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We are working with industry and government to assess the viability of numerous technologies for improving the energy productivity across the manufacturing supply chain in Australia.

In early 2019 we initiated a project to determine the technical and commercial feasibility of replacing fossil-fuelled process heating technologies in manufacturing settings with renewables-powered alternatives, and to detail pathways to implementation including technical specification and a business case for investment.

The Renewable Energy for Process Heat Opportunity Study received funding from the Australian Renewable Energy Agency (ARENA) and was delivered by A2EP in collaboration with Climate-KIC Australia, Sustainability Victoria and the Department of Industry, Planning and Environment (NSW). 

DualPAC Heatpump installed in Netherlands.PNG


The Renewable Energy for Process Heat Opportunity Study acknowledged that process heating currently accounts for the largest share of fossil fuel use in Australian manufacturing, with renewable energy technologies historically being unable to compete financially. Its aim was to accelerate the adoption of renewable energy in industrial and commercial process heating.

The project involved identifying potential demonstration sites that can integrate renewable energy technologies into existing industrial and commercial heating processes. The studies focussed on agriculture, dairy, food and beverage manufacturing, textiles/leather, paper manufacturing, and commercial laundries, and was delivered in two stages:

  1. Stage one involved a market review renewable technologies and opportunities in Australia. Twenty sites were selected for pre-feasibility studies of technical and commercial potential.

  2. Stage two involve seven selected sites progressing to a full feasibility study and development of individual business cases that could support implementation.

Project outcomes

Renewable Energy for Process Heat Opportunity Study Final Report

This report draws on the findings of twenty pre-feasibility studies and seven feasibility studies to demonstrate the economic and technical feasibility of heat pumps for low temperature heating applications. It identifies challenges to heat pump implementation and measures to address these challenges. 

Read the final report. web resource

As part of the project, A2EP developed the FutureHeat website to help build awareness of the benefits of industrial heat pumps and thermal storage to deliver renewable process heat and to build industry capacity for implementing these solutions across the country. The website includes technical information, case studies, tools (including a heat pump selection tool) and industry reports.

Visit the FutureHeat website.

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Project case studies

Related information

Project contact

For more information about the project contact

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