In the race toward decarbonization and meeting Environmental, Social and Governance (ESG) targets, Solar Heat for Industrial Processes (SHIP) is emerging as a powerful and proven solution for industries from multiple sectors. SHIP systems integrate directly into a company’s existing energy infrastructure, offering clean, renewable heat for a wide range of industrial applications.

A typical SHIP plant consists of three main components: a solar thermal collector field, thermal storage, and a monitoring system. The sun heats a fluid —usually water or thermal oil—in the solar collectors, which is then pumped through a heat exchanger to transfer energy for storage and usage elsewhere.

In other words, SHIP systems supply solar heat for processes requiring temperatures up to 150°C such as cleaning, drying, washing, pasteurising, boiling, sterilising, bleaching, steaming, etc. and in many cases even for higher temperature needs reaching up to 350 °C or more. The result: a significant reduction in fossil fuel use and associated carbon emissions.

A growing global market

According to the latest market survey by Solrico, a German agency, SHIP is gaining strong global traction. From 2017 to 2024, 1,315 SHIP systems were installed across industries, totalling 1,071 MW of thermal capacity. These plants are located in Mexico, the Netherlands, China, Germany, India, Austria, France, Spain, the USA, and many other countries.

In 2024 alone, 106 new SHIP plants were commissioned, adding another 120 MW to the global SHIP fleet.

While many of these systems are small to mid-scale, the market also includes several large flagship installations:

Europe’s largest SHIP plant was inaugurated in September 2023 at Heineken‘s brewery in Seville, Spain, featuring a 30 MW concentrating solar field.
Other notable projects include Mol Freesia farm (Netherlands, 10.5 MW) and Boortmalt’s malting plant (France, 10 MW).
The world’s largest SHIP plant with 80 MW, however, is located in China, dedicated to snow making in a leisure park.

SHIP in action: industry applications

While high-profile megawatt-scale projects capture headlines, the market is largely dominated by smaller SHIP systems that deliver immediate benefits across various industries. Mexico leads globally with 273 installations, underscoring the market’s readiness and potential in sunny, high LP-gas-cost regions.

Examples of industrial applications in other Latinamerican countries include:

Nestlé, Brazil: since October 2024, a SHIP system in Feira de Santana supplies solar heat at up to 90 °C for chocolate milk production.
PepsiCo, Brazil: a SHIP plant delivers 450 MWhth/year, saving 55,200 m³ of natural gas and avoiding 103 tons of CO₂ annually.
Grupo Melo in Panama, SHIP systems support egg-washing operations.
In Chile, three multi-megawatt SHIP plants are under construction for mining operations, spearheaded by Gasco.

Additional new installations are underway in Ecuador, Colombia and Cuba.

Which industries benefit most?

According to market outlook 2025-2027 from Solrico, the food industry, including dairies, will continue to dominate new SHIP deployments. Other fast-growing segments include:

Agriculture
Chemical and pharmaceutical sectors
Beverage industry
Textile industry (to a lesser extent)

If your company relies on process heat, SHIP is not only viable—it’s often the most cost-effective path toward carbon-neutral operations.

Investing in SHIP: flexible business models

One of SHIP’s strongest appeals is the flexibility in financing and ownership:

Heat Purchase Agreements (HPAs) allow companies to buy solar heat without owning the infrastructure. This model is ideal for large-scale SHIP projects, typically developed by energy service companies (ESCOs).

EPC (Engineering, Procurement, Construction) contracts are more common for smaller SHIP installations, where companies invest directly and own the system.

Return on investment: what to expect

The ROI of SHIP varies based on a number of factors:

Solar radiation levels
Process temperature requirements
Collector technology used (flat plate, evacuated tube, or concentrating collectors)
Type and cost of fuel displaced
Availability of public funding or subsidies

Examples:

In Mexico, SHIP investments frequently pay off in 2 to 4 years, even without subsidies, thanks to high solar radiation, expensive LP gas, and locally available technology.

In Germany, where radiation is lower and investment costs are higher, government incentives help bring ROI down to 3 to 8 years, according to recent findings from Fraunhofer ISE.

SHIP suppliers: a trusted global network

Currently, 66 companies from 25 countries ofrer SHIP turnkey solutions. These developers are responsible for end-to-end project execution—including engineering, construction, and maintenance. A link to their website can be found in the world map.

A competitive edge is often found in in-house or on-site collector manufacturing, which 79% of suppliers practice. But just as crucial is their industry-specific expertise, essential in a niche where decision-making can stretch over multiple years.

