Demonstration of modular 50 MW manufacturing plant for industrial steam heat pumps to decarbonize small - to - medium scale EU ETS I & II facilities

2026-07-22

CircularSteam will build a facility in Belgium to manufacture up to 50 MW of high-temperature heat pumps yearly. These heat pumps, based on Armstrong’s Circular Thermal® design concept, can generate superheated water or low-pressure steam up to 120°C that can be used for industrial applications. The project’s heat pumps will also reuse the process waste heat – thus reducing the primary energy need by up to 70% and reducing the operation costs. The project will completely avoid relative greenhouse gas (GHG) emissions compared to the reference scenario, assuming that heat pumps will use renewable electricity. The deployment of heat pumps produced by the project can be a practical approach to decarbonising industrial heat up to 200°C and decreasing energy costs for the industry. CircularSteam will produce heat pumps using a novel technology based on the combination of a new compressor and a new refrigerant, which is safe, reliable, energy-efficient and has an ultra-low environmental impact in terms of GHG emissions. The generation of steam is achieved either through the use of a remote steam evaporator or through a new integrated steam-generating refrigerant condenser. The new manufacturing facility will be fully decarbonised as it will use renewable electricity and heat. It will allow for modular replicability and improved productivity through manufacturing best practices and automated information management. The factory will have its own test bench for testing the manufactured heat pumps and demonstrating the technology to visitors. Over its first ten years, the project will avoid 1.3 million tons of CO2 at end-user sites across multiple industrial sectors in Europe, such as food and beverage, pharmaceuticals and chemicals. For reference, a 1 MW industrial heat pump allows a GHG reduction equivalent to the one of 500 domestic heat pumps. In total, the use of industrial heat up to 200°C represents an estimated 5% of Europe’s GHG emissions. More than 30 000 industrial companies in Europe could benefit from CircularSteam’s technology for a total potential of 100 000 MW heat pump deployment. In addition, the project will also help increase Europe’s energy autonomy by using renewable energy instead of imported fossil fuels and improve its industrial competitiveness by decreasing the energy costs for manufacturing in Europe. The project will create 77 direct jobs and more than 300 indirect jobs across the European value chain, including equipment suppliers, energy auditors, engineering companies, project managers, and mechanical contractors. CircularSteam’s heat pumps’ main components are produced in Europe, strengthening the resilience of European supply chains.

Belgium

2025-10-15