The vast majority of industrial heat today is generated by burning fossil fuels which are highly efficient at delivering continuous high temperatures required by many industrial processes. Any pathway to decarbonising industrial heating must therefore provide comparable performance and be readily integrated into existing production systems.
The opportunity for industrial electrification is substantial. Projections indicate that approximately $4 billion could be invested between 2024 and 2030 in the EU-27 and the UK alone.
This article outlines some of the clean heat technologies currently available that can help reduce emissions from industrial heat. These Climate Tech innovations present industries with a significant opportunity to lower emissions while enhancing long-term competitiveness.
Innovation Landscape in the Decarbonization of Industrial Heating
The Climate Tech solutions described below offer promising pathways with two main objectives: reducing greenhouse gas emissions from industrial heating and enabling the deployment of clean heat technologies that can be seamlessly integrated into existing manufacturing processes.
The Net Zero Insights Climate Tech Taxonomy showcases these technological advancements through a structured, multi-layered framework that brings clarity to the complex climate innovation landscape.
Direct Electrification
Direct electrification replaces fossil fuelābased heating with electricity, delivering heat directly to industrial processes. Electricity can be applied either to generate process heat directly or to produce steam for broader plant use via electric heaters.
Although electrification technologies are commercially mature and widely available, scaling adoption requires investment in infrastructure upgrades, grid integration, and access to competitively priced low-carbon electricity.
Key technologies in electrification include:
- Industrial heat pumps
Industrial heat pumps increase efficiency by moving heat, achieving three to five times more usable heat per unit of electricity than traditional systems. These solutions can be powered by renewable energy. These pumps typically operate at 80Ā°C to 120Ā°C, with advanced systems reaching up to 200Ā°C. Heat pumps are well-suited for low- and medium-temperature processes such as food and beverage, pulp and paper, and chemicals.
- Induction heating
Induction heating uses an electromagnetic field to heat conductive materials with high precision and efficiency. This technology enables rapid heating, accurate temperature control, and seamless integration into automated industrial processes. Operating between 100Ā°C to above 3,000Ā°C, this technology is suitable for melting applications like materials treatment to metals production. - Electric arc furnaces (EAFs)
EAFs generate the extreme heat required for steelmaking and other metallurgical processes. They are widely used in recycling scrap steel and in producing high-grade alloys. EAFs can reach temperatures up to 1,800Ā°C, offering a lower-emission alternative to blast furnaces.
Clean Fuel Heating
Clean fuel heating is the use of sustainable alternatives to deliver high and continuous temperatures required in industrial operations. Two key areas of innovation are biomass boilers and small modular reactors (SMRs), both of which offer lower-emission pathways to meet industrial heat demand.
Biomass Boilers
Biomass boilers generate thermal energy by burning organic materials such as forest residues or agricultural by-products. By leveraging these locally available biomass resources, industries can lower fuel costs and reduce carbon footprints. Biomass offers a practical solution for decarbonising low- and medium-temperature industrial heat applications.
Small Modular Reactors (SMRs)
Small Modular Reactors are a next-generation nuclear technology engineered to deliver reliable, high-temperature heat for energy-intensive processes. Their compact size, modular construction, and enhanced safety systems allow for faster deployment and greater flexibility compared to traditional large-scale reactors.
SMRs can be integrated into industrial sites or regional energy systems to provide both heat and electricity, making them particularly well-suited to hard-to-abate sectors such as chemicals, refining, and metals.
Industrial Thermal Energy Storage
Thermal energy storage (TES) is the process of temporarily storing energy by capturing excess energy through heating or cooling and releasing it when needed. Current solutions include underground storage systems (aquifers, caverns), and rock-based storage (pebbles or gravel).
There are two types of technologies under thermal energy storage:
Sensible Heat Storage
Sensible heat storage captures thermal energy by raising the temperature of a material without altering its physical state. The stored heat is later released as the material cools. Common storage mediums include hot water, solid materials, and molten salts. It is a relatively mature technology and is already deployed in several high-temperature industrial applications.
Latent Heat Storage
Latent heat storage relies on phase change materials (PCMs) that absorb or release energy during changes in state of the material, from solid to liquid. Unlike sensible storage, PCMs offer high energy density and consistent output at near-constant temperatures.
Industrial Waste Heat Recovery (WHR)
Industrial operations generate waste heat that is released into the environment through exhaust gases, hot effluents, or equipment surfaces. Capturing and reusing this thermal energy reduces reliance on primary fuels, cuts emissions, and improves overall energy efficiency.
WHR technologies enable industries to repurpose this otherwise lost energy. They can be conventional systems such as waste heat boilers which use hot exhaust streams to produce steam for on-site applications. Or advanced solutions like high-temperature heat pumps and thermochemical processes that can upgrade lower-grade waste heat into usable thermal energy.
The applicability of WHR spans three broad temperature categories:
- High-temperature (>400 Ā°C): typically recovered from combustion processes such as furnaces and kilns.
- Medium-temperature (100ā400 Ā°C): sourced from the exhaust of combustion units or chemical processes.
- Low-temperature (<100 Ā°C): captured from equipment, products, or cooling systems.
WHR is valuable in energy-intensive sectors such as steel, cement, glass, and chemicals.
Calefa, a Finnish company, provides industrial waste heat recovery solutions with its proprietary AmbiHeatĀ® heat pump plant. This technology generates zero-emission heat from industrial waste heat, outdoor air, and other local energy sources.
Unlocking the energy transition in industrial heating
The successful transition to a low-carbon industry depends on the adoption of clean heating technologies that can deliver decarbonisation efficiently and at scale. These innovations enable industries to cut energy costs, reduce reliance on fossil fuels, comply with environmental regulations, and improve overall operational performance. Companies that act now stand to gain both environmental and financial advantages, positioning themselves as leaders in the global shift toward sustainable industrial heat.
Interested in exploring the full Industrial Heating Innovations landscape?
The Net Zero Insights Platform provides exclusive access to in-depth research on each of these technologies and the companies developing them. The platform includes details on technology readiness, company maturity, investment activity, and more to help you track the innovations shaping the future of industrial heating.
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