S3 File (5/6): Digital Technology, Energy Systems, and Sustainable Habitats

The Walloon Government approved the new Smart Specialization Strategy (S3) for 2021-2027 in February 2021. This strategy is structured around five strategic innovation areas. It outlines the actions to be taken to enhance research and innovation in specialized niches while ensuring the growth of new expertise.

Led by the Digital Agency (AdN), Wallonie Entreprendre (WE), and the Public Service of Wallonia (SPW), the S3 defines the efforts and directions for the industrial and innovation policy in Wallonia for the coming years.

The Digital Agency proposes a six-part dossier to understand this strategy and the role that digital technology plays in it:

Part 1: Dossier S3 (1/6). The New Walloon Specialization Strategy Part 2: Dossier S3 (2/6). Digital Technology, Key to Successful Deployment Part 3: Dossier S3 (3/6). Digital Technology and Strategic Innovation Dimensions in Wallonia Part 4: Dossier S3 (4/6). Digital Technology and Design and Manufacturing Methods Part 5: Dossier S3 (5/6). Digital Technology and Energy Systems and Sustainable Habitats Part 6: Dossier S3 (6/6). Digital Technology and Calls for Expression of Interest

Activity Scope The Strategic Innovation Area (DIS) "Energy Systems and Sustainable Habitats" aims to deploy new solutions for the green energy transition and the habitats of the future. Investment in research, development, and innovation seeks to transform energy and climate challenges into opportunities for economic and social development, such as reducing energy poverty, supporting the development of new business models that include a circular approach. It also aims to reduce the cost of energy technologies and systems, their resource impact, limit CO2 emissions, energy consumption, and facilitate the development of renewable energy. Furthermore, research will focus on the social acceptance of new technologies and associated services, involving citizens and businesses in their design, social acceptance, and use, for example, through living labs or support initiatives to help businesses of all sizes in this transition. In addition to the long-term impact on climate change mitigation, energy research brings simultaneous benefits in health, air quality, comfort in buildings, reduction in energy bills, and, ultimately, reducing Wallonia's geopolitical dependence.

The DIS targets key areas of expertise in Wallonia, such as:

• Energy efficiency of buildings and industry (new insulating materials and/or energy sensors)

• Integrated management of energy production and consumption flows within industrial production, buildings, and smart grids

• Renewable energies

• Energy storage and distribution

• Engineering, design, and simulation of energy-efficient parts/systems/components

• Digital solutions related to security, modeling, simulation, and monitoring

• Decarbonized mobility

• Green chemistry

• Eco-sustainable construction

Several digital ecosystems are directly involved in the implementation of this DIS, such as those in circular economy, smart buildings, smart cities, smart grids, smart logistics, and cybersecurity. Relevant digital technologies include IoT, AI, digital twins, and simulations.

Strategic Innovation Area Structure DIS areas are structured around ambitions that lead to strategic domains. Each DIS targets key areas of expertise identified as levers for Wallonia. For the DIS "Energy Systems and Sustainable Habitats," four ambitions and four strategic domains have been defined, providing the framework for deploying projects.

4 Ambitions and 4 Strategic Domains for the DIS "Energy Systems and Sustainable Habitats"

The 4 Ambitions Ambition 1: Improving the energy efficiency of buildings The energy renovation of buildings faces two main challenges in which Wallonia must develop expertise to become a major player in the sector:

• Industrializing deep renovations for energy-efficient buildings and applying mass customization for prefabricated modular construction, from design and off-site fabrication to installation.

• Renovating built heritage, which has cultural preservation requirements and demands creativity in energy renovation companies. Innovative solutions must consider all aspects, not just technical, but also cultural, societal, and environmental.

Ambition 2: Improving energy efficiency and decarbonization of industrial production The goal is to reduce the energy consumption of industry and decarbonize the sector by 2050. These two objectives are not always aligned, so research and innovation will focus on:

• Improving products, processes, energy production and consumption flows, developing the circular economy, and reducing resource use in processes.

• Developing the hydrogen economy: its use in industrial processes and for energy needs where applicable.

Ambition 3: Deployment of renewable energy Wallonia must lead in developing energy management systems (electric and thermal) and integrated energy storage solutions, including bioenergy, hydrogen, and e-fuels, and develop an export-oriented economy of such solutions. Research will focus on increasing installed capacity, optimizing energy flows, and managing networks. Innovation will focus on:

• Optimizing energy flows and network management, both electric and thermal.

• Energy production from biomass, better management of agricultural and forestry by-products, and their transformation.

• Green hydrogen or "wasted" hydrogen production and e-fuels with optimal energy efficiency and circular economy principles.

Ambition 4: Decarbonization of the logistics and transport sector In line with the "VISION FAST 2030" adopted in 2017 and the "Regional Mobility Strategy" adopted in 2019, the aim is to develop innovative solutions for:

• Integrated management of traffic flows and networks (logistics-transport-mobility).

• Electric and hydrogen mobility. Wallonia will develop its hydrogen production, storage, distribution, and use capacities linked to Ambition 3.

The 4 Strategic Domains Strategic Domain 1: Design tools, methods, and building elements for improved energy performance

• Accelerating the wave of high-performance renovations: focusing on digitization and industrializing renovation activities, developing 3D measures, and integrating them into a digital model, as well as mass customization for prefabricated modular construction.

• Renovation of built heritage: addressing cultural preservation requirements with creativity in energy renovation companies.

• Smart envelopes: research will focus on intelligent active and passive cooling systems combined with façade concepts.

• Deploying materials, components, and structures with low environmental impact.

Strategic Domain 2: Digitalization and Flow Management Digitalization and flow management are critical in many solutions for Wallonia's energy transition. This domain includes various digital and technical solutions for optimization. Wallonia will develop its expertise in the following:

• Buildings: digital solutions for securing, modeling, simulating, and monitoring energy consumption and performance in buildings, integrating buildings with electromobility in electrical networks (smart-charging, V2G, heat pump management...), managing heating/cooling networks, "zero-energy" districts, or positive-energy buildings.

• Industry: digitalization of processes, management of energy production and consumption flows, energy networks.

• Renewable energies: integration of renewable energies into electrical and thermal networks and management of decentralized energy production, development of renewable and citizen energy communities, including micro-grids.

• Mobility: managing traffic and transport network flows (logistics-transport-mobility).

Strategic Domain 3: Energy Storage This domain aims to develop Wallonia's ecosystem in advanced materials and energy storage solutions to enable increased industrial flexibility, ensure electrical supply, improve the functioning of electrical grids, and handle the intermittency of renewable energy both at the industrial and individual levels.

Strategic Domain 4: Hydrogen Economy This domain focuses on the development of hydrogen production, transportation, storage, and utilization technologies, particularly for decarbonizing industrial processes and transport.

International Dimension The European Union's ambitious energy transition goals will translate into significant partnership and funding opportunities, especially within the "Climate-neutral and smart cities" mission, European partnerships, and the "Climate, Energy and Mobility" cluster under Horizon Europe. The strategy of this DIS should align with European initiatives like Horizon Europe, IPCEI, and FEDER.

Action Levers and Roadmap The DIS can rely on several action levers, including:

• Circular Wallonia strategy

• The Regional Policy Declaration and the 2021-2024 Regional Recovery Plan

• Digital Wallonia strategy 2019-2024, particularly the Future Industry and Future Construction initiatives

• The European Green Deal

• Horizon Europe program

• Digital Europe program

This roadmap was designed by the Public Service of Wallonia, in collaboration with the Digital Agency, Sowalfin, Greenwin, Mecatech, ULB (TTO), Cluster Tweed, CSTC, and ORES.