The Invisible Hands of the Energy Transition”

Last year, the US broke a record with 40 percent of electricity generated being zero-carbon. China added 216 gigawatts (GW) of solar in a year, or 14 percent of global capacity.

As the world’s largest emitters, this is a cause to celebrate. The EU achieved 44 percent clean energy, with some rapid growth driven by Russian gas turning sour. Bored yet? Like climate tech reporting, I’ve introduced this piece discussing important but over-reported regions. But what about Latin America (LatAm)?

LatAm’s electricity mix is 60 percent renewable, twice the global average. Paraguay generates 99.9 percent of its electricity from hydroelectricity. Brazil has 33GW of solar capacity, and its 113GW of solar energy in the pre-construction stage is second only to China globally.

Chile ranks second globally for solar photovoltaic potential, and its Magallanes Region is one of the best wind resources in the world, with a potential of 310GW. BloombergNEF recognized Chile as one of the top three developing countries for renewables investment; seemingly earning this title, Chile’s renewables penetration has grown from 43 percent to 63 percent in just three years.

And yet LatAm’s climate leadership is not widely discussed enough; its net zero journey contains many insights and opportunities for the world.

Narrowing in on some opportunities for Chile. Thirty percent of LatAm’s GDP comes from industry, including the massive mining sectors in Peru, Argentina, and Chile. Chile has the largest reserves of copper and lithium globally, and its mining industry produces thirty percent of the world’s lithium.

The energy transition will drive demand growth of 42x for lithium and 3x for copper by 2040; these transition metals are essential for the tremendous growth in EVs, wind turbines, the electrical grid, and more as we decarbonize.

However, with great industry comes great responsibility; 20 percent of Chile’s energy is used for industrial heat, which is primarily fossil-generated. Moreover, the opportunity to decarbonize these metals is significant, where green copper, for example, can command a $283/ton premium. Considering a small handful of smelters consume 6 percent of Chile’s energy, Chile’s mining industry, chiefly its heat, is ripe for decarbonization.

The concept of decarbonizing industrial heat, often considered a challenging task, has seen surprising breakthroughs thanks to innovations in Industrial Heat Storage (IHS) technologies. These advancements are reshaping perceptions about the feasibility and simplicity of transitioning industries from fossil fuels to renewable energy sources.

Industrial processes account for a significant portion of global energy consumption and carbon emissions. Sectors such as steel, cement, chemicals, and refining rely heavily on high-temperature heat for production processes. Traditionally, this heat has been generated using fossil fuels like coal, natural gas, and oil due to their high energy density and cost-effectiveness. However, the environmental impact of these fuels, particularly their greenhouse gas emissions, has spurred efforts to find sustainable alternatives.

Industrial Heat Storage (IHS) represents a transformative approach to addressing the challenge of decarbonizing industrial heat. At its core, IHS involves storing excess heat generated from renewable sources during periods of high supply (e.g., sunny or windy days) and utilizing it during times of high demand or when renewable generation is low. This concept aligns with broader efforts to integrate renewable energy into industrial processes more effectively and economically.

 Using cheap and abundant materials for thermal storage, such as bricks, lowers the capital costs associated with transitioning to renewable heat sources. This affordability enhances the economic viability of decarbonization initiatives for industries traditionally reliant on fossil fuels.

IHS systems are scalable and adaptable to various industrial settings and energy demands. Whether deployed in large-scale steel mills or smaller manufacturing facilities, the modular nature of IHS allows for customized solutions tailored to specific operational needs.

By replacing fossil fuel-based heat with renewable energy sources stored through IHS, industries can significantly reduce their carbon footprint. This shift contributes to broader sustainability goals and aligns with international efforts to mitigate climate change.

As global momentum towards sustainability intensifies, the role of IHS in industrial decarbonization is poised to expand. Governments, research institutions, and private sector entities are increasingly investing in research and development to refine IHS technologies and accelerate their commercial deployment.

Policy frameworks that incentivize renewable energy adoption and support innovation in thermal storage will be crucial in fostering widespread adoption of IHS. Additionally, partnerships between industry stakeholders, technology providers, and financial institutions can facilitate the scaling of IHS solutions across diverse industrial sectors.

The evolution of Industrial Heat Storage (IHS) from a conceptual idea to practical implementation represents a pivotal advancement in the quest for sustainable industrial practices. By leveraging renewable energy sources and innovative storage solutions, industries can not only decarbonize their operations but also enhance energy efficiency and resilience. As IHS technologies continue to mature and gain traction globally, they promise to play a vital role in shaping a low-carbon future for industrial sectors worldwide.