Climate adaptation is reshaping thermal processing; regulations are speeding it up

From Brussels to Washington, climate policy is no longer abstract. It’s rewriting the economics of processing free-flowing materials such as fertilizers, sugar, oilseeds and minerals by attaching real costs (and incentives!) to energy and emissions.  

For producers that heat or cool granular solids, this shift in regulatory requirements and marketplace expectations is creating both urgency and opportunity. The urgency stems from needing to comply and stay competitive across borders. The opportunity is to minimize primary energy usage, capture energy that used to be wasted and future-proof operations with proven, lower-emission technology. 

What’s changing? 

Europe’s Carbon Border Adjustment Mechanism (CBAM) entered a transitional reporting phase on Oct. 1, 2023, and moves to its “definitive” regime on Jan. 1, 2026. At that point, EU importers will need CBAM certificates priced off the EU Emissions Trading System (ETS), with coverage phasing in to 2034.  

In practical terms, producers selling into the EU will face growing scrutiny of embedded emissions and a rising price on carbon unless they cut process intensity or document paid carbon costs at home. 

Meanwhile, Canada’s Output-Based Pricing System (OBPS) has set performance standards for emissions-intensive, trade-exposed industries, and escalates the carbon price through 2030. Facilities that outperform can generate credits. Those that don’t may face compliance costs. All of this will sharpen the ROI on energy-efficient thermal upgrades. 

In the United States, the Inflation Reduction Act (IRA) has channelled significant industrial decarbonization incentives, including the 48C Advanced Energy Project tax credit that supports manufacturing and process decarbonization investments. While U.S. policy mechanics may evolve, the combination of tax incentives and rising customer expectations for sustainable products keeps efficiency and waste-heat recovery squarely on the agenda. 

What this means for thermal processing of granular materials 

“Heating and cooling are often among the largest energy draws in handling free-flowing solids, and the most direct levers for emissions reduction,” says Igor Makarenko, Global Sales Director at Solex Thermal Science. 

“In the context of sustainability regulations and expectations, producers will need to prove – and improve – their emissions profiles.” 

Under CBAM, embedded emissions reporting becomes mandatory. That means producers can benefit significantly by utilizing technologies that not only recover energy and minimize utility demand, but enable these benefits to be measured, minimize utility demand and enable energy flows to be measured and recovered.  

Solex’s indirect plate-based approach, for example, moves energy by conduction rather than air, thereby removing the need for fan power, dust handling and off-gas management — a foundation for lowering carbon footprints while minimizing product handling. See our explainer on moving bed heat exchangers and a deeper dive into MBHE design. 

Makarenko notes these trends are playing out differently by sector. For example, in fertilizers, indirect cooling stabilizes prill and granule temperature while reducing caking risk. This approach not only improves product quality but also reduces power draw at a time when emissions reporting is increasingly tied to competitiveness in export markets.  

In sugar processing, plate-based cooling helps reduce air requirements and dust carryover, which not only lowers fan and conveyor energy demands but also improves product quality and workplace hygiene. For oilseeds, conditioning and cooling with indirect heat transfer improves thermal uniformity and reduces emissions tied to air handling. 

Turning policy pressure into plant-level payback