Catalyst with Shayle Kann: The Story of Steam
Released on June 19, 2025

In this insightful episode of Catalyst, hosted by investor Shayle Kann from Latitude Media, the conversation delves deep into the pivotal role of steam in global industrial energy consumption and explores innovative pathways to decarbonize this vital sector. Joining Shayle is Addison Stark, the co-founder and Chief Boilermaker of Atmos Zero, an Energy Impact Partners (EIP) portfolio company focused on developing advanced electrification solutions for industrial steam.

1. The Centrality of Steam in Industrial Energy Use

Shayle Khan opens the discussion by highlighting the significance of steam in industry:

“50%. That's roughly how much of all industrial energy use globally goes to generating steam.”
(02:11)

Steam serves as the foundational energy carrier in various industries, including paper mills, food processing, chemical production, and textiles. Currently, the majority of steam generation relies on hydrocarbons such as natural gas, coal, or oil, presenting a substantial emissions challenge.

2. Understanding Steam Production Today

Addison Stark provides a comprehensive overview of steam’s role and production methods:

“Steam is gaseous water, but it's been the most important working fluid that we've had in industry in the built environments since 1867.”
(03:48)

He elaborates on the distinction between saturated steam—which exists in equilibrium between liquid and gas phases and is primarily used for heat delivery—and superheated steam, used as a reactant in chemical processes. Despite technological advancements, industrial boilers today remain largely similar to those patented in the 1800s by Babcock and Wilcox, primarily burning fossil fuels to produce steam.

3. Pathways to Decarbonize Industrial Steam

Shayle and Addison explore various strategies to reduce the carbon footprint associated with steam production.

a. Electrification Through Resistive Boilers

Shayle suggests electrifying boilers with resistive heating as a mature solution:

“Probably the most off the shelf solution for electrification of the boiler room is resistive or electrode boilers.”
(15:24)

Addison confirms that while resistive electric boilers represent only about 1-2% of the market currently, they are the fastest-growing segment within the boiler industry, expanding at approximately 26% per year. However, they come with higher operational costs, often 2 to 3 times that of natural gas-fired boilers, making them economically challenging, especially in regions with cheap natural gas like North America.

b. Advanced Heat Pump Solutions

The conversation then shifts to Atmos Zero’s innovative approach using heat pumps to electrify steam production:

“We've got to focus on having a multi-stage approach... just to get up to the temperatures you need to do.”
(26:29)

Addison emphasizes the need for high-efficiency, mass-manufactured air-source heat pumps capable of achieving the necessary temperature lifts without relying on variable and often unattainable waste heat sources. This approach aims to create scalable, repeatable solutions akin to traditional boilers, overcoming the bespoke nature that has hindered previous attempts at utilizing waste heat.

4. The Mirage of Waste Heat Utilization

A significant portion of the discussion critically examines the common pursuit of capturing and utilizing industrial waste heat:

“Waste heat is a waste of time because people are chasing after a small increase in COP to be able to justify and minimize opex, but what they've inadvertently done is essentially driven a massive increase in capex.”
(19:45)

Addison argues that waste heat is inherently unmanageable due to its low temperature, inconsistent availability, and the high capital expenditures required for bespoke heat exchangers. This unpredictability and lack of standardization make scaling solutions based on waste heat utilization practically infeasible, likening it to a “mirage” that has puzzled entrepreneurs and researchers for decades.

5. Economic Challenges in Decarbonizing Steam

The economics of transitioning away from fossil fuels play a crucial role in the feasibility of decarbonization strategies.

a. North America’s Landscape

In North America, particularly the U.S., the abundance and low cost of natural gas present significant barriers:

“In the U.S., we have natural gas resources that are incredibly plentiful and incredibly cheap and well integrated in infrastructure.”
(27:23)

This abundance keeps operational expenses (OPEX) low for natural gas-fired boilers, making alternative solutions less economically attractive despite their environmental benefits.

b. Europe’s Shift Post-Ukraine Invasion

Conversely, Europe faces different economic dynamics due to geopolitical factors impacting natural gas supply:

“Everything changed in Europe after the invasion of Ukraine, the sabotage of Nord Stream. No longer do you have a ready and plentiful access to pipeline gas coming in from Russia.”
(30:05)

Higher natural gas prices and concerns over energy security have made Europe more receptive to electrification and renewable-based solutions, pushing the market towards embracing technologies like advanced heat pumps and thermal storage.

6. The Road Ahead: Combining Heat Pumps and Thermal Storage

Addison outlines a dual approach to make industrial heat pumps economically viable:

“...what we do is heat pumps through increasing the efficiency, through a high enough cop, you can bridge that spark spread gap. And the other approach is thermal storage.”
(27:23)

By enhancing the coefficient of performance (COP) of heat pumps and integrating thermal storage systems, industries can mitigate the higher costs associated with electricity and leverage time-of-day pricing and renewable energy availability to lower operational expenses.

Conclusion

This episode of Catalyst sheds light on the intricate balance between technological innovation and economic viability in the quest to decarbonize industrial steam production. Addison Stark’s insights underscore the necessity of scalable, standardized solutions over bespoke attempts, advocating for advanced heat pump technologies complemented by thermal storage as the pathway forward. As industries worldwide grapple with the dual imperatives of sustainability and cost-effectiveness, the strategies discussed in this episode offer a roadmap for meaningful and achievable progress in reducing industrial emissions.

Notable Quotes:

• Shayle Khan:
  “50%. That's roughly how much of all industrial energy use globally goes to generating steam.”
  (02:11)

• Addison Stark:
  “Waste heat is a waste of time because people are chasing after a small increase in COP to be able to justify and minimize opex, but what they've inadvertently done is essentially driven a massive increase in capex.”
  (19:45)

• Addison Stark:
  “We're getting more usable energy out... but what is that heat coming from? We're sourcing it from somewhere.”
  (17:33)

This comprehensive analysis provides listeners and readers alike with a deep understanding of the challenges and opportunities in decarbonizing industrial steam, highlighting the innovative approaches that are paving the way for a sustainable future.