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Electrification of Industrial Heat: A Key to Decarbonization

Heating and cooling account for nearly half of global final energy consumption, making it the largest energy end-use sector, surpassing electricity (20%) and transport (30%). The industrial sector is a significant contributor, with heat alone responsible for about 25% of global energy demand and approximately 20% of CO₂ emissions.

A new report by Systemiq Ltd., "A Lightning Moment for Industry: How to Reach Positive Tipping Points in Electrification of Industrial Heat," highlights the urgency of decarbonizing industrial heat, especially low- and medium-temperature heat (<400>

Three Broad Solutions to Reduce Industrial Heat Emissions

1. Direct Electrification – Often the most efficient pathway for low- to medium-temperature heat.
2. Low-Emission Fuels – Includes options like hydrogen, biofuels, and synthetic fuels.
3. Other Zero-Emission Heat Sources – Includes heat pumps, geothermal energy, and concentrated solar power.

Structured Approach to Electrifying Industrial Heat

1. Develop a Decarbonization Plan – Assess a single site or multiple industrial sites to create a heat and power strategy.
2. Prioritize Sites for Electrification – Identify locations with favorable conditions and develop a business case for early adoption.
3. Execute Pioneering Projects – Implement and scale electrification projects, capturing financial and operational benefits.

The report also provides a tipping point assessment, evaluating the affordability, attractiveness, and accessibility of direct electrification solutions. As technology costs decline and renewable electricity becomes more abundant, industries are approaching a critical juncture where large-scale electrification of industrial heat could soon become the preferred choice.