Industrial Air-to-Water Heat Pumps in New Zealand
Opportunities, Limitations and Industrial Applications
A Growing Solution for Low-Temperature Industrial and Commercial Heating
As New Zealand businesses seek to reduce energy costs, improve sustainability, and transition away from fossil fuels, industrial air-to-water heat pumps are becoming an increasingly attractive heating solution. Historically, industrial process heat has relied on fossil fuel (natural gas, LPG, diesel, waste oil and coal) fired boilers. However, advances in heat pump technology now allow air-to-water systems to deliver hot water at temperatures suitable for many industrial and commercial applications while using substantially less electricity than conventional direct electric resistance heating.
EECA identifies industrial heat pumps as an important technology for reducing emissions from process heat and improving energy efficiency across New Zealand industry. Combined with New Zealand’s highly renewable electricity grid, industrial heat pumps offer organisations a practical pathway towards lower operating costs and reduced carbon emissions.
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What is an Industrial Air-to-Water Heat Pump?
An air-to-water heat pump transfers thermal energy from ambient air into a water-based heating system using a vapour-compression refrigeration cycle. Rather than generating heat through combustion or electrical resistance, it uses electricity to drive compressors that extract low-grade heat from the surrounding air and upgrade it to a temperature suitable for industrial and commercial heating applications.
Most industrial systems are designed to deliver hot water between 50°C and 90°C, making them ideal for process hot water, CIP systems, wash-down applications, hydronic heating, and food processing. New high-temperature heat pump technologies can produce water temperatures of 100°C to 120°C, while specialised systems can achieve 140°C to 160°C for selected industrial process.
Why Industrial Heat Pumps Make Sense in New Zealand
Renewable Electricity Advantage
- Hydro generation
- Geothermal generation
- Wind generation
- Solar generation
Reduced Operating Costs
- COP 3.0 = 3 kWh of heat produced from 1 kWh of electricity or 300% Efficiency
- COP 4.0 = 4 kWh of heat produced from 1 kWh of electricity or 400% Efficiency
- COP 5.0 = 5 kWh of heat produced from 1 kWh of electricity or 500% Efficiency
Lower Carbon Emissions
- CO₂ combustion emissions
- NOx emissions
- SOx emissions
- Ash handling
- Flue gas treatment requirements
Future Compliance
The regulatory landscape in New Zealand is increasingly encouraging the transition away from fossil-fuel-based process heat.
The Resource Management (National Environmental Standards for Greenhouse Gas Emissions from Industrial Process Heat) Regulations 2023 introduced restrictions and consent requirements relating to industrial process heat emissions and new coal-fired process heat equipment. These regulations are intended to support industrial decarbonisation and reduce greenhouse gas emissions from process heat.
The Limitations of Air-to-Water Heat Pumps
While industrial heat pumps offer significant benefits, they are not the ideal solution for every application.
Temperature Constraints
- 100°C and 250°C
- Some specialist processes exceed 300°C
Reduced Performance in Cold Conditions
- Outdoor temperatures are extremely low
- Very high water temperatures are required
- Simultaneous heating loads fluctuate heavily
Space and Footprint Requirements
- Significant outdoor plant space
- Adequate airflow clearances around units
- Structural support for rooftop installations
- Additional space for buffer tanks and associated equipment
- Acoustic considerations where units are located near occupied areas or neighbouring properties
Electrical Infrastructure Upgrades
- Additional transformer capacity
- Switchboard upgrades
- Network connection upgrades
Capital Cost
Industrial heat pumps often involve higher upfront costs than conventional boiler replacements.
However, whole-of-life cost analysis frequently shows favourable economics once energy savings and future carbon costs are considered. EECA’s analysis emphasises evaluating long-term operational costs rather than simply comparing initial capital expenditure.
Industrial Process Heat Regulations
Refrigerant Requirements
Building and Electrical Compliance
- Building Code requirements
- Electrical regulations
- Health and safety legislation
- Pressure equipment standards (where applicable)
Business Applications for Air-to-Water Heat Pumps
Industrial and commercial air-to-water heat pumps are best suited to applications requiring low to medium temperature heat.
Large heat pump systems are increasingly used overseas to supply centralised heating networks for business parks, university campuses and healthcare precincts.
As New Zealand’s electricity grid continues to decarbonise, these applications are becoming increasingly attractive from both environmental and operational perspectives.
Finding the Right Process Heat Solution
Industrial air-to-water heat pumps can deliver significant efficiency improvements and emissions reductions when matched to the right application. However, every facility has unique process, temperature, load and infrastructure requirements.
At Tubman Heating, we help organisations evaluate heat pumps, electric boilers, biomass systems, steam boilers and hybrid heating solutions to identify the most effective pathway for reducing energy costs, improving reliability and supporting decarbonisation goals.
Talk to our team about assessing the best heating solution for your facility.