Industrial manufacturers are navigating a rapidly shifting energy landscape. Rising energy costs, fuel supply shortages, tightening emissions targets, and continuous uptime demands. In response, many industrials are rethinking how they generate the process heat that underpins their operations. But with a growing range of technology pathways available, identifying the right solution is far from straightforward.These five considerations will help you cut through that complexity and make more confident, future-ready energy decisions.1. Define Your Desired Future State and Work BackwardsUnderstanding your long‑term energy demand is essential - not only today’s heat requirements, but the growth trajectory of your site and the “future state” you ultimately need to reach. This clarity helps determine which technologies can genuinely support your site over time. They must be able to:‍Deliver high grade process heat on a continuous basis, without impacting operationsEliminate or substantially reduce reliance on fossil fuelsOperate at high round-trip efficiency, minimising unutilised waste heat on-siteIntegrate in a hybrid configuration, compatible with existing and emerging technologies Not all technologies will meet these requirements equally. For example, heat pumps and mechanical vapour recompression are highly efficient for low temperature and low-pressure applications, but they require complex process redesign and rely on a reliable source of waste heat to be economic. Starting with the desired future state, then working backwards to determine the right technology mix for your site ensures that your investment aligns with long-term goals.2. Focus on Total Cost of Ownership - Beyond Simple Payback‍While simple payback is still commonly used, its narrow focus often favours cheaper, short-lived or sub-optimal options that look attractive upfront yet cost more over time. Total Cost of Ownership (TCO) provides a more comprehensive and accurate assessment of investment’s true value.TCO captures the full lifecycle of an asset - installation, operating and maintenance costs, expected savings, and asset replacement - giving a clearer picture of long-term profitability. It also accounts for risks such as fuel price escalation or equipment failure rates, and aligns with financial metrics including Net Present Value and Internal Rate of Return used by investors and government programs. Considering the complete cost picture helps industrials make more informed and sustainable investment decisions.3. Emerging Funding Opportunities and Commercial ModelsThere are several significant funding opportunities at state and federal levels in Australia to support industrials to adopt renewable technologies and reduce reliance on fossil fuels. Grant funding can move the needle on the commercial viability of your project, so be sure to check out what programs are relevant to your facility.Commercial models are also emerging to address the capital constraints industrials may have. For example, Heat as a Service is a type of third party financed contract that removes the upfront capital cost of infrastructure and replaces it with a predictable, performance-based payment. The provider manages the turnkey construction of the equipment and handles all maintenance, repairs, and optimisation for the end-user. These emerging commercial models can support industrials to overcome investment hurdles.4. Ease of Integration with Existing InfrastructureMost industrials have invested heavily in their current systems, and many of these assets continue to operate reliably. Minimising disruption and downtime is a priority. The most attractive solutions:Retrofit into existing boiler houses or steam networks without costly process redesignAllow staged deployment to manage risk and investment Complement existing assets and emerging technologiesTechnologies that can integrate with existing boiler houses and deliver steam at the required setpoint temperature and pressure significantly reduce the need for process redesign. Understanding the integration implications of a technology will help industrials avoid unforeseen and costly overhauls.5. Energy Storage Delivers Operational Resilience and Energy SecurityHeat is often mission critical for industrial sites. Any viable alternative must enhance reliability, not compromise it. Consider:Ability to operate during grid constraints or outagesPredictability of fuel or energy supplyThermal buffering or storage capabilitySafety, redundancy, and controllabilityEnergy markets are becoming increasingly volatile. Solutions that integrate long duration energy storage can capitalise on this volatility through load-shifting. This is where energy is stored when it is cheapest and used hours or even days later. This reduces exposure to price spikes and supply constraints, whilst maintaining a reliable and continuous supply of process heat to the site. A Practical Pathway to Low-Carbon SteamAs industrial manufacturers evaluate their options, thermal energy storage is emerging as a practical enabler of industrial electrification. MGA Thermal’s technology is designed to integrate with existing boiler houses, smooth electricity demand, and deliver reliable, low cost, high-temperature heat using renewable energy. By decoupling heat production from electricity supply, industrials can reduce emissions, stabilise operating costs, and transition toward net-zero steam without major process disruption.Curious how thermal energy storage could work for your site? Get in touch: contact@mgathermal.com

