Industrial Process Heat Recovery in Cement Plants

ACEEE supported State of California Assembly Bill (AB) 2109, sponsored by Assembly member Juan Carrillo (D – Los Angeles/San Bernardino), which is intended to remove the economic barrier faced by large energy consumers to implement industrial process heat recovery (IPHR). IPHR is a proven technology used by about 30% of cement plants worldwide that generates carbon-free electricity for on-site use during the manufacturing process. To implement IPHR in California, the technology needed to be recognized as an energy efficiency measure. The bill encourages cement manufacturers and other industrial customers to install IPHR systems in their normal course of business as it provides exemption from departing load surcharges, while minimizing the cost impacts to nonparticipating customers (for example, residential customers). This decarbonization lever was also supported by the California Nevada Cement Association (CNCA). 

AB 2109 passed the General Assembly on August 28, 2024, and was signed into Law by Governor Gavin Newson on September 27, 2024.