Industrial heat accounts for two-thirds of industrial energy demand and nearly one-fifth of global energy consumption, with demand expected to rise in the coming years. Reducing heat-related emissions requires either transitioning to cleaner energy sources or improving efficiency to minimize energy use.
Today, innovative technologies are emerging to tackle the challenge, but scaling their impact depends on strategic collaborations. Partnerships play a critical role in accelerating the development, commercialization, and deployment of climate technologies across sectors.
This article highlights five key agreements driving the decarbonization of industrial heating. It showcases how leading organizations are leveraging innovation and collaboration to deliver breakthrough solutions and fast-track the transition to low-carbon industrial processes.
Supply Agreement between Kingspan and RIFT
Challenge:
Insulation manufacturer Kingspan Unidek has committed to reducing its Scope 1 and 2 emissions by 65% by 2030 and reaching net-zero carbon manufacturing within the same timeline.
Solution:
Dutch clean-tech company RIFT has developed a proprietary Iron Fuel Technology that generates high-temperature heat by combusting iron powder without producing direct COâ‚‚ emissions. When burned, the iron powder forms iron oxide (rust), which can then be regenerated back into usable iron using green hydrogen, creating a fully circular fuel cycle.
To accelerate industrial decarbonization, RIFT and Kingspan Unidek have signed the world’s first commercial contract for Iron Fuel Technology. The supply agreement includes the delivery of an Iron Fuel Boiler and a long-term iron fuel supply contract. The boiler will be installed at Kingspan Unidek’s facility in Gemert, the Netherlands.
This technology offers several advantages for energy-intensive industries:
- Circularity: The process continuously regenerates iron fuel using hydrogen.
- Compatibility: The boiler can be retrofitted into existing systems with minimal adjustments.
- Scalability: The technology is designed for industrial-scale deployment.
Outcome:
By switching to iron fuel, Kingspan Unidek expects to avoid over 6,000 tonnes of CO₂ emissions annually , equivalent to the annual carbon absorption of approximately 250,000 trees. The deal marks a pioneering step in the commercialization of fossil-free industrial heat and aligns directly with Kingspan’s sustainability goals.
Strategic Partnership between Hyme and Sulzer
Challenge:Â Â
Steam production in manufacturing industries rely heavily on high-temperature heat and account for a significant share of global carbon emissions.
Solution:Â
Danish thermal energy storage developer Hyme Energy and Switzerland-based fluid engineering specialist Sulzer have partnered to advance and commercialize molten hydroxide salt energy storage technology. Building on the success of the pioneering Molten Salts Storage (MOSS) project in Denmark. The strategic partnership aims to commercialize the solution to accelerate the transition towards sustainable industrial heat solutions.
The system stores renewable energy as heat in molten hydroxide salts at temperatures up to 600°C, discharging it on demand by pumping the molten salt through a heat exchanger to produce high-temperature steam for industrial processes. Designed for seamless integration with existing infrastructure, the technology offers a scalable, cost-competitive, and reliable pathway to industrial heat electrification and process decarbonization.
Outcome:
The solution is designed to be highly scalable. A 1 GWh storage facility could supply heat and power for around 100,000 households for up to 10 hours. Sodium hydroxide is easily available, significantly reducing storage costs and estimated to be six times lower than standard salt-based alternatives.
The system stores energy at up to 600°C for two weeks, ensuring a steady green heat supply even during low renewable output. Designed for easy integration, the technology offers a scalable and cost-effective path to industrial decarbonization.
Supply Agreement between Idex and Charwood Energy Group
Challenge:
Municipalities and industries face increasing pressure to phase out fossil fuels and adopt low-carbon heating solutions. Delivering these systems is particularly complex in sites with logistical constraints, such as mountainous regions and active industrial facilities.
Solution:
Charwood Energy, a specialist in energy production from biomass, is partnering with Idex, a provider of low-carbon utility and energy efficiency solutions, to deploy advanced modular biomass heating systems for two projects.
The first project involves a 750 kW pellet-fired unit for the municipality of Val d’Isère. To address the site’s unique logistical challenges due to its mountainous location, Charwood is deploying a prefabricated silo module. This modular approach enables compact installation and seamless integration with the municipality’s existing infrastructure.
The second project focuses on decarbonizing heat production at a poultry processing facility in Plouray, Brittany, through the delivery of a turnkey modular biomass heating system. The project replaces the site’s steam-based process piping with a hot water circuit.
Outcome:
The projects replace fossil-based heating with biomass-powered systems, reducing emissions while improving energy efficiency. By delivering scalable, prefabricated solutions tailored to diverse operational needs, Charwood Energy strengthens its position as a key partner for public and private stakeholders in France’s energy transition.
Supply Agreement between Vinton Steel and Tenova
Challenge:
- The U.S. metals industry faces increasing pressure to reduce emissions, lower energy consumption, and meet the growing demand for sustainable steel products.
- Vinton Steel, a regional leader in long steel and grinding media, needed to modernize its production facilities to enhance efficiency and expand capacity to meet rising demand from the mining sector.
Solution:
Vinton Steel has signed a supply agreement with Tenova, a global leader in sustainable metals technologies to build a new walking hearth reheating furnace. The walking hearth reheating furnace, to be built at Vinton Steel’s El Paso facility, is engineered to process high-carbon steel billets while minimizing environmental impact. Featuring Tenova’s proprietary low-NOx burners and advanced control systems reduces emissions, optimizes energy use, and boosts operational efficiency.
Outcome:
Scheduled for startup in Q1 2027, the upgrades will significantly increase Vinton Steel’s output while cutting emissions and energy use. This agreement aims to increase Vinton Steel’s production capacity to 400,000 tons of long steel per year while significantly reducing emissions, energy consumption, and operational costs.Â
Service Agreement between Vantaa Energy and VTT
Challenge:
Vantaa Energy, one of Finland’s largest urban energy companies, aims to achieve carbon-neutral energy production by 2035.
Solution:
Vantaa Energy partnered with VTT Technical Research Centre of Finland to design and develop Varanto, the world’s largest thermal energy storage facility, scheduled for completion in 2028. Leveraging VTT’s R&D expertise, the collaboration focuses on storing heat in underground caverns with a 1.1 million m³ capacity and up to 90 GWh of energy storage.
Outcome:
Once operational, Varanto will supply stored heat to Vantaa’s district heating network, improving energy efficiency and enabling large-scale decarbonization. The project positions Vantaa Energy as a frontrunner in circular economy-based urban energy systems.
Collaboration as a catalyst for industrial heat decarbonization
The commercial agreements highlighted in this article demonstrate how key collaborations accelerate the decarbonization of industrial heat. By combining innovative climate technologies, scalable solutions, and strategic partnerships, these initiatives enable industries to cut emissions, improve energy efficiency, and commercialise solutions designed for real-world impact.
For manufacturers, utilities, and technology providers, adopting these breakthroughs is key to meet their climate goals. As demand for industrial heat continues to grow, such collaborations will play a critical role in shaping an efficient and low-carbon industrial future.
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