Top global SHIP developers include:

Módulo Solar with 165 projects installed (Mexico)
Solareast Group with its brand micoe with 118 projects installed (China)
G2 with 109 projects installed (Netherlands)

Take the heat challenge – Make the change

For industrial players committed to climate goals, SHIP offers a smart, scalable way to cut costs and carbon. Whether you operate a dairy, brewery, food processor, or chemical plant, SHIP can deliver stable, low-carbon heat—today and for decades to come.

At Heat Changers, we believe that solar thermal is not just a complementary energy source—it’s a cornerstone of industrial sustainability.

Let’s change heat, together.

Article written by Marisol Oropeza

World, to the energy problem... we already have the solution!

There are already solutions to unstable fuel prices and increasing greenhouse gas emissions. One of them concerns more than the 70% of the final use of energy in the industrial sector.

In 2022, industry, particularly in Europe and Asia, replaced the use of gas with coal – an archaic, highly polluting fuel harmful to human health – to meet its heat and power generation needs. This decision was primarily a response to the global energy crisis caused by the conflict between Russia and Ukraine.

Of course, this measure had consequences and led to a significant increase in emissions caused by burning coal, which mainly contributes to climate change and pollution.

However, there is a small glimmer of hope: against all fears, the increase in emissions from coal combustion was lower than estimated. According to the International Energy Agency (IEA), renewable energies played a major role in supplying the energy sources affected by the crisis and prevented the emission of up to 550 Mt of CO2 that year.

The sun: the answer for more than 70% of energy use

The IEA report highlights the contribution of wind power and solar photovoltaics in preventing emissions. These two renewable energy sources were mainly used to generate electricity. Imagine what the result would have been if more renewables had been used for 70% of final energy consumption: heat.

While 26% of global industrial energy use is for electricity, the remaining 74% is for processes that require a range of different degrees of heat. Currently, almost half of this demand is met by coal as the main fuel, a third by natural gas and 15% by oil, leaving less than a tenth for renewables.

The industrial sector is missing the opportunity to use energy sources that are on-site. We forget to look over our heads by continuing to rely on outdated energy that is dependent on fossil fuels, with a volatile market and highly polluting derivatives.

Today, technology and companies in the renewable energy sector have evolved to meet the needs of the industrial sector, which can have process requirements of over 400°C. This is the other side of solar energy: solar thermal energy.

Solar energy: differences in electricity and heat

Generally speaking, solar energy is clean, inexpensive and does not need to be transported, which reduces costs and risks in the supply chain. In particular, solar thermal energy is distinguished by its efficiency: It requires proportionally less space than photovoltaic systems because it is up to three times more efficient.

Pascual Polo, General Director of the Spanish Solar Thermal Industry Association (ASIT) and Heat Changer, explains in our podcast that 4 hectares are needed to generate 2 megawatts of electricity with photovoltaics, as they are able to harness 15-20% of the sun’s energy. By contrast, only one hectare is needed to generate the same 2 megawatts (thermal) with solar thermal collectors, as this other type of solar energy can utilize 70 to 80% of the sun’s radiation.

Solar thermal energy, also known as solar heat, fulfills exactly the same function as fossil fuels: to satisfy the heat generation demand. In other words, to heat water or other fluids and even to generate steam. There are already better, sustainable and efficient options for many industrial processes. Not using them is a cost factor for the economy.

The use of solutions such as solar thermal leads to an immediate improvement in financial planning, as it is not dependent on fluctuating fuel prices determined by geopolitical and financial market situations. It also reduces costs by reducing the carbon footprint of the process and products.

Thermal energy: investing in the future

So why have companies hesitated? Optimizing processes is an important step in the internal life of any company, but it is often only an economic one.

Daniel García, CEO of Módulo Solar, has identified some of the reasons why many industries avoid this decision. The first reason is fear and uncertainty about the guarantees in terms of savings and system lifetime. But also, the question of whether it is necessary to break with the paradigm in which their finances are managed, i.e. the fuel costs that are paid monthly. And a third problem: resistance to change and trying out new technologies.

The fact is that the use of renewable energy is not yet standard anywhere in the world. Until very recently, companies were used to not worrying about energy costs.

If the data proves the importance of switching energy supply sources for the most energy-intensive processes in industry, what will it take to turn words into action?

The savings guarantee already exists, and solar thermal companies are working to provide customers the certainty they need. Energy transition is a global step, and standards are different in every country. Daniel Garcia points out that it is important be aware of the different incentives granted by countries. For example, the costs related to the acquisition of renewable energy technology can be fully tax deductible in some countries. Others may be financing incentives, tax incentives and other types of instruments that make the change even more beneficial. A change that benefits companies and the planet. Especially companies from the food and beverage sector are using solar heat to reduce the carbon footprint as we recently elaborate on our article “Clean manufacturing with solar heat”.

Author: Laura Yaniz Estrada, Communications Consultant

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Tag: Industrial heat