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Sustainability > Key Activities 2013 > Creating a Market for Heat-Pump Heating Systems
Fiscal 2013 Key Activities

Environment: Creating a Market for Heat-Pump Heating Systems. Participating in Smart Communities Project in Greater Manchester, UK, with Heat-Pump Technology

Europe Striving to Reduce Environmental Impact from Heating

In the cold regions of Europe, the majority of heating is done by combustion boilers, in which gas or kerosene is burned and heat is distributed around the building, usually via a heat emitter system such as radiators, to provide heating. But this exerts a large impact on the environment.

European Union (EU) countries have set a goal of reducing CO2 emissions by 20% by 2020 (against 1990 levels) by increasing renewable energy sources from the current 4.1% to 15% of the energy mix. In line with the Climate Change Act, the UK is aiming to reduce CO2 emissions and shift away from gas as North Sea gas reserves dwindle. As one form of renewable energy, it is looking at increasing the penetration rate of heat-pump type heaters to 30% by 2030. Heat-pump systems exert far less environmental impact than conventional combustion-type systems.

 

Heat Pump Penetration Rate in the UK

Heat