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Benchmarking thermal energy storage cost for industrial process heat

Process heat accounts for roughly half of industrial energy demand, and currently 95% of process heat is derived from the combustion of natural gas, oil, and coal. Electrification of industrial heating could be an alternative, potentially expanding locations suitable for manufacturing; however, industrial facility owners may desire energy storage to stabilize energy costs. In this work, the economic benefits of pairing thermal storage with electrified process heat to reduce the average price paid for energy are analyzed. Cost savings focus on energy arbitrage, or leveraging flexible energy pricing schemes, alone. The cost of natural gas combustion across decades (2019-2060) is compared to the costs of electricity and thermal energy storage in four United States Independent System Operator (ISO) regions. Systems installed today may not yield positive net present value (NPV) compared to the use of natural gas. However, using estimated electricity prices, systems installed in 2030 using arbitrage alone could be profitable when compared to natural gas in some regions of the U.S. Furthermore, if capital expenditures could be reduced by 50% for sensible thermal storage systems by 2030, profitable systems are found across all regions. This implies that electrification of industrial process heat, when paired with inexpensive thermal energy storage systems, could be less expensive than brownfield natural gas systems, using arbitrage as the only source of revenue and without a dependency on any future policy drivers such as pricing externalities that could further incentivize the electrification of industrial process heat.

24 POWER TRANSMISSION AND DISTRIBUTION

Low-Cost Sulfur Thermal Storage for Solar Industrial Process Heat Applications

Industrial process heat (IPH) is one of the largest energy demands in U.S., representing about 10% of all domestic energy consumption. Fuel costs to generate this industrial process heat are generally a top three cost for industry, a major component in American manufacturing competitiveness. Roughly 60% of US IPH demand (about 6,500 TBtu annually) falls in the medium-temperature range of 100–250 °C. While concentrated solar thermal (CST) technologies can provide a cost-effective source of heat in this temperature range, solar intermittency limits their adoption in industries that operate 24/7. Element 16 Technologies, Inc. developed a low-cost sulfur thermal energy storage (TES) technology to bridge this gap by capturing excess solar heat during the day and dispatching it reliably during non-solar hours. The core innovation is the use of sulfur, an abundant, industrial waste byproduct that costs ten times less than molten salt used in commercial TES systems. The overall goal of the project was to advance the design and development of molten sulfur TES to a manufacturing-relevant prototype stage for solar industrial process heat applications, while establishing and validating a realistic pathway to commercial success. Key tasks included corrosion and mechanical durability testing to identify cost-effective materials, design investigations using physics-based simulation tools, techno-economic evaluations of system lifetime costs, and pilot-scale testing for performance verification. Corrosion testing of steel alloys under cyclic molten sulfur conditions showed that austenitic stainless steels in the 300 series performed particularly well, with no structural degradation of welds or joints. Thermal cyclic testing of pilot sulfur TES units up to 1.5 MWh quantified charge/discharge rates, heat losses, round-trip efficiency and validated the system's capability to operate effectively under intermittent charging conditions. A techno-economic model, informed by sulfur TES performance model validated using pilot test data, showed that hybrid solar+sulfur TES+NG boiler systems are economically competitive with incumbent natural gas boilers for multiple locations in the southwest US. In summary, this project established molten sulfur TES as a technically viable pathway to improve economic competitiveness of American manufacturing by lowering the cost of solar industrial process heat.

14 SOLAR ENERGY

Climate, air quality, and equity benefits from hydrogen substitution for fossil fuels used in process heat

Fossil fuel combustion for process heat in heavy industry accounts for ~15% of all United States CO 2 emissions and emits PM 2.5 and its precursors, emissions that have a disproportionate impact on minority populations. Decarbonizing process heat in the U.S. via hydrogen substitution presents an opportunity to reduce emissions of CO 2 and PM 2.5 and mitigate resulting exposure disparity. Here, we show that hydrogen substitution in steelmaking provides a large reduction in CO 2 emissions and air quality-related premature mortality, while hydrogen substitution in petroleum refining substantially benefits disadvantaged communities. When reductions in CO 2 emissions and premature mortality are monetized using standard regulatory values, we find that the sum of air pollution and climate benefits outweighs the difference in private cost associated with hydrogen substitution in steelmaking, regardless of the method of hydrogen production. The approach developed here can support evaluations of equity-focused decarbonization strategies in other industries and for specific sites.

