High-temperature heat pumps in industrial heating networks: A study on energy use, emissions, and economics

Industrial heat significantly contributes to global primary energy use and primarily relies on fossil-fuel combustion. Recovering residual heat in the industry offers a means to reduce overall energy use. However, the temperature and amount of residual heat available varies widely across industrial sites. Some may have a large amount of residual heat available at relatively high temperatures, while others may not have any residual heat available. Furthermore, for most industries, the residual heat available is at temperatures below 100 °C, while the heat demands are at higher temperatures. Hence, clustering these industries by industrial heating networks, using high-temperature heat pump integration, could offer a promising solution. Research on this concept regarding energy use, emissions and economics is however lacking in the literature. This study however distinguishes and subsequently compares three different heat network configurations in terms of their energy use, carbon emissions and financial appraisal. These configurations include a ‘consumer based heat upgrading network’, a ‘supplier based heat upgrading network’ and a ‘supplier based heat upgrading network with an additional hot water network’. For this purpose a generic methodology is developed, using first and second law principles completed with empirical data for performance and costs. The methodology is applied to data collected from ten companies clustered within the North Sea Port, Ghent (Belgium). The results indicate that the first configuration exhibits the most efficient use of energy and consequently also has the lowest carbon emissions. In addition it also has the lowest levelized cost of heat. This configuration shows, depending on maximum supply temperature of the heat pump, a potential reduction in carbon emissions ranging from 70 % to 80 % in comparison to natural gas boilers. Considering low gas prices, a positive financial appraisal is difficult without carbon taxation. On the other hand, an evaluation during the energy crisis of 2021–2022 indicates that the even without carbon taxation, the levelized cost of heat decreases by 19 % compared to a gas boiler at a maximum heat pump temperature of 160 °C. It was also found that in scenarios of dynamic energy prices a hybrid configuration of a consumer based heat upgrading network and a natural gas boiler could lower the LCOH compared to the individual solutions, by up to 7.6 % compared to the best individual solution. This is done by activating the technology with the lowest operational cost in each time frame.