{"id":1294,"date":"2026-08-01T11:36:59","date_gmt":"2026-08-01T11:36:59","guid":{"rendered":"https:\/\/movingandmortgagehub.com\/?p=1294"},"modified":"2026-08-01T11:36:59","modified_gmt":"2026-08-01T11:36:59","slug":"how-can-us-factories-get-cleaner-heat-these-ideas-may-help","status":"publish","type":"post","link":"https:\/\/movingandmortgagehub.com\/?p=1294","title":{"rendered":"How Can US Factories Get Cleaner Heat? These Ideas May Help."},"content":{"rendered":"
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This story was originally published by\u00a0<\/em>Canary Media\u00a0and is reproduced here as part of the\u00a0<\/em>Climate Desk\u00a0collaboration.<\/em><\/p>

Read more The Post-Roe Surprise: More Abortions<\/a><\/p>\n

American households are<\/span> all too familiar with the pain of high electric bills, which are climbing nationwide. The same problem is quietly hindering the country\u2019s factories from cleaning up their operations, too.<\/p>\n

Hundreds of thousands of US manufacturing facilities\u00a0burn fossil fuels\u00a0to produce the heat they need to make packaged foods, bottled drinks, construction materials, and likely everything in your bathroom cabinet. It\u2019s why the industrial sector accounts for nearly one-third of the country\u2019s carbon dioxide emissions from energy use.<\/p>\n

Cleaner technologies like\u00a0industrial heat pumps, electric boilers, and\u00a0heat-storing batteries\u00a0are already commercially available. Yet even companies that are committed to decarbonizing can find it hard to justify making the switch. The underlying problem is that in virtually every state, electricity costs more than natural gas for industrial users.<\/p>\n

\u201cWe have to have solutions that are at the very least competitive with the existing cost of fuel,\u201d said Neil Brown, a\u00a0chemical engineer at Tennessee-based\u00a0Eastman Chemical, which has over a\u00a0dozen manufacturing sites in the US and more abroad.\u00a0\u200b\u201cIn some places where Eastman operates, in parts of the Southeast and Texas, it is very difficult to compete with the low cost of natural gas.\u201d<\/p>\n

Brown was speaking on a\u00a0webinar\u00a0last month held by the Renewable Thermal Collaborative and Industrial Heat Pump Alliance. The groups looked at electrifying low- to medium-temperature processes, and estimated it would add roughly\u00a0250\u00a0terawatt-hours to the industrial sector\u2019s annual electricity demand by\u00a02035\u2014or nearly\u00a025 percent more power than manufacturers currently use.<\/p>\n

On the plus side, deploying clean industrial technologies could generate around $471\u00a0billion in total economic output over the next decade, even when accounting for the lost jobs and diminished business activities of gas utilities and equipment makers, according to the groups\u2019\u00a0June report.<\/p>\n

But reaping those benefits will first require finding ways to drive down the cost of electricity for manufacturers. A\u00a0growing number of climate and energy experts are studying that challenge and proposing solutions for policymakers and utilities to consider.<\/p>\n

One of those strategies could be to build renewable energy projects directly beside factories.<\/p>\n

Researchers at the University of California, Berkeley, recently modeled what would happen if factories themselves installed off-grid solar or wind projects on-site and used the clean electricity to power thermal storage systems and heat pumps. The team looked at nearly\u00a03,600\u00a0locations across the country, evaluating land availability, solar-power potential, and local natural gas prices for each\u00a0site.<\/p>\n

Renewable-powered heat systems could economically supply up to one-third of the studied industrial heat demand by\u00a02035, they said in\u00a0an analysis\u00a0announced last\u00a0week.<\/p>\n

The researchers found that such an approach would make it more cost-effective to run heat pumps than gas boilers for industrial processes below\u00a0200\u00a0degrees C (392\u00a0degrees F)\u2014a\u00a0broad category that includes beer making, paper production, and textile manufacturing. Meanwhile, thermal batteries would offer\u00a0\u200b\u201ccompetitive or lower costs\u201d for scorching-hot operations like glass melting and steel manufacturing.<\/p>\n

\u201cIn states where you have very good solar quality and natural gas prices are high, like in California, it makes economic sense for the industry to do this, because they will save some money on their heating costs,\u201d said Amol Phadke, a\u00a0co-author of the report and an adjunct associate professor at\u00a0UC\u00a0Berkeley\u2019s Goldman School of Public Policy.<\/p>\n

However, even states without California\u2019s abundant sunshine can still produce low-cost solar power, thanks to declining solar-panel prices. The vast majority of sites in the study have sufficient buildable land to install solar projects.<\/p>

Read more How Michigan Became the Most Expensive Democratic Primary Ever<\/a><\/p>\n

Phadke added that building off-grid systems would give factories faster access to renewables, since grid-tied wind and solar farms have to wait in long interconnection queues, which can delay projects for years. Ditching the utility would also let manufacturers avoid paying steep grid-delivery charges and other expenses\u2014and sidestep competition with data center operators for power from an increasingly strained grid.<\/p>\n

The new site-level data\u00a0\u200b\u201cis really helpful for project developers and technology developers to know how to prioritize their efforts, in terms of where to go and pitch industries on,\u201d said Jos\u00e9 Dom\u00ednguez, the study\u2019s lead author and a\u00a0research affiliate at the Goldman School.<\/p>\n

The fact remains<\/span>, though, that many factories will continue to rely on the electric grid in the near term. To get these facilities to consider transitioning to cleaner heat, the cost of electricity needs to come\u00a0down.<\/p>\n

The concept of\u00a0electricity rate reform\u00a0is gaining traction among decarbonization advocates, state policymakers, and manufacturers like Eastman as a\u00a0tool for narrowing the gap between electricity and natural gas prices.<\/p>\n

In California,\u00a0Senate Bill\u00a0943\u00a0would authorize the state\u2019s Public Utilities Commission to fix utility rates and fees to make it more affordable for large industrial and commercial customers to switch from fossil fuels to electric heat. The bill passed the Senate in May and is now headed to the state Assembly\u2019s Appropriations Committee.<\/p>\n

In the Upper Midwest, the utility\u00a0Otter Tail Power\u00a0recently developed a\u00a0novel electricity tariff\u00a0that is designed to boost the bottom line of thermal energy systems and to ensure they benefit everyone on the grid. The first project to take advantage of this new rate is\u00a0Antora Energy\u200b\u2019s\u00a05-gigawatt-hour battery in South Dakota, which turns cheap wind energy into clean industrial steam for\u00a0Poet\u200b\u2019s nearby ethanol-production plant.<\/p>\n

\u201cReforming electric rates is a\u00a0good way to improve the economics of electrification while taking advantage of our clean electricity generation,\u201d said Lauren Kubiak, a\u00a0senior scientist for the Natural Resources Defense Council who works on California climate and energy policy.<\/p>\n

Kubiak led a\u00a0new study\u00a0analyzing how this strategy could improve the costs of operating industrial heat pumps in two major manufacturing states: California and Michigan. While heat pumps are significantly more energy-efficient than gas-fueled boilers, they\u2019re typically not cost-effective to operate in either state, given current electricity prices.<\/p>\n

The study examined what would happen if companies paid only\u00a0\u200b\u201cmarginal\u201d electricity costs, which reflect the actual cost of generating and transporting an additional unit of electricity. Today, ratepayers also pay\u00a0\u200b\u201cnon-marginal\u201d costs that help cover things like grid maintenance and infrastructure upgrades, net-metering programs for rooftop solar, and, in California, wildfire-prevention efforts.<\/p>\n

\u201cIn California, [marginal-cost] rates enabled heat pumps to become pretty cost-competitive with gas boilers,\u201d Kubiak said. That\u2019s particularly true for major subsectors that require low-temperature heating.<\/p>\n

For Michigan manufacturers, the impact is more muted, since the state\u2019s electricity rates are lower than California\u2019s and don\u2019t include as many non-marginal costs. However, charging factories marginal rates would still reduce the size of the electricity-gas cost gap, enough that layering on other industrial policies\u2014such as a\u00a0tax credit that rewards low-carbon heat production\u2014could bridge that divide almost entirely.<\/p>\n

In the report, Kubiak and her co-authors suggest that utilities could offer marginal cost rates only to new heat pumps that displace fossil fuel\u2013generated heat. These rates could also be set to encourage manufacturers to use electricity during times when solar projects are producing excess electricity, or when overall grid demand is low. That should help avoid saddling other ratepayers with the non-marginal costs that these new heat pumps won\u2019t be paying.<\/p>\n

\u201cElectric rate reform is a\u00a0tool in our toolbox that hasn\u2019t been used to its fullest extent just yet,\u201d Kubiak said.<\/p>

Read more She\u2019s Remaking the Abortion Landscape One Pill at a Time<\/a><\/p>\n<\/article>","protected":false},"excerpt":{"rendered":"

The industrial sector accounts for nearly one-third of the country\u2019s carbon dioxide emissions from energy use.<\/p>\n","protected":false},"author":1,"featured_media":1292,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1294","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-environment"],"yoast_head":"\nHow Can US Factories Get Cleaner Heat? These Ideas May Help. - Moving and Mortgage Hub<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/movingandmortgagehub.com\/?p=1294\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Can US Factories Get Cleaner Heat? 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