Industrial Thermal Batteries Decarbonizing U.S. Industry While Supporting a High-Renewables Grid

Industrial thermal batteries can convert electricity into high-temperature heat (1,500-1,700°C), potentially displacing 75% of U.S. industrial non-feedstock energy demand. The report analyzes two primary deployment modes: 'generation-following' (off-grid renewables) and 'price-hunting' (grid-connected, price-responsive). It finds that these batteries can provide heat at $35 to $62 per MWh, making them competitive with natural gas. The authors recommend financial incentives via the Inflation Reduction Act and reforms to electricity tariffs to reward the grid flexibility these batteries provide.

• Industrial thermal batteries can deliver heat at temperatures between 1,500 and 1,700°C, which is sufficient to meet at least 93 percent of the industrial heat demand currently supplied by combustible fuels.
• The theoretical potential for thermal batteries to displace fossil fuels in the U.S. is approximately 11,600 petajoules (PJ) per year, representing 75 percent of industrial non-feedstock energy demand.
• Thermal batteries can produce heat at a cost of $35 to $62 per megawatt-hour (MWh) of thermal output, making them cost-competitive with existing natural gas equipment.
• Thermal batteries are significantly cheaper to produce than lithium-ion batteries; while lithium-ion cost around $150/kWh in 2022, thermal battery storage medium may cost up to $10/kWh, with total long-term costs estimated around $27/kWh.
• In 'generation-following' mode, thermal batteries allow industrial facilities to use off-grid wind and solar to provide 24/7 heat, though the required storage and excess generation vary by location; for 99% reliability, California requires 84 hours of storage and 89.8% excess generation, while Texas requires 36 hours of storage and 12.0% excess generation.
• In 'price-hunting' mode, grid-connected batteries in West Texas can significantly reduce electricity costs by charging during low or negative price events; a modeled (3.5x, 24h) battery reduced the average electricity price from $30.80/MWh to $10.50/MWh in 2020.
• Widespread adoption of thermal batteries could reduce the need for new power plant capacity; replacing fossil-fuel industrial heat with clean power would require an increase in capacity of 146 GW, or 13 percent of total 2022 U.S. capacity, but thermal batteries could shift this demand to non-peak hours.
• The report recommends that the IRS confirm thermal batteries' eligibility for the Advanced Manufacturing Production Credit (45X) under the Inflation Reduction Act, which provides $45 per kWh of battery capacity for modules not using cells.
• To facilitate deployment, the report suggests that Public Utility Commissions (PUCs) create a new rate class for flexible loads and that the Federal Energy Regulatory Commission (FERC) provide discounted grid charges for batteries that draw electricity during periods of excess capacity.

APA

RISSMAN, J., & GIMON, E. (2023). Industrial Thermal Batteries Decarbonizing U.S. Industry While Supporting a High-Renewables Grid. Energy Innovation. https://energyinnovation.org/wp-content/uploads/2023-07-13-Industrial-Thermal-Batteries-Report-v133-2.pdf

Chicago

RISSMAN, JEFFREY, and ERIC GIMON. Industrial Thermal Batteries Decarbonizing U.S. Industry While Supporting a High-Renewables Grid. Energy Innovation, 2023. https://energyinnovation.org/wp-content/uploads/2023-07-13-Industrial-Thermal-Batteries-Report-v133-2.pdf.

Wikipedia

{{cite report |last1=RISSMAN |first1=JEFFREY |last2=GIMON |first2=ERIC |title=Industrial Thermal Batteries Decarbonizing U.S. Industry While Supporting a High-Renewables Grid |publisher=Energy Innovation |date=July 2023 |url=https://energyinnovation.org/wp-content/uploads/2023-07-13-Industrial-Thermal-Batteries-Report-v133-2.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rissman2023industrial, author = {RISSMAN, JEFFREY and GIMON, ERIC}, title = {{Industrial Thermal Batteries Decarbonizing U.S. Industry While Supporting a High-Renewables Grid}}, institution = {Energy Innovation}, year = {2023}, month = jul, url = {https://energyinnovation.org/wp-content/uploads/2023-07-13-Industrial-Thermal-Batteries-Report-v133-2.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }