[Energy Odyssey]⑧"Air, Ground, and Water Become Energy"...How to Reduce LNG Imports

Ⅱ. Overcoming the Energy Crisis Through Technological Innovation

Natural Gas Prices Surge Due to Middle East War

Heat Pumps as Gas Boiler Alternatives Gain Attention for Energy Security

Europe Supplies Heat Equivalent to 200 LNG Carri

Editor's NoteAmid supply chain crises caused by the recent Middle East war and government mega-projects, the importance of energy is greater than ever. With South Korea relying on overseas sources for the majority of its primary energy, the nation faces the challenging task of achieving energy security, carbon neutrality, and economic growth simultaneously. In this special series, reporters on the ground in energy sectors at both government and industry explore various issues and seek solutions.

The 'EHS Heat Pump Boiler' is being produced at Samsung Electronics' Gwangju Plant, Second Campus. Samsung Electronics

"Liquefied natural gas (LNG) is the most expensive energy source, and its supply is unstable. Heat pumps can dramatically reduce dependence on LNG," said Paul Kenny, Secretary General of the European Heat Pump Association (EHPA).

As the prolonged war between the U.S. and Iran continues, the number of heat pump users in Europe is increasing. According to the EHPA on the 3rd, 1,163,000 heat pumps were sold in 12 European countries in the first half of this year. This is an 11% increase compared to the same period last year (1,048,000 units).

The closure of the Strait of Hormuz and soaring oil and gas prices due to the war have generated intense interest in heat pumps as an alternative to fossil fuels. The European Commission's push to lower electricity rates to reduce oil and gas consumption has also had an impact. While heat pumps do not use fossil fuels, a certain amount of electricity is required for operation.

Europe believes that heat pumps can replace natural gas consumption and contribute to energy security. According to EHPA, by the end of 2025, there will be 29.3 million heat pumps installed across 21 European countries. This is expected to reduce Europe's gas imports by about 25 billion cubic meters annually, thereby lowering dependency on fossil fuel imports. The association also notes: "Heat pumps are supplying heat equivalent to more than 200 LNG carriers."

Expansion of Heat Pump Adoption Starting in Jeju... Next Year's Budget up 5.5 Times

In South Korea, concerns over LNG supply due to the Middle East war are also rising, bringing heat pumps into the spotlight as a new source of thermal energy. Half of Korea's imported LNG is used for heating. With the expansion of heat pumps, which provide heating using external heat sources and electricity, gas consumption can be reduced correspondingly.

Since heat pumps do not use fossil fuels, they align well with the government's carbon neutrality policy. The electricity needed to operate heat pumps can be supplied by increasing non-carbon power sources such as renewable energy or nuclear power. Furthermore, as Korean home appliance manufacturers can produce and supply heat pumps directly, this contributes to the development of domestic industry.

However, replacing the gas-boiler-centric residential environment with heat pumps in a short period is not easy. Heat pumps are more expensive than existing gas boilers and face installation restrictions. The burden of electricity bills is another concern. The government plans to gradually distribute heat pumps starting in Jeju.

This year, Jeju is conducting a pilot project to replace heating systems in homes with heat pumps. In August, the region held a plaque-unveiling ceremony for the "First Electrified Heating Installation" at a household in Youngpyeong-dong, Jeju. Jeju plans to deploy heat pumps in 2,460 homes by the end of this year.

The hydro unit of Samsung Electronics' 'EHS Heat Pump' and the thermal storage tank installed in the underground machine room of the Jeju demonstration house. Photo by Heejong Kang

Of the KRW 14.5 billion budget allocated for detached house heat pump adoption this year by the Ministry of Climate, Energy, and Environment, KRW 13.8 billion (95%) has been allocated to Jeju. Households wishing to install heat pumps will be subsidized for 70% of the installation cost. Despite government support, the remaining self-pay portion still amounts to KRW 3 million to 4 million, posing a financial burden.

However, heat pumps can save on fuel costs, making them more economical than conventional gas or oil boilers in the long run. The European Commission has stated, "On average, switching from gas boilers to heat pumps can save more than 20-60% in costs, depending on regional energy prices and housing energy efficiency."

The heat pump deployment initiative starting in Jeju is expected to expand to the mainland next year. A total budget of KRW 85.9 billion has been allocated for next year's overall thermal energy electrification projects, including heat pumps—a 5.5-fold increase from KRW 15.7 billion this year.

Reverse Air Conditioner Principle...What Is Coefficient of Performance?

A heat pump is a technology that utilizes heat from surrounding air, water, or ground for building heating and cooling. Its core components include an evaporator (heat exchanger), a compressor, a condenser, and an expansion valve.

The refrigerant circulating inside absorbs external heat in the evaporator and becomes a gas. In the compressor, the gaseous refrigerant is pressurized to a high temperature and high pressure. Through the condenser, the refrigerant releases heat and condenses back into a liquid. The released heat is then used for heating. The liquid refrigerant, after passing through the expansion valve, is returned to a state where it can easily vaporize, repeating the cycle via the evaporator.

Depending on the external heat source, heat pumps are classified as air-source, water-source, or ground-source. Sometimes, sources such as industrial wastewater are also utilized. Recently, heat pumps that use waste heat from semiconductor plants or data centers have emerged. By combining large-capacity heat pumps with district heating systems, it is possible to supply heat to entire apartment complexes or industrial zones.

This is an image created using generative AI.

The component of a heat pump that consumes the most electric energy is the compressor. Although heat pumps are eco-friendly by not using natural gas, increasing electricity use can lead to higher power bills. This is why the government is considering implementing special rate plans to stimulate use of heat pumps.

