Dive Brief:
- Off-grid renewable-powered systems could economically supply up to one-third of industrial heat demand in the United States by 2035, according to a paper published earlier this year by researchers at the University of California, Berkeley.
- The paper, which has not been peer reviewed, evaluates the cost of delivered heat across low, medium and high temperature ranges, using site-specific data to calculate the renewable energy potential at more than 3,000 industrial sites across the country. The Berkeley analysis found that on-site wind and solar paired with industrial heat pumps and thermal energy storage are economically viable, particularly in regions with high natural gas prices and low cost renewables, such as California and parts of the northeast.
- Jose Dominguez, a research manager at the school and one of the report’s authors, told Utility Dive in an interview that its findings are promising for a manufacturing industry that is heavily reliant on natural gas, with its volatile prices. “These technologies are a way to have control over the cost and predictability,” he said.
Dive Insight:
The report focused on the economics of decarbonizing the industrial sector, which accounts for a large portion of U.S. greenhouse gas emissions and was identified by the Biden administration as particularly difficult to transition away from fossil fuels.
But Dominguez said clean energy technologies have made tremendous strides recently.
“It was not cost effective a few years ago,” he said. But, “even though it can be economical, it needs to be planned and developed.”
The report found heat pumps are the “most cost-effective clean solution” for low-temperature industrial processes of less than 200 degrees Celcius, while thermal batteries offer “competitive or lower costs” for high-temperature processes.
“In many cases, electric heating solutions are already at cost parity with fossil fuel-based alternatives, and as renewable energy costs continue to decline, their economic advantage is expected to grow,” it said.
The report identifies several challenges to the widespread adoption of renewable-powered industrial heating. Those include reliability concerns from users that require an uninterrupted energy supply for operations, investment and timeline considerations, and space limitations. About 27% of total heat demand is concentrated in facilities lacking sufficient local renewable potential, particularly in urban areas, it said.
Still, Dominguez said he was surprised by how many industrial sites in the U.S. had potential to add renewable generation.
“Some of the industries are not aware about these technologies,” he said. “There’s a need for developers to go and pitch industries and to show that there’s a new alternative.”
