How can companies use renewable energy?

Companies can use renewable energy by switching to clean alternatives for both electricity and heat generation. The most common options include solar power, wind energy, green hydrogen, and emerging solutions like iron fuel technology for high-temperature industrial processes. For industrial companies specifically, the biggest opportunity lies not in electricity but in replacing fossil fuels used for heat, which accounts for the majority of industrial energy consumption. This article unpacks the key questions sustainability managers ask when evaluating the switch.

What types of renewable energy can industrial companies use?

Industrial companies can use several types of renewable energy, including solar photovoltaic (PV) systems, wind power, green hydrogen, biomass, and iron fuel technology. The right option depends on the type of energy needed: electricity generation and heat production have very different requirements, and most industrial sites need both. Green energy solutions are no longer limited to electricity; clean heat is increasingly within reach.

Here is an overview of the main renewable energy types available to industrial companies today:

• Solar PV and wind power: Well-established for generating renewable electricity on-site or through power purchase agreements (PPAs). Best suited for operations with significant electricity demand.
• Green hydrogen: A versatile energy carrier that can be used for both power and heat. Infrastructure requirements and costs remain a barrier for many sites.
• Biomass and biogas: Can replace natural gas in existing boilers, but sustainability credentials vary and supply chains can be complex.
• Iron fuel technology: An emerging circular energy carrier that burns iron powder to produce high-temperature heat with zero direct CO₂ emissions. The iron oxide produced is regenerated using hydrogen, completing a fully closed loop.
• Electrification (heat pumps, electric boilers): Viable for low-to-medium temperature processes, but often limited by grid capacity and high capital investment for high-temperature applications.

The mix of technologies a company adopts will depend on its process temperatures, site infrastructure, budget, and decarbonisation timeline. For sectors like Food and Beverage, Specialty Chemicals, and Pulp and Paper, high-temperature heat is the dominant energy need, which narrows the viable options considerably.

Why is renewable heat harder to adopt than renewable electricity?

Renewable heat is harder to adopt than renewable electricity because the solutions are less mature, more capital-intensive, and often incompatible with existing industrial infrastructure. While the electricity grid can absorb solar and wind power relatively smoothly, replacing fossil-fuelled industrial heat requires either new combustion systems, entirely different energy carriers, or significant process redesign.

Several factors make the transition to clean heat particularly challenging:

1. Temperature requirements: Many industrial processes require heat above 300°C, and sometimes above 1,000°C. Technologies like heat pumps work well at lower temperatures but are not yet viable for high-temperature applications at scale.
2. Infrastructure limitations: Green hydrogen requires dedicated pipelines or storage systems that most industrial sites do not have. Building this infrastructure is expensive and time-consuming.
3. Capital investment: Replacing a gas-fired boiler is a significant capital expenditure, and many companies are reluctant to write off assets that still have years of operational life remaining.
4. Energy density and supply reliability: Industrial operations run continuously. Any new heat source must match the reliability and energy density of natural gas, which remains a high bar for many alternatives.
5. Cost gap: Decarbonised heat carriers are often more expensive than fossil fuels, creating a real financial barrier for companies operating on thin margins.

These barriers explain why, despite rapid progress in renewable electricity, industrial heat remains one of the most stubborn sources of carbon emissions globally.

How can companies switch to renewable energy without replacing all their equipment?

Companies can switch to renewable energy without replacing all their equipment by adopting drop-in compatible technologies that integrate with existing infrastructure. Rather than decommissioning functional boilers and process systems, the most practical approach is to introduce clean energy carriers or modular systems that work alongside or within current setups.

Practical strategies include:

• Fuel switching in existing boilers: Some boilers can be adapted to run on alternative fuels such as biomass, biogas, or hydrogen blends, reducing the need for full equipment replacement.
• Adding clean energy systems in parallel: A new clean heat system can be installed alongside an existing fossil fuel boiler, allowing companies to decarbonise incrementally while maintaining operational continuity.
• Power purchase agreements (PPAs): For electricity, companies can switch to renewable sources through commercial agreements without changing any on-site equipment at all.
• Modular clean heat solutions: Newer technologies are being designed specifically to complement existing boiler infrastructure, reducing the disruption and capital cost of the transition.

The key principle is that decarbonisation does not have to be all-or-nothing. A phased approach, starting with the highest-emission processes and expanding over time, allows companies to manage costs, reduce risk, and build internal confidence before committing to full-scale transformation. You can explore our industrial heat solutions to see how this works in practice.

What’s the difference between renewable electricity and renewable heat solutions?

The key difference between renewable electricity and renewable heat solutions is what they replace and how they are delivered. Renewable electricity solutions generate or procure clean power for electrical systems, while renewable heat solutions replace fossil fuels used directly in combustion-based processes. Most industrial decarbonisation strategies require both, but they involve different technologies, infrastructure, and investment profiles.

