This month, we are looking closely at the reality of the industrial energy transition. From the factory floors of tyre and pharma manufacturing to the European Commission's newly announced €1B Heat Auction, heavy industry is racing to phase out fossil fuels, and hitting a major bottleneck: grid intermittency.
In this issue, we look at how thermal energy storage is becoming the ultimate operational buffer, allowing high-precision, 24/7 production lines to run continuously on green power without compromizing production. We also share details on our participation in the upcoming Future Cleantech Festival this June.
The European Commission’s DG-CLIMA has announced that the Innovation Fund’s targeted heat auction (#IF25HeatAuction) will return for a second round later this year, maintaining a budget of €1 billion.
The announcement follows the results of the pilot round, where 65 out of 85 submitted bids were successful, representing 766 MW of clean industrial heat capacity. The total funding requested in the pilot was €1.4 billion; this relatively low oversubscription rate is the primary reason the budget remains at €1 billion for the next phase.
Producing nearly 3 billion tyres annually, the global tyre industry is making a massive, rapid shift toward sustainability. Top industry players are aggressively phasing out coal and heavy fuel oil in favor of renewable electricity. But this transition has exposed a critical new challenge: energy security.
The heart of tyre manufacturing relies on vulcanisation; a continuous, highly precise curing process that demands steady, high-pressure steam. When a plant ditches fossil fuels to rely strictly on an intermittent renewable grid or volatile electricity markets, even a brief fluctuation in power can disrupt the entire production line.
How can tyre manufacturers protect their production lines from grid volatility while achieving 100% green manufacturing?
The answer lies in a thermal buffer.
In our latest article, we dive into how thermal energy storage bridges the gap between intermittent green electricity and the rigorous, 24/7 demands of vulcanisation, ensuring continuous production, shielding plants from price spikes, and securing the future of the 'green tyre.'
Discover how TES is securing the future of tyre manufacturing
How do we transform existing natural gas-powered processes in heavy industry?
It is one of the most critical challenges facing the energy transition today, and we are addressing it directly at the Future Cleantech Festival in Remscheid, Germany, this June 17–18.
We are pleased to share that Kyoto Group will be speaking at this year’s event.
And you can book a meeting with our commercial team at the event! Visit our event page in the link below to schedule a 1-on-1 session.
Learn more about Future Cleantech Festival 2026
The pharmaceutical industry is built on a paradox: it exists to protect human health, yet its production processes are some of the most carbon-intensive in the world. As tightening climate policies take hold, industry data reveals a stark reality:
The industry is no longer just calculating impact; it is acting. In March 2026, the launch of the Clean Heat Programme, led by AstraZeneca, marked a turning point, specifically targeting the decarbonization of thermal energy.
However, as the European Federation of Pharmaceutical Industries and Associations (EFPIA) notes, decarbonization cannot happen at the expense of patient safety. Under rigid Good Manufacturing Practice guidelines, production lines require absolute continuity. A momentary drop in steam pressure or thermal stability can compromise batch purity. Relying on an intermittent electricity grid introduces an operational risk that leaders cannot accept.
The ultimate bridge between strict regulatory compliance and net-zero manufacturing is thermal energy storage, which guarantees facilities a continuous supply of green steam.
Read EFPIA's whitepaper on climate change & the Pharma sector
The pulp and paper sector champions a circular image, but it ranks fourth in global industrial energy consumption. Ironically, the biggest culprit isn't cutting trees, it’s the intense thermal dehydration needed to dry paper, which devours over 60% of a mill’s energy.
In our next issue, we dive explore how pioneering mills are ditching fossil fuels. Discover how they are electrifying their thermal processes and capturing waste heat, all without losing production speed.
Stay tuned!