Johnson Controls Heat Pumps: Boosting Customer Success by Driving Down Costs and Carbon

Rhea-AI Summary

Johnson Controls reported significant success with their commercial heat pumps in 2024, achieving 53% reduction in customer heating costs and 60% reduction in emissions compared to traditional gas boilers. The company showcased several successful implementations worldwide, including a Spanish food company saving €1.5M annually, a German hospital reducing energy costs by 30%, and Children's Hospital of Alabama cutting natural gas needs by 69%. Their product portfolio includes innovations like the YORK CYK Water-to-Water Compound Centrifugal Heat Pump, which is four times more efficient than traditional systems. The company is also leading the transition to sustainable refrigerants with low global warming potential. Market potential is substantial, with estimates suggesting heat pumps could replace up to 80% of industrial boilers in the U.S. by 2050.

Positive

• 53% reduction in customer heating costs and 60% reduction in emissions in 2024
• Spanish customer achieved €1.5M annual savings and 2,000 tons CO2 reduction
• Children's Hospital of Alabama reduced natural gas needs by 69% and saved $680,000 annually
• YORK CYK Heat Pump is four times more efficient than traditional boiler systems
• Strong market potential with heat pumps potentially replacing 80% of US industrial boilers by 2050

Negative

• None.

Insights

Industrial Technology Analyst

JCI's heat pumps deliver 53% cost savings and 60% emissions reduction, positioning them strongly in a growing market with compelling ROI.

The 53% reduction in heating costs and 60% decrease in emissions Johnson Controls is achieving for customers represents a significant competitive advantage in the commercial HVAC space. These aren't theoretical benefits but documented results across diverse sectors including manufacturing, healthcare, and government facilities.

The case studies provide compelling evidence of the technology's economic impact:

• A Spanish food company saving €1.5 million annually while reducing CO2 by 2,000 tons
• A German hospital cutting energy costs by 30% while meeting 80% of heating demand
• Children's Hospital of Alabama reducing natural gas needs by 69% and saving $680,000 annually

The market opportunity is substantial. European industries use 60% of their energy for heat, while U.S. projections suggest heat pumps could replace 80% of industrial boilers by 2050. JCI is strategically positioned with innovations like the 400-ton YORK CYK heat pump that's four times more efficient than traditional systems.

What's particularly notable is JCI's technological leadership in addressing specific industrial challenges - their new systems deliver high-temperature outputs (up to 180°F) and cold-weather reliability that were previously barriers to adoption. The company's early-mover advantage in transitioning to low-GWP refrigerants further strengthens their competitive position as regulatory requirements tighten globally.

In 2024, Johnson Controls heat pumps cut customers' annual heating costs 53% while reducing emissions by 60%

MILWAUKEE, June 10, 2025 /PRNewswire/ -- Johnson Controls commercial heat pumps are delivering competitive advantage to customers and partners across all industries – from global industrial and manufacturing organizations to hospitals, local municipalities, and utilities – while having a positive impact on the environment. The results are significant: In 2024, Johnson Controls helped cut customers' expenses by 53% and reduce emissions by 60% compared to conventional natural gas boilers.  

"In this dynamic world, we are working in true partnership with our customers to deliver on multiple key priorities. Our state-of-the-art heat pumps ensure uptime, runtime and reliability. At the same time, cash is being conserved for growth as heating costs are cut by more than half, providing a significant competitive advantage," said Johnson Controls Vice President and Chief Sustainability and External Relations Officer Katie McGinty. "Achieving these outcomes while also accelerating climate action is just the kind of all-in partnership that our customers are calling for. We are honored to join with them in making the vision a reality today."

According to the European Heat Pump Association, more than 60% of the energy used by European industries is for heat. Similarly, the American Council for an Energy-Efficient Economy estimates that heat pumps could replace up to 80% of industrial boilers in the U.S. by 2050. Both estimates indicate that heat pump-driven electric systems have immense potential to drive energy security, affordability and sustainability.

The transformative impact of heat pumps on communities and businesses globally is demonstrated through several Johnson Controls projects across the world. For example, a leading food company in Spain saved €1.5 million annually and reduced CO₂ emissions by nearly 2,000 tons—the equivalent of the annual emissions of around 400 homes—by installing heat pumps at two manufacturing facilities. In Germany, a hospital utilized a heat pump to tap heat energy 200 meters below the facility, resulting in a 30% reduction in energy costs and producing enough heat to cover 80% of the hospital's demand, while Children's Hospital of Alabama in the U.S. put heat pumps and OpenBlue digital solutions to work to reduce natural gas needs by 69% and annual energy costs by $680,000. Starting in 2026, four large-scale heat pumps in Hamburg, Germany, will extract heat from treated wastewater and feed it into the central district heating network, heating around 39,000 homes. And in the U.K., Hounslow Council transitioned from gas boilers to Johnson Controls air source heat pumps, cutting energy costs and CO₂ emissions by 50% across more than 60 schools and public buildings.

Johnson Controls was among the first providers of heat pumps and today offers one of the world's most comprehensive portfolios for commercial, institutional and industrial organizations. Johnson Controls is helping to lead the transition to more sustainable refrigerants as well, offering heat pumps that use low and ultra-low global warming potential fluids.

Recent innovations include the 400-ton YORK® CYK Water-to-Water Compound Centrifugal Heat Pump, which meets high-temperature requirements of up to 180°F and is up to four times more efficient than traditional boiler and chiller combinations, reducing energy consumption and operational costs. Similarly, the YORK® YMAE modular air-to-water heat pump provides hot water up to 140°F and ensures reliable heating even in harsh winter conditions, making it a versatile and resilient solution for various climates. In Asia, two new heat pumps were recently launched—the YORK ® HPS-H 200 Screw High-Speed VSD Permanent Magnet High Temperature Heat Pump and the YORK Next-Generation YSPA-V Air Source VSD Screw Heat Pump, which provide efficient, energy-saving and low-carbon solutions for various industries.

To learn more about efficient and cost-saving heat pump solutions, visit the Johnson Controls website.

Media Contact:

Kari Pfisterer
Director, Public Relations
media@jci.com

About Johnson Controls:
At Johnson Controls (NYSE:JCI), we transform the environments where people live, work, learn and play. As the global leader in smart, healthy and sustainable buildings, our mission is to reimagine the performance of buildings to serve people, places and the planet.

Building on a proud history of 140 years of innovation, we deliver the blueprint of the future for industries such as healthcare, schools, data centers, airports, stadiums, manufacturing and beyond through OpenBlue, our comprehensive digital offering.

Today, Johnson Controls offers the world's largest portfolio of building technology and software as well as service solutions from some of the most trusted names in the industry.

Visit www.johnsoncontrols.com for more information and follow @JohnsonControls on social platforms.

 

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SOURCE Johnson Controls International plc

FAQ

What cost savings did Johnson Controls heat pumps achieve in 2024?

Johnson Controls heat pumps reduced customers' annual heating costs by 53% while cutting emissions by 60% compared to conventional natural gas boilers in 2024.

How much did the Spanish food company save with JCI heat pumps?

The Spanish food company saved €1.5 million annually and reduced CO2 emissions by nearly 2,000 tons after installing Johnson Controls heat pumps at two manufacturing facilities.

What is the efficiency improvement of the YORK CYK Heat Pump compared to traditional systems?

The 400-ton YORK CYK Water-to-Water Compound Centrifugal Heat Pump is up to four times more efficient than traditional boiler and chiller combinations.

What are the market prospects for industrial heat pumps in the US?

According to the American Council for an Energy-Efficient Economy, heat pumps could replace up to 80% of industrial boilers in the U.S. by 2050.

How much did Children's Hospital of Alabama save with JCI heat pumps?

Children's Hospital of Alabama reduced their natural gas needs by 69% and achieved annual energy cost savings of $680,000 using Johnson Controls heat pumps and OpenBlue digital solutions.