Decarbonizing Heat

While there are various technical solutions to decarbonize and electrify heat, investments are hampered by big capital expenditure needs with often sub-optimal returns. In most markets, natural gas and coal remain cheaper than electricity, especially in the absence of a cost on carbon and various taxes on electricity. Furthermore, policy frameworks incentivizing renewable heat are much less common than those supporting renewable power.

Commercially attractive opportunities for renewable heat are starting to emerge as both countries and businesses are expanding their focus beyond electricity. Upcoming net-zero milestones for governments and companies alike mean this attention will continue to grow, and the value chain for renewable heat will innovate its technical, commercial and financing solutions. Meanwhile, the risks and price volatility associated with natural gas are likely to drive interest in renewable heat and a shift away from fossil fuels.

WBCSD brought together members from across the value chain to elevate the importance of industrial process heat decarbonization and accelerate adoption of various renewable heat solutions across the light industrial sectors. The work prioritized the following thematic areas: Increasing the uptake of fully financed solutions and empowering companies to co-develop Heat-as-a-Service solutions Developing technology solutions briefs on electrification, solar thermal and thermal storage solutions, focusing on suitability of technology solutions for various operational requirements and key success factors for implemented projects across the globe.