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September 25, 2026·5 min read

How Factories Use Waste Heat — 6 Common Methods

Industrial waste heat goes into preheating, steam, district heating, heat pumps, power and cooling. What each of the six common methods produces and which waste heat it suits.

basics

Factories throw away more heat than most people expect. The U.S. Department of Energy estimates that roughly 20–50% of the energy fed into industry is lost as waste heat through exhaust gas, cooling water and hot equipment surfaces. One estimate puts the waste heat from Korean industrial complexes alone at 6.4 million TOE a year.

What waste heat is and how much of it is lost was covered in an earlier post. This one takes the next question: how is waste heat actually being used today?

Methods differ by what they produce

Using waste heat means turning it into something useful. That might be hot air fed back into the same process, steam or hot water sent somewhere else, or electricity and chilled water.

Diagram of six ways to use waste heat: preheating makes hot air and feedwater, a waste heat boiler makes steam, direct supply makes hot water, a heat pump makes higher-temperature heat, ORC makes electricity and an absorption chiller makes chilled water. What they share: waste heat that cannot be used right away is lost

① Preheating — feed it back into the same process

Preheating: exhaust gas from a furnace or boiler passes through an air preheater or economiser to warm combustion air and feedwater, which return to the same process and cut fuel use

Exhaust heat warms combustion air or boiler feedwater before it goes back into the same process. Because the heat does not have to travel far, this is usually the first option considered — but the amount that can be recovered is capped by what that one process can take back.

② Waste heat boiler — make steam

Waste heat boiler: hot exhaust gas from a furnace or incinerator boils water into steam, which is sent to other processes such as sterilising, drying and cleaning

Hot exhaust gas boils water into steam. Steam is the most common way to move heat around a plant, so a waste heat boiler turns waste heat into heat for other processes, not just the one it came from.

③ Direct supply — send hot water elsewhere

Direct supply: waste heat warms water through a heat exchanger, and the hot water is piped to a district heating network or neighbouring sites

Water warmed by waste heat is piped to a district heating network or a neighbouring site. The German aluminium smelter TRIMET sends water heated to about 130°C through a 700-metre pipe into a city heating network.

④ Heat pump — raise the temperature

Heat pump: electricity is added to low-grade waste heat such as cooling water or drains to raise its temperature for heating or low-temperature processes

Electricity is used to lift low-grade waste heat to a useful temperature. Heat from cooling water that would otherwise be discarded becomes usable for heating or low-temperature processes, at the cost of the electricity needed to lift it.

⑤ ORC power — generate electricity

ORC power: medium- or low-grade waste heat evaporates an organic fluid with a low boiling point to drive a turbine and generator, producing electricity for the site

An organic Rankine cycle (ORC) uses a fluid that boils at a lower temperature than water, so even medium- and low-grade waste heat can drive a turbine and make electricity. Converting heat to power loses a large share of it, though, so if there is a use for the heat itself nearby, using it as heat is usually the better choice.

⑥ Absorption chiller — cool with heat

Absorption chiller: medium- or low-grade waste heat drives the chiller to produce chilled water for space and process cooling

Waste heat, rather than electricity, drives the chiller to make chilled water. Its advantage is that it gives waste heat a use in summer, when there is no heating demand.

What the six methods have in common

Waste heat has to be used the moment it comes out. If nothing needs it then, it is simply lost.

Preheating only matters while the furnace is running, and steam from a waste heat boiler is only useful if a process needs steam at that time. District heating demand drops in summer; absorption chillers have little to do in winter.

Industrial waste heat, meanwhile, follows the production schedule. In batch processes, or with equipment that starts and stops several times a day, the hours when waste heat pours out and the hours when heat is needed often fail to line up. That is why waste heat is still lost even where recovery equipment is installed.

The bottom line

There are already several ways to use waste heat, and the right one depends on temperature and use. But nearly all of them assume the heat is used the moment it comes out.

So what about the waste heat that cannot be used right away? One answer is to store it and draw on it when it is needed. GIGAette’s IsoTES® is a constant-temperature thermal energy storage system built on that idea; storing waste heat for later use is the subject of the next post.

If you would like to work out which method suits your plant’s waste heat, request a technical meeting.


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Frequently asked questions

What is industrial waste heat mainly used for?

The most common uses are preheating combustion air or feedstock for the same process, and making steam with a waste heat boiler. Waste heat can also be sent as hot water to a district heating network, raised in temperature by a heat pump, turned into electricity with an organic Rankine cycle (ORC), or used for cooling in an absorption chiller.

Can low-temperature waste heat be used?

Yes. Low-grade heat that cannot go straight back into a process can be raised by a heat pump for space heating or low-temperature processes, or used in an ORC, which works with a low-boiling-point fluid, to generate electricity. Absorption chillers can also make chilled water from relatively low-temperature heat.

How do you choose a waste heat recovery method?

Start with the temperature and form of the waste heat, and whether there is a user for that heat nearby. Hot exhaust gas points first to preheating or a waste heat boiler; low-temperature cooling water points to heat pumps or absorption chillers. It also matters whether the same site has a need for heat or cooling.

Why is waste heat still lost even with recovery equipment in place?

Because most recovery methods have to use the heat at the moment it is produced. If nothing on site needs heat at that time, the equipment can do little and the heat is released anyway.