Waste Heat Recovery Could Help Europe Cut Gas Demand
Europe could reduce its dependence on natural gas by capturing more of the heat that industrial and commercial facilities currently release into the environment. A new analysis published by Danfoss on September 22 highlights waste heat recovery as an opportunity to reduce energy costs and strengthen energy security, a development covered by Euronews.
The principle is straightforward: energy already used to operate equipment can provide a second service before being discarded. Refrigeration systems, manufacturing processes, servers, and wastewater infrastructure all produce heat that may be suitable for reuse. The challenge is connecting that supply to consumers who need it, at a useful temperature and an affordable cost.
A Significant Resource with Practical Limits
According to Danfoss, at least 3,100 terawatt-hours of waste heat went uncaptured globally in 2023. The company estimates that recovery could deliver annual global savings of up to €140 billion. These are worldwide estimates, rather than figures exclusively for Europe.
The figures illustrate the scale of the opportunity, but they should not be interpreted as a guarantee that every unit of discarded heat can be economically recovered. Useful recovery depends on where heat is generated, its temperature, and whether demand exists nearby.
The International Energy Agency (IEA) identifies proximity to consumers, temperature compatibility, and connection costs as key conditions for deploying waste heat projects. Its June 2026 report, "Renewables in District Energy", also highlights high initial investment costs and unfavorable electricity-to-gas price ratios as obstacles to cleaner heating.
How Recovered Heat Reaches Consumers
Waste heat can be reused within the facility that produces it or supplied to neighboring buildings through a heating network. In a supermarket, for example, refrigeration equipment releases warmth that can be captured for building heating or hot water instead of being discharged outdoors. Euronews identifies supermarkets, factories, wastewater treatment plants, and data centers as potential sources.
Heat exchangers transfer thermal energy between systems. Where the recovered heat is too cool for its intended use, a heat pump can raise its temperature.
The IEA explains that heat pumps can use sources below 45°C in district heating applications. District heating distributes thermal energy through insulated pipes, allowing multiple buildings to share heat supplied from centralized or connected sources.
For facility owners, this creates a practical sequence for assessing opportunities: identify heat released by existing equipment, compare it with internal heating needs, and then investigate potential external customers. The amount of heat generated alone does not establish a viable business case.
Existing Networks Offer a Route to Deployment
District heating provides an established platform for integrating recovered heat. The IEA reports that district energy supplies around 10% of global final energy consumption for heat, while district heating serves more than 600 million people worldwide. Many networks nevertheless remain dependent on fossil fuels.
Replacing part of that fuel consumption with recovered heat could reduce exposure to imported energy. However, older networks operating at high temperatures can make integration more difficult. Lower operating temperatures, improved controls, and suitable building systems can help networks accept a wider range of heat sources.
This makes waste heat recovery an infrastructure planning issue as well as an equipment decision. Municipalities and utilities need to understand where supply and demand overlap before committing to new connections.
Data Centers Bring Opportunities and Trade-Offs
Data centers are attracting particular attention because their electricity consumption generates substantial heat. Recovering it can supply nearby facilities, although heat reuse must accompany efforts to improve computing efficiency and reduce the emissions associated with electricity supply.
On September 21, 2026, the European Commission proposed a common rating scheme intended to make data centers’ energy and water use more transparent. The Commission says the initiative should encourage efficiency improvements, greater use of low-carbon energy, and waste heat reuse in nearby facilities and networks.
The announcement reinforces the importance of considering heat connections during project planning. A data center located near a suitable network presents a different recovery opportunity from one situated far from heating demand.
Storage can Address Seasonal Mismatches
Another challenge is timing. Facilities may produce heat throughout the year, while building heating demand rises mainly during colder months.
An April 2026 literature review highlighted by Eurac Research examined the integration of waste heat, ground-source heat pumps, and district heating. Drawing on 242 sources, it explored how these systems can upgrade low-temperature heat, store part of it underground, and distribute it across urban networks.
The research also identifies tariff structures, market arrangements, and coordination among stakeholders as conditions for wider adoption. Storage can improve the match between supply and demand, but projects still require careful design and management of underground thermal conditions.
Turning Potential Into Measurable Savings
For businesses and public authorities, the implication is to evaluate recoverable heat alongside conventional energy efficiency investments. Assessments should distinguish heat available at the source from useful heat delivered to consumers and account for the electricity needed to operate recovery equipment.
Waste heat can contribute to Europe’s heating transition where suitable sources, customers, and infrastructure align. Its contribution will depend on individual projects that demonstrate reliable supply, competitive costs, and measurable reductions in fuel consumption.
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