BAFA EEW Funding: Switching Process Heat to a Heat Pump

Because more than half of the heat from the new plant goes into production processes, the investment qualifies under the process-heat module. The eligible costs are the heat pump and the associated installation, with the savings and the share going to processes documented as the module requires. The grant covers a defined share of the investment, and on a heat-pump investment of this size the grant comes to about EUR 600,000. The company applies before ordering the plant and keeps it in operation for the required minimum period.

BAFA EEW is applied for before the investment begins, through the Foerderzentrale Deutschland. For the process-heat module, the application documents the share of the heat that goes to production and the expected savings, and the funded plant must be operated for a minimum retention period. A certified energy consultant usually supports the application, and that consulting can itself be eligible. It is also worth weighing the two routes against each other: the BAFA grant pays a direct, non-repayable share, while the alternative KfW loan with a repayment subsidy can suit a larger investment that benefits from spreading the cost. Heat pumps perform best where the required process temperatures sit within their efficient range and where waste heat or ambient sources are available, so a short check of the heat source and the temperature levels before the application is time well spent.

BAFA EEW makes the switch to renewable process heat materially cheaper to undertake. The key conditions are that the heat mainly serves production and that the grant is secured before the investment begins. For any company running fossil-fired process heat, it is one of the most direct routes to cutting both cost and emissions.