Non-technical barriers for industrial heat pump adoption. Insights from supply chain workshops and end user case studies

report
Industrial heat pumps offer a tangible decarbonization option to meet the industrial demand for low temperature heat generated without using fossil fuels. Dutch and European governments are championing this technology; specifically, for supplying low temperature process heat (<200°C). Yet, the current heat pump adoption rate is low. After years of steady growth, overall EU heat pump sales declined in 2023 and 2024, followed by a limited boost in 2025. This growth is concentrated within the residential and utility sectors, with limited adoption in industrial settings. At the current growth rate, current energy security and climate ambitions are unlikely to be met. Technical and non-technical barriers hamper adoption. Although commercial solutions for low temperature industrial heat pumps are widely available up to 120°C and 10MW, solutions at higher temperatures or larger capacities are either only just entering broader commercial availability (for 120-160°C) or still in the demonstration phase of development (>160°C). Conversely, various non-technical factors (e.g. high investment costs, unattractive gas to electricity price ratios, grid congestion) have been put forward as ecosystem level barriers inhibiting higher levels of adoption. These challenges have been covered extensively and are already addressed in existing EU and Dutch policy frameworks.
Topics
TNO Identifier
1029256
Publisher
TNO
Collation
64 p.
Place of publication
Petten