The Untapped Potential of Waste Heat in Europe
Published on
22/09/2026 – 7:02 GMT+2
Capturing and reusing waste heat could be the next “breakthrough” in Europe’s energy security and competitiveness – helping sever its reliance on gas.
A new report from Danish engineering firm Danfoss highlights a concerning statistic: two-thirds of global energy was wasted as heat in 2024, with that figure projected to reach 55% by 2030. Experts are now labeling waste heat from various facilities—including supermarkets, factories, and data centers—as the world’s “largest untapped” energy source. However, governments are lagging in unlocking its full potential.
Understanding Waste Heat and Its Reuse
Waste heat refers to the excess warmth generated by everyday processes, such as refrigeration in supermarkets. Instead of allowing this heat to escape into the atmosphere—contributing to the urban heat island effect—it can be captured and reused.
This process typically involves heat pumps, which “upgrade” the temperature and distribute the heat within the same building or through a nearby district heating network, providing heating and hot water to spaces. For instance, a Danish aluminum manufacturer has eliminated on-site gas use through this method, saving enough for the annual heating and hot water needs of 132 Danish homes.
Economic Impact of Reusing Waste Heat
According to Danfoss’s analysis, reusing waste heat could save Europe an astonishing €140 billion annually based on the 3,100 TWh wasted in 2023. This volume of waste heat alone could power Paris for 48 years. In Germany, existing industrial sources could cover over 30% of the country’s district heating needs, excluding the significant potential from data centers—which number over 3,000 in the country.
The Urgency of Action
Kirstian Strand, President of Danfoss Climate Solutions, emphasizes the urgency in addressing this issue. “We’re throwing away energy we’ve already paid for. Waste heat is one of the biggest untapped energy sources, and reusing it can significantly enhance Europe’s competitiveness and energy security. We cannot afford to let it go to waste.”
Strand advocates for making heat recovery standard practice in the industry and for energy operators to establish simpler connections. He calls on governments to eliminate barriers that make electricity more costly than gas, paving the way for increased investment in waste heat recovery.
“Once we remove these obstacles, waste heat stops being waste,” he asserts, “and becomes a source of cheaper energy, increased resilience, and stronger competitiveness.”
Conclusion
The pathway to a more energy-secure and competitive Europe lies in the effective management and reuse of waste heat. By harnessing this untapped resource, significant economic and environmental benefits can be realized, ushering in a new era of energy efficiency and sustainability on the continent.
