•The compressor efficiency makes CRHP performance condition dependent.•The efficiency is largely dependent on the vapor quality and NH3 concentration.•At lower vapor qualities liquid limits leakages and entropy production.•The locations of the ports are important to minimize losses.•For identical clearances the sealing line losses are the largest losses. Compression-resorption heat pumps (CRHP) utilizing wet compression are a very promising option to upgrade waste heat from industry. CRHPs have the potential to have higher coefficient of performance (COP) than the traditionally used vapour-compression heat pumps (VCHP). However, commercial solutions utilizing wet compression are not available yet. Also, wet compression is a feasible option only if the efficiency of the compressor is sufficiently high, 0.7 or higher, as identified by several authors. In this study, we develop and validate a model of a twin screw compressor that is suitable for wet compression. The model is adapted to calculate the entropy production generation in order to identify where the major irreversibilities are located in the compressor. The effects of clearance size, rotational speed, ammonia concentrations, compressor inlet vapor quality as well as under- and over compression are analysed. The results show that the clearance size and the rotational speed have the largest effects on the entropy production. Additionally, increased ammonia concentration and decreased vapor quality lead to decreased losses. The results indicate that it should be feasible to reach the targeted performance if the clearances size is limited to 50 μm, the rotational speed maintained above 10,000 rpm, the ammonia concentration kept in the range of 30–40 wt.%, and the inlet vapor quality in the range 0.5–0.7.