Australia’s electricity system has changed. Our carbon accounting hasn’t kept up.Every day, we see longer periods where renewable energy is abundant, low cost, and increasingly curtailed. At the same time, emissions intensity swings dramatically in real-time as variable renewable generation fluctuates across the day.Yet our current carbon accounting frameworks do not reflect this. Current frameworks use an average emissions intensity factor, which represents the average greenhouse gas emissions per kilowatt-hour of electricity in the grid over the previous year. This fails to recognise the real-time variability in the electricity generation mix, and the actual mix of renewable and fossil generation at the time electricity was consumed. And that creates real problems:There’s no incentive for energy users to shift electricity demand to periods when renewable generation is higher and emissions intensity is lower.Users who consume electricity during periods when emissions intensity is low are penalised by the higher average emissions intensity factor.Energy storage technologies that enable flexible demand and support investment in variable renewable generation - including thermal energy storage - are undervalued.In short: our accounting frameworks are no longer fair, effective or relevant.Victoria Is Taking a Meaningful Step Toward Fixing ThisLast week, the Department of Energy, Environment and Climate Action (DEECA) released a proposal to update the Victorian Energy Upgrades (VEU) program - and it includes new measurement methods for industrial heat decarbonisation, including electric thermal energy storage (eTES).By acknowledging the value of shifting energy consumption into cleaner periods, DEECA is opening the door to:More accurate emissions reportingIncentivising flexible demandFaster industrial decarbonisationReduced renewable energy curtailmentIncreased investment in variable renewable energyThis is exactly the kind of policy evolution Australia needs.Have Your Say: Public Consultation Is Now OpenDEECA is now seeking feedback on proposed updates to the Victorian Energy Upgrades program, including new methods for industrial heat decarbonisation. Consultation is open until 11:59pm, Tuesday 28 April. Full details and submission options are available here: https://engage.vic.gov.au/industrial-heat-decarbonisationMGA Thermal’s PositionAt MGA Thermal, we strongly support DEECA’s leadership in bringing modern carbon accounting into the VEU program.We believe Australia needs measurement approaches that reward real system impact - not annual averages.We encourage all stakeholders to get involved in this consultation and help move Australia toward a more affordable, sustainable and reliable energy future.

Global geopolitical instability over the past decade has made one thing clear: businesses that rely on fossil fuels are exposed to significant risk.For manufacturers dependent on heat, steam, and high‑temperature processes, this vulnerability is even sharper. When geopolitical shocks hit, oil and gas prices can surge overnight, eroding margins, disrupting production, and undermining competitiveness. Forward‑looking industrial leaders are discovering a compelling pathway to greater resilience and cost stability: electrifying their thermal processes using renewable energy and thermal energy storage. Why Fossil Fuels Create Structural RiskIndustrial sectors such as food manufacturing, chemicals, mining, and building materials have long depended on diesel, LPG, and natural gas. But these fuels come with three unavoidable challenges: Global price volatility - Oil and gas are traded internationally, meaning conflicts, supply disruptions, or shipping constraints can trigger sudden price spikes. Manufacturers feel the impact immediately through higher operating costs and squeezed margins. Geopolitical dependence - Australia imports most of its oil and competes with global buyers for gas. When international LNG prices rise, domestic prices often follow, making long‑term planning difficult. Rising long‑term costs - As economies decarbonise, fossil‑fuel systems face increasing pressure from carbon pricing, compliance requirements, and infrastructure phase‑outs. The Russia–Ukraine war demonstrated how quickly global markets can destabilise, with energy prices surging to decade high levels. We are already seeing the immediate effects of recent conflict in the Middle East with energy prices surging by almost 50% compared to the past 6 months, exposing the fragility of fossil‑fuel‑dependent economies and industries. ‍Why Renewable Electricity Changes the Equation ‍Australia has an abundance of cheap, renewable energy resources, which gives us greater sovereignty and security over its supply. Renewable electricity: isn’t reliant on global commodity marketsdoesn’t spike