Industrial activity accounts for over one-fifth of greenhouse gas emissions in California, second only to transportation, making it a critical focus area for climate action. About 73% of these industrial emissions come primarily from natural gas combustion used for process heat, presenting the most impactful opportunity for deep decarbonization. Cement production and large-scale agriculture offer further decarbonization opportunities.
Although the technology now exists to replace natural gas boilers with electrified solutions, industrial electricity rates that are three to five times higher than natural gas pose a significant barrier. Project 2030 believes that grid-connected on-site thermal batteries can overcome this barrier in a practical and scalable way, while supporting economic resilience and environmental justice.
Key Areas of Focus
Thermal Batteries
It is already California policy to increase existing grid utilization by identifying “flexible demand” i.e. grid connected demand that can be scheduled during times when there is surplus generation capacity and no local congestion.
Thermal batteries are a natural fit for medium to high temperature industrial processes. Unlike chemical batteries, they can absorb energy at 4 times the rate they need to discharge (electricity to heat storage to delivered heat). Thus six hours of electricity can supply 24 hours of heat.
In addition to supplying flexible and schedulable demand, there may be financially viable ways to include a steam turbine that generates electricity in specific situations. While the principal benefit of chemical batteries is the regular time shifting of power from when it is generated to when it is needed, the round-trip efficiency of electricity to thermal battery to electricity is relatively low. Therefore, thermal batteries are best suited to situational needs such as Resource Adequacy or peaking power during periods of extreme demand or generation/grid failures.
Our work on thermal batteries is aimed at:
Replacing Natural Gas Powered Heaters & Boilers with Thermal Batteries
A significant percentage of industrial emissions comes from the combustion of natural gas for industrial heat. Solutions now exist to replace natural gas combustion with heat generated from renewable electricity. Project 2030 is facilitating pilot demonstration projects to show the impact of thermal batteries on emissions reduction and affordability.
Overcoming Barriers to Industrial Electrification
Project 2030 research in this area involves developing a strong sense of the problems hindering electrification in industrial heat and how regulatory reform can support the use of solutions such as thermal batteries.
Agrisolar & Thermal Batteries
Project 2030 is currently studying the role thermal batteries can play in advancing agrisolar, also as a way to address the need for flexible demand. Our work in this area involves identifying regulatory barriers and then providing solutions tailored to mitigate them while keeping affordability of energy, climate targets and community engagement in mind.
Agrivoltaics combines solar energy production with agriculture, creating co-benefits such as reduced land competition, energy access for rural industries, shade for farmworkers and animals, and improved crop resilience. We are looking for partners to work with us to identify locations in California where industrial heating demand is near agricultural sites that can benefit from agrisolar and where a private line connection is reasonable. These configurations could only be implemented if there was a limited relaxation of the rules for connecting behind the meter solar to “qualified” industrial locations that are nearby but not immediately adjacent properties.
Thermal Battery Reports
Thermal Batteries: Replacing Natural Gas Heat in Industry
This 2023 report explores the economic feasibility of two emerging decarbonization technologies for cement production—carbon capture, utilization, and storage (CCUS) and alternative materials—and evaluates their potential impact on reducing emissions while maintaining economic viability within the cement industry.
Industrial Decarbonization in California
This Spring 2025 report explores cost-competitive electrification with thermal energy storage and wholesale rates.
Cement Decarbonization
Cement is one of the most emissions-intensive materials on the planet. Project 2030 supports emerging technologies that can drastically reduce emissions without compromising performance or cost.
SB 596: Net-Zero Emissions Strategy for the Cement Sector
Project 2030 designed SB 596, authored by Senator Becker, in 2021. The bill was aimed at meeting net-zero goals in the cement sector, a sector that until then had no tailored policy to get to net-zero. SB 596 directed CARB to develop a comprehensive dedicated strategy for the state’s cement sector to achieve net-zero greenhouse gas (GHG) emissions no later than December 31, 2045. It also set an interim target of 40% below 2019 levels by 2035.
In 2025, CARB published a draft strategy as part of implementing SB 596. The draft identified pathways for deep emissions reductions forming the foundation upon which to set and enforce targeted reductions in the emissions intensity of cement in California. As part of the public process, CARB invited comments and Project 2030 provided comments, which can be accessed here.
Cement Decarbonization Report
The Economic Case for Two Emerging Decarbonization Options for Cement Production
This 2022 report examines the economic viability of two emerging decarbonization technologies—carbon capture, utilization, and storage (CCUS) and alternative materials—for cement production, assessing their potential to reduce emissions while maintaining economic feasibility in the industry.
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