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Decarbonising industrial heating : Evaluating low-carbon alternatives for industrial thermal systems

28 August 2026

Decarbonising industrial heating : Evaluating low-carbon alternatives for industrial thermal systems

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This industry brief is aimed at guiding South African businesses through the technical, financial, and regulatory pathways to decarbonise industrial process heat and steam generation. It is written for for sustainability managers, environmental, social and governance (ESG) professionals, operations directors, and plant engineers at industrial facilities relying on boiler systems for process heat and steam generation.

Overview: South Africa’s industrial sector relies heavily on carbon-intensive fossil fuel combustion, predominantly coal and heavy fuel oil (HFO), for high-temperature process heat. However, tightening policy frameworks, escalating carbon tax liabilities, and global supply chain pressures are turning fossil-fuelled thermal generation into a growing financial and compliance risk. This industry brief evaluates the technical feasibility, levelised cost of heat (LCOH), carbon liability, and operational suitability of low-carbon alternatives, offering actionable guidance for industrial operators looking to future-proof their operations.

The development and writing of this brief is supported by Agora Energiewende.