Decarbonizing Industrial Steam Generation Using Solar and Wind Power in a Constrained Electricity Network

Abstract

Australia aims to achieve net zero emissions by 2050, with an interim target of reducing emissions to 43% below 2005 levels by 2030. Electrification of industry processes currently reliant on fossil fuels is a necessary step to achieve these emission reduction goals. This study investigates electrification of steam generation relevant to major industrial operations in the southwest of Western Australia using different renewable energy input levels. The designed system incorporates thermal storage to ensure continuous steam generation. The optimized technology mix, including wind, PV, and concentrated solar thermal (CST) systems for each renewable energy input target, is presented. The optimization process also identifies optimal locations for new renewable energy plants. In summary, the optimization tends towards favouring the development of large CST plants near a demand point. This avoids the use of the transmission network by direct use of the CST system for heating of the storage media, to address the costs and efficiency reductions arising from electrical heating, but the scope of CST use is expected to be limited by site constraints. The levelized cost of heat (LCOH) for the studied renewable energy input targets (i.e., 30–90%) ranges from 15.34 to 36.92 AUD/GJ. This is promising for the 30% renewable energy target, as future natural gas prices in Western Australia are likely to match or exceed the expected LCOH. Cost reductions for renewable generation and storage technologies with further implementation at a large scale in the future may result in more competitive LCOH at higher decarbonization levels, but it is likely that additional technologies will be required for cost competitiveness at very high decarbonization levels.