The Australian Renewable Energy Agency (ARENA) will offer funding support for Australia’s largest demonstration of industrial heat electrification, backing a pioneering thermal energy storage project at Rio Tinto’s Yarwun alumina refinery near Gladstone, Queensland.
The project represents one of the world’s first large-scale demonstrations of thermal energy storage designed for high-temperature industrial process heat.
Heavy industries such as alumina refining rely on continuous steam production, which has historically depended on fossil fuels and proven exceptionally difficult to decarbonise.
ARENA’s support will be delivered in stages, beginning with an initial AU$3.6 million to complete front-end engineering and design work.
Upon successful completion of the study, ARENA will provide up to AU$38 million for full deployment, alongside up to AU$33.3 million in conditional contingency funding to manage potential project risks and energy costs.
The project will deploy a 30 MWt discharge / 78 MWe charge / 360 MWh thermal energy storage unit supplied by Rondo Energy.
The system functions as a heat battery, using low-cost electricity during peak generation times to store thermal energy and discharge continuous steam for refinery operations.
Once operational, the installation is expected to abate approximately 67,000 tonnes of carbon dioxide emissions annually.
ARENA CEO Darren Miller said industrial process heat remains one of the most stubborn decarbonisation challenges facing heavy manufacturing.
“This project will test whether thermal energy storage can provide a practical pathway to lower emissions from industrial heat in a real-world operating environment, where reliability, performance and integration are critical.”
“Cutting emissions from industry means tackling the heat needed to make products like alumina. This project will show how a heat battery can be used at an operating refinery,” added Minister for Climate Change and Energy Chris Bowen.
The project is funded under ARENA’s Industrial Transformation Stream, which aims to accelerate low-emission technologies across the national industrial landscape.
Miller urged other industrial operators and technology providers with credible heat electrification proposals to engage with the agency as Round 3 of the program opens for applications.
“ARENA is looking to support further projects that can demonstrate thermal energy storage and other promising approaches to industrial heat electrification in Australian operating conditions,” he added.
