Diversity is key to Australia’s renewable future

In Australia, heavy industries account for a substantial 44% of energy consumption, with half of that used for heat generation alone. Currently, these industries primarily rely on gas boilers and fossil fuels to produce sufficient high-pressure, high-temperature steam to help them run.

As grid imbalances become more frequent, impacting electricity access for consumers, the solution isn’t simply to electrify all industrial processes. This approach would put even more strain on an already stressed electrical grid, potentially exacerbating reliability issues. Instead, the answer lies in diversifying and changing the mix, introducing long-duration energy storage (LDES) systems that operate independently of the grid, producing heat and energy for industrial use 24/7 using stored renewable energy.

Industrial energy: A major hurdle

Hard-to-abate industries such as manufacturing, mining, and mineral processing often run continuously, consuming a staggering 353% more energy than residential sectors, or about 3.5 times the amount used by households. The reality is that traditional front-of-meter renewable energy sources like solar and wind, along with short-duration battery storage, cannot independently satisfy the constant, substantial energy requirements without consuming excessive amounts of expensive and limited resources.

Solar and wind power generation is inherently intermittent, fluctuating with weather conditions. While lithium-ion batteries have the potential for longer storage durations, current technology limits practical storage to around 1.7 hours on average. This is insufficient to meet the sustained energy demands of heavy industry, particularly during peak consumption periods. Scaling lithium-ion battery capacity to bridge this gap would be both economically prohibitive and technologically challenging.

We’re now in a new era of innovation, with novel energy storage technologies maturing and getting close to commercialisation. Heavy industries have been historically cautious of adopting emerging technologies to support front-of-meter solutions, due to the perceived risk of deploying innovative, unpiloted solutions.

However, the tide is turning. As companies worldwide set ambitious climate goals and carbon reduction targets, many large industrial players globally are now embracing thermal energy storage (TES) as their preferred behind-the-meter solution. While initial adoption was slow, the past year has seen a remarkable acceleration, with major industries actively working to decarbonise their operations. This shift can be largely attributed to a growing recognition among boards and directors that decarbonisation is not just environmentally responsible, but also financially beneficial.

To add to this, the increasing government regulations and policies aimed at addressing climate change in Australia are serving as an additional lever, pushing industries towards more sustainable energy solutions like TES.

To put context to this potential, at MGA Thermal, our TES system can store millions of kilowatt-hours of energy more cost-effectively, safely, and durably than other dispatchable options. For instance, a stack of 3,700 MGA Thermal blocks, which add up to roughly the size of a shipping container, can store the equivalent of the energy used to run 135 homes for an entire day.

We’re seeing companies taking action by running pilot programs for emerging decarbonisation technologies and preparing for large-scale deployment in the very near future.

A brighter (diversified) future ahead

By decarbonising heavy industries independently of the grid, we can stabilise overall energy access and reduce strain on the electricity network. This approach also frees up renewable energy for residential and commercial use, potentially lowering costs for consumers.

On top of this, LDES in heavy industries can actually support the grid during peak demand periods by feeding excess energy back into the network for the benefit of all. This flexibility is crucial as we transition to a renewable energy-based network and strive to meet clean energy targets, all whilst guaranteeing a reliable and cost-effective energy supply for years to come.

While the industrial sector is leading the charge on decarbonisation, there’s still more the government have do to drive this transition forward at the pace required to meet our goals. Australia has already invested heavily in front-of-meter renewable energy generation, but needs to match this support by endorsing behind-the-metre energy storage solutions. By providing incentives, funding, and clear policies, the government can accelerate the commercialisation of LDES technologies to meet growing demand.

This approach will ensure research and development within the energy space is prioritised and the methods underpinning Australia’s energy transition remain diverse and globally competitive. With the right government support, hard-to-abate industries will have the right market signal to continue exploring emerging technologies.

Australia pioneered the widespread adoption of solar panels, demonstrating our capacity for renewable energy leadership. Now, we have a similar opportunity to be at the forefront of LDES technology. The case for behind-the-meter LDES is clear: it’s a win-win for industry, the environment, and consumers. With concerted efforts from both the private and public sectors, Australia can build a cleaner, more resilient, and prosperous energy future.

Author: Mark Croudace, Chief Executive Office, MGA Thermal

The views and opinions expressed in this article are the author’s own, and do not necessarily reflect those held by pv magazine.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.