Sustainability Transformation Series – Episode 1: CO2 Neutrality by transitioning from Gas-Fired Systems to Industrial Heat Pumps

As businesses across industries face increasing pressure to meet sustainability targets, transitioning from gas-fired systems to energy-efficient alternatives has become a key strategy. In this episode, we’ll explore how industrial heat pumps are enabling industries—from discrete manufacturing to large commercial buildings—to reduce CO2 emissions, cut operational costs, and enhance energy efficiency.

Recently, I had a discussion with several leaders from diverse sectors, and here’s how it went:

CFO: We understand the need to reduce emissions, but from a financial perspective, what are the concrete benefits of switching to industrial heat pumps? How do we justify the cost?

Me: Great question! Let’s break it down. The conventional gas-fired systems you’re using typically operate at around 85% efficiency—meaning 15% of the energy is lost in the process. Industrial heat pumps, on the other hand, achieve 400-500% efficiency, thanks to their Coefficient of Performance (COP). Essentially, for every 1 unit of electricity consumed, a heat pump delivers 4 to 5 units of heat.

This efficiency translates into significant cost savings. With gas prices steadily increasing, shifting to electricity, which is both more stable in price and increasingly sourced from renewable energy, becomes a financially sound decision. Additionally, the lower maintenance costs and longer lifespan of heat pumps add further to the overall return on investment.

Sustainability Head: From an emissions standpoint, we’ve been working hard on reducing Scope 1 emissions. How much can switching to heat pumps impact our carbon footprint?

Me: Switching to industrial heat pumps can cut CO2 emissions by 70-80%, which is a game-changer for your Scope 1 targets. To give you a more tangible example, your current gas-fired system likely burns 1,176 kW of gas to produce 1,000 kW of heat, generating around 5.5 metric tons of CO2 per day.

With heat pumps, you only need 250 kW of electricity for the same heat output, drastically lowering emissions—especially as your electricity supply incorporates more renewable energy. This transition isn’t just good for your sustainability goals; it aligns perfectly with global carbon reduction targets.

Plant Head: Gas-fired systems are reliable, and we’re familiar with them. How do we ensure that moving to heat pumps won’t lead to operational disruptions to our process assets?

Me: Reliability is essential, and I understand the concern. The good news is that heat pumps have proven to be highly reliable across a range of industries, including manufacturing and large commercial buildings. But what really makes the transition smooth is Deepsights.

Deepsights provides real-time performance monitoring, ensuring your heat pump system is always running at its optimal COP. It uses predictive maintenance, which means you’ll know if a potential issue is developing before it becomes a problem. This allows you to avoid unplanned downtime and extend the lifespan of the equipment, making the system more reliable over time.

At scale with multiple plants operating same / similar assets, Deepsights leverages AI/ML algorithms that continuously learn and adapt, the system becomes even more efficient as it gathers more data from different locations. The more plants you bring online, the better the system becomes at optimizing energy use and performance across your entire operation.

In Episode 1 of our Sustainability Transformation Series, we’ve uncovered how transitioning from gas-fired systems to industrial heat pumps is not only a key step toward CO2 neutrality but also a financially sound decision. With the added capabilities of Bosch Deepsights, orgnanizations can optimize energy use, improve operational efficiency, and scale these benefits across multiple locations seamlessly.

Stay tuned for Episode 2, where we’ll dive into the role of Vapour Absorption Machines (VAMs) in improving energy efficiency across industries.