during geopolitical crisescontinues to fall in cost over time ‍For manufacturers, electrifying heat offers a pathway to long‑term cost stability and greater energy resilience. ‍The Role of Thermal Energy StorageHeavy industry needs reliable and continuous supply of heat. Thermal energy storage (TES) is a storage technology that can firm intermittent renewable energy supply. TES enables manufacturers to: electrify high grade process heatdispatch that heat on demand and around-the-clockreduce reliance on fossil fuels minimise electricity costs through load shifting ‍TES allows factories to run on affordable, reliable and sustainable energy, without any exposure to international geopolitical risks. ‍How Electrification Builds ResilienceShifting thermal processes to renewable electricity supported by storage delivers clear advantages: Predictable energy costs - Renewables are not exposed to global commodity markets.Reduced crisis risk - Businesses have lower exposure to oil and gas price shocks.Stronger competitiveness - Stable energy costs improve planning, pricing, and investment confidence.Decarbonisation alignment - Electrified heat significantly reduces emissions and supports ESG commitments.Greater national energy sovereignty - Local renewable power reduces reliance on volatile international supply chains. A More Secure Future for Australian IndustryAs global volatility continues and fossil‑fuel markets remain unpredictable, electrifying industrial heat is becoming a commercial necessity. Renewable electricity paired with thermal energy storage offers manufacturers a way to stabilise costs, strengthen resilience, and lead Australia’s next era of industrial innovation. Image: Crude Oil - Price - Chart - Historical Data - News ‍

Industrial boilers have been the backbone of the industrial sector for centuries, providing the heat required to manufacture the products and materials we consume today. Historically, boilers powered by fossil fuels have provided the affordable and reliable supply of power that keeps operations hot.But things have changed, and Australian manufacturing is under pressure.The price of gas has escalated significantly since early 2000s, there are projected gas shortages and energy security risks, and there is increasing pressure from consumers, governments, and shareholders to reduce emissions. Industrials are seeking a better way forward. The modern criteria for industrials purchasing a new boiler are affordability, reliability, energy security, and increasingly, sustainability. Many industrial and manufacturing businesses may be surprised to learn that the best technology for process heat is no longer a fossil fuel boiler. Instead, thermal energy storage is emerging as the most cost-effective and future-proof solution. Thermal storage delivers reliable, high-grade process heat around-the-clock to reduce reliance on fossil fuels.This isn’t theoretical. It’s happening now.A well‑designed thermal storage system achieves:The lowest energy cost of any process‑heating technology Eliminate scope 1 and scope 2 emissions, providing a clear pathway to net zeroEnergy resilience by reducing the reliance on fossil fuels for process heatingSimple integration into brownfield sites, minimising redesign and downtimeIn other words, it supersedes conventional fossil fuel boilers and outperforms other modern technologies entering the market. Why thermal storage winsRenewable energy is the cheapest form of energy available today. However, adoption is limited by the intermittent nature of renewable generation and the continuous demands of industry. Thermal storage is a long-duration storage technology that decouples the consumption and discharge of energy through load-shifting. Storage is electrically charged during periods when renewable energy supply is high and electricity is cheap. Heat is then recovered to produce high-grade process heat on-demand and around-the-clock. This flexibility transforms the economics of industrial heat. It enables the adoption of intermittent renewable energy without compromising operational continuity. It performs like a traditional fossil fuel boiler, but is powered by cheap, clean renewables.Works with boilers, not just instead of themFor many operators, the path to decarbonisation isn’t a single leap - it’s a staged transition. Thermal energy storage supports that reality.Whilst thermal storage can operate as a standalone heat source, it is more commonly integrated in a hybrid configuration alongside existing boilers. This can:Reduce fuel consumption and operating costs in the short-termExtend the life of existing boiler assetsSmooth the transition away from fossil fuelsStage investment to manage capital budgetsProvide redundancy and resilience during peak demand or outagesThis compatibility means industrials don’t need to choose between the boiler they know and the future they need. They can have both - and manage the transition on their own timeline.The writing is on the wallThe industrial boiler has been a workhorse for more than a century. The demands of modern industry - cost efficiency, resilience, and decarbonisation – are reshaping what “best in class” really means.

