To Danfoss, waste heat represents an immense opportunity. In fact, the only way we can achieve our decarbonization goals is by unlocking the vast potential of waste heat. Find out why excess heat recovery and reuse is key to making decarbonization count.
Why Waste Heat Recovery? Many sources of waste heat, such as data centers, supermarkets, food processing facilities, industrial processes, hospitals and wastewater treatment plants, are currently underutilized. By reusing waste heat, we can lower costs for consumers by decreasing the demand for primary energy sources and reducing the need for additional heat generation. This not only saves money but also contributes to reducing emissions.
The impact By implementing waste heat recovery comprehensively across the EU, we can potentially save €67.4 billion annually by 2050. Currently, over 267 TWh of excess heat from heavy industry is wasted each year—this is more than the combined heat generation of Germany, Poland and Sweden in 2021. In total, there is about 2,860 TWh/y of waste heat accessible in the EU, much of which could be reused. To put this number into perspective, it corresponds almost to the EU's total energy demand for heat and hot water in residential and service sector buildings across the European Union and the United Kingdom. (Read more in the dedicated whitepaper about excess heat.)
How it worksWaste heat recovery processes can be implemented both on-site and off-site. For off-site use, waste heat can serve as a major alternative heat source for district energy networks, supporting the decarbonization of utilities and buildings. On-site, waste heat can be reused within the same facility, offering significant cost savings and high returns on investment. Heat pumps can enhance the efficiency of waste heat recovery by capturing and reusing low-grade waste heat, making them 2-4 times more efficient than traditional heating methods..
Our visionWaste heat recovery and integrated heat pump solutions present significant opportunities for businesses and the environment. By expanding district heating networks and microgrids and promoting on-site waste heat recovery, especially in facilities with simultaneous heating and cooling needs, we can establish waste heat recovery as a standard practice. This approach enhances energy efficiency, reduces costs and contributes to a sustainable, resilient energy landscape.
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The environment: Waste heat recovery reduces greenhouse gas emissions and other pollutants, contributing to improved air quality and climate goals.
Energy efficiency: Utilizing waste heat enhances the overall efficiency of district heating systems by reducing the need for additional heat generation.
Cost savings: Waste heat recovery can secure a fixed price of energy for extended periods, reducing the impact of energy cost increases.
Energy security: By reducing dependence on fossil fuels, waste heat recovery provides a reliable source of heat and power for local consumers.
Socio-economic impacts: Industrial waste heat recovery boosts the industry competitiveness and supports the decarbonization of heat and power for communities, businesses and public authorities.
Increased compliance: European policies recognize waste heat recovery as a crucial solution for achieving climate and energy goals, promoting its adoption across various sectors.
Legislation plays a crucial role in advancing waste heat recovery by setting standards, providing incentives and creating opportunities for businesses and municipalities. The urgency to act is clear: stakeholders who fail to embrace these legislative drivers risk falling behind in a rapidly evolving energy landscape.
Here are some key legislative drivers based on the new framework of the Clean Industrial Deal and the much-needed implementation of existing policies, particularly the Energy Efficiency Directive (EED) and the Renewable Energy Directive (RED III). With the Clean Industrial Deal, more opportunities are expected to arise and further improvement of the conditions to accelerate the uptake of waste heat recovery.
The framework conditions for waste heat recovery have never been better, thanks to the Clean Industrial Deal's Affordable Energy Action Plan and the upcoming Heating and Cooling Strategy. The Clean Industrial Deal is a comprehensive plan by the European Commission aimed at supporting the competitiveness and resilience of European industries while accelerating decarbonization. It addresses high energy costs and fierce global competition by promoting the transition to a low-carbon economy, creating quality jobs, and ensuring the right conditions for companies to thrive. This includes measures to lower energy bills for industries, businesses and households by speeding up the roll-out of clean energy, enhancing electrification, and reducing dependence on imported fossil fuels. This aligns perfectly with the goals of waste heat recovery.
Imagine a world where every municipality with over 45,000 residents is equipped with a detailed heat map, pinpointing exactly where waste heat can be harnessed and utilized. This is the vision of the Energy Efficiency Directive (EED), which mandates such heat mapping to ensure no thermal energy goes to waste. The EED also calls for a significant increase in the share of renewables in district energy networks. And for certain facilities that are undergoing renovations – such as data centers and industrial installations – to conduct thorough cost-benefit analyses to increase energy efficiency. Speaking of data centers, the EED requires those with capacities over 1MW to reuse waste heat, turning what was once a byproduct into a valuable resource.
All of this is further supported by the Renewable Energy Directive (RED III), which recognizes waste heat as a renewable energy source under certain criteria. This recognition allows waste heat to be counted towards overall renewable energy targets and specific targets in heating, cooling and district energy. Such an approach enables member states to achieve their renewable energy goals without the need for heavy investments in new renewable infrastructure.
Plan, visualize and optimize a sustainable network operationLeanheat® Network is a thermo-hydraulic modeling tool, developed specifically for use in district energy systems to support planning, design and operational processes.
Leverage data to maximize energy efficiencyLeanheat® Production is an advanced software tool for forecasting, planning and optimizing district energy production and distribution. The future-proof software helps adjust, reduce and optimize energy consumption.
