Column: High-temperature heat pumps are on the rise – Why is their market uptake slow?

The current unprecedented surge in energy prices and the risk of natural gas supply shortages poses an existential threat to many industrial companies, especially small and medium-sized enterprises. Industrial heat pumps are one of the most promising technologies for tackling climate and energy crises. They are, therefore, indispensable in reducing energy demand and natural gas dependency. According to the IEA , nearly 30% of the heat demand of the chemical, paper, and food industries could be covered by commercially available industrial heat pumps. In Europe alone, 15 GW of heat pumps could be installed in
3,000 facilities in these three sectors.

Moreover, recent gas price increases have made industrial heat pumps the cheapest solution for process heat generation, even in countries with a high electricity-to-gas price ratio (e.g., Germany, Italy, UK) . As a result, a wide range of industrial high-temperature heat pumps (HTHP) is now available on the market. In addition, there is great interest from many industrial partners and multiple applications where integrating an industrial heat pump is economical. Nevertheless, there are still only a few implementations. What are the reasons?

Despite the promising facts, the market adoption of industrial heat pumps is challenged by a low level of standardization resulting in few practical implementation examples. One of the key reasons is that industrial heat pumps are usually products tailored to the specific industrial process, which requires specialized planning, design, manufacturing, and installation. This situation poses a high market barrier that adds too much risk, time, cost, and complexity for many potential customers who demand a timely and predictable solution. On the other hand, manufacturers and designers still lack a critical mass of customers to develop standardized solutions that could reduce costs and planning efforts.

Accelerating market development requires concerted action by all relevant stakeholders. To give companies a head start in realizing the economic and environmental potential of industrial heat pumps. It is necessary to create a competitive business ecosystem that accelerates market development. This should be the goal and mission of the heat pump industry. Over the last few years, many research projects have started on the topic of HTHP and industrial heat pumps on the national and international levels. Some of these projects add value through technology improvements, others by analyzing individual case studies from a technical or economic point of view. However, it is about creating the framework conditions for implementing industrial heat pumps.

The following topics need to be addressed:

  • Creating guidelines and training of qualified personnel able to implement industrial heat pumps optimally.
  • Pilot projects to learn from experience, reduce implementation risks, and multiply application potential.
  • Support fast implementation to avoid investments into less optimal energy solutions that block industrial heat pump adoption in future years.
https://heatpumpingtechnologies.org/content/uploads/2024/03/cordin-arpagaus-200x300.jpg

Cordin Arpagaus

https://heatpumpingtechnologies.org/content/uploads/2024/03/stefan-bertsch-200x300.jpg

Stefan Bertsch