Figure 1: Life cycle stage hotspot analysis for heat pump Vitocal 250-A
Brought to you by Jahanzeb Tariq from Viessmann Climate Solutions
A life cycle perspective is imperative when decarbonisation of heat is analysed. While electrification reduces the GHG (greenhouse gas) emissions of end-user heating needs significantly, the use of primary energy is also brought down. This isn’t only because heat pumps are more energy efficient but also “smart” enough to take heat from the surroundings while boilers burn fuel with less efficiency.
Looking at the pledges of EU member states – the electric grid is expected to be further decarbonised resulting in a rather optimistic outlook on reduced CO2 emissions.
Life stage hotspots
The figure above shows the life cycle carbon footprint of a heat pump: Vitocal 250-A; manufactured by Viessmann Climate Solutions, when operated in Germany for a lifetime of 17 years.
The biggest hotspot, understandably, is the 17-year-long use phase relying on grid electricity with a postulated decarbonising trend as per targets. However, the embodied carbon; upstream supply chain CO2 emissions (Scope 3-1, purchased goods and services) remain constant unless the manufacturer takes action alongside their suppliers.
The graph below shows how the decarbonisation of the electric grid would lead to reducing the use-phase impact of a heat pump while simultaneously proving that while the embodied carbon in numbers would remain constant; on a percentage basis it will gain share every year.
Accumulating the annual “operational CO2” shown in figure 2 equals the “use phase emissions” in figure 1.
This highlights an important point: embodied carbon is an area where manufacturers can exert direct influence, given their control over upstream supply chains. The use phase, however, is shaped by end-users – particularly through their choice of energy sources (e.g., grid electricity versus green power purchase agreements or similar options).
The hotspot analysis of the embodied carbon, or the life cycle stages A1 – A5 as per EN15804 +A2, shows that the use of electricity or heat energy as consumables is not too much per product. So, finding alternative sources of heating in factories where the heat pump is produced or the decarbonisation of the electric grid, will not help making a dent in reducing embodied carbon.
The primary contributor to CO2 emissions is the extraction of virgin raw materials. A heat pump is primarily composed of steel, copper, aluminium, thermoplastics, and electronics. The extraction, refining, and processing of these raw materials significantly contribute to its CO2 impact.
Supply chain complications
The only way to reduce this high share of embodied carbon is to decouple virgin material extraction from product manufacturing and implement circular practices to close certain value chains. The implementation of the 5R principle allows to achieve this decoupling and delay, as much as possible, virgin resource extraction. The figure below shows the application of the 5R principle.
At the same time, it is important to understand that the upstream supply chain for heat pump development is overwhelmingly complex and geographically varied. A single indoor unit can take up to three factories to assemble at the manufacturer. Raw material suppliers can vary widely between China, the EU, and the USA.
Furthermore, not all components that are used in heat pumps are made under the manufacturer’s roof. These third-party components are procured from suppliers on specified performance demands and are then assembled into the heat pump. This further increases the tiers of suppliers in the supply chain to decouple the extracted raw material from its original source.
Demonstrating the complexity of this situation, a heat pump has more than 2000 components, a cascade of more than 1000 suppliers with around 90 – 100 direct suppliers (tier 1) and can easily procure from 20 different countries
End of life
At end-of-life, easily accessible parts are recycled, reused or refurbished for secondary market but part of heat pump might end up in a landfill.
Usually, the chain of end-of-life stakeholders involves the installer who might decommission and install a new heating system at the end-customer’s facility. Consequently, the installer, in a lot of cases, is also dismantler of the heat pump, extracting high value components such as the heat exchanger or the compressor. Meanwhile, the refrigeration technician who ensures the safe handling of the refrigerant and prevents venting off to the environment.
Closing the chain, after the extraction of high value components (copper, steel, compressor, heat exchanger etc.) as cost- and effort efficiently as possible, the remaining components either end up in a landfill or are taken for incineration with energy recovery.
Based on: King MTimms PMountney S. (2023). A proposed universal definition of a Digital Product Passport Ecosystem (DPPE): Worldviews, discrete capabilities, stakeholder requirements and concerns. Journal of Cleaner Production, 384
Digitalisation and circular practices
Understanding the life cycle of a heat pump and its environmental impact underscores the need for circular practices across the value chain. Enabling this circularity requires seamless communication between upstream and downstream stakeholders—a challenge that can be addressed through digitalisation. Digital Product Passports (DPPs) offer a compelling solution, serving as a centralised, dynamic source of truth where each stakeholder can access the data most relevant to their role.
As for the technical side, providing dismantling instructions for heat pumps can help preserve valuable components during decommissioning. High-value parts, such as water pumps, can be returned for refurbishment or rare earth magnet extraction, with incentives for dismantlers – through active take back systems by manufacturers. Separating metals like steel, copper, and aluminium can increase revenue.
During the use phase, easy access to spare parts and repair information can extend the heat pump’s life. DPPs can store performance, repair, and safety information, streamlining the replacement of small components, ensuring convenience for users and minimising service disruptions.
Enabling circularity ensures preserving critical raw materials (CRMs) and rare earth elements by “keeping the molecules” within EU boundary. This further strengthens supply chains and shelters companies -especially in energy transition tech – from international price fluctuations and upheavals caused by geo political events. Enforced by the EU regulatory landscape including the Circular Economy Action Plan, Ecodesign for Sustainable Products Regulation, Critical Raw Materials Act, and Carbon Border Adjustment Mechanism – circularity becomes more vital for manufacturers from a compliance perspective as well.
Decarbonising embodied carbon contributes to the financial benefits of circularity efforts. By integrating circular product design into heat pumps, manufacturers can generate revenue throughout the product lifecycle while reducing material procurement costs. This also feeds into meeting the product requirements of the EU Taxonomy criteria. Compliance with EU Taxonomy also opens up the possibility of applying for ESG (environmental, social, and governance) funds, and grant schemes along with premium financing for investments for manufacturers.
A clear sale benefit is gained during Green Public Procurements or tenders ultimately resulting in a higher valuation of the company. Therefore, facilitated by digitalisation, circularity drives financial benefits while lowering embodied carbon.
Ultimately, by embracing digitalised circularity, heat pump manufacturers not only mitigate environmental impact and ensure regulatory compliance but also secure a decisive competitive edge in the rapidly evolving landscape of sustainable energy solutions.