June 2026
Advancing Industrial Electrification in Pennsylvania
Pennsylvania has one of the largest, most energy-intensive manufacturing sectors in the country — making it both a major source of emissions and one of the best near-term opportunities to deploy cleaner, more efficient technology. Electrifying low- and medium-temperature process heat can deliver cost-effective emissions reductions, long-term health benefits, and economic growth.
Why clean heat, and why Pennsylvania
Much of Pennsylvania’s industrial pollution comes from burning fossil fuels to make heat — steam, hot water, and hot air for processes like paper drying, grain mashing, and chemical distillation. Most of this low- and medium-temperature (LMT) process heat (below 300°C) can now be supplied by clean, efficient electric technologies.
Heat is a major source of emissions
A majority of emissions in Pennsylvania’s large chemicals, pulp & paper, and food & beverage plants comes from burning fossil fuels for heat.
The technology is ready
High-temperature heat pumps, electrode boilers, and thermal energy storage can deliver heat cleanly, efficiently, and at industrial scale today.
Three sectors to target
Chemicals, pulp & paper, and food & beverage use the most heat at temperatures that work best for electrification.
Why Pennsylvania
One of the nation’s lowest “spark gaps,” plus RISE PA’s $396M in funding for industrial decarbonization, make the Commonwealth a prime candidate for early commercial projects.
Mapping Pennsylvania’s large manufacturing facilities
Pennsylvania is home to 24 large chemicals, pulp & paper, and food & beverage facilities. The map shows these facilities, sized by their emissions and colored by sector, with the counties that do not currently meet federal air-quality standards shaded in dark grey.
Electric equipment, ready to deploy
Our analysis focuses on four electric technologies, already deployed at U.S. facilities, that together can meet the heat demands of large industrial plants.
Industrial electrode boilers
Pass electric current directly through water to generate steam, with high efficiency and minimal maintenance compared to combustion boilers. A mature, proven technology.
Source: Cleaver-Brooks
Air-source high-temperature heat pumps (HTHPs)
Use electricity to “upgrade” ambient heat, producing 1.3–2.8 times as much heat energy as the electricity they consume (COP 1.3–2.8). An early-stage technology with promise for lower costs over project lifespans.
Source: AtmosZero
Industrial ovens
Electric ovens replace gas-fired baking and curing, delivering precise, uniform heat for food, ceramics, and coatings.
Source: Sveba Dahlen
Industrial dryers
Electric resistance and infrared dryers replace direct-fired drum and tunnel dryers, removing combustion at the dryer entirely.
Source: Lessine
Energy efficiency
Optimizing heating systems and reducing steam-transmission losses cuts total energy consumption at a facility — a “win-win” that saves money and reduces emissions. Waste-heat-recovery heat pumps can deliver up to 5.3× more heat than the electricity they use.
Source: PermapipeGeothermal for industrial process heat
Geothermal systems draw clean, firm heat from underground and can supply hot water or steam to industrial facilities — without adding load to the grid or paying high electricity prices. Pennsylvania has ample geothermal resources at LMT temperatures, plus an oil & gas workforce that could redeploy its drilling skills.
Read our geothermal report →Thermal energy storage
Thermal batteries store electricity as heat — in “hot rocks” or chemical bonds — at about 98% efficiency, for hours to months. They let facilities shift electricity use to off-peak periods where electricity is cheaper, easing grid strain and lowering operating costs.
How we modeled electrification in Pennsylvania
We downscaled our national analysis of industrial electrification to Pennsylvania, covering 13 manufacturing subsectors and 21 large facilities. Here is how it works.
Digital twins for each subsector
For 13 of Pennsylvania’s manufacturing subsectors, we built “process archetypes” that model how a typical plant works.
Five technology scenarios
We compare a fossil Baseline against Drop-In (electrode boiler) and Advanced (air-source HTHP) electrification — each with a higher-efficiency “EE+” variant. See the table below.
Outcomes for decision-makers
For each scenario we estimate the lifetime equipment cost, fuel use, electricity demand, carbon emissions, and air pollution at the plant — the metrics companies and policymakers both rely on.
| Scenario | Process heat steam source | Direct process heat source | Energy efficiency measures | Notes |
|---|---|---|---|---|
| “Baseline” | Natural gas boiler | Direct combustion units | No | Business as usual; process heat (steam and direct-fired units) generated via fossil-fuel combustion. |
| “Drop-In Electrification” | Electrode boiler | Electric resistance ovens and dryers | No | Business-as-usual facility; steam generated via electrode boilers, direct-fired units electrified. |
| “Drop-In Electrification (Max Efficiency)” (EE+) | Electrode boiler | Electric resistance ovens and dryers | Yes | Steam and direct process-heat systems optimized for efficiency; steam generated via electrode boilers, direct-fired units electrified. |
| “Advanced Electrification” | Air-source high-temperature heat pump | Electric resistance ovens and dryers | No | Business-as-usual facility; steam generated via air-source HTHPs, direct-fired units electrified. |
| “Advanced Electrification (Max Efficiency)” (EE+) | Air-source high-temperature heat pump | Electric resistance ovens and dryers | Yes | Steam and direct process-heat systems optimized for efficiency; steam generated via air-source HTHPs, direct-fired units electrified. |
A real process archetype from the analysis. Step through the scenarios: the natural-gas boiler house swaps to an electrode boiler or an air-source high-temperature heat pump (HTHP), and the direct-fired drum dryer becomes an electric resistance dryer. Watch the steam source change from natural gas to electricity. Hover any unit for detail.
