The Basics & The Gaps is the Future Cleantech Architects flagship series of factsheets and animations which aims to summarise the key facts and figures on some of the most challenging issues and technological innovations needed to reach net-zero.
The heat sector plays a crucial role in the global economy and the energy transition: it accounts for 50% of global final energy use and over 25% of global greenhouse gas emissions. How can we decarbonize the heat sector? What role can Thermal Energy Storage play in reaching our net-zero goals? Read our Factsheet below!
[1] Heat consumption is responsible for over 25% of global emissions
Total global GHG emissions, around 55 Gt CO2eq: Our World in Data (2023), "Greenhouse gas emissions" and UN environment program (2022), "Emissions Gap Report 2022" (page 6, table 2.1).
Share of global GHG emissions from heat as final energy use: 14 Gt CO2: IEA (2022), "Renewables 2022" (chapter 3, "Renewable heat", page 108).
Heat-related CO2 emissions split between industry and buildings: IEA (2021), "Renewables 2021" (chapter 3, "Renewable heat", page 114).
[2] Heat accounts for 50% of global final energy use, but only 25% of the heat is currently renewable
Global annual energy use is on the order of 420 EJ ≈ 120,000 TWh: IEA (2021), "Key World Energy Statistics".
Heat accounts for roughly 50% of global final energy consumption, while electricity and transport account for approximately (20%) and (30%). Furthermore, about 25% of heat comes from renewable sources (combining modern renewable heat and traditional biomass use: IEA (2021), "Renewables 2021" (chapter 3, "Renewable heat", page 114).
[3] Heat is needed over a wide range of temperatures, but most of it is used at low and medium temperatures
The share of total heat demand (including domestic & industrial settings) at different temperature levels was compiled using data from LDES Council (2022), "Net-zero heat. Long Duration Energy Storage to accelerate energy system decarbonization" (exhibits 3 and 5, pages 20-21).
The diagram shows that nearly 80% of heat is used below 500ºC, and about 60% of heat is used below 100ºC. At these temperatures, low-carbon heat sources (such as heat pumps, solar thermal and geothermal) are particularly abundant and cost-effective, as are currently commercial TES technologies. Furthermore, data from a recent study by Thiel and Stark (see "To decarbonize industry, we must decarbonize heat", Figure 2, page 534) shows a close correlation between heat usage and CO2 emissions over different temperature ranges, meaning that decarbonizing low- and medium-temperature heat would also imply eliminating the majority of the sector''s emissions.
Data on temperature ranges for several low-carbon heat sources and applications was compiled and adapted from COLUMBIA CGEP (2019), "Low-carbon heat solutions for heavy industry: sources, options, and costs today" (Table 1, page 11, and Figure 1, page 33), together with FCA''s internal knowledge and analysis.
[5] How thermal energy storage (TES) can help us decarbonize heat
The diagram was created by simplifying and adapting a diagram from EERA (2022), "Industrial Thermal Energy Storage. Supporting the transition to decarbonize industry" (Figures 3 and 4, pages 11-12), together with FCA''s internal knowledge and analysis.
[6] The thermal energy storage (TES) technologies that we have. How long they last, and what they can be used for.
The diagram was created by compiling and adapting data from EERA (2022), "Industrial Thermal Energy Storage. Supporting the transition to decarbonize industry" (Tables 1 and 3, pages 14 and 24), together with FCA''s internal knowledge and analysis, in conversation with academic experts and innovators.
[7] Our recommendations
Policy recommendations have been collected and adapted from the following sources, together with FCA''s own recommendations based on interactions with innovators and policymakers: IRENA (2020), "Innovation Outlook: Thermal Energy Storage", EERA (2022), "Industrial Thermal Energy Storage. Supporting the transition to decarbonize industry", LDES Council (2022), "Net-zero heat. Long Duration Energy Storage to accelerate energy system decarbonization", EASE (2023), "Thermal Energy Storage", Energy Storage Coalition (2023), "Breaking Barriers: Enabling Energy Storage through Effective Policy Design".
Summary list of sources:
Condensed list as included in factsheet: OurWorldInData(2023), UNEP (2022), IEA (2021), IEA (2022), CGEP (2019), LDES Council (2022), EERA (2022), IRENA (2020), EASE (2023), ESC (2023).
Heat consumption spans a wide range of temperatures, processes, and services, including in domestic and industrial settings. At low temperatures, large quantities of heat are needed to heat up buildings and hot water. At higher temperatures, heat is used for different industrial processes, from processing pulp and paper, and the manufacturing of chemicals to the manufacturing of cement, glass, and metals, with some processes requiring heat up to 2000ºC and above.
While most heat is currently generated by burning fossil fuels, several alternative low-carbon heat sources are at our disposal. Some of the low-carbon sources that can supply heat on demand are limited by several factors: such as geography (geothermal energy); political and social acceptance (nuclear energy); limited supply (biomass); and high cost, low efficiency, and lack of infrastructure (hydrogen).
On the other hand, solar thermal energy is a low-carbon source that is highly scalable within the global solar belt. While solar radiation is inherently dependent on the day/night cycle and weather variations, the integration with thermal storage makes solar thermal energy a flexible source able to supply heat around the clock.
However, the most universal and scalable low-carbon heat source is electrification, which consumes green electricity (e.g. from wind and solar photovoltaic plants) and turns it to heat via devices such as heat pumps (for heat up to 200ºC) and electric resistors (for industrial applications up toalmost 2000ºC). While heat pumps and resistors can inherently deliver heat on demand, the addition of thermal storage allows these devices to consume electricity at the most optimal times: when supply from solar and wind is high, and when the cost and the emissions are low. This provides the power grid with additional flexibility and stability and helps integrate larger shares of renewable energy.
However, we are a long way away from decarbonizing heat: currently, only 25% of global heat production is derived from renewable sources, and about half of that comes from traditional biomass usage in buildings.
The sheer size of the heat sector (including both industrial and domestic settings) and its emissions are often overlooked.Furthermore, the crucial role that thermal energy storage technologies can play in decarbonizing heat while providing extra flexibility to the whole energy system is also neglected. This can result in loss of critical funding.
To decarbonize heat as quickly as possible, we need to recognize the magnitude of the heat sector, prioritize its decarbonization within policy frameworks, and secure the necessary investment to scale up the deployment of energy efficiency measures and thermal energy storage technologies.
While some Thermal Energy Storage technologies require further support for RD&D, many others are mature and ready to deploy.
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