In the pursuit of a greener future, China is turning up the heat on industrial waste heat utilization, and new research is shedding light on the significant potential this untapped resource holds for the energy sector. A study led by Shuang Xu from the College of Economics and Management at Beijing University of Agriculture, published in the journal *Energies* (which translates to “Energies” in English), offers a compelling look at how harnessing waste heat could reshape China’s energy landscape and accelerate its carbon reduction goals.
The research, which employs an energy technology coupling model, reveals that China’s industrial waste heat utilization potential follows an inverted U-shaped trajectory. In the near-to-medium term, the steel and power industries are expected to remain the primary contributors to this potential. “The steel and power sectors are energy-intensive and generate substantial amounts of waste heat,” Xu explains. “By capturing and utilizing this heat, we can make significant strides in energy conservation and carbon reduction.”
One of the most striking findings is the prevalence of low-grade waste heat in China’s industrial sector. This type of heat, which is typically below 230°C, accounts for the majority of the utilization potential and is primarily generated by power plants, fuel processing facilities, and steel manufacturers. The study projects that the proportion of low-temperature waste heat will increase from approximately 66% in 2025 to 83% in 2060, highlighting the need for technologies that can effectively harness this lower-grade heat.
The implications for the energy sector are substantial. According to the research, energy-intensive industries could reduce primary energy consumption by more than 13% by fully utilizing waste heat. This not only translates to significant cost savings but also contributes to a more sustainable and efficient energy ecosystem.
Moreover, the study suggests that maximizing waste heat utilization could help China achieve its carbon peaking target sooner than anticipated. “Our findings indicate that by fully leveraging waste heat, China could accelerate its carbon peaking target to 2028 and reduce peak carbon emissions by an estimated 5.1%,” Xu notes. This acceleration could have far-reaching impacts on the country’s energy transition pathway and its global commitments to carbon neutrality.
The research underscores the strategic importance of industrial waste heat as a supplementary energy resource and its pivotal role in advancing the circular economy. As China accelerates the construction of a circular economy system, the findings of this study provide valuable insights for policymakers, industry leaders, and investors looking to capitalize on this untapped potential.
In the broader context, this research could shape future developments in the field by highlighting the need for advanced technologies capable of capturing and utilizing low-grade waste heat. It also emphasizes the importance of cross-sector collaboration and innovation in driving the energy transition forward.
As the world grapples with the challenges of climate change and the urgent need for sustainable energy solutions, China’s focus on industrial waste heat utilization offers a compelling case study in the power of circular economy principles. By turning waste into a valuable resource, the country is not only reducing its carbon footprint but also paving the way for a more efficient and sustainable energy future.

