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Awaking the ‘sleeping giant’ of industrial heat pumps

Awaking the ‘sleeping giant’ of industrial heat pumps

06 Nov 2025

Industrial heat pumps have massive potential.

They can already decarbonise most industrial processes below 200°C  – from brewing and pasteurising to drying, paper, and pharma — using proven, commercial technology.

This could cover 39% of Europe’s process heat demand.

These systems don’t just save energy – they recover waste heat, stabilise the grid, and strengthen energy security.

Industrial heat pumps are the “sleeping giant” of Europe’s energy transition.

At Industrial Heat Pumps International Conference (IHP Prague) on 4-5 November, our policy director Jozefien Vanbecelaere made the point that take-up must be increased.

The EU is pushing this through policies more focused on encouraging industrial electrification, and by providing financing via a new ‘Innovation Fund’ auction for projects that help industrial heat decarbonisation. This will be key to helping industry implement the switch from fossil fuel–based technologies to clean alternatives such as heat pumps

which is being financed by EU Emissions Trading System revenues to the tune of €40 bn over ten years to 2030.

Another key step in EHPA’s view would be by governments by shifting taxes off the electricity bill to make electrification more competitive.

One way of doing this is by shifting taxes off the electricity bill – this goes for both industrial players and for domestic power bills.

EHPA policy officer Marcin Krupski also spoke at the conference, on the latest concerning the rules around refrigerants and PFAS.

The agenda at IHP Prague included themes such as:

  • the deployment of industrial and district heat pumps across sectors and regions,
  • opportunities in high-temperature storage and system flexibility,
  • the evolution of business models and financing schemes, and
  • strategies for integrating heat pumps into wider decarbonisation pathways.

More on EHPA’s work on industrial heat pumps.

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