Decarbonising Industrial Heat for Sustainable Growth

Syllabus: GS3/ Energy and Infrastructure/ Environment

Context

• Geopolitical instability in the Strait of Hormuz and India’s fossil fuel dependence highlight the need to electrify industrial heat for energy security and sustainability.

What is Industrial Heat?

• Industrial heat refers to thermal energy required for manufacturing processes across sectors such as textiles, ceramics, steel, and chemicals.
• It is used in processes like steam generation, drying, dyeing, and high-temperature kiln operations exceeding 1,000°C.
• It constitutes nearly 25% of India’s total energy consumption.
  • Industrial process steam alone generates approximately 182 million tonnes of CO₂ annually in India.
• Fossil fuels such as coal, furnace oil, biomass, and natural gas dominate industrial heating systems. It contributes to SO₂, NOx, and particulate matter emissions, worsening air quality.
• Key sectors include textiles, food processing, chemicals, pharmaceuticals, and paper industries.

Need for Electrification of Industrial Heat 

• Energy Security: Heavy reliance on imported fossil fuels makes industries vulnerable to geopolitical shocks and price volatility.
• Decarbonisation Goals: Industrial heat is a major source of carbon emissions, and electrification can support India’s climate commitments.
• Efficiency Improvements: Conventional boilers lose 20–30% of energy, whereas electric technologies can exceed 90% efficiency.
• Thermal Sovereignty: Electrification enables a shift towards domestically generated, renewable-based heat systems.

Technological Pathways for Electrification

• Concentrated Solar Thermal (CST): CST uses mirrors to concentrate sunlight and generate heat by heating a working fluid such as water or molten salt.
  • It can achieve temperatures up to ~400°C, suitable for medium-temperature industrial processes (100–180°C). India has an estimated CST potential of 6.4 GW, but adoption remains limited.
  • CST enables on-site heat generation and thermal storage, reducing dependence on both fossil fuels and the electricity grid.
• Industrial Heat Pumps: Heat pumps transfer and upgrade heat using electricity instead of combustion.
  • They operate with a Coefficient of Performance (COP) of 3–5, making them highly efficient.
  • Particularly suitable for low-to-medium temperature applications (up to 150–200°C).
• Induction Heating: Induction heating uses electromagnetic fields to generate heat directly within the material. It eliminates intermediate heat transfer losses associated with air or steam.
• Plasma Heating: Plasma heating involves ionising gas to produce extremely high temperatures suitable for high-temperature industries.
  • It provides precise control over heating processes, improving product quality and reducing energy wastage.

Challenges in Electrification

• Grid Readiness: Electrification of industrial heat would significantly increase electricity demand. Distribution infrastructure in industrial clusters is already strained, with transformers operating near capacity.
• Intermittency of Renewables: Renewable energy sources such as solar and wind are intermittent in nature.
  • Industrial processes require continuous and reliable heat supply, creating a mismatch.
• Storage Constraints: Energy storage infrastructure, including battery and pumped hydro systems, is still underdeveloped in India.
• High Capital Costs: Technologies such as CST systems and electric kilns involve high upfront investment. 

Global Best Practices

• The Miraah Project in Oman demonstrates the successful integration of concentrated solar thermal (CST) technology with existing gas-based industrial systems.
• Denmark has introduced heat purchase agreements, under which third-party providers install, operate, and maintain heat generation systems.
  • Industries procure heat at a fixed and predictable cost, thereby avoiding high upfront capital investments.

Way Ahead

• India should formulate a National Thermal Policy to drive industrial heat decarbonisation, while extending financial incentives such as Production-Linked Incentives (PLI), subsidies, and accelerated depreciation to technologies like concentrated solar thermal (CST) and industrial heat pumps.
• There is a need for grid modernisation and infrastructure upgrades, along with the promotion of hybrid solutions combining CST, heat pumps, and backup systems to ensure reliable and efficient industrial heat supply.

Source: TH