Business case for industrial waste heat/cold recovery

Topic Description

Energy and fuels represent an important part of the production costs in several Resource and Energy Intensive Industries (REII). While a lot of technical progress has already been done in REII to reduce the energy consumption of the main industrial processes, significant parts of the input-energy are still lost in the form of waste heat/cold by gas, liquid or solid streams. Wide-scale deployment of industrial waste heat/cold recovery is hindered, among others, by the lack of financial/ economic justification for the required equipment and, at times, by the limited industrial applicability (i.e. process re-integration). Often, it is forgotten that directly or after an intermediate transformation step, the sources of heat/cold losses of a given industry can be a valuable resource for other industries and buildings/ District Heating and Cooling operators and that they could be of commercial interest for the waste heat/cold producer.

2018 (Innovation action):

Cost-benefit models for industrial waste heat/cold recovery:

Proposals should develop integrated cost-benefit simulation tools that, based on the characterization of processes, heat/cold streams and other relevant variables, can determine the best utilisation options of recovered waste heat/cold and/ or surplus renewable energy from industrial and eventual other sources (when available). Proposals should also consider the possibility to contribute to efficient use/system integration of renewable energy sources through e.g. heat/cold storage and flexible production.

The proposals are expected to put forward simulation tools that would allow industrial sites/parks to determine the most financial attractive option for using their recovered waste heat/cold and/or surplus renewable energy. This should be based on, inter-alia, waste heat/cold recovery (and storage if necessary) costs (including equipment and process adaptation), retail and/ or whole sale energy prices, (new contracts) administrative and legal costs, (external connecting) infrastructure costs, internal and external demand, waste heat/cold as source of flexibility in electricity system. Other relevant variables should also be included, inter-alia, characterisation of barriers and opportunities on the DHC side (e.g. competition with other heat/cold sources, thermal storage, regulatory conditions). The simulation tools are expected to be flexible enough to allow a large number of different types of industrial sites/ parks to use it, i.e. should allow many energy intensive process characterizations irrespective of the industrial sector and geographic location, and should also take into account supply-demand dynamics.

The simulation tools should be validated through demonstration in real operating conditions in industrial facilities.

Proposals are expected to include clear business model development and a clear path to finance and deployment. Key partners should have the capability and interest in making the developed solution a core part of their business/service model to their clients.

Proposals are expected to look at relevant business models for the collaboration outside the plant/industrial park and have strong communication and dissemination components in order to reach many industries, large private facilities and public authorities.

This topic contributes to the roadmap of the Sustainable Process Industry through Resource and Energy Efficiency (SPIRE) cPPP.

The activities are expected to be implemented in the range of TRL 4-8 (please see part G of the General Annexes).

The Commission considers that proposals requesting a contribution from the EU of between EUR 3 and 4 million would allow this specific challenge to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.

2019 (Coordination and support action):

Symbiosis in industrial parks and clusters- non-technological barriers

Proposals should improve the energy efficiency of industrial parks districts and clusters by unlocking the market potential and supporting the demand and offer of high-quality energy services by addressing at least one of the following:

• The development and testing of instruments facilitating, at customer/ business level, the actual implementation of energy cooperation such as setting up appropriate process and business organisation, operation and plant design, cooperation mechanisms, related contractual and financial arrangements, better planning, good practices. Proposals need to include capacity building activities such as skills development and engagement of senior and executive management (e.g., CEO, CFO, energy managers) of companies from industrial parks and other related stakeholders.
• The development and testing of replicable business models and service concepts, at service provider level (i.e. ESCOs or other relevant 3rd party organisations such as DHC operators), for joint energy services such as identification of horizontal energy services attractive for businesses, identification of the most relevant innovative technical solutions, setting up contractual and financial arrangements, best practices, cost-reduction models. Proposals need to include capacity building activities such as sharing skills, know-how and specific expertise of ESCOs or other 3rd party organisations that would boost the market uptake for such joint energy services contracting in industrial parks.

This topic contributes to the roadmap of the Sustainable Process Industry through Resource and Energy Efficiency (SPIRE) cPPP.

Proposals need to also address legal issues in order to adapt regulatory and legal frameworks at local, regional and national level. Issues related to the sustainability of the proposed symbiosis in case one or more of the involved parties are changing activity (including leaving the park) should be taken into account. Proposals are expected to ensure applicability of the solutions to other industrial parks/ business sectors while strong communication and dissemination components will be needed in order to reach many industries, industrial park managers and ESCOs.

The Commission considers that proposals requesting a contribution from the EU of between EUR 1 and 2 million would allow this specific challenge to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.

2018 (Innovation action):

Proposals are expected to demonstrate the impacts listed below, using quantified indicators and targets wherever possible:

• Accurate prediction and holistic modelling of industrial waste heat/cold and/or surplus renewable energy from industrial or other sources from different geographical and market settings;
• Better impact of the various factors/ variables on the cost-benefits of industrial waste heat/cold and/or surplus renewable energy from industrial or other sources;
• Valorisation in assessments of cost-benefit of industrial waste heat/cold and/or surplus renewable energy from industrial and eventual other sources;
• Number of industrial sectors/ sites/ parks, public authorities (including energy agencies), large private facilities (e.g. sport and shopping centres, non-energy intensive industrial parks) and DHC operators aware, interested and supporting the implementation of waste heat/cold and/or surplus renewable energy from industrial and eventual other sources recovery/use for process re-integration or commercial use, depending on the outcome of the simulations;
• Primary energy savings triggered by the project (in GWh/year);
• Investments in sustainable energy triggered by the project (in million Euro).

Additional positive effects can be quantified and reported when relevant and wherever possible:

• Reduction of the greenhouse gases emissions (in tCO₂-eq/year) and/or air pollutants (in kg/year) triggered by the project.

2019 (Coordination and support action):

Proposals are expected to demonstrate, depending on the scope addressed, the impacts listed below, using quantified indicators and targets wherever possible:

• Primary energy savings triggered by the project (in GWh/year);
• Investments in sustainable energy triggered by the project (in million Euro);
• Number of (operational and organisational separated) plant sites (within one industrial park) and the number of industrial parks where businesses commit to energy cooperation;
• Number of relevant stakeholders (e.g., ESCOs, industrial park managers) aware of and/or interested in/ implementing joint energy services;
• Number of policies and legal frameworks created and/ or adapted to facilitate energy cooperation among businesses.

Additional positive effects can be quantified and reported when relevant and wherever possible:

• Reduction of the greenhouse gases emissions (in tCO₂-eq/year) and/or air pollutants (in kg/year) triggered by the project.

It is expected that this topic will continue in 2020.

Open Innovation
Contractual Public-Private Partnerships (cPPPs)
SPIRE