Heat pumps essentially use the principle of an air conditioner in reverse. While air conditioners absorb indoor heat and release it outdoors, heat pumps absorb heat from outside and release it indoors. Both heat pumps and air conditioners cycle through processes of compression, condensation, expansion, and evaporation of refrigerant. Since the basic principle is the same, Korean appliance companies have global competitiveness in heat pumps, as they do in air conditioners. Samsung Electronics, LG Electronics, and Daesung Heat Energy are participating in the Jeju pilot project.

The key concept to measure heat pump efficiency is "coefficient of performance" (COP). This is the ratio of heat output to the electrical energy consumed. For example, a COP of 4.0 means that for every one kilowatt (kW) of electricity, four kW of heat are produced. That heat output exceeds the electricity input because external heat sources are being used. When assessing average performance over an entire season, the seasonal coefficient of performance (SCOP) is used.

The coefficient of performance depends on several factors, including the type and temperature of the external heat source, the performance of the heat exchanger, and the type of refrigerant. Of these, the most critical are the type and temperature of the heat source. The more constant and higher the heat source temperature, the greater the performance coefficient. This explains why Jeju, with its mild climate, is being used for the initial pilot project.

For Samsung Electronics’ "EHS All-in-One" heat pump in Jeju, the summer COP exceeded 4.0. Samsung Electronics stated that a COP of 2.5 or more can be maintained even when temperatures drop to minus 15 degrees Celsius.

"Cold Countries" Norway, Finland, Sweden—Half of Households Use Heat Pumps

Europe, having proactively pursued eco-friendly policies earlier than Korea, now boasts widespread adoption of heat pumps. In 2025, a total of 2.88 million heat pumps were sold across 21 European countries—a 12.5% increase over the 2.56 million units sold in 2024.

Sales volume of heat pumps in Europe surged after the Russia-Ukraine War began in 2021, causing a spike in natural gas prices. Sales jumped from 2.35 million units in 2021 to 3.31 million in 2022. However, as natural gas prices later stabilized and some countries reduced support policies, sales declined for two consecutive years: 3.19 million in 2023 and 2.56 million in 2024.

In 2025, sales rebounded as several countries increased incentives and reduced electricity rates. With the Middle East war driving natural gas prices higher, heat pump sales are expected to rise again this year, continuing last year's increase.

One major hurdle is that many European countries set electricity rates higher than gas rates, which hinders wider adoption of heat pumps. The EHPA emphasizes that to boost heat pump use, a combination of energy tax reforms, phasing out fossil fuel subsidies, and providing financial support for heat pumps is necessary.

As of the end of 2025, more than half of all households in Norway, Finland, and Sweden own heat pumps. The number of heat pumps per 1,000 households by country: Norway leads with 651, followed by Finland (543), Sweden (506), Estonia (362), Denmark (231), and France (217).

The substantial adoption of heat pumps in cold Northern European countries illustrates that they work effectively even in severe winters. It is necessary to reconsider the perception in Korea that heat pump performance falls short in cold weather.

In Poland, Slovakia, and the United Kingdom, the adoption rate for heat pumps is still low. However, these countries are introducing policies to support heat pump adoption, suggesting strong growth potential in the future.

Why It Is Difficult to Expand Heat Pump Use in Korea's Apartment-Centered, Individually Heated Residences

A fundamental difference from Europe is South Korea's residential structure. Unlike Europe, where most dwellings are single family homes, more than half of Korean residences are apartments. In Europe, communal heating is mainly district-based, making transitions to heat pumps easier even in multi-family housing.

In contrast, the vast majority of apartments in Korea use individual heating systems. Simply transplanting the European model—replacing boilers in detached houses with heat pumps—presents clear limitations in Korea.

According to the Ministry of Data and Statistics, as of 2023, of Korea’s total 19,873,000 housing units, 12,974,000 were apartments, representing 65.3% of the total. According to the Seoul City Apartment Information Portal, of 2,886 apartment complexes in Seoul, 1,961 (67.9%) use individual heating, with 26.3% using district heating and 4.5% using central heating.

Thus, to achieve meaningful scale in heat pump adoption, Korea would need to convert individual heating in apartment complexes. However, retrofitting the heating facilities of existing apartments with heat pumps poses significant difficulties. Space for separate outdoor units and thermal storage tanks must be secured, and hot water piping work is required.

The government is considering accelerating heat pump distribution by focusing on new apartment buildings. This is because the interior of new apartments can be designed with heat pump systems in mind from the outset. Incentives for new apartments adopting heat pumps are also under consideration.

The district heating systems that supply heat to apartment complexes also need to be quickly transitioned to large-scale heat pumps. Currently, Korea's district heating mainly relies on combined heat and power (CHP) plants, which supply both electricity and heat. Replacing CHP plants with heat pumps will require significant capital investment.

Unlike conventional power plants that only generate electricity, CHP plants can increase energy-use efficiency by about 30%. However, because they primarily use LNG as fuel, there is still a reliance on fossil fuels.

Korea District Heating Corporation currently operates heat pumps on a small scale at five of its branches. The annual heat production using heat pumps is 101 gigacalories (Gcal), a minimal amount compared to the corporation's total annual heat production of 16,071,000 Gcal (as of 2025).

The Korea District Heating Corporation has stated, "We plan to increase the proportion of clean heat, including heat pumps, from the current 28% to 38% by 2035." The company intends to recover waste heat from semiconductor plants, data centers, sewage treatment facilities, and industrial complexes for district heating by using heat pumps.

This content was produced with the assistance of AI translation services.