EU Innovation Fund selects new heat pump manufacturing projects
Belgium – Three heat pump manufacturing projects in Germany, Hungary and Sweden have been selected for support under the European Union’s Innovation Fund, covering high-efficiency electric motors, industrial heat pumps and heat pump technology for domestic water reuse.
The projects are among 77 selected by the European Commission on 19 October for a combined €3.4 billion in funding. Twelve projects fall within the clean-tech manufacturing category, representing almost €895 million in requested support.
Magnet-free motors for heat pumps
German manufacturer Additive Drives has been selected for its TITAN project, which aims to establish an automated production line capable of manufacturing 80,000 electric motors annually for heat pump applications.
The company is developing a 5.5kW induction motor design targeting efficiency above 96% without rare-earth magnets. The design incorporates measures to minimise electrical losses, improve thermal management and extend service life.
The motors are intended for European heat pump manufacturers, although Additive Drives has not specified which components within the heat pump systems they will drive.
Additive Drives has outlined a planned investment of approximately €25 million, with production-line commissioning scheduled for January 2030.
Industrial heat pumps using new thermal-contact material
Hungarian company CAADEX has been selected for its PUMPEDGE project, which aims to develop and commercialise five industrial heat pump designs covering capacities from 20kW to 100kW.
The project centres on a new thermally conductive contact material designed to reduce performance degradation during operation.
According to the Commission’s project description, the technology is expected to improve overall energy efficiency by approximately 30% over a ten-year lifecycle. This remains a projected performance benefit rather than a demonstrated result from commercial installations.
The project is intended to support industrial electrification and expand the availability of smaller-capacity industrial heat pump systems across Europe.
Heat pump modules for water-reuse systems
Swedish company Orbital Systems has been selected to expand manufacturing of its Orbital Heat Pump Module, which forms part of its technology for reducing domestic hot-water consumption.
The OrbitalHPM project proposes new semi-automated manufacturing lines, alongside changes to component production and quality control intended to reduce manufacturing costs by 50%.
According to the project description, the system is designed to reduce energy required for shower-water heating by 85% while enabling 90% water reuse.
The manufacturing expansion is intended to support wider commercial deployment of the technology.
Funding agreements to be finalised
All three projects have been invited to begin grant agreement preparations with the European Climate, Infrastructure and Environment Executive Agency (CINEA).
The process will establish the final funding arrangements, project timetables and technical obligations, with results expected in the first quarter of 2027.
The Commission has not published individual grant amounts for the three projects.
The Innovation Fund is financed through revenues from the EU Emissions Trading System and supports the commercial deployment of innovative low-carbon technologies.
