Industrial Heat Pumps 2026: Decarbonising Low- and Medium-Temperature Process Heat
December 2025
Industrial Efficiency Analyst
17 min read
Executive Summary
Industrial heat pumps are moving from pilot projects to mainstream decarbonisation tools for low- and medium-temperature process heat. At Energy Solutions, we've tracked over 200 industrial heat pump deployments across Europe and North America. This report outlines typical temperature ranges, achievable energy savings, economics relative to gas boilers and direct electric heating, and which sectors are likely to scale adoption first through 2030.
- Heat pumps can deliver 20–60% primary energy savings versus conventional fossil boilers when paired with waste-heat recovery and smart controls, depending on temperature lift and electricity carbon intensity.
- Most commercial industrial units today operate effectively up to 120–140 °C, with emerging high-temperature designs pushing toward 160 °C and beyond for specific applications.
- Payback periods range from 3–8 years in typical European use cases with strong policy support, and are longer in regions with low gas prices and limited incentives.
- Integration complexity, downtime risk, and process quality assurance remain the core barriers; early adopters are focusing on modular deployments that can be replicated across multiple sites.
What This Market Intelligence Covers
Process Heat Baseline and Temperature Bands
Process heat accounts for a large share of industrial energy demand, particularly in food and beverage, paper, chemicals, and textiles. Much of this demand is concentrated below 200 °C, making it technically suitable for electrification through heat pumps, though economic and integration hurdles vary widely.
Indicative Distribution of Process Heat Demand by Temperature Band
| Temperature Band |
Share of Process Heat |
Typical Uses |
Electrification Suitability |
| < 100 °C |
25–35% |
Space heating, washing, low-temperature drying. |
High – conventional heat pumps and district heating. |
| 100–150 °C |
30–40% |
Pasteurisation, evaporation, moderate drying. |
Medium to high – industrial heat pumps increasingly competitive. |
| 150–200 °C |
15–25% |
Steam-based processes in food, paper, and chemicals. |
Emerging – high-temperature units and hybrid solutions. |
| > 200 °C |
15–25% |
High-temperature kilns, furnaces, and reactors. |
Low with current heat pumps; other technologies dominate. |
Stylised Process Heat Demand by Temperature Band
Source: Energy Solutions synthesis of international industrial energy studies.
Heat Pump Technologies and Temperature Ranges
Industrial heat pumps use various working fluids and cycles to reach different temperature levels. The choice of technology affects efficiency (COP), maximum outlet temperature, and compatibility with existing steam or hot water systems.
Selected Industrial Heat Pump Technologies – Qualitative Comparison
| Technology |
Typical Supply Temperature |
Indicative COP (heating) |
Comments |
| Mechanical vapour recompression |
80–130 °C |
3–6 |
Well-suited to evaporation and drying where waste vapour is available. |
| Closed-loop high-temperature heat pumps |
100–160 °C |
2.5–4 |
Use specialised refrigerants; often integrated with steam networks. |
| Transcritical CO2 systems |
70–120 °C |
2.5–4 |
Favourable where very hot water is required and ambient conditions suit CO2 cycles. |
| Hybrid electric boiler + heat pump |
Up to 200 °C |
System-level COP 1.5–3 |
Combines high-capacity boilers with heat recovery and flexible operation. |
Illustrative COP by Temperature Lift
Source: Vendor specifications and demonstration project data.
Economics, Payback, and Carbon Pricing
The business case for industrial heat pumps is shaped by relative prices for electricity and gas, carbon pricing, and the availability of suitable waste-heat streams. In regions with high carbon prices and strong incentives, many projects now achieve paybacks well below corporate hurdle rates.
Conversely, in markets with low gas prices and low carbon constraints, heat pumps may be adopted initially to de-risk future regulation rather than purely to minimise short-term costs.
Stylised Economics – Representative Industrial Sites
| Use Case |
Location |
Energy Savings vs Gas Boiler |
Illustrative Payback |
| Dairy plant pasteurisation |
Northwest Europe |
35–50% |
3–5 years |
| Paper mill drying section |
Nordic region |
25–40% |
4–7 years |
| Food processing steam network |
North America |
20–35% |
5–8 years |
Stylised Cashflow for Industrial Heat Pump Investments
Source: Energy Solutions scenarios with rising carbon prices and moderate electricity price volatility.
Integration and Retrofit Playbooks
Case Study 1 – Waste-Heat Upgrade in a Food Plant
A mid-sized food processing facility installed a high-temperature heat pump to boost waste heat from refrigeration systems, replacing part of its steam demand for cleaning and process water.
- Scope: Integration with existing ammonia refrigeration, new hot-water loop, controls upgrade.
- Result: 40% reduction in gas use for hot water and improved stability of cleaning procedures.
- Lesson: Early engagement of both refrigeration and boiler vendors reduced integration risk.
Case Study 2 – Paper Mill Hybrid Steam System
A paper mill introduced an industrial heat pump to preheat boiler feedwater and support drying, operating alongside existing gas boilers to provide flexibility and redundancy.
- Scope: Heat pump integration with condensate streams, steam system control optimisation.
- Result: 28% reduction in fuel use for the targeted line, with potential replication across other mills.
- Lesson: Phased commissioning and clear fallback strategies were critical for production teams.
Sector Case Studies and Early Movers
Early industrial heat pump deployment is concentrated in food and beverage, paper, and district heating networks. These sectors tend to have abundant low- to medium-temperature waste heat and relatively standardised processes, which reduces integration risk.
- Food and beverage: Strong alignment with corporate climate targets and brand positioning; hygiene requirements demand careful design.
- Paper and pulp: Large, continuous heat loads provide attractive economies of scale.
- Chemicals and textiles: More heterogeneous processes, but growing interest where steam networks can be segmented by temperature.
Stylised Industrial Heat Pump Adoption Index by Sector (2024–2030)
Source: Energy Solutions sectoral adoption scenarios.
Outlook to 2030 and Policy Signals
Looking to 2030, policy signals such as carbon pricing, efficiency mandates, and targeted subsidies are expected to play a dominant role in driving adoption. Parallel advances in refrigerants, compressor technology, and system integration will gradually extend the viable temperature range.
Developers and plant owners that invest early in organisational capability – from project development to operations and maintenance – are likely to gain a competitive edge as decarbonisation expectations tighten across supply chains.
Frequently Asked Questions
Which temperature ranges are most attractive for industrial heat pumps today?
Most commercial systems are most attractive below 150 °C, where high COP values can be maintained and many processes rely on hot water or low-pressure steam.
How should plants think about backup and redundancy?
Hybrid systems that retain part of the existing boiler capacity provide resilience and allow operators to ramp heat pumps gradually while maintaining familiar fallback options.
What skills are required to operate industrial heat pumps safely?
Plant teams need competence in refrigeration, high-pressure piping, and modern control systems. Many companies combine in-house training with vendor or utility support programmes.
How do changing electricity and gas prices affect the business case?
Sensitivity analysis is essential. Many projects remain robust across a range of price scenarios, but developers should explicitly model volatility and potential hedging strategies.
Methodology Note: This report combines vendor data, demonstration project results, and scenario analysis by Energy Solutions. All performance and cost ranges are indicative and should be validated for specific sites, loads, and utility tariffs.