08 HYDROGEN

Feasibility of using nuclear microreactor process heat for bioconversion and agricultural processes

Introduction There is a global goal to reduce greenhouse gas emissions by 43% by 2023. Nuclear microreactors, a subset of small modular reactors, offer a potential solution due to their compact size, transportability, and carbon-neutral power generation capabilities. Methods This study explores the feasibility of using heat from nuclear microreactors for bioconversion and agricultural processes, including transforming biomass into energy carriers and products such as syngas, bio-oil, and pasteurized milk. Operating requirements for gasification, pyrolysis, hydrothermal carbonization, hydrothermal liquefaction, hydrothermal gasification, ethanol production, anaerobic digestion, and pasteurization were obtained through a literature review. A Brayton cycle model based on the eVinci TM microreactor was developed to assess the feasibility of powering these processes using nuclear microreactor heat. Results and Discussion Exergetic efficiency values for high-temperature processes ranged from 72% to 100%, whereas lower-temperature processes ranged from 2% to 53%. These efficiencies depend on the available source temperature for each microreactor design. There were trade-offs between producing net power and using process heat, particularly for high-temperature processes. Three heat exchanger locations were considered: before the turbine (600 ℃ ), between the turbine and regenerator (370 ℃ ), and after the regenerator (192 ℃ ). High-temperature processes like gasification require temperatures too high for feasibility. Middle temperature processes are better suited to a heat exchanger between the turbine and regenerator, while also operable before the turbine. Lower-temperature processes like pasteurization and anaerobic digestion can use waste heat after the regenerator and do not impact power production. These findings are valuable for optimizing nuclear microreactor heat use and aligning with global climate initiatives.

09 BIOMASS FUELS

Heliostat sizing methodology for concentrating solar thermal industrial process heat projects

This study presents a method to obtain a heliostat size that minimizes the levelized cost of heat (LCOH) of a heliostat-based concentrating solar thermal system for applications of solar heating for industrial processes at operating temperatures from 565 to 1550°C. The method extends prior work by embedding a routine for system design that obtains near-optimal subsystem sizes, increasing the fidelity of drive cost functions, and adding an optical performance model to supplement the previously developed cost models, which we update to reflect current pricing trends. An illustrative business case is developed for Daggett, California, targeting specified annual thermal energy outputs of 50 to 400 GWh th . Optical performance is modeled using verified estimates from the literature. A surrogate heliostat cost model, derived from commercial heliostat designs and scaled for production volume, installation, and operations and maintenance costs, is used to develop cost functions. Results show that heliostat size strongly affects the LCOH, producing a characteristic U-shaped trend with a robust near-optimal window of 7-20 m 2 ; the heliostat size producing the lowest project cost in our study grows slightly as the project size increases, and is reduced as the operating temperature increases. The findings in this study are consistent with the general trend of smaller heliostats being deployed at existing projects for high-temperature industrial process heat and reflect the significant reduction in power electronics and other per-heliostat costs. The methodology we propose is general and can be tailored to revised cost curves as the technology continues to evolve.

14 SOLAR ENERGY

Agricultural and industrial process heat

The application of solar energy to agricultural and industrial process heat requirements is discussed. This energy end use sector has been the largest and it appears that solar energy can, when fully developed and commercialized, displace from three to eight or more quads of oil and natural gas in U.S. industry. This potential for fossil fuel displacement in the agricultural and industrial process heat area sector represents a possible savings of 1.4 to 3.8 million barrels of oil daily.

Dollard, J.

Solar energy for industrial process heat

Findings of study of potential use for solar energy utilization by California dairy industry, prove that applicable solar energy system furnish much of heat needed for milk processing with large savings in expenditures for oil and gas and ensurance of adequate readily available sources of process heat.

Barbieri, R. H.

