At a glance
Installing electric heat pumps with radiant ceiling panels rather than natural gas-powered infrared heaters requires considerable investment costs and higher operating costs based on today’s prices for gas and electricity, but bears high greenhouse gas (GHG) reduction potential.
The case in context
The selection of an appropriate heating system is influenced by various factors, ranging from economic viability (based on investment and operational costs) to environmental concerns and the indoor climate requirements for both personnel and stored goods. Furthermore, the evolving legislative framework also impacts the choice of a suitable heating system.*
A closer look: case details and parameters
The study compares the use of natural gas-powered infrared heaters with the use of an electric heat pump in conjunction with ceiling radiant panels, assuming standard insulation and automated standard rolling doors as considered in cases 6 and 9, respectively.
Results
While emission costs can be reduced by over 30% per year by using an electric heat pump and radiant panels rather than natural gas-powered infrared heaters, this switch represents a considerable investment. As a result, with the given energy mix and electricity costs, there is not yet a compelling business case for this transition. However, the business case depends heavily on the mix of energy sources used in a given country and the development of electricity prices. Combining an electric heat pump with on-site generation of renewable energy, for example using solar panels, makes this solution more economically advantageous – especially if solar panels are already planned or installed. It is important to note that legal requirements may impose the use of electric heat pumps for renovated buildings or new construction, regardless of economic considerations.
Evaluation: great CO₂ reduction and potential legal requirements make this lever one to keep an eye on
Installing an efficient electric heat pump system offers great potential to reduce CO₂ emissions. Compared to all levers considered in this study, a heat pump system ranks in the upper half in terms of GHG impact. Investments for a heat pump system are still very high, however, especially in a brownfield case (that is, when exchanging the old system for a new one), as in this study. A greenfield warehouse tips the scales in favor of this CO₂ emission reduction lever. However, more importantly, some countries have regulations in place that require electric heat pumps for new construction.
The case of heating highlights the interdependence of energy-related measures. Efficient heating is most advisable in a well-insulated building with optimized ventilation and, in the best case, solar panels. On top of that, energy markets can be highly volatile and the price for natural gas and electricity has a major impact on the business case. Therefore, with regard to heating, as with any other building specification, the decarbonization strategy should be tailored to the individual warehouse.
* For instance as per the German Renewable Energy Act, starting from January 1, 2024, heating systems in most new builds must derive at least 65% of their energy from renewable sources. Existing buildings, however, are granted transitional periods and may use alternative technological solutions.
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