Can rocks in a box revitalise European industry?

European industries, once the powerhouse of the global economy, are grappling with an unprecedented challenge of skyrocketing energy prices, writes Doron Brenmiller, co-founder of Brenmiller Energy, and thermal energy storage could offer a sustainable solution.

Energy prices have increased to nearly double those of its international competitors, creating an energy crisis that has sent shockwaves through the manufacturing sector, with production levels plummeting to alarming lows.

Germany, the traditional industrial backbone of Europe, has seen its output fall to a 10-year low, while Italy and France struggle to maintain their competitive edge.

The culprit behind this industrial decline is clear: a continued reliance on volatile, fossil fuel-derived energy sources. This dependence not only jeopardises the European Union’s economic stability but also accelerates the looming issue of climate change, threatening the very future we're striving to build.

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Yet, in the face of these daunting challenges, Europe is witnessing the dawn of a new era, one where innovative solutions are paving the way for a more sustainable and prosperous future. The convergence of targeted government investments and years of relentless private-sector research and development has finally yielded positive outcomes. We now stand on the cusp of a transformative moment, where real and valuable opportunities for emissions reductions are not just possible, but within our grasp.

One technology offering a promising avenue for decarbonising industrial processes and bolstering energy resilience is thermal energy storage (TES). TES, often referred to as "heat batteries," harnesses renewable energy sources to store and deliver clean heat on demand.

This versatile technology can be used to replace fossil fuel-powered boilers in a wide range of industries, from manufacturing to food processing. By doing so, TES offers a significant opportunity to reduce greenhouse gas emissions, increase renewables penetration, and enhance energy independence.

The thermal storage alternative

Right now, fossil fuels account for three-quarters of European Union industrial emissions, primarily used for process heating. TES offers a viable alternative for industries ranging from food and beverage to plastics and pharmaceuticals.

If deployed at scale, thermal batteries have the potential to slash emissions some 6,000 million metric tonnes of carbon emissions annually while delivering process heating at price parity to fossil fuel alternatives, namely natural gas.

TES systems can also help balance the variability of renewable energy supply, providing essential reliability services that have historically been provided by fossil generation resources. This is not just an idea; in fact, leading European manufacturers and utilities are already leveraging this technology.

In Hungary, one of Europe’s largest private-lable pet food producers will use low-carbon steam from a thermal battery in place of its existing fossil fuel boilers, allowing it to use between 25-30% less gas in its operations. This same system will also help balance the local grid, which is in critical need of more storage.

The thermal storage market shows many positive signs of growth in Europe. In particular, the European Union's cap and trade programme, along with other carbon-pricing mandates, are tipping the scales in favour of cleaner technologies. These initiatives are making thermal batteries an increasingly compelling alternative to natural gas, driving both adoption and innovation in the sector.

The transformative impact of these initiatives is clear. Strong investment incentives have been instrumental in commercialising thermal batteries, bringing us to where we are today. However, to truly unlock the full potential of this technology, we need to take the next critical step: implementing operational incentives that will create robust monetisation pathways for thermal batteries. Without them, we risk squandering an unprecedented opportunity for massive emissions reductions and energy independence.

The stakes couldn't be higher. The European Union's energy transition goals, future industrial competitiveness, and overall energy independence hang in the balance.

Policymakers and regulators must be bold and decisive in their power market reforms. To fully realise the potential of TES systems, we need comprehensive, forward-thinking policies that recognise the pivotal role that thermal energy storage can play in our clean energy future. This includes providing financial incentives, streamlining permitting processes, ensuring grid integration, and modernising market rates to accurately reflect the underlying costs of delivering power to the thermal battery.

By aligning market rates with actual consumption patterns, we can create a more equitable and efficient environment for TES adoption.

With a market on track to be worth trillions of dollars by 2040, TES is game-changing for industrial decarbonisation. TES solutions are readily available and highly affordable — all that’s needed is the ambition to support a promising new market.