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CSP GRANT · 2026
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Steam Heat Pump

Jiangsu Lugang Science & Technology Co., Ltd.
Ongoing
Timeline: 
2026
Grant amount
$250,000
CONTEXT

Why AII funded this

This is Aii’s first China-based grant project. In China, factories purchase steam from a centralized source in the industrial park, making the financial transition to electrification more challenging. Proving this is possible will have a big impact on the future of electrification in China.

project scope

This project replaces purchased steam in textile dyeing operations with high-temperature industrial heat pumps powered by electricity. The system includes both a high-temperature hot water heat pump and a steam heat pump, representing a transition from purchased steam to on-site electrified heat generation, with the potential to significantly reduce emissions when paired with renewable electricity. This will replace 33% of the factory’s purchased steam needs.


EFFECTIVENESS

IMPACT METRICS

tCO₂e reduced per annum
4,180
tonnes CO₂e / year
Grant cost per tCO₂e
$6.84
AII pilot funding
Solution cost per tCO₂e
$21
At deployment
Lifetime CO₂e impact
36,575
tCO₂e cumulative

Grant tier focus

Steam Heat Pump focuses on Tier 2.
Contact us about next steps
Steam heat pumps can be applied across Tier 2 facilities. The learnings from this project are particularly relevant for facilities purchasing centralized steam.
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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 replaces a widely used energy input, steam, with electrified alternatives. However, scaling depends on access to renewable electricity, the cost competitiveness of electricity versus steam, and the ability to integrate systems into existing infrastructure. Demonstrating performance and financial viability will be key to broader adoption.


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
Contact us about next steps