Fusion & industrial heat

11 February 2025

Beyond electricity: fusion as a force in the industrial heat sector

Full report available to all FusionX Members

Fusion has the potential to supply not only electricity but also industrial heat. By 2050, the industrial fusion heat market is projected to reach $10.6 billion, growing to $39.1 billion by 2080.

Industrial heat is one of the most energy-intensive sectors, accounting for approximately 20% of global energy demand. 

Nearly half of the energy consumed by industrial facilities is used to generate heat, and fossil fuels currently supply approximately 80% of global industrial heat, resulting in significant greenhouse gas emissions. The sector, which accounts for 10% of global emissions,  is notable for its barriers to decarbonisation This opens significant opportunities for a technology like fusion, which can provide a clean, reliable, and economically viable alternative source of energy.

Existing non-fossil fuel solutions face technical, economic, and infrastructural hurdles. Solar thermal, geothermal, and advanced biofuels systems, along with electrification, have demonstrated promise for certain low- and medium-temperature applications, but often have high costs, and in many cases fail to achieve the consistently high temperatures required by heavy industries. Feedstock limitations, intermittent energy production, and low levels of technical readiness may continue to hinder their broader deployment. Nuclear fission also faces significant challenges, including high upfront capital costs, complex regulatory requirements, and public perception concerns.

Fusion as the solution

Fusion energy has the potential to fill the gap by delivering high-temperature, economical, and low-emission heat. Depending on blanket design, fusion systems could offer process heat at temperatures up to 1,000°C, which would make it a viable solution for 90% of U.S. industrial heat needs. Fusion has the potential to overcome many of the limitations facing existing low-carbon alternatives, including intermittency, cost, and limited temperature ranges.

Analysis

FusionX collaborated with Helixos, a consultancy specialising in fusion and nuclear energy, to develop a rigorous analysis of the role of heat in the fusion industry. The study aims to define the industrial heat opportunity for technology developers, supply chain companies, investors, and potential end-users, providing insights to inform decision-making as the technology matures. This analysis can guide decisions on market focus and technology selection for breeding blankets and their role in industrial heat applications.

Across all the defined scenarios, the fusion market opportunity is expected to grow:

• in the visionary case, the market is projected to grow to $39.1 billion for applications below 1,000°C and $26.4 billion for applications below 500°C by 2080. 
• in the base case, the market is expected to reach $33.2 billion for applications below 1,000°C and $22.3 billion for lower-temperature applications below 500°C by 2080.

The full report Fusion for Industrial Heat: U.S. Market Assessment is available to all FusionX Members. To become a Member and receive your copy immediately join us.

FusionX members are also entitled to a complimentary call with an expert analyst from Helixos to discuss the findings of the report. For custom in-depth analyses and assessments of fusion energy market opportunities, please contact Helixos at contact@helixos.co