Industrial Heat Pumps Potential and Market Transformation
The electrification of process heat is a critical crosscutting pathway to reducing emissions from the industrial sector. Industrial process heat accounts for more than half of on-site industrial use of energy. Electricity supplies less than 5% of that energy with carbon intensive fossil fuels making up the rest. Electrically powered industrial heat pumps (IHPs) offer the potential to replace up to half of fossil fuels in many industrial operations, resulting in significant emissions reductions. A recent research report shows that current IHPs can reduce industrial process heat energy in the U.S. by one third and enable CO2 savings of tens of millions of tons per year.
Industries are looking for economical ways to decarbonize. The U.S. market for IHPs in industrial applications is poised to rapidly expand to meet this decarbonization potential. This transition is being accelerated by federal funding from recent legislation that could be leveraged to support IHP demonstrations and pilots. IHP manufacturers are exploring steps needed to increase their presence in the domestic market. This paper will explore policy and workforce needs, and responses from end users, and the IHP equipment supplier and engineering community required to enable this emerging IHP market.
Andrew Hoffmeister conducts research on industrial decarbonization for ACEEE’s industrial team. His work focuses primarily on the analysis of emerging technologies, such as industrial heat pumps, policy research at the state, federal, and international level, and the study of other prominent decarbonization pathways, including strategic energy management.
A graduate of Vanderbilt University, Andrew holds a bachelors degree in Earth and Environmental Science.