Australia’s food and beverage sector is clearly resilient. Biodiversity hazards, climate disasters, supply chain challenges and international competition are ever present business risks for growers, processors and retailers of Australia’s produce. Adversity is the catalyst for innovationDuring tough times it’s rational to focus on survival, however short-sighted decisions typically do not deliver long-term growth. Through adversity, forward-thinking operators reassess their operations, investigate innovative solutions and develop long-term strategic roadmaps. This delivers resilience and competitiveness – not just for today, but for decades. Energy Resilience Is Becoming a Strategic NecessityFood and beverage operations are energy‑intensive by nature. Refrigeration, heating, drying, processing, packaging - every step relies on reliable, affordable and sustainable energy. Historically, natural gas has been a reliable and affordable source of energy to power industry. However, recent gas price escalation, projected supply shortages and increasing pressure to decarbonise make reliance on natural gas untenable in the sector. As Australia transitions to renewables, energy resilience is becoming a strategic necessity. And electrification is emerging as a viable pathway to achieve this for the food and beverage sector. This is where long‑term thinking pays offNew technologies, including MGA Thermal’s heat battery solutions, are giving manufacturers a way to take control of their energy future. By charging when electricity is cheap, storing it as heat and delivering it when needed, businesses can:Reduce energy costs through load shiftingImprove operational reliability and energy securityCut emissions without compromising productivityIncrease process efficiencyBuild resilience against market volatilityIn a sector where margins are tight and competition is fierce, long-term thinking pays off.Why Now Is the Moment to InvestThere is a groundswell of support to help the food and beverage sector transition. Federal and state government agencies have announced significant policies and funding packages to incentivise technology adoption. The price of renewable energy continues to fall, while the price of natural gas continues to escalate. Shareholders, boards and customers are increasingly demanding that food and beverage businesses reduce reliance on fossil fuels. Thermal storage technology is proven at scale, and ready for client deployment. Looking Beyond the Immediate HorizonAustralia’s food and beverage sector has a long history of adapting to change - from droughts and supply chain disruptions, biodiversity risks or shifting consumer expectations. The energy transition is inevitable. By pairing innovation with long-term strategic thinking, food and beverage businesses can turn today’s challenges into tomorrow’s strategic advantage and strengthen global competitiveness.

Our friends at Aratherm and the Australian Alliance for Energy Productivity have recently launched a Heat Battery Estimator. This online tool allows Australian manufacturers to explore the benefits of electrifying process heating using thermal energy storage to reduce energy costs and emissions. The tool models a hybrid gas / electric system, allowing you to quickly gauge the trade-off between energy cost and the level of decarbonisation. Higher gas displacement results in a higher cost of electric heat. You can also easily customise the input variables to better reflect your facility including your state, heat load profile, gas price and network tariff. Key takeaways: Adding thermal storage will displace more gas and often lowers the cost of heat. Thermal storage is already cheaper than natural gas for over 75% gas displacement in most states, and in NSW and VIC thermal storage can achieve 100% gas displacement at a lower cost of delivered heat. Electric boilers struggle to be competitive beyond 50% gas displacement, and do not provide a viable pathway to net zero. New trial tariffs offered by leading networks will help to greatly reduce overall energy costs. This estimator is a great starting point, but there may be further upside for your site revealed through site specific analysis. The snapshot above is a sample output from the Heat Battery Estimator. It shows that in NSW for a flat load heat profile, heat batteries achieve price parity with natural gas boilers ($16/GJ, 80% efficiency) under a 100% electric scenario. In comparison, e-boilers can only achieve 35% displacement of natural gas for the equivalent cost of heat delivered. If you want to understand how electric heat batteries stack up for your site, then we can tailor a detailed business case for your specific site requirements.