Industrial Heat, Disrupted: Two Pilots Turn Waste and Cheap Power into On‑Demand Heat and Hydrogen

MIT Technology Review reports two pivotal real-world tests: Found Energy has activated what it calls the largest aluminum-water reactor to convert aluminum scrap into heat and hydrogen for a US manufacturing site, and Rondo Energy has switched on a large thermal battery that stores electricity as high‑temperature heat. For operators with significant process heat loads, these are near-term alternatives to gas boilers and delivered hydrogen-with the potential to cut energy costs and Scope 1 emissions while improving energy resilience.

Source: MIT Technology Review (The Download), reporting by James Dinneen and Casey Crownhart.

Executive Summary

  • Cost and carbon: Turning on‑site aluminum scrap into heat and hydrogen, and storing off‑peak electricity as high‑temp heat, can undercut fossil fuels while reducing Scope 1 emissions.
  • Operational resilience: On‑site generation of heat/H₂ and thermal storage reduce exposure to gas price volatility and grid constraints; both integrate into brownfield facilities.
  • Market signaling: Industrial heat electrification is moving from pilots to production-scale trials, pressuring competitors still reliant on gas-fired steam and process heat.

Market Context

Industrial heat accounts for roughly one-fifth of global energy demand and is predominantly fossil-fueled. Electrification options (e‑boilers, resistive heating, heat pumps) and storage (thermal batteries) are maturing. In parallel, on‑site hydrogen solutions are emerging to decarbonize high‑temperature processes and reduce reliance on delivered gray hydrogen. Found Energy’s reactor leverages aluminum scrap as an energy carrier-releasing heat and hydrogen via water reaction-while Rondo’s “brick battery” stores cheap or curtailed electricity to deliver steady high‑temperature heat. Notably, Rondo’s current deployment supports enhanced oil recovery—commercially validating but raising reputational questions for decarbonization claims.

Opportunity Analysis

Where it wins now:

  • Sites generating aluminum scrap (tooling, machining, die‑casting): Close the loop by converting waste into heat/H₂ for furnaces, ovens, or on‑site hydrogen needs, while reducing scrap handling and disposal costs.
  • Thermal processes with flexible duty cycles (food, ceramics, chemicals, paper): Charge thermal batteries with off‑peak or renewable power and discharge as consistent process heat and steam.
  • Grid‑constrained locations: Thermal storage provides “virtual capacity,” enabling electrification without immediate service upgrades.

What to watch:

  • Unit economics: Delivered cost per MMBtu of heat and per kg of hydrogen versus natural gas, LPG, and delivered H₂; impact of off‑peak electricity rates and demand charges.
  • Feedstock and byproducts: Stable aluminum scrap supply, quality control, and management or valorization of reaction byproducts (e.g., aluminum hydroxide).
  • Policy and incentives: Eligibility for clean‑hydrogen and storage incentives, industrial decarbonization grants, and utility make‑ready programs.
  • ESG optics: Deployments tied to fossil production (e.g., EOR) may face stakeholder scrutiny; prioritize use cases with clear emissions benefits.

Action Items

  • Run a heat and hydrogen audit: Map temperature bands, duty cycles, and H₂ needs; identify scrap streams and potential for on‑site generation and storage.
  • Pilot on one line: Deploy a small thermal battery or aluminum-water module to validate integration, controls, safety, and OPEX versus gas.
  • Contract smart power: Negotiate off‑peak/renewable PPAs or tariff structures to maximize charging economics for thermal storage.
  • Plan for byproduct and safety: Establish handling pathways for aluminum reaction byproducts and update EHS protocols for on‑site hydrogen.
  • Align finance and incentives: Engage policy teams to capture available credits/grants; structure performance‑based offtake to de‑risk scale‑up.

Bottom line: Industrial heat is entering its electrified, circular era. Early movers that pair waste‑to‑energy hydrogen with thermal storage can lock in lower, more predictable energy costs and measurable emissions cuts—creating a durable competitive edge.