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11 March 2025

Industrial Heat Pumps to Decarbonise Europe’s Industry

Industrial heat pumps are a key technology to reduce carbon emissions in European industry by electrifying heat production and utilizing waste heat. With more than 60% of industrial energy demand dedicated to heat, heat pumps offer a viable solution to replace fossil fuel-based systems, reaching temperatures of up to 200°C. These systems are already used in sectors such as paper and pulp, wood, dairy, food, textiles, and chemicals.

A Key Technology for Industrial Decarbonisation

The European Commission’s Clean Industrial Deal and the Industrial Decarbonisation Accelerator Act aim to support clean technologies that strengthen industrial competitiveness while reducing greenhouse gas emissions. Industrial heat pumps, manufactured in Europe, align with these goals by offering energy-efficient heat supply solutions. The Energy Affordability Action Plan also plays a role in ensuring electricity costs remain competitive, further facilitating industrial electrification.

According to Eurostat data, around 60% of industrial energy needs still rely on fossil fuels, with heating accounting for nearly half of industrial energy demand. However, studies suggest that 62% of this demand can be electrified using existing technologies, including industrial heat pumps.

Economic and Environmental Benefits

Industrial heat pumps can improve cost efficiency by reducing primary energy consumption and replacing natural gas-based heating. With efficiency levels up to four times higher than traditional methods, these systems lower operational costs and enhance energy security by decreasing dependence on imported fossil fuels.

The European heat pump industry also supports local economies. Currently, 60-73% of heat pumps installed in Europe are manufactured within the region, with around 300 production sites generating 170,000 direct jobs. Further investment in this sector could make it a major success story for European clean technology.

Policy Recommendations for Heat Pump Deployment

To accelerate the adoption of industrial heat pumps, the European Heat Pump Association (EHPA) outlines key policy recommendations:

  1. Improve the electricity-to-gas price ratio – Introduce fair tax policies and electricity levies that promote electrification.
  2. Financial support for industrial decarbonisation – Provide funding for electrification and energy efficiency projects.
  3. Simplification of state aid provisions – Make financial support for industrial heat pumps more accessible.
  4. Ensure timely grid access – Facilitate infrastructure investments for industrial electrification.
  5. Regulate waste heat reuse – Mandate the integration of waste heat recovery in industrial processes.

The Future of Industrial Heat Pumps

Industrial heat pumps are already a deployable solution, with further research aiming to achieve supply temperatures of up to 300°C by 2035. The potential for scaling is significant: currently, only 7 TWh of final energy consumption in the EU is met with industrial heat pumps, while the potential stands at 722 TWh - 100 times the current capacity.

For this transition to succeed, affordable and abundant electricity is essential. The International Energy Agency (IEA) highlights that electricity market design and taxation structures often favor fossil fuels over electrification. Addressing these barriers will be crucial for the widespread deployment of industrial heat pumps across Europe.

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