Electrification cuts emissions today, with more savings as the grid gets cleaner
In 2023, Pennsylvania facilities reported over 1 million metric tons of emissions from industrial processes that can be readily electrified. Electrifying these processes will cut emissions today, with savings increasing as Pennsylvania’s grid gets cleaner.
Drop-In Electrification with an electrode boiler also cuts emissions over time but can raise them in the short term while coal remains on the grid. To capture the full emissions benefit, Pennsylvania’s electricity sector must decarbonize in parallel.
Pennsylvania’s low “spark gap” can make electrification cost-competitive
Pennsylvania has one of the smallest “spark gaps” between the price of electricity and natural gas in the country. While electricity still costs roughly twice as much as natural gas, because efficient electric equipment uses less energy to create heat, it is possible to make up this cost difference. As a result, Advanced Electrification with an air-source HTHP can approach lifetime cost parity with natural gas equipment today.
However, higher upfront costs for HTHPs, additional technical work for planning & installation, and other challenges mean that policy still has an important role to play in supporting deployment.
A higher coefficient of performance means each unit of electricity delivers more heat — air-source HTHPs reach 1.3–2.8.
Each step adds stronger support and shortens payback. Bars turn green once payback falls into the 3–7 year range, where more companies adopt.
Industrial electrification improves air quality and health outcomes
Burning fossil fuels for heat releases pollutants tied to asthma, heart and lung disease, and premature death, borne most heavily by communities near industrial sites. Added up through 2050, electrifying LMT heat at large manufacturing facilities would result in:
Six counties (Bucks, Chester, Delaware, Montgomery, Allegheny, and Philadelphia) do not meet federal Clean Air Act standards for ozone and/or PM2.5, which gives them authority to set stricter emissions standards. In the short term, electrification can raise SO₂ emissions while coal remains on the grid, but net health effects remain strongly positive.
Manageable load growth and the data-center waste-heat opportunity
Electrifying all of Pennsylvania’s in-scope LMT process heat would add an estimated 2.4–4.7 TWh of annual demand. This is a small share of the roughly 50 TWh of existing industrial demand.
Added annual electricity load by scenario
Each full bar is Pennsylvania’s ~50.1 TWh of existing industrial demand (2023). The colored portion is the new load electrification would add — a small fraction of total load. More efficient pathways add the least.
Data centers can present an opportunity for industrial electrification. Heat pumps run more efficiently when drawing on a higher-temperature heat source. Recovered data-center waste heat (typically 25–60°C) can serve as an input for HTHPs, lifting their efficiency well above what Pennsylvania’s 9.8°C (49.6°F) average air temperature would allow. Pairing data-center waste heat with an HTHP can reduce electricity demand at the facility and improve project economics.
Industrial electrification can be phased in gradually with proactive planning, demand flexibility, and behind-the-meter solutions — and waste-heat reuse turns a grid strain into a shared efficiency gain.
Near-term steps to accelerate clean heat deployment
RISE PA is a historic starting point for state-level industrial decarbonization policy. Pennsylvania policymakers should continue to support clean heat deployment with a diversified approach across financing, electricity costs, and pollution rules.
Finance and facilitate deployment
Build on RISE PA with durable state investment — a revolving loan fund, performance-based grants, or a refundable investment tax credit. Expand technical and supply-chain support (PennTAP, Catalyst Connection, the IRC Network, and HB 1556’s 30% credit).
Reduce operating costs
Lower the electricity-vs-gas “spark gap” with preferential industrial rates for facilities that electrify, real-time pricing and reformed demand charges that reward off-peak use, or a clean heat production tax credit modeled on the federal Industrial HEAT Act.
Design smart pollution regulations
A cap-and-invest program covering industrial emissions could cut pollution and generate revenue to reinvest in electrification. Stricter Clean Air Act standards in nonattainment counties can require facilities to adopt zero-emission heat technologies.
Pennsylvania can lead the nation in clean industrial heat
Pennsylvania has the manufacturing base, the favorable economics, and an early policy lead through RISE PA. Strategic electrification of low- and medium-temperature process heat can cut emissions, deliver billions in health benefits, and keep the Commonwealth’s industry competitive — starting with the highest-value technologies and sectors today.
Sources
1. Quinn, O., Mariano, N., Thomas, E., and Merlo, A. Advancing Industrial Electrification in Pennsylvania. The 2035 Initiative, UC Santa Barbara, 2026.
2. The 2035 Initiative. The Clean Heat Climate Opportunity (national report).
3. U.S. EPA. Greenhouse Gas Reporting Program (GHGRP), 2023 facility emissions data.
4. National Association of Manufacturers. Pennsylvania Manufacturing Facts.
5. U.S. EPA. CO–Benefits Risk Assessment (COBRA) Health Impacts Screening and Mapping Tool.
6. National Renewable Energy Laboratory. Cambium 2023, “Mid-case with 95% decarbonization by 2050”; grid factors via eGRID 2023.
7. Pennsylvania Department of Environmental Protection. Reducing Industrial Sector Emissions in Pennsylvania (RISE PA), 2026 award announcements.