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.
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.
Limited to temperatures of up to 120oC
Limited to temperatures of up to 120oC
Modular MW-scale: 100-160oC (TRL 5-6)
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:
Need for refrigerants that perform well above 1500C while also meeting safety and environmental standards; materials and sealing systems for high-temperature operation.
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.
Heat-as-a-service, aggregation of co-located MSMEs with a shared thermal backbone.
Abbreviations: COP - Coefficient of Performance ; HTHP - High Temperature Heat Pump
Last Updated On: June 5, 2026