Industrial Heat pumps are available to grow

Industrial heat is a major source of CO2 emissions, contributing to around 7 GT globally (around 20 % of all emissions ). Low temperature heat below 250°C is a significant source of global CO2 emissions, accounting for about 7 %, while a large portion of this comes from higher temperature heat, such as process heat used in steel or concrete making. The good news is that many of this heat, mainly in the dairy, food &amp, beverage, and paper &amp, pulp industries could now be decarbonized today. &nbsp, &nbsp,

Industrial heat pumps are emerging as a practical solution to electrify business heat, alongside electronic boilers, resistance heating, and biomass. Industrial heat pumps ‘ superior efficiency is their main selling point because all other technologies have efficiencies below 100 %, while heat pump efficiency can increase to up to 600 % when using both heating and cooling cycles. Although heat pumps have higher CAPEX ratings than other technologies, including the market-leading gas boiler technology, the superior efficiency reduces the return on investment ( ROI ) to as low as five years. &nbsp, &nbsp,

High CAPEX, lengthy integration times, and significant plant downtime have all served as further deterrents to adoption. High power prices compared to natural gas, a limited temperature range ( 800-1000C), and limited consumer-side understanding are some of the main factors that have slowed adoption of industrial heat pumps. &nbsp, &nbsp,

Innovation Then Tackling Some of Those Pinch Points&nbsp,

Innovation focuses on increasing efficiency, performing bigger temperature lifts with higher efficiency, and reducing system installation and maintenance costs, with a focus on compressors, refrigerants, heat exchangers, and fresh heat pump designs. &nbsp, &nbsp,

Any efficiency gains will help improve overall system performance because compressors use up to 90 % of the energy and compressor costs account for up to 40 % of heat pump costs. Ultraheat is developing a small maintenance centrifugal turbocompressor that can operate in high temperatures, reducing maintenance costs and improving overall heat pump efficiency. &nbsp,

Traditional refrigerants, such as hydrofluorocarbons ( HFCs ) are harmful to the environment and struggle to reach temperatures over 100⁰C. Up to 15 % of the system cost are cooling costs. Exergyn is developing elastochloric material for solid-state low GWP refrigerants that can raise the efficiency-related heat pump coefficient of performance ( COP) by 20-25. A phosphor acid chemical loop serves as a cooling for QPinch, which allows for higher temperature lifts while reducing moving parts. &nbsp, &nbsp,

Finally, new heat pump designs combine heat pumps and energy storage ( Green-Y), which makes it possible for the heat pumps to maximize the amount of electricity being used from the grid. The designs that take inspiration from various waste heat technologies, such as Stirling engines, can run on Airthium as a waste heat source and a range of temperatures. &nbsp, &nbsp,

Innovation Bolstered by Grant Financing&nbsp,

In addition to being also supported by a favorable grant environment for R&amp, D, and adoption, there are also various subsidies available for facilities looking to convert existing heating systems to heat pumps. This could also aid in lowering the ROI by as little as two to three years. However, venture capital into early-stage business heat pump innovation has been limited, as start-ups have access to non-dilutive grant financing. This has enabled start-ups to incubate their technologies to the beginning stages of commercialization. Founders frequently possess prior experience in the heating and cooling industry, which has even helped to secure project funding. &nbsp, &nbsp,

The$ 150 million U.S. Department of Energy ( DOE ) grant to Skyven Industries to help with the deployment of the steam-generating heat pumps at US manufacturing facilities is one of the most notable instances of non-dilutive financing. Although this grant must be matched with secret funding, it is still one of the largest grants made to the higher temperature heat pump industry and will help promote the adoption and understanding of business heat pumps. &nbsp, &nbsp,

A number of start-ups, such as Rank ORC and Skyven Technologies, have previously commissioned economically operating facilities. New business models, such as an energy-as-a-service ( EaaS ) model that does not require the customer to pay for CAPEX, and modular designs that allow for easy integration, have also made industrial heat pumps more attractive for customers. &nbsp, &nbsp,

Movement on the Policy Side&nbsp,

The European Emissions Trading System ( EU ETS ) will expand on small, combined heat and power ( CHP ) plants, which are mostly gas-fired, adding a carbon levy on facilities from 2027 onwards, facilitating switch away to cleaner technologies. In Europe as well as the United States, the pressure is increasing to phase out fluorinated gases (F-gases ), including hydrofluorocarbons ( HFCs ), the main refrigerant in cooling systems. When replacing outdated equipment, heat pumps are likely to be a good choice. &nbsp, &nbsp,

There are still many obstacles to the adoption of heat pumps, some of which may be more challenging than others, for as the inaccessibility of grid connections and the high cost of electricity. There are plenty of reasons to be optimistic about commercial heat pumps, given the change on the policy and innovation front. &nbsp, &nbsp,