View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Finance
5 October 2021updated 10 Nov 2021 7:27am

Just six countries are primed for industrial renewable heat – report

Investment in renewable heat for industrial processes is lagging. Governments should implement supportive policy and regulatory frameworks to incentivise deployment, says a report from BloombergNEF.

By Energy Monitor Staff

China, France, Germany, Italy, South Korea and the UK are the most attractive G20 markets for deploying renewables for industrial heat, such as industrial-scale heat pumps, electric boilers, solar thermal, geothermal and bioenergy, states a report from research company BloombergNEF.

An employee works on the production line at a paper mill in Jinzhong, Shanxi Province of China, June 2021. (Photo by Zhang Yun/China News Service via Getty Images)

While little-to-no progress has been made in decarbonising industrial heat, success in these six countries is due to relatively mature markets for renewable heat and the strong presence of favourable policies such as a price on carbon, the report says.

The six countries make up 46% of the G20’s low to medium-temperature heat demand (0–400°C), characteristic of most light industry, such as the paper industry. Heat for both heavy and light industry currently accounts for 29% of global energy demand, and coal remains the dominant fuel, the report says, making up over a third of all energy for process heat in 2018.

To overcome the barriers of higher upfront costs and longer payback periods that prevent other countries from deploying renewable heat solutions, the report calls for the introduction of off-balance sheet solutions that allow assets to be purchased without a corresponding balance sheet liability, keeping debt-to-equity and leverage ratios low.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. Keep up with the global energy transition with one of our editors bringing you the best of our data-led news and analysis every Monday and Thursday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy


Thank you for subscribing to Energy Monitor