Analysts are referring to today’s energy crisis as the perfect storm. Last year, extreme summer and winter weather resulted in lower-than-normal gas reserves. Now, just as the energy demand is rising from the increased industrial production for the first time since the pandemic, Russia wages war against Ukraine. This poses major problems, especially in Europe as Russia accounted for 31 percent of the European gas supply in 2020. 

The energy price index has already risen exponentially in the last two years, by 50 percent between 2020 and 2021. And it’s not expected to cease; rather, prices are expected to stay higher for longer. In 2022, energy prices are projected to increase 50 percent overall and coal, natural gas, and crude oil are projected to increase by 81 percent, 74 percent, and 42 percent, respectively. Projections for 2023 are also expected to be an average of 46% higher. 

The process of creating high-temperature products requires massive amounts of energy, and with these rising prices, refractories are taking a hard hit. Rising prices are pushing the industry to rethink how they use energy on-site. Already, refractories are reporting increases in their energy bills, one referencing an increase of 700% alone. 

In this industry, shifts cannot, and will not, happen overnight. With a kiln, for example, stopping production can be more costly than continuing as a large amount of energy is required to restart. This is forcing the industry to look for alternatives to reduce their consumption.  

Every day, new methods are being implemented to help offset the rising costs of energy. These five new trends and approaches include factoring in durability, insulation, green bricks, castables, and easier-to-install materials in every formulation.