The costs of downtime in manufacturing can be significant, ranging from $500,000 per hour in the oil and gas industry to upwards of $2 million per hour or more in some industries, according to a Siemens report.
Having on-site steam generation can increase operational efficiency, reduce emissions, and give manufacturers greater energy flexibility. Here’s a closer look at some of the reasons to consider a redundant source of on-site steam generation.
Benefits of Energy Flexibility
Manufacturers have relied on natural gas-fired boilers to generate steam for decades. However, the desire for more efficient, cost-effective and clean operations is driving them to rethink their energy strategy and explore new solutions powered by electricity.
Here are a few of the benefits of diversifying your on-site steam generation.
Boosting Operational Efficiency
Boilers are inherently inefficient, often wasting a substantial portion of heat generated. Even a state-of-the-art boiler has an average efficiency of about 83%, meaning it’s still wasting a significant portion of the heat it generates. In comparison, electrified technologies operate at higher efficiencies than natural gas boilers. For example, electric boilers have efficiencies of 99%, and industrial heat pumps have efficiencies of 200%-300% or higher.
Lowering Emissions
As industry adopts more sustainable practices, companies are reevaluating their reliance on traditional steam generation systems. Many organizations have enacted sustainability goals that require a reduction in direct (Scope 1) emissions.
The push for decarbonization is not just an environmental issue—it’s a business imperative. Companies that fail to transition away from inefficient fossil fuel-based systems risk falling behind compliance mandates and incurring higher operating costs.
Energy Reliability
With the rapid expansion of electric vehicle adoption and the rise of AI-driven data centers, electricity consumption is growing at a staggering rate.
According to the latest data, demand for electric vehicles is expected to increase nearly ten-fold globally, with the potential to account for up to 8% of total electricity demand by 2035. In the United States alone, data centers could consume up to 10% of all the country’s electricity by 2030, intensifying the need for grid modernization and expansion.
At the same time, a massive influx of new electricity sources is coming online, with renewables like wind and solar making up a significant portion of new capacity. While these sources provide cleaner energy, their intermittency presents a challenge: they generate power only when the sun is shining, or the wind is blowing. The variability leads to periods of excess energy on the grid during peak renewable production and can also cause grid strain on cloudy, windless days when generation dips. Grid operators must carefully balance supply and demand, often turning to costly backup generation or curtailing renewable output during periods of oversupply.
Combined with fuel shortages and geopolitical factors, all this is contributing to an unprecedented global energy shortage.
This outlook raises concerns about energy availability, cost volatility, and reliability—critical factors for manufacturers dependent on consistent steam supply.
Solutions that allow manufacturers to draw from more than one power source help protect them from these risks.
The Case For A Smarter Approach
For manufacturers facing rising electricity costs, the idea of fully electrifying steam production may seem counterintuitive. Why invest in an electric-powered system when energy prices are projected to climb? The answer lies in a model that incorporates efficiency and grid flexibility.
High-efficiency electrified technologies help manufacturers mitigate the impact of rising energy costs by producing more steam per unit of electricity consumed. However, the real game-changer is a hybrid approach—one that allows manufacturers to take advantage of electricity when prices are low while maintaining the reliability of their existing steam systems if electricity costs spike. This level of adaptability is critical in today’s evolving energy landscape.
By integrating electricity with legacy steam infrastructure, manufacturers don’t have to choose between sustainability and cost control.
Instead, they gain operational redundancy, energy price flexibility, and a strategic pathway to decarbonization without unnecessary financial risk.
Skyven Arcturus: A Smarter Steam Solution
The Skyven Arcturus steam-generating heat pump is a hybrid solution that integrates with existing on-site steam generation systems, offering both redundancy and cost efficiency.
Here’s a closer look at how it solves key challenges, enabling more manufacturers to embrace electrification without high costs or risks.
Operational inefficiencies
Arcturus typically operates at three or more times higher efficiencies than natural gas or electric boilers and produces steam at higher temperatures and pressures than other heat pumps currently on the market. The technology allows for a fully redundant source of baseload steam to increase facility reliability.
Economic and regulatory pressures
Arcturus’s high efficiency helps overcome cost differences between electricity and natural gas. Generating steam with electricity also reduces Scope 1 emissions. The technology uses water as a refrigerant so manufacturers don’t emit hydrofluorocarbons (HFCs).
Electric grid instability
Arcturus is installed in parallel with existing boilers, allowing Arcturus to operate when renewable energy is abundant and shut off when the grid is strained. This approach provides grid reliability and economic benefits.
Unlike conventional heat pumps or electric boilers, Arcturus operates alongside existing on-site steam generation systems (i.e. natural gas boilers), allowing manufacturers to seamlessly switch their on-site steam generation between electricity or existing systems. Redundancy ensures operational continuity, prevents downtime, and maximizes cost savings.
Another key advantage of the Arcturus system is that existing natural gas boilers remain in place. Rather than requiring complete replacement, Arcturus functions as a hybrid overlay solution, allowing manufacturers to use natural gas boilers for peak steam demand and redundancy.
Arcturus is compatible across multiple industries, making it a highly versatile solution for a range of manufacturing environments. Whether in food and beverage processing, chemical manufacturing, or pulp and paper production, Arcturus can efficiently generate high-temperature and high-pressure steam while reducing emissions and reducing operating expenses. Because many industrial processes rely on steam, the ability to integrate a cost-saving, low-carbon steam solution without overhauling operations makes Arcturus an attractive option for diverse industrial sectors.
Skyven empowers manufacturers to adopt cutting-edge emissions reducing technology without the risk. This approach ensures that facilities remain operational, financially viable, and well-positioned toward the future of industrial energy.
Learn more about how Arcturus integrates with existing systems and enables fuel-switching, giving industrial manufacturers a more cost-effective, efficient and cleaner source of steam.
Download our whitepaper, Boosting Plant Efficiency & Cutting Energy Costs with the Grid-Flexible Skyven Arcturus.
