Scalable modular heat pump product pathway for India’s sub-200oC industrial heat

Register Interest
Industries Industries

Problem Overview: Lack of scalable modular heat pump products

Industry accounts for roughly 41% of India’s total GHG emissions including Scope 2 (indirect emissions). ~35% of India’s total industrial thermal energy demand (~ 996 TWh) is required at temperatures below 2000C. This is the thermodynamic sweet spot for heat pump technology and represents a potential to decarbonize 10-12% of India’s total emissions.

The barrier is not thermodynamic, but of product architecture. Commercially available industrial heat pumps top out at hundreds of kW, while industrial processes require continuous thermal loads in multi-MW quantities. No off-the-shelf modular product currently bridges this gap. Custom-engineered MW-scale installations exist internationally, but are bespoke, capital-intensive projects with high design costs, and long implementation timelines, not suitable for scale deployment across India’s MSME-heavy industrial base.

Core Bottlenecks: Meeting Efficiency, Space & Cost Targets at Higher Temperatures

While temperature range of 1000C and below is considered established (with payback period of 2-3 years), innovation and research is happening to increase COP at higher temperature levels to demonstrate viability for ~ 160-2000C. Even then, the key challenges are:

1. Modularity

Delivering MW-scale heat without custom engineering at every site.

2. COP

Achieving COP 2-3 while using industrial waste heat (not atmospheric) as heat source, avoiding new energy penalty.

3. Thermal Delivery

Producing low-pressure steam directly, replacing coal-fired boilers.

4. Space Constraints

Industrial floors offer limited footprint for large heat exchanger arrays.

Existing Approaches and Technology Readiness

Transcritical CO2 heat pumps

Limited to temperatures of up to 120oC

Screw compressor based HTHPs

Limited to temperatures of up to 120oC

Retrofittable grid-forming control layers

Modular MW-scale: 100-160oC (TRL 5-6)

Where is the white-space for innovation?

There is an opportunity to develop modular, MW-scale industrial heat pumps as products, rather than bespoke projects. There is a need for innovation on working fluid science, compression technology, modular architecture, heat exchanger and integration, as well as deployment and business model innovation:

science-icon.svgScience Breakthrough

Need for refrigerants that perform well above 1500C while also meeting safety and environmental standards; materials and sealing systems for high-temperature operation.

briefcase.svgEngineering Innovation

Multistage cascade cycle design for compression tech, standardization of modular unit, integrated heat exchanger & microchannel tech to improve heat transfer density shrinking physical footprint, thermal storage, pressure management, and process integration.

briefcase.svgBusiness model

Heat-as-a-service, aggregation of co-located MSMEs with a shared thermal backbone.

How we identify climate innovation opportunities?

Footnotes
  1. Calculated based on Grid India estimates (India’s industrial heat pump market projection) & annual fuel savings of coal-based heat.
  2. N. Kaitwade (Reviewer), (2026), Heat Pump Market, Future Market Insights Inc. 
  3. Calculated based on India’s total industrial heat demand (35% of that heat for below 200℃ use currently being provided by coal based fuel).
  4. Calculated based on projections for India’s CO2e 2030, and taking 10% mitigation potential estimate (technical potential across all industrial thermal ecosystem).
 

Abbreviations: COP - Coefficient of Performance ; HTHP - High Temperature Heat Pump

 
Profile.svg
Author: CRID India, Reja Amatya

Last Updated On: June 5, 2026

p-ARL Score

7/12

  • 0
  • 1
  • 2
  • 3
Regulation & Policy Force
Economic Switching Cost
Infrastructure Readiness
Value Chain Consensus

Regulatory Outlook

BEE EECS framework GuidelineGuideline