Electrification of process heat

Process heat accounts for a significant portion (35%) of New Zealand's total energy consumption. Currently, around 55% of this process heat demand is supplied by burning fossil fuels, mainly coal and natural gas. 

Electrification of process heat systems with modern, high-efficiency industrial heat pumps, electro boilers, or other alternative technologies can be an economically compelling option for industries and businesses in New Zealand. Electrifying process heat is a significant step towards decarbonisation for large industrial electricity users. 

Considerations for electrifying process heat

1. Evaluate process heat requirements: Understand the specific heat requirements of your processes. Low-temperature processes (below 100°C) are generally more economical to electrify, while medium-temperature processes (100-300°C) may require a combination of electric and other low-carbon options. 
2. Prioritise energy efficiency and conservation: Before electrifying process heat, ensure your processes are as energy efficient as possible. Implement energy conservation measures to reduce overall energy consumption, which can lower the required capacity for electrified systems and improve overall sustainability. 
3. Monitor and optimise performance: Implement monitoring systems to track the performance of your electrified process heat systems. Continuous optimisation can help improve efficiency and reduce operational costs. 
4. Consider energy storage solutions: Integrating energy storage systems can help manage peak demand and ensure a stable supply of electricity for process heat. This is particularly important in areas with variable renewable energy sources. 
5. Assess infrastructure and grid capacity: Ensure your existing infrastructure can support the additional electrical load. This includes evaluating the capacity of your electrical grid connection and the condition of your internal electrical distribution system. 
6. Explore financial incentives and support: Look for government grants, subsidies and other financial incentives that support the electrification of process heat. Programmes such as the Government Investment in Decarbonising Industry (GIDI) fund can provide financial support. 
7. Plan for long-term savings: While the initial investment in electrification can be high, consider the long-term savings from reduced fuel costs and lower maintenance requirements. Electrification can also provide a hedge against future carbon pricing and fuel price volatility. 
8. Engage with experts and stakeholders: Collaborate with industry experts, utility providers and other stakeholders to develop a comprehensive electrification strategy. This can help identify potential challenges and solutions specific to your operations. 
   
   

By carefully considering these factors, large industrial electricity users can successfully transition to electrified process heat, contributing to their sustainability goals and reducing their carbon footprint.