INSIDE THE FACTORY
can be fed directly back into the system. “In logistics, you’re lifting loads up and lowering them down at the same time,” Wetter says. “If designed correctly, it becomes almost a zero-sum game.” Peak load management is another key benefit. In some applications, Phoenix Contact estimates that DC systems can reduce peak demand by as much as 60- 80%, easing strain on both internal infrastructure and the external grid. Yet these advantages come with technical challenges. Unlike AC systems, which pass through zero voltage 50 times per second in Europe, DC maintains a constant voltage. This makes faults more dangerous and requires extremely fast protection systems. “I have been a big enemy of DC systems for many years. That’s because if you cut a live 40-volt AC wire there is a big flash of light and a loud noise. If you do the same on a 650-volt DC line, you are dead. It fries you,” said the company’s Chief Operating Officer Ulrich Leidecker. “AC naturally goes to zero voltage every few milliseconds, but DC does not. You need protection that turns off in microseconds, not milliseconds. This is something we’ve built and
On its sprawling campus outside the small German town of Blomberg, electrical components manufacturer Phoenix Contact is quietly rethinking one of the most fundamental assumptions of modern industry: how factories are powered. Inside the Factory: Phoenix Contact’s DC-powered vision in Blomberg
A t its new €35 million “all-electric society factory” building, the company is piloting a direct current (DC) energy system designed to integrate renewables, storage, and industrial loads into a single, highly efficient network. Known as Building 60, the 18,500 square metre site houses around 400 employees and serves as both a production facility and a live demonstration of how Phoenix Contact thinks future industrial energy will work. At the heart of this vision is a shift away from alternating current, which has dominated power systems since the late 19th century following the War of the Currents between Thomas Edison and Nikola Tesla. While AC won out due to its ease of transmission over long distances, Phoenix Contact is betting that, within the confines of a factory, DC offers compelling advantages. “From my point of view,
excess solar power, and production processes can draw from multiple sources depending on demand. The efficiency gains are not just theoretical. According to Wetter, switching from AC to DC in factory environments can deliver energy savings of 8-12%, largely by eliminating repeated conversion losses. Material savings are also significant, with copper usage reduced by up to 50% due to lower cabling requirements, and electronic components cut by around 25%. Perhaps more importantly, DC systems enable new forms of energy recovery. In industrial environments where loads are constantly accelerating and decelerating – such as robotics or logistics systems – energy generated during braking
DC is a real key enabler for the all-electric society,” said Martin Wetter, Executive Vice President for Innovation at Phoenix Contact at a press tour of the facility. Inside Building 60, those ideas are already being put into practice. The facility combines a conventional AC supply with a 650- volt DC grid, fed by bi- directional converters, photovoltaic systems, and battery storage. Around 110 kilowatts of solar capacity is connected directly into the DC network, while additional generation feeds into the AC side due to regulatory constraints. Wetter says that this hybrid architecture allows energy to move flexibly across the system. Electric vehicles can be charged during the day and discharged at night, batteries store
are introducing into the industry.” To manage stability, the factory relies on voltage- based control rather than frequency – a fundamental shift from traditional grid management. Phoenix Contact has implemented both local device-level controls and a centralised master controller, enabling intelligent energy management across the site. This software-driven approach allows the system to prioritise renewable energy, optimise charging cycles, and dynamically balance loads. “You can implement anything you like in this control unit,” Wetter
said. “It’s very flexible, and very intelligent.” Flexible and intelligent it may be, but Phoenix Contact continues to take a cautious approach when rolling out the changes. On the factory tour, Automation News noted that only one of the 12 or so huge strip lights illuminating the factory runs on direct current. The company says that gaining regulatory approval for DC powered facilities within the factory continues to be challenging. Nonetheless, energy integration at the site extends beyond electricity. One of the more unusual features is a large-scale ice
“It’s fascinating technology,” Wetter said. “Freezing water releases a huge amount of energy without changing temperature.”
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