Zero-Carbon Heat from Scrap: A Game-Changer for Manufacturers
Manufacturers worldwide face rising fuel costs, volatile supply chains, and aggressive decarbonization targets. Found Energy’s aluminum-water reactor turns hard-to-recycle aluminum waste into on-site, zero-carbon high-grade steam (up to 1,300 °C) and hydrogen (combustion up to 2,400 °C). A U.S. pilot at Midwest Tool Works in Detroit, slated for Q1 2026, promises to cut fuel spend by 30%, avoid grid upgrades, and vault partners ahead on ESG commitments.
Executive Summary
- Fuel cost reduction: On-site heat and hydrogen from waste can cut natural gas and delivered H₂ spend by 25–40%.
- Supply resilience: Eliminate price volatility and transport risk for process heat and hydrogen, critical in tight energy markets.
- High-temperature advantage: Steam at 1,300 °C and H₂ combustion at 2,400 °C serve metals, cement, and chemical processes that defy electrification.
- Rapid scale: A 100 kW demonstration unit reached 95 kW net in September 2023; a 1 MW commercial module is on track for 2027.
Company Background and Pilot Overview
Found Energy, headquartered in Palo Alto, CA, has developed a proprietary low-melting liquid-metal catalyst to break aluminum’s passivation layer and sustain continuous steam and hydrogen production. Catalyst recovery rates exceed 98% in lab tests. In partnership with Midwest Tool Works—a 150,000 sq ft facility making precision parts—the pilot will:
- Start installation in Q4 2025 and begin live runs in Q1 2026.
- Process up to 5 tons/day of on-site aluminum scrap.
- Deliver 120 kg/hr of superheated steam and 10 kg/hr of hydrogen during peak operation.
- Maintain a net thermal efficiency above 75%.
The pilot site holds local air quality permits, and the reactor meets NFPA 55 hydrogen safety codes and OSHA process-safety standards. Found Energy’s team will handle catalyst stewardship, routine maintenance, and regulatory reporting.
Opportunity Analysis
- Aluminum recyclers & fabricators: Turn scrap that currently demands landfill or low-value feedstock into a revenue-generating energy asset.
- Heat-intensive industries: Glass, cement preheating, and chemical reactors requiring 300–1,300 °C steam or high-temperature H₂ combustion can bypass electrification hurdles.
- Grid-limited sites: Manufacture decarbonized heat and hydrogen without costly substation upgrades or long‐term power contracts.
- ESG leadership: Demonstrate measurable scope 1 cuts and credible waste reduction—key for carbon reporting and regulatory readiness.
Sizing & Economics: Quick-Start Template
Use this sample calculation to assess feasibility for a 500 kW pilot:
- Assumptions:
- Aluminum scrap feed: 15 tons/month (1,500 kg/day).
- Aluminum energy content: 31 MJ/kg; reactor efficiency: 75%.
- Steam output: 400 kg/hr; H₂ output: 12 kg/hr at full load.
- CapEx: $1.8 million; annual OpEx (catalyst, water, maintenance): $120,000.
- Natural gas price: $8/MMBtu; delivered green H₂: $10/kg.
- Facility operating 8,000 hrs/year.
- Fuel savings:
- Steam replaces 4 million kWh of boilers → saves $240,000/year.
- On-site H₂ replaces 80 tonnes delivered → saves $800,000/year.
- 20-year TCO & Abatement Cost:
- Total 20-year cost: CapEx $1.8 M + OpEx $2.4 M = $4.2 M.
- Cumulative fuel savings: $8 M.
- Net saving: $3.8 M over lifespan.
- Carbon abated: ~5,000 tCO₂e/year → abatement cost: negative $76/tCO₂e.
Adjust feedstock volumes, utility rates, and operating hours to model your site. Download our free Excel TCO template to plug in your numbers.
Next Steps & Call to Action
- Map your aluminum scrap streams and assess steam/H₂ demand to size your on-site pilot (100 kW–1 MW).
- Host a site readiness workshop: review water quality, hydrogen handling, steam integration, and byproduct logistics.
- Engage Found Energy for a turnkey pilot proposal—includes performance guarantees, SLAs, and catalyst stewardship.
- Explore federal/state decarbonization incentives and secure internal offtake commitments.
Ready to pilot zero-carbon heat & H₂ from scrap? Contact our team or schedule a live demo to reserve your early-adopter advantage.
