IDTechEx Discusses Thermal Energy Storage and Decarbonization

On a global level, the decarbonization of heat energy methods is needed more and more as heating and cooling accounts for around 50% of energy consumption, with 30% being from industrial heating. 90% of these industrial heating processes include the use of fossil fuels, which leads to high global emissions from industrial processes alone. To meet net zero targets, things need to change.

 

Thermal energy storage (TES) is the process of using electricity and heat transfer fluids to heat up a thermal storage medium by powering resistive heaters and transferring heat by heat transfer. IDTechEx's latest report, "Thermal Energy Storage 2024-2034: Technologies, Players, Markets, and Forecasts", explores how the heat energy produced from TES can be stored and used as and when required.

 

 

Decarbonizing industrial heating processes are one of the main drivers for TES technologies, alongside the avoidance of volatile natural gas prices. In some regions, higher and more unpredictable gas prices present TES as a tempting and more feasible option for a more cost-competitive approach to obtaining heat. Europe has been seeing unstable natural gas prices, most likely related to the Russia-Ukraine conflict, and therefore has jumped from 10-20 euros per MWh before 2022, to reaching approximately 300 euros per MWh today.

 

Emission caps in the EU were implemented to penalize companies for greenhouse gas emissions above an agreed limit and are reduced annually to effectively incentivize companies to produce low-carbon heat. There is also an option for companies to purchase emission allowances. The funds accrued through penalties for going above the emissions cap or from purchased emission allowances go towards the EU Innovation Fund. This money is then put towards climate-related endeavors such as supporting the deployment of decarbonization technologies like TES, heat pumps, and other energy storage technologies.

 

It can be difficult to pinpoint where funding will be provided for the development of TES technologies. However, companies in the US, Europe, and Australia are known to be actively supporting the decarbonization of industrial heating, so these regions will likely have some of the most TES growth in the medium term.

 

 

Sensible heat systems are known for their reliability and applications in other industries, promising longer lifetimes than alternative latent heat systems. Sensible heat systems use materials like concrete, refractory brick, or molten salt that don't change state throughout the process. Solid-state systems can also provide higher heat, above 1000 degrees Celsius, which is important for the decarbonization of metal, glass, and cement manufacturing processes.

 

However, with these types of heat systems, temperatures may struggle to be consistent. With some materials, such as molten salt, systems that use continuous recirculation loops could be a solution employed to keep the salt within a working temperature range while providing heat at constant temperatures to industrial processes. Similar processes can be used to maintain the temperature of other materials, too, but extra system designs will undoubtedly increase costs and complexities and could reduce system-level energy density when compared to a latent heat system.

 

Latent heat systems that use metal alloys or silicon are heated at constant temperatures in order to change states from solid to liquid and discharge heat as and when is needed by passing cold heat transfer fluid around the hot metal. This approach can be beneficial due to the high energy density of the materials, which is advantageous in manufacturing or industrial environments where volume constraints might be in place.

 

 

Electro-thermal energy storage takes a slightly different approach, more so targeting long-duration energy storage (LDES) and focusing more on generating electricity than on decarbonizing heat. A heat pump cycle is used to convert electrical energy into thermal energy, and a heat engine is then used to convert thermal energy back to electrical energy on discharge.

 

The heat generated by TES methods can be used either directly, passed through heat exchangers, or used to drive a turbine generator for electricity, and can be useful for a wide variety of industries from iron and steel, pulp and paper, and food and beverage. Electro-thermal systems could be used to dispatch electricity over longer time frames, for example when solar and wind power might be unavailable, and can also be a good option for decarbonizing industrial heating processes.

 

 

According to IDTechEx, the demand for funding for decarbonization projects is greater than what is actually being provided, meaning that while steady growth of thermal energy storage projects is expected, the technology will face some competition. TES is positioned as a great solution to solving the issue of high-emission industrial heating, though factors to be considered by companies will include lifetime potential, round trip efficiency, energy density, and cost. Detailed breakdowns of these factors are included in IDTechEx's latest report, "Thermal Energy Storage 2024-2034: Technologies, Players, Markets, and Forecasts".

 

To find out more about this IDTechEx, including downloadable sample pages, please see www.IDTechEx.com/TES.

 

For the full portfolio of energy storage market research available from IDTechEx, please visit www.IDTechEx.com/Research/ES.

IDTechEx provides trusted independent research on emerging technologies and their markets. Since 1999, we have been helping our clients to understand new technologies, their supply chains, market requirements, opportunities and forecasts. For more information, contact research@IDTechEx.com or visit www.IDTechEx.com.