Solar Thermal Energy Planner (STEP 1): A New Decision Support Tool for Solar Industrial Process Heat Applications

Solar thermal technologies are a promising technology to supply low-cost thermal energy to industrial processes, but there are often significant barriers to entry to industrial owners considering these technologies for their energy demands. To overcome this barrier and convey economic value to customers, NREL and Sandia National Laboratories developed Solar Thermal Energy Planner (STEP 1), a new web-based decision support tool for solar industrial process heat systems. At SolarPACES 2024, the STEP 1 tool was still under development; progress, methodologies, and a preliminary case study was presented. With the STEP 1 tool launch in May 2025, in this work, the initial version of the full public tool will be presented with demonstrations of its capabilities using a few case studies. First, the user's process heat needs such as location, process media (e.g., steam, air), process temperature, land availability, electricity and fuel costs, among other parameters. STEP 1 features a mapping interface that allows users to draw land and roof boundaries. The process media and temperature inform technology selection criteria modules that determine the appropriate solar thermal collection technologies, as well as congruent heat transfer media (e.g., hot water, oil, salt). Once the solar thermal technology selected, its nominal thermal production for the given site is characterized using NREL's System Advisor Model (SAM). Then, a modified version of NREL's REopt optimal sizing and dispatch optimization tool determines cost-optimal sizing. Within minutes, the user receives the results of the technoeconomics analysis, including the size and performance of the cost-optimal solar-plus-storage system. The cost of the system is compared to business-as-usual (e.g., an existing, standalone natural gas boiler). Users can download key results to store for sensitivity analyses. Examples of flat plate collector, parabolic trough, and molten salt tower applications with and without PV hybridization for different industrial facility types are presented in this work. The STEP 1 tool aims to reduce barriers to the adoption of solar heating solutions stemming from a lack of familiarity and technical background with solar system design options and costs among industry stakeholders.

14 SOLAR ENERGY

SPC-71145 Rev 0 MARVEL Process Heat Extraction System Conceptual Design

The Microreactor Applications Research Validation and Evaluation (MARVEL) reactor will offer experimental capabilities that are not currently available at DOE’s national laboratories. The MARVEL reactor is a microreactor which uses eutectic sodium-potassium alloy (NaK) as a primary coolant. The primary coolant is circulated through four primary loops by natural convection of the coolant. In each loop is a closed well which will accommodate an intermediate heat exchanger (IHX) for extracting heat from the loop. These wells will be referred to in this specification as the “IHX wells”. It is intended for the IHX containment to also be filled with NaK. The MARVEL design team is currently looking for alternative means of extracting heat from these wells to be utilized in downstream applications. This Heat Utilization System (HUS) will enable MARVEL operations including the ability to test, demonstrate, and address issues related to installation, startup, and operations. In addition, it will allow down-stream utilization of process heat for various uses. Depending on the methodology used, the interface between the secondary coolant and the HUS is the Process Heat Extraction System (PHES) and is the subject of this specification.

21 - SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLAN

Thermal storage technologies for solar industrial process heat applications

The state-of-the-art of thermal storage subsystems for the intermediate and high temperature (100 C to 600 C) solar industrial process heat generation is presented. Primary emphasis is focused on buffering and diurnal storage as well as total energy transport. In addition, advanced thermal storage concepts which appear promising for future solar industrial process heat applications are discussed.

Gordon, L. H.

Techno-economic design of a linear Fresnel reflector for industrial process heat

A techno-economic model of a Concentrating Solar Thermal (CST) system using a Linear Fresnel Reflector (LFR) has been developed. LFRs can deliver process heat suitable for a range of industries, including food and beverage production. This model uses an adaptive algorithm to calculate the optimal secondary reflector shape given the geometry and optical properties of the rest of the system. A ray-tracing program is used to calculate optical efficiency over a wide range of longitudinal and transversal incidence angles and subsequently evaluate the annual efficiency at a given geographical location. A specific LFR design developed by Hyperlight Energy was modelled, and this industrial partner provided a detailed cost breakdown which was used as the basis of an economic model. Combining the technical and economic data facilitates the calculation of the Levelized Cost of Heat (LCOH). The influence of a number of parameters on the annual efficiency and LCOH is explored; notable parameters include the absorber height, the number, width, and spacing of the primary mirrors, the aim point, and the secondary reflector shape and width. By identifying an optimal combination of these parameters, we reduce the LCOH of the industry partner’s system design by 9.2%, from 14.4 $\$/MWh_{th}$ to 13.0 $\$/MWh_{th}$. In comparison, the LCOH of a natural gas boiler delivering the same annual quantity of heat is 29 $\$/MWh_{th}$, which indicates that LFRs can be a competitive heat source for industrial processes.