Renewable electricity typically comes from solar panels, wind turbines, or green power procurement through the grid. It powers motors, lighting, control systems, and electrified process equipment. The transition pathway is relatively well understood, with established markets, financing structures, and technology providers.

Renewable heat solutions are more varied and context-dependent. They include heat pumps for lower-temperature applications, green hydrogen for combustion-based systems, biomass for boilers, and newer circular fuels like iron powder. These solutions must match the specific temperature, pressure, and flow requirements of the industrial process they replace, which makes standardisation harder.

For sustainability managers, the distinction matters because the two tracks often have different owners, budgets, and timelines within an organisation. Electricity procurement may sit with energy managers or finance teams, while heat decarbonisation typically requires engineering, operations, and sustainability functions to work together. Understanding how iron fuel technology works can help clarify where a circular heat solution fits into this picture.

Which renewable energy option is best for high-temperature industrial processes?

For high-temperature industrial processes, the most viable renewable energy options are green hydrogen, advanced biomass combustion, and iron fuel technology. Each can produce the intense, sustained heat that processes in sectors like Specialty Chemicals, Pulp and Paper, and Food and Beverage require. The best choice depends on infrastructure availability, cost, and the need for a carbon-free supply chain.

Green hydrogen can achieve very high flame temperatures and is carbon-free at the point of use, but it requires significant infrastructure investment and carries challenges around storage, transport, and cost. Biomass offers a more familiar combustion profile and can often be used in adapted existing boilers, but its sustainability credentials depend heavily on the feedstock source and supply chain.

Iron fuel technology is a newer option that is gaining traction precisely because it addresses the limitations of both. Iron powder burns at temperatures up to 2,000°C, produces zero direct CO₂, and generates only iron oxide as a byproduct, which is then regenerated back into iron fuel using hydrogen. The fuel is safe to transport in standard containers, abundant, and does not require new pipeline infrastructure. For companies that need high-temperature heat and want a genuinely circular solution, it represents a compelling alternative to fossil fuels.

How do companies build the business case for switching to renewable energy?

Companies build the business case for switching to renewable energy by quantifying the financial, regulatory, and reputational risks of inaction alongside the total cost of ownership of clean alternatives. A strong business case goes beyond comparing fuel prices and accounts for carbon costs, energy security, customer expectations, and long-term asset value.

The most effective business cases typically address the following:

1. Carbon cost exposure: Under frameworks like the EU Emissions Trading System, the cost of emitting CO₂ is rising. Factoring in projected carbon prices over a 10 to 15-year horizon often significantly improves the economics of clean alternatives.
2. Total cost of ownership: Upfront capital costs need to be weighed against operational savings, reduced carbon liability, and avoided costs from future regulatory compliance.
3. Energy security: Fossil fuel price volatility has demonstrated the risk of dependence on gas and oil markets. Renewable energy carriers with stable, long-term supply agreements reduce this exposure.
4. Customer and investor pressure: Many industrial buyers now require suppliers to demonstrate progress on Scope 1 emissions. Decarbonising heat can protect and grow commercial relationships.
5. Phased investment options: Presenting the transition as a series of manageable steps rather than a single large capital commitment makes board approval more achievable.

Sustainability managers who frame the switch to green energy as a strategic business decision, rather than a compliance cost, tend to secure internal buy-in more effectively. Pilot projects and first-mover partnerships can also provide real-world performance data that strengthens the case for broader rollout.

How RIFT helps companies switch to renewable industrial heat

We developed the Iron Fuel Boiler specifically to solve the challenge this article has been exploring: how to decarbonise high-temperature industrial heat without requiring companies to start from scratch. Here is what that means in practice:

• Zero direct CO₂ emissions: Iron fuel burns cleanly, producing only heat and iron oxide. No carbon is released at the point of combustion.
• Drop-in compatible design: Our boiler is engineered to complement existing industrial setups, reducing disruption and capital risk.
• Up to 95% energy efficiency: This outperforms many traditional fossil fuel systems, making the switch financially compelling over the long term.
• Long-term fuel supply included: We provide iron fuel as part of a supply agreement, giving companies cost certainty and operational reliability.
• Proven at commercial scale: Together with Kingspan Unidek, we signed the first-ever commercial contract for industrial iron fuel use, demonstrating that this is not a future technology but a present reality.

Backed by €113.8 million in funding and supported by partners including PGGM and the EU Innovation Fund, we are scaling Iron Fuel Technology from pilot to full commercial deployment. If you are evaluating your options for decarbonising industrial heat, we would welcome the conversation. Get in touch with our team to discuss what iron fuel could mean for your operations.

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This content was generated with the help of AI and it may contain mistakes