In recent years, we’ve witnessed a growing trend of companies adopting ESG (Environmental, Social, and Governance) reporting and committing to reducing greenhouse gas emissions. Until now, many companies have primarily focused on reducing emissions related to electricity consumption, either by transitioning to renewable energy or purchasing green energy credits. The next wave of emission reduction efforts is set to focus on a new and challenging area: reducing heat-related emissions.
Heat-Related Emissions in Industry
Heat accounts for approximately 75% of energy consumption in industrial plants. This figure highlights the enormous potential for emission reduction that lies in transitioning to cleaner heat production methods. Leading companies in the ESG field are beginning to understand that to reach their ambitious emission reduction targets; they must tackle the complex challenge of reducing the use of fossil fuels for heat generation.
The shift towards renewable heat energy poses significant technological and operational challenges. Unlike electricity, which can be generated in one place and transmitted over long distances, heat production and transfer are more geographically limited.
Electrification and Renewable Heat Solutions
Beyond renewable heat, the electrification of heating processes is a promising strategy. By converting processes based on fossil fuel combustion to electrical processes, companies can leverage the benefits of renewable electricity generation for their heating needs as well. This approach allows for synergy between emission reduction efforts in both the electricity and heat sectors.
Companies such as TIGI Solar address the challenge by offering advanced comprehensive solutions, including industrial heat pumps, solar thermal systems, and heat storage technologies, allowing industries to efficiently generate and utilize clean heat on-site.
Investment and Financing Challenges
The transition to clean heat is challenging as the required investments can be substantial, and new technologies often require an adaptation and implementation period.
New models like Heat as a Service (HaaS) can help resolve this issue. By offering a “pay-as-you-use” model, big players like TIGI Solar removes the financial barriers that often prevent industries from investing in new technologies. With no upfront investment required, companies can access the latest renewable heat technology and start saving on operational costs from day one.
A Competitive Edge in the ESG Race
Despite the challenges, the movement towards clean heat is gaining momentum. Regulators and investors are beginning to demand that companies address emissions related to electricity and those stemming from heating processes. Companies that succeed in leading in this field may enjoy a significant competitive advantage, both in compliance with environmental regulations and attracting environmentally conscious investors and customers.
Embracing the Future of Clean Heat
The transition to green electricity was an essential step toward reducing emissions. The next step in the ESG world is even more complex and challenging. The shift to clean heat represents the new frontier in the fight against climate change and offers significant opportunities for innovation and improvement in industrial energy efficiency. Companies that manage to lead this process will contribute to the global effort to reduce emissions and position themselves at the forefront of technological and environmental progress.