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A heat pump extracts heat from a source and transfers it to a sink at a higher temperature. According to this definition, all pieces of refrigeration equipment, including air conditioners and chillers with refrigeration cycles, are heat pumps. In engineering, however, the term heat pump is generally reserved for equipment that heats for beneficial purposes, rather than that which removes heat for cooling only. Dual-mode heat pumps alternately provide heating or cooling. Heat reclaim heat pumps provide heating only, or simultaneous heating and cooling. An applied heat pump requires competent field engineering for the specific application, in contrast to the use of a manufacturer-designed unitary product. Applied heat pumps include built-up heat pumps (field- or custom-assembled from components) and industrial process heat pumps. Most modern heat pumps use a vapor compression (modified Rankine) cycle or absorption cycle. Any of the other refrigeration cycles discussed in Chapter 2 of the 2021 ASHRAE Handbook -- Fundamentals are also suitable. Although most heat pump compressors are powered by electric motors, limited use is also made of engine and turbine drives. Applied heat pumps are most commonly used for heating and cooling buildings, but they are gaining popularity for efficient domestic and service water heating, pool heating, and industrial process heating. TERMINOLOGY APPLIED HEAT PUMP SYSTEMS Heat Pump Cycles Heat Sources and Sinks Types of Heat Pumps Heat Pump Components Industrial Process Heat Pumps APPLIED HEAT RECOVERY SYSTEMS Waste Heat Recovery Water-Loop Heat Pump Systems Balanced Heat Recovery Systems Heat Pumps in District Heating and Cooling Systems