The Danfoss Heat Recovery Module (HRM) helps eliminate the technical challenges of managing heat recovery in data centers. The HRM is an integrated modular solution for data center waste heat recovery. Recovered heat can be sold to district heating grids or nearby office complexes and neighborhoods.
The Danfoss Heat Recovery Unit (HRU) helps to eliminate the technical challenges of managing heat recovery. The HRU is an integrated solution that manages and buffers the heat from the CO2 refrigeration pack, enabling it to be reused for space heating, hot tap water, or sold to district heating grids.
Find out more about how our waste heat recovery technologies can help you capture and reuse waste heat from your industrial processes, so you can reduce your carbon footprint and operational cots while boosting energy efficiency.
Explore how EU policies and advanced technology drive waste heat recovery. This white paper covers legislative frameworks, innovative tools, and real-world success stories for sustainable energy solutions.
In this video, Danfoss' Drew Turner explains how recovering and reusing waste heat – the world's largest untapped energy source – can dramatically reduce your carbon footprint and lower operational costs.
Find out how you can use sector coupling – combining two or more heating & cooling systems – can help you repurpose waste heat and lower your operating costs & emissions.
In this article, Danfoss’ Saška Rihtaršič explores how the combination of district heating, digital optimization, and hydronic balancing can help us recover and reuse waste heat. Find out how we can drive decarbonization, energy savings and resilience by using excess heat smarter.
Sygehus Sønderjylland, a hospital located in Sønderborg, Denmark, has partnered with Danfoss Sector Coupling Solutions and the district heating utility company, Sønderborg Varme, to reduce its CO2 emissions.
Frederikshavn DHU operates a 14-megawatt gas boiler to provide essential heating services during colder periods. To improve energy efficiency and reduce environmental impact, a project was initiated to recover more energy from the flue gas emitted by the existing biomass boiler system.
Ringsted District Heating Company (DHC)—a large district heating utility in Denmark—has reduced its reliance on fossil fuels by 97% after Unicool installed an innovative heat recovery system using Geoclima heat pumps built with Danfoss Turbocor® oil-free compressor technology.
A global leader in freight forwarding and logistics was searching for an energy efficient heating and cooling solution for its approx. 300,000 m2 logistics center in northern Denmark. The company teamed up with longtime Danfoss OEM partner, Energy Machines and Danfoss to implement a sustainable heating and cooling system using 100% renewable energy.
Danish supermarket cuts heating bill and CO₂ footprint with Danfoss Heat Recovery Unit (HRU)A busy Danish supermarket reduced its annual heating bill by 89.7% and its CO₂ footprint by 6.7 tons a year by making use of the waste heat from its refrigeration system.
Discover how Warsaw is pioneering the capture of excess heat from its Metro System to transform district heating. This innovative project promises to reduce energy demand, stimulate the economy, and accelerate the city's green transition. Explore the future of sustainable energy in Poland.
A Danish supermarket fulfills 95 percent of its heating demand from its own cooling display cases. The chain has installed Danfoss heat recovery units and managed to halve its CO2 footprint in five years. Imagine if this was done in all supermarkets in the world.
Data centers are the backbone of our digital world, processing vast amounts of data every second. However, they consume significant amounts of electricity, with global demand projected to more than double by 2030, reaching around 945 terawatt-hours (TWh). The rise of AI further increases demand. For example, in the United States, power consumption by data centers is expected to account for almost half of the growth in electricity demand between now and 2030.
The potential for recoverable waste heat from data centers is significant. In 2020, it was estimated that data centers could recover up to 1 TWh of waste heat, enough to heat approximately 100,000 housing units. By 2030, this potential is expected to increase to 3.5 TWh, driven by the growth in the number of data centers. References:
Waste heat recovery in data centers is driven by several key factors:
Energy Efficiency: Data centers consume significant amounts of energy, primarily for powering servers and cooling systems. Recovering and reusing waste heat can significantly improve overall energy efficiency.
Cost Savings: By repurposing waste heat, data centers can reduce their energy costs. This is particularly beneficial in regions with high energy prices.
Environmental Impact: Reducing the environmental footprint is a major driver. Waste heat recovery helps lower greenhouse gas emissions, supports sustainability goals and is positively reflected in CSRD reporting.
Regulatory Compliance: Legislation such as the European Energy Efficiency Directive (EED) requires data centers generating over 1 MW to recover their waste heat if it is technically and economically feasible. Moreover, future sustainability rating schemes may use the Energy Reuse Factor (ERF) as one of the KPIs. Compliance with such regulations is a strong motivator.
Circular Economy: Embracing circular economy principles, data centers can repurpose waste heat for various applications, such as heating residential buildings, offices, and public facilities, or supporting agricultural systems.
Technological Advancements: Innovations in heat recovery systems, AI, and automation are making it easier and more efficient to capture and reuse waste heat.
Drew Turner, Director, Sector Coupling Solutions
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As the complexity of today’s district energy networks increase, so does the potential they hold for ensuring ultimate cost-effectiveness, energy efficiency, and resilience. Discover how digitalization is the fundamental lever to unlocking an optimized grid—from production to distribution and consumption.