Changing thermal energy sources from fossil fuels to renewables

Changing thermal energy sources from fossil fuels to renewables

Thermal energy sources in industry are the foundation of operational activities for many companies and have a significant impact on emission levels and energy efficiency. Although fossil fuels still dominate in many sectors, the importance of renewable thermal energy sources and heat recovery technologies is gradually increasing. Changing heat sources is not only a step towards climate neutrality but also a real opportunity to optimize costs, increase energy independence, and improve a company’s competitiveness. For many industrial plants and combined heat and power (CHP) plants, this is the starting point for implementing energy transition and decarbonization strategies.

Conventional thermal energy sources

Conventional heat sources are those that use fossil fuels to generate thermal energy. Their greatest advantages are high availability, predictability of supply, and relatively low investment cost compared to some renewable technologies. Among the most commonly used solutions in industry and heating systems are:

  • hard coal and lignite – one of the oldest and still widely used fuels in Polish industry and combined heat and power plants. Despite high emissions of CO2 and particulate matter, coal is used due to its still relatively low technical cost of energy production and existing infrastructure;
  • natural gas – a popular compromise between efficiency and lower emissions – often called a transitional fuel between fossil fuels and renewable sources. It is easy to store and transport, and gas boilers feature high efficiency. Additionally, natural gas performs well in high-efficiency cogeneration (CHP) systems;
  • fuel oil – mainly used as a backup fuel in industrial installations. It is more expensive and more emissive than gas but allows continuity of production in case of failure or lack of other energy sources;
  • cogeneration based on fossil fuels – generating heat and electricity in a single process increases fuel use efficiency, which results in lower unit energy consumption and emission reduction compared to separate production. Cogeneration can be carried out using most available fossil fuels.

Future of fossil fuels in Poland and Europe

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Renewable or low-emission thermal energy sources

Rising costs of CO2 emissions, EU climate regulations, and availability of investment support programs mean that renewable thermal energy sources are increasingly replacing fossil fuel-based technologies. Among the main solutions used in industry and combined heat and power plants, the following stand out:

  • biomass – one of the most popular renewable heat sources. In the form of wood chips, pellets, or plant residues, it can be used in dedicated boilers or co-fired with coal. Biomass is considered CO2 neutral;
  • biogas – produced from organic waste in biogas plants, often located on the industrial site itself. It can be burned in gas engines or boilers, offering a local, low-emission source of thermal energy;
  • heat pumps – in large industrial installations, water-water or air-water pumps are used, which extract heat from the environment or industrial processes. Currently, they can supply both low- and high-temperature systems, and their positive environmental impact can be enhanced by combining them with photovoltaics;
  • geothermal energy – locally available in selected regions of the country, it can be a source of low-emission heat year-round. Geothermal installations are used in heating systems and for heating large industrial facilities;
  • photovoltaics – photovoltaic installations, although less efficient in winter, can in some cases support the production of hot utility water and electrification processes in industrial plants;
  • heat recovery from industrial processes – a particularly important source on the path to decarbonization in energy-intensive plants, where high temperatures are necessary for the technological process – here it is possible to reuse waste heat from furnaces, compressors, cooling systems, or exhaust gases.

Why are conventional fuels still popular?

Despite ambitious EU plans for decarbonization, conventional fuels – especially natural gas – are still frequently chosen in many industrial plants. The main reasons are:

  • stability of supply – the infrastructure for distributing natural gas and coal is well developed,
  • low costs – investment in a gas or coal boiler is cheaper than, for example, a high-power heat pump,
  • high predictability of heat production – stable energy value of the fuel regardless of weather conditions,
  • staff experience – operation and maintenance of conventional heat sources is well known in plants.

In the long term, maintaining such sources involves increasing environmental and regulatory costs, so companies increasingly analyze scenarios for their replacement or at least diversification.

Benefits of modernizing heat sources

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Changing heat generation sources brings a number of measurable benefits:

  • lower primary energy consumption thanks to higher efficiency of renewable sources and cogeneration systems,
  • reduction of CO2 and particulate emissions, which translates into lower allowance costs and greater compliance with ESG regulations,
  • possibility of obtaining funding under national and EU programs, e.g. FEnIKS or KPO,
  • building the image of a responsible producer, which increasingly matters in relationships with partners and clients.
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Modernizing heat sources is one of the most direct and cost-effective ways to reduce greenhouse gas emissions and improve energy efficiency in industry. Switching from coal to gas, biomass, or heat pumps can reduce a plant’s emissions by several dozen percent. In many industrial plants and heat energy enterprises, changing heat sources is the first and most important element of a zero-emission strategy. Investing in renewable sources or modernizing existing heat installations often has the greatest potential for reducing CO2 emissions among all available actions.
Msc. Eng. Katarzyna Kuśnierz Project Manager

Summary

Replacing heat generation sources increases not only energy efficiency and environmental compliance but also the operational resilience of enterprises. Diversifying heat energy sources – by combining, for example, cogeneration, biogas, and heat recovery – enables maintaining production continuity in case of fuel supply interruptions or price spikes. Given the current energy market instability, investments in local, renewable sources are becoming an important element of energy risk mitigation strategies.

Although modernizing heat energy sources may require significant investment and technical analysis, its long-term benefits outweigh implementation costs. Optimizing the heat generation system in terms of emissions, efficiency, and operational costs results in a lasting improvement in the plant’s energy balance. Especially in heating plants and combined heat and power plants, where switching to less emissive and more efficient sources is practically the only way to implement decarbonization, this step may be the most important on the path to achieving net zero.

Knowledge base

How to select a cogeneration unit tailored to an industrial plant's needs?

Choosing the right cogeneration unit is a process that requires technical expertise and a deep understanding of the plant’s specific energy demands. In many cases, incorrect assumptions made during the planning phase can lead to a mismatch in unit capacity or the selection of technologies that fail to meet the plant’s energy requirements. This, in turn, results in suboptimal use of the cogeneration potential and increases the risk that the investment will not deliver the expected outcomes.

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Biogas plants – how do they work and where can they be used?

A biogas plant is a modern, environmentally friendly energy solution that aligns with the goals of sustainable development and the circular economy. When combined with biogas cogeneration, biogas plants become an efficient energy source for industry and agriculture—especially in areas where organic substrates are available and there is local demand for heat. These modern facilities not only enable the management of organic waste but also offer an efficient and climate-neutral way to produce heat or electricity through cogeneration. Let’s take a closer look at how biogas plants work and where they can be used cost-effectively.

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