The Clean Heat Climate Opportunity: A Roadmap for Electrifying Low- and Medium-Temperature Industrial Heat

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Estimated reading time: 30+ minutes

Why This Matters for Rural Electric Co-ops

Manufacturing plants in food and beverage, ethanol, pulp and paper, and chemicals are common anchor employers in rural service territories, and this report projects that electrifying their process heat could add 158 to 301 TWh of new annual demand nationally, with the largest near-term concentrations in the Midwest. For co-ops, that translates into a real chance of large new industrial loads showing up on the distribution system, carrying both revenue upside and the risks of underbuilt capacity, peak-demand strain, and stranded assets if loads materialize differently than planned.

Co-op leaders can use this resource to anticipate which local industries are likeliest to electrify first, to fold that load into resource and IRP planning, and to design rates and efficiency programs that capture the growth without burdening other members.

For a focused read, the most co-op-relevant pages are: the Executive Summary (pages 3 to 4) for the headline findings, Section 4.3 "Preparing Grids for New Electricity Demand" (pages 31 to 33) for the load-growth projections, and Section 6 "Policy Recommendations" (pages 57 to 67) for utility rate strategies including beneficial rates and economic development rates. The clean heat technology and engineering sections (pages 11 to 24) and the technical appendix can be skipped by most co-op readers.

Key Takeaways

Implementation Considerations

• Cost or Funding Requirements: Several cost estimates and policy recommendations assume a federal Investment Tax Credit or IRA-funded programs (DOE Industrial Demonstrations, EPA Climate Pollution Reduction Grants). IRA funding is no longer available for new applications, so co-ops should treat the federal-incentive economics as outdated and not rely on those pathways. The report's state-level rate and grant strategies may offer co-ops more durable options to evaluate.
• Regulatory or Governance Considerations: Capturing large new industrial loads raises rate design and large-load tariff questions, including cost allocation and protections so existing members are not subsidizing new industrial demand. These decisions sit squarely with co-op boards and management.
• Staffing or Technology Requirements: Translating these national projections into local planning requires load-forecasting and IRP capacity that many smaller co-ops may not have, requiring a call for G&T coordination, regional collaboration, or outside consulting support.

Notable Examples

• Wisconsin Focus on Energy (PUC program): Offers zero-cost financing to certain industrial electrification projects, a direct rate and program model co-ops can study.
• NYSERDA Heat Recovery Program: A $27 million pool funded through utility system benefit charges, supporting industrial heat recovery feasibility studies and equipment.
• New Belgium Brewing (Colorado): Installed an air-source high-temperature heat pump, a real-world clean heat deployment.

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Estimated reading time: 30+ minutes