Australia Backs $3.25M Heat Storage for Clean Industry

Australian industries are getting a breakthrough solution for one of the hardest parts of going green: replacing fossil fuels in high-heat manufacturing.

The Australian Renewable Energy Agency (ARENA) just approved $3.25 million in funding for MGA Thermal, a company with a clever solution to industrial emissions. They've created blocks that store renewable electricity as heat, then release it on demand at temperatures hot enough for factories, manufacturers, and processing plants.

Here's how it works: renewable electricity gets converted to heat and stored in specially designed MGA Blocks using something called latent heat storage. When a factory needs high-grade heat for production, the blocks dispatch it instantly, no fossil fuels required.

The funding will support up to five detailed engineering studies with industrial partners ready to make the switch. These studies will provide companies with exact technical designs, cost breakdowns, delivery timelines, and risk assessments, giving them the confidence to invest in the technology.

"Decarbonizing industrial process heat is critical to Australia's net zero transition, but it remains one of the hardest problems to solve," said ARENA CEO Darren Miller. The agency believes detailed planning studies will help move promising projects from concept to reality.

MGA Thermal CEO Mark Croudace sees this as a turning point for forward-thinking companies. "ARENA's backing gives industry the capacity to move forward with technical and commercial certainty," he said.

The Ripple Effect

The impact extends beyond the five initial projects. Each study will generate insights shared across Australia's industrial sector, helping other companies understand opportunities, identify barriers, and find solutions for thermal energy storage adoption.

This approach addresses a major emissions source often overlooked in climate conversations. Industrial process heat accounts for significant carbon output, but solutions have been scarce until now.

The funding comes through ARENA's Industrial Transformation Stream, which continues accepting applications for companies ready to innovate their way to cleaner operations. By supporting technologies that make Australian industry more competitive while cutting emissions, the program strengthens both economic resilience and climate progress.

Australian manufacturers now have a viable path to eliminate industrial emissions without sacrificing the high temperatures their processes demand.