14 SOLAR ENERGY

Solar energy for process heat: Design/cost studies of four industrial retrofit applications

Five specific California plants with potentially attractive solar applications were identified in a process heat survey. These five plants were visited, process requirements evaluated, and conceptual solar system designs were generated. Four DOE (ERDA) sponsored solar energy system demonstration projects were also reviewed and compared to the design/cost cases included in this report. In four of the five cases investigated, retrofit installations providing significant amounts of thermal energy were found to be feasible. The fifth was rejected because of the condition of the building involved, but the process (soap making) appears to be an attractive potential solar application. Costs, however, tend to be high. Several potential areas for cost reduction were identified including larger collector modules and higher duty cycles.

French, R. L.

A Fresnel collector process heat experiment at Capitol Concrete Products

An experiment is planned, conducted and evaluated to determine the feasibility of using a Power Kinetics' Fresnel concentrator to provide process heat in an industrial environment. The plant provides process steam at 50 to 60 psig to two autoclaves for curing masonry blocks. When steam is not required, the plant preheats hot water for later use. A second system is installed at the Jet Propulsion Laboratory parabolic dish test site for hardware validation and experiment control. Experiment design allows for the extrapolation of results to varying demands for steam and hot water, and includes a consideration of some socio-technical factors such as the impact on production scheduling of diurnal variations in energy availability.

Hauger, J. S.

The small community solar thermal power experiment. Parabolic dish technology for industrial process heat application

Aspects of incorporating a thermal energy transport system (ETS) into a field of parabolic dish collectors for industrial process heat (IPH) applications were investigated. Specific objectives are to: (1) verify the mathematical optimization of pipe diameters and insulation thicknesses calculated by a computer code; (2) verify the cost model for pipe network costs using conventional pipe network construction; (3) develop a design and the associated production costs for incorporating risers and downcomers on a low cost concentrator (LCC); (4) investigate the cost reduction of using unconventional pipe construction technology. The pipe network design and costs for a particular IPH application, specifically solar thermally enhanced oil recovery (STEOR) are analyzed. The application involves the hybrid operation of a solar powered steam generator in conjunction with a steam generator using fossil fuels to generate STEOR steam for wells. It is concluded that the STEOR application provides a baseline pipe network geometry used for optimization studies of pipe diameter and insulation thickness, and for development of comparative cost data, and operating parameters for the design of riser/downcomer modifications to the low cost concentrator.

Polzien, R. E.

Refractory-based thermal energy storage for industrial process heat: one-dimensional modeling, control, and optimization

The variable and weather-dependent output of wind and solar power plants present a substantial challenge for planning and operating electricity-systems, particularly in the absence of cost-effective and dispatchable energy storage technologies. This study investigates a high-temperature, electrically heated, refractory-based thermal energy storage (RTES) system that stores electrical energy as sensible heat in dense ceramic bricks over the 950–1800 °C range. The stored heat can be discharged as a controlled hot-gas stream for industrial heating, fuel substitution in high-temperature processes, or electricity generation. The main novelty is a comprehensive modelling, control, mapping, and optimization framework that integrates one-dimensional transient gas–solid heat transfer, fan-assisted discharge, bypass-flow regulation, reheating logic, fan-power evaluation, insulation-loss assessment, and genetic-algorithm-based design optimization. The model uses feedback from outlet temperature and delivered power to regulate discharge, while a two-stage genetic algorithm optimizes brick-channel geometry, gas-flow operation, and multilayer insulation thicknesses. Storage capacities below 50 MWh and discharge powers of 5–30 MW are analyzed to evaluate hold time, thermal delivery, fan-power penalty, heat loss, state-of-charge evolution, and indicative capital cost. Results demonstrate that optimized and well-insulated refractory-based thermal energy storage units can provide stable, efficient, and repeatable heat delivery over multiple discharge cycles. The generated performance and cost maps support modular refractory thermal energy storage as a practical option for large-scale integration of wind and solar generation and for high-temperature industrial process heat.

25 ENERGY STORAGE

Process heat in California: Applications and potential for solar energy in the industrial, agricultural and commercial sectors

A summary of the results of a survey of potential applications of solar energy for supplying process heat requirements in the industrial, agricultural, and commercial sectors of California is presented. Technical, economic, and institutional characteristics of the three sectors are examined. Specific applications for solar energy are then discussed. Finally, implications for California energy policy are discussed along with recommendations for possible actions by the State of California.

Barbieri, R. H.