Low-Carbon Industrial Heating Solutions

Problem statement

Industrial heating plays a significant role in global GHG emissions, accounting for approximately 10% of total emissions. This is mainly attributed to heating applications that rely on hydrocarbon fuel combustion for steam generation or direct heating. Various industries, such as food, iron and steel, chemicals, and pulp and paper, heavily rely on industrial heating. Current low-carbon alternatives are typically more expensive and less well-developed than fossil heating technologies.  To accelerate the transition towards a low-carbon economy, there is a critical need for technological advancements that offer cost-effective alternatives to conventional fossil fuel-based heating technologies. NRC and NRCan aim to identify and promote cost-effective approaches for industrial heating. These advancements would help reduce full lifecycle GHG emissions associated with industrial heating, including embodied carbon, while maintaining the efficiency and productivity of diverse industrial sectors. However, it's important to note that this challenge excludes hydrogen and biomass combustion heating technologies to avoid duplication with existing programs.

Desired outcomes and considerations

Essential (mandatory) outcomes

The proposed solution must:

1. Produce low to medium temperature steam or comparable direct heating energy transfer
2. Cost-effectively meet industrial scale heating requirements
3. Adopt low-carbon emissions technology (preferably net zero)
4. Not involve alternative combustion technologies (i.e. biomass, hydrogen)

Additional outcomes

The proposed solution should:

1. Be widely applicable in multiple industries or processes
2. Provide an environmentally safe solution
3. Meet (or will be able to meet) safety and certification requirements
4. Be applicable in a Canadian context (various associated seasons and harsh environmental conditions)
5. Demonstrate a low life-cycle carbon footprint.

Background and context

The primary source of industrial heating is fossil fuel combustion either for direct heating or steam generation. There are several early-stage technology options that are being developed to replace current hydrocarbon combustion systems including industrial-scale heat pumps, heat recovery, electric heat, solar thermal, and thermal energy storage. This challenge fits supports Goal 13 of the government’s commitment to Sustainable Development Strategy as well as Canada’s 2030 greenhouse gas (GHG) emissions reduction goal under the Paris Agreement to achieve net-zero emissions by 2050. Low-carbon industrial heating is a global issue and there are global opportunities for new technologies that meet this challenge. Other countries are also investing in these technologies. For example, the US Department of Energy launched the Energy Earthshot to cut industrial heating emissions by 85%.

Multiple grants could result from this challenge.

Phase 1:

• The maximum funding available for any Phase 1 Grant resulting from this Challenge is: $150,000.00 CAD
• The maximum duration for any Phase 1 project funded by a grant resulting from this Challenge is up to 6 months
• Estimated number of Phase 1 grants: 4

Phase 2:

• The maximum funding available for any Phase 2 Grant resulting from this Challenge is: $1,000,000.00 CAD
• The maximum duration for any Phase 2 project funded by a grant resulting from this Challenge is up to 24 months
  • Note: Only eligible businesses that have completed Phase 1 could be considered for Phase 2.
• Estimated number of Phase 2 grants: 2

Note: Selected companies are eligible to receive one grant per phase per challenge.

This disclosure is made in good faith and does not commit Canada to award any grant for the total approximate funding. Final decisions on the number of Phase 1 and Phase 2 awards will be made by Canada on the basis of factors such as evaluation results, departmental priorities and availability of funds. Canada reserves the right to make partial awards and to negotiate project scope changes.

Travel

No traveling will be required in Phase 1.

Kick-off meeting

All communication will take place by telephone or videoconference.

Progress review meeting(s)

Any progress review meetings will be conducted by telephone or videoconference.

Final review meeting

All communication will take place by telephone or videoconference.

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