International. According to data shared by Kim Fausing, president and CEO of Danfoss, excess heat contains energy that is being wasted, which could meet energy demand for consumers and accelerate the green transition.
Danfoss explained that, according to new data, excess heat, only in the European Union, amounts to 2860 TWh/year, which corresponds to almost the total energy demand of that area for heating and hot water in residential buildings and the service sector.
Specifically, Kim Fausing, released the white paper detailing that energy wasted on excess heat could boost the productivity of the economy, reduce energy prices for consumers and accelerate the ecological transition.
"It is remarkable that the EU has almost no initiatives that drive a more efficient use of the large amounts of energy wasted in the form of excess heat."
According to a publication of the brand, in the EU alone, excess heat amounts to 2860 TWh/year, which corresponds to almost the total EU energy demand for heating and hot water in residential buildings and the service sector, such as schools, hospitals, hotels, restaurants, offices and shopping centers.
"A full implementation of technologies that leverage synergies between different sectors and enable the utilisation of excess heat has the potential to save €67.4 billion per year once fully implemented by 2050."
Understanding excess heat as an energy source
"Every time an engine runs, it generates heat. Anyone who has felt the heat behind their fridge can confirm this. The same is true on a larger scale in supermarkets, data centers, factories, sewage facilities, subway stations and commercial buildings."
Then, according to Danfoss, excess heat can be reused to supply heat and hot water to a factory or reused in neighboring homes and industries through a municipal power system. In that sense, the use of this energy, which would otherwise be wasted, can boost the productivity of the economy and reduce energy prices for consumers.
Using excess heat can replace significant amounts of fossil fuels that would otherwise be needed to produce heat. Used in this way, excess heat can help stabilize the future power grid and thus ease the transition to a green energy system.
In some countries, excess heat can even equal total heat demand. In the Netherlands, excess heat amounts to 156 TWh/year, while heat demand is only 152 TWh/year. However, the potential for excess heat is not even close to being used and is ignored politically.
According to Kim Fausing, recycling heat is not only a measure that is overlooked in the current energy crisis, but also the next frontier of the ecological transition:
For the brand, "excess heat is the largest untapped energy source in the world. Even so, very few initiatives have driven a more efficient use of the large amounts of energy wasted in the form of excess heat, although we already have the solutions available today. We urgently need policy action to accelerate the use of excess heat across sectors, both so that citizens and businesses can benefit from lower energy costs and to ensure we accelerate progress on the green transition."
Kim Fausing said: "Energy demand will grow dramatically in the coming years due to population growth and rising incomes. Without urgent action to address the demand side of the green equation, using each unit of energy more efficiently, we will not be on track to meet global climate goals."
Reusing excess heat is pure energy efficiency
The whitepaper, titled "The World's Largest Untapped Energy Source: Excess Heat," assesses the potential of excess heat as an energy-efficient source. According to the International Energy Agency (IEA), a global push for more efficient energy use can reduce CO2 emissions by an additional 5 gigatons per year by 2030 compared to current policies. One-third of the necessary reduction in energy-related CO2 emissions this decade under the IEA's net zero scenario must come from improvements in energy efficiency.
In terms of energy security, these savings can help avoid almost 30 million barrels of oil per day and 650 billion cubic meters (bcm) of natural gas per year (around four times what the EU imported from Russia in 2021).
"The potential to reuse excess heat is staggering. But we need to change our perspective on it and start considering excess heat as an energy resource rather than a waste to be eliminated," Kim Fausing added.
Finally, the brand was insistent that "today there are a number of barriers that prevent us from reusing excess heat, including lack of information and regulation. We need to introduce economic incentives, policy measures and prioritise partnerships between local authorities, energy suppliers and energy sources to help maximise the full potential of excess heat."
