Australian industries transition from gas to electric heat pumps

A report by the Australian Alliance for Energy Productivity (A2EP) reveals a significant industrial transition in Australia as businesses move from gas to electric heat pumps. The ‘Hot, here, now’ report indicates that the number of major heat pump installations in existing buildings has doubled since 2022, with an estimated 232 major industrial sites and commercial buildings expected to have completed the switch by the end of 2027.

This shift is particularly visible in Victoria and New South Wales, where government incentives have supported the transition. Approximately 80 per cent of new large buildings are now being constructed as fully electric. The report notes that while sectors like food and beverage—including companies such as Blackmores Group and Kilcoy Global Foods—are adopting the technology, other sectors like aged-care facilities, hospitals, and shopping centres have yet to begin significant shifts.

Beyond energy efficiency, companies have reported operational benefits. For example, Kilcoy Global Foods noted that installing an industrial heat pump at its Hardwick Meatworks site provided increased operational stability by creating a structured approach to thermal energy rather than relying on a single gas source.