Introduction
Process heat in industrial and large commercial facilities can represent a major share of on-site energy use, especially where loads are served by fossil fuel-based systems such as natural gas boilers. As building electrification and decarbonization efforts continue to advance, electrifying process heating systems is becoming an important opportunity for new construction, major retrofits, and central plant upgrades.
High-temperature heat pumps (HTHPs) are electrically driven systems designed for industrial and commercial heating applications. Depending on the equipment installed, these systems can support manufacturing, food and beverage production, industrial laundry, and low-pressure steam applications.
A key advantage of HTHPs is their ability to recover heat that would otherwise be rejected from industrial processes and cooling systems. When properly integrated into facility operations, these systems can help reduce natural gas use while improving the use of available waste heat and supporting electrification goals.
They are typically most effective where a reliable heat source and heating load operate for sufficient hours and have overlapping or readily coordinated schedules. For more detailed design and system considerations, refer to the companion CEDA Technical Guide.
How It Works
HTHPs capture heat from a lower-temperature source and upgrade it for heating applications. Heat may be recovered from equipment, cooling loops, wastewater, condenser water, exhaust air, ambient air, process waste heat, or refrigeration systems. An electrically driven compressor raises the temperature of the recovered energy to a level suitable for process use.
The upgraded thermal energy is then delivered to a heating load, such as hot water or low-pressure steam systems. In some applications, the same system can provide cooling to one area while delivering useful heat to another, helping improve overall energy utilization.
What Are the Benefits?
- Supports electrification and can reduce on-site greenhouse gas emissions by lowering reliance on fossil fuel-based process heating systems.
- Improves overall site energy efficiency by capturing and reusing available waste heat that would otherwise be rejected.
- Opportunity to lower operating costs depending on site specific characteristics.
- Enables simultaneous heating and cooling in some applications, allowing one system to serve multiple process needs.
- Supports large process loads across a variety of commercial and industrial heating applications.
What Are the Challenges?
- Integration with existing hot-water, hydronic, or steam systems may require additional design coordination.
- Upfront costs are typically higher than conventional boiler systems, particularly where retrofit projects require transformer, electrical service, or onsite electrical distribution upgrades.
- Performance depends heavily on heat-source availability, source temperature, required delivery temperature, and overall temperature lift.
- Proper controls are needed to ensure the system is effectively integrated and commissioned.
Resources:
- Bonneville Power Administration (BPA). (2024). Industrial Heat Pump Market Study. https://www.bpa.gov/-/media/Aep/energy-efficiency/emerging-technologies/202403-industrial-heat-pump-market-study.pdf
- CalNEXT. (2023). Industrial Heat Pump Market Study Final Report. https://calnext.com/wp-content/uploads/2023/12/ET23SWE0036_Industrial-Heat-Pump-Market-Study_Final-Report.pdf
- National Renewable Energy Laboratory (NREL). (2023). High Temperature Heat Pump Model Documentation and Case Studies. NREL/TP-7A40-84560. https://www.nrel.gov/docs/fy23osti/84560.pdf
- Pacific Gas and Electric Company (PG&E). (2025). Assessment of Industrial Heat Pump Applications: Final Project Report. Code Readiness Program. CR24PGE0401.
- Willdan. (2026). CEDA High-Performance Measure: Industrial High Temperature Heat Pump. California Energy Design Assistance Program (CEDA). CEDA High-Performance Measure: Industrial High Temperature Heat Pumps.pdf
