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Europe could slash gas use by harvesting waste heat from everyday sources

A Danfoss report warns that most of Europe’s energy is lost as waste heat and suggests capturing it could save up to €140 billion annually.

According to a new analysis by Danish engineering firm Danfoss, waste heat represents the world’s largest untapped energy reserve, with about two-thirds of all energy dissipated as heat in 2024. The proportion is expected to increase to 55 % by 2030 as demand grows. Capturing this heat—using heat pumps to raise its temperature and feeding it into buildings or district-heating grids—could cut Europe’s gas consumption dramatically and generate €140 billion in annual savings, based on 3,1000 TWh of wasted heat in 2023.

A Danish aluminium producer has already stopped using on-site gas, saving the heating needs of 132 households. In Germany, existing industrial waste-heat sources could meet over 30 % of district-heating demand, with data-centre heat offering further potential. Danfoss Climate Solutions president Kirstian Strand urges governments to remove regulatory barriers and make heat recovery a standard practice to boost competitiveness and energy resilience.

Why it matters

Recovering waste heat could lower Europe's gas bills, cut emissions and boost energy security.

In this story

waste heatenergy securitydistrict heatingheat pumpsgas relianceEuropeDanfoss€140 billionaluminium manufacturer
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