Electrifying Industrial Heat: Lessons from Two Australian Case Studies
Steam is easy to overlook on a sustainability report, but for many manufacturers, it's one of the biggest sources of carbon emissions on site. We recently completed renewable heat assessments for two very different Australian industrial clients: a large stockfeed producer in regional NSW, and a craft brewery in Victoria. Together, they illustrate what a well-structured decarbonisation plan actually looks like in practice.
The Sites
The NSW stockfeed producer operates around the clock using diesel-fired steam boilers. With annual diesel costs exceeding $500,000 and total site emissions exceeding 30,000 t CO₂e, the thermal system was a clear target. The economics made a strong case for action.
The Victorian brewery's gas-fired boilers supply steam across a complex brewing process. Despite existing rooftop solar, cheap natural gas tariffs mean that switching to electricity currently increases operating costs regardless of the technology chosen.
The Technologies
Both assessments evaluated electric resistive boilers, Electric Thermal Energy Storage (eTES), and Hot Water Heat Pump with Mechanical Vapour Recompression (HWHP+MVR), all capable of achieving electrification rates above 88% and up to 100%. The differences lie in cost, risk, and fit with each site's load profile.
At the stockfeed producer, the business case is genuinely attractive: an electric resistive boiler returned an NPV of ~$2.4M with a 3.5-year payback, while HWHP+MVR showed an NPV exceeding $5M, though with significantly higher implementation risk given its early-stage global commercialisation.
At the brewery, none of the technologies produced a positive NPV under current conditions. The case for electrification is one of future-proofing. As the Victorian grid decarbonises toward 2030, the carbon and cost equation will shift. For many manufacturers, the drivers to act go beyond the energy bill. Customer expectations, supply chain pressure, and the race for market share in an increasingly carbon-conscious market mean that the question is often not whether to decarbonise, but when and how.
Planning Is Everything
The clearest lesson from both studies is that fuel switching alone is not a decarbonisation strategy, but it is often an integral part of one. A well-structured plan sequences actions by cost of abatement, starting with the cheapest interventions first, and leveraging those lower-cost gains to build the financial and organisational case for more expensive technology change down the track.
Energy efficiency consistently delivers the lowest cost of abatement. Better insulation, condensate return, and heat recovery reduce emissions immediately and shrink the size and cost of any future electrification project. Both sites had efficiency opportunities with paybacks under twelve months. Capturing those gains first makes every subsequent technology investment more financially attractive.
Fuel switching carries a much higher cost of abatement, particularly for emerging technologies where capital costs remain elevated. Locking in low-cost efficiency gains now creates a stronger platform for higher-cost technology transitions later, and avoids over-investing before the market, tariffs, or grid intensity have moved in your favour.
It's also worth looking beyond individual measures in isolation. Evaluating the net cost of abatement across the entire decarbonisation plan, covering efficiency, fuel switching, and technology change combined, gives a much clearer picture of the true cost to decarbonise and helps prioritise where to act first.
Technology maturity varies widely. Electric boilers are commercially proven. eTES is in early commercialisation in Australia. HWHP+MVR is still seeking its first commercial installation globally. Risk appetite needs to be part of the decision, not just NPV.
The manufacturers who will navigate the energy transition most effectively are those who start with a plan, not just a technology.
Green Energy & Carbon Management delivers energy, carbon and sustainability consulting to Australian industry. To discuss a renewable heat assessment or decarbonisation roadmap for your site, get in touch.
