The Industrial Energy Paradox

After decades of climate action, we've electrified just 5% of process heat. Meanwhile, over the next 25 years, GHG emissions from industrial use of natural gas will climb 18%. The gap is widening, not closing.

Decarbonizing Industrial Energy IS HARD

Although every industrial plant is unique, most industrial and manufacturing companies require capital investment for onsite improvements to meet significant return hurdles.

The rule of thumb is that an investment needs to have an 18-month payback (which corresponds to a company’s benchmark return on capital employed, usually in the 20–24% range).

What Does This Mean for Decarbonization?

Behind-the-meter solar typically doesn’t see a payback for at least 6–7 years, which means less mature decarbonization technologies will have an even longer payback time.

A Massive Opportunity

This creates a massive opportunity for solutions that can deliver both environmental impact AND meet industrial financial requirements.

What approaches do you see working in this space?