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Air & Ground Source Heat Pumps
Both air and ground source heat pumps evssentially work on similar principles: Both systems expose chemical refridgerant though a coil of copper pipe to either air or ground heat. This energy absorbtion causes the refrigerant to boil. This fluid in then compressed making it hotter. A heat exchanger then transfers that heat to a water median (normally) which is used for space and bathing water systems.
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How an air source heat pump works. A: indoor compartment, B: outdoor compartment, I: insulation, 1: condenser, 2: expansion valve, 3: evaporator, 4: compressor.