Australian Industries Adopt Heat Pump Technology
A new industry report highlights the shift from gas boilers to heat pumps across Australian manufacturing sites.
Updated on Oct. 15, 2026 in Manufacturing
Live Poll
Should Australian industries be required to switch from gas to electric heat pump technology?
The Australian Alliance for Energy Productivity released the Hot, here, now report detailing a surge in industrial transitions to heat pump technology. Major companies such as Blackmores Group and Hardwick Meats have already moved to replace gas boilers with systems that capture waste heat.
Why it matters
Switching to large-scale heat pumps enhances energy security and operational efficiency while significantly lowering production costs for manufacturers. The technology also plays a crucial role in long-term emissions reduction goals for the industrial and commercial sectors.
Installations of major heat pumps in existing buildings have doubled since 2022. Hardwick Meatworks recently replaced a 2 MW gas boiler with this technology, reflecting a broader trend across the sector.
The players
Australian Alliance for Energy Productivity
This is a non-profit organisation that works to accelerate the adoption of productive energy use in Australia.
Hardwick Meatworks
This facility is a meat processing site owned by Kilcoy Global Foods located in Kyneton, Victoria.
Blackmores Group
This is an Australian health supplements company that has completed a transition from gas to heat pumps.
The details
Industries are replacing traditional gas boilers with large-scale heat pumps to heat water for critical cleaning and sterilisation processes. By harnessing waste heat from other manufacturing operations, sites like the Hardwick Meatworks facility in Kyneton, Victoria, improve their overall energy footprint.
Timeline
2020 to 2050 is the projected emissions reduction timeframe.
2022 is the baseline year for heat pump installation growth.
15 October 2026 was the release date for the report.
The end of 2027 is the target for more than 230 industrial and commercial sites to switch to heat pumps.
Market Landscape
The adoption of heat pump technology is shifting the competitive landscape by reducing reliance on volatile gas prices and ageing boiler systems. This transition positions early adopters ahead of industry peers who face increasing pressure to modernise energy infrastructure.
For businesses, the move toward heat pumps serves as a hedge against rising gas costs and improves operational reliability. Consumers may eventually see the benefits of these efficiencies through more sustainable production cycles in the food and manufacturing sectors.
The takeaway
Industrial sites that implement heat pumps can achieve significant energy savings by recycling heat from existing processes. Businesses should evaluate their thermal water needs to determine if heat pump technology is a viable replacement for traditional gas boilers.
What happens next
Over 230 industrial and commercial sites are projected to complete their switch to large-scale heat pumps by the end of 2027.
Further reading
Learn more about the latest developments in the sector via the Manufacturing section.
More information
For more information on the industrial heat pump programme, visit the A2EP organization website.
Live Poll
Should Australian industries be required to switch from gas to electric heat pump technology?
