austrian industries, emphasizing the strategic responses of incumbent firms to these technological shifts. The research approach is based on a systematic review of academic and grey literature, supplemented by insights from eight semi-structured interviews with experts from diverse sectors, including the paper and pulp, chemical and plastics, pharmaceutical, plant engineering, and food and agriculture industries. Three additional interviews were conducted with experts from a research institute, a German industry association, and a German energy company. The analysis identified three main drivers, namely economic, regulatory, and corporate strategy. Additionally, the barriers were categorized as economic, regulatory, technological, infrastructural, and knowledge-based constraints. Consequently, this thesis has systematically classified four distinct strategies that industrial companies are pursuing as part of their broader decarbonisation strategy, namely energy efficiency, renewable energy, direct electrification, and circular economy. The findings suggest that firms that adopt a proactive approach, leveraging existing competencies while developing new capabilities, can better navigate the technological discontinuities associated with electrification, turning these disruptions into growth opportunities. The thesis concludes that while direct electrification presents a pathway to deep decarbonization, its success largely depends on firms’ ability to overcome technical and economic barriers through strategic innovation and effective use of policy frameworks.