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CSP GRANT · 2025
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Heat Pump Electrification Project

Bangjie Knitting (Viet Nam)
Ongoing
Timeline: 
2025 -2026
Grant amount
$250,000
CONTEXT

Why AII funded this

This is the first known case study of full facility electrification in the textile sector. Demonstrating that this is technically and financially feasible will unlock the technology’s scale potential. The project also demonstrates how mitigation and adaptation can be linked, a big step forward for the sector.

project scope

This project aims to decarbonize textile dyeing processes by replacing biomass- and fossil fuel-based steam generation with an electrified heat pump system powered by renewable energy. It represents one of the first applications of industrial heat pump technology in Vietnam and Southeast Asia’s textile sector, serving as a demonstration of how thermal processes can be electrified at scale. The project involves the installation of a heat pump system integrated with existing operations, including heat recovery from wastewater and process streams, optimization of dyeing heat demand, and the use of rooftop solar to supply approximately 25% of electricity needs. The system will fully replace biomass boiler-based steam generation, while also improving worker comfort through cooling applications.


EFFECTIVENESS

IMPACT METRICS

tCO₂e reduced per annum
6,089
tonnes CO₂e / year
Grant cost per tCO₂e
$4.69
AII pilot funding
Solution cost per tCO₂e
$36
At deployment
Lifetime CO₂e impact
53,279
tCO₂e cumulative

Grant tier focus

Heat Pump Electrification Project focuses on Tier 2.
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The solution applies to textile facilities with wet processing operations, particularly dyeing, drying, and finishing processes, and has strong relevance across Tier 1 and Tier 2 suppliers in regions heavily reliant on thermal energy from fossil fuels or biomass.
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Tier 4
Raw material extraction
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Tier 3
Raw material processing
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Tier 2
Material production
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Tier 1
Finished product assembly

Solution maturity level

Pre-seed

Definition:
Solutions that are at a concept level and in the process of evaluating and establishing their impact potential.

Pilot

Definition:
Solutions that are in the process of testing their solution in order to demonstrate a proof of concept.
Goal:

Model

Definition:
Solutions that are working towards de-risking and reducing known barriers to scale.

Scale

Definition:
Solutions that are commercially viable with a proven go-to-market strategy.
Pilot
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Current Level
Pre-seed
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Model
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Scale
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Pilot DEFINITION
Solutions that are in the process of testing their solution in order to demonstrate a proof of concept.
Goal Of This Pilot Solution
LEARN MORE ABOUT OUR MATURITY LEVELS
Current Level
swirls graphic blue
Pre-seed DEFINITION
Solutions that are at a concept level and in the process of evaluating and establishing their impact potential.
LEARN MORE ABOUT OUR MATURITY LEVELS
swirls graphic blue
Model DEFINITION
Solutions that are working towards de-risking and reducing known barriers to scale.
LEARN MORE ABOUT OUR MATURITY LEVELS
Scale DEFINITION
Solutions that are commercially viable with a proven go-to-market strategy.
swirls graphic blueLEARN MORE ABOUT OUR MATURITY LEVELS

Grant location

OUTLOOK

Scalability

This solution has strong scalability potential as it addresses a major emissions hotspot and can be applied across a wide range of textile manufacturing facilities. However, scaling will depend on key factors such as access to affordable renewable electricity, availability of financing for high upfront capital investment, and increased awareness and confidence among manufacturers. By providing a real-world demonstration and validated performance data, the project is designed to catalyze broader adoption across Vietnam and other textile-producing regions.


LEARNINGS

We're still gathering insights from this grant. Check back once the project wraps for a full set of learnings.
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Interested in this Grant?

Get in touch to learn more about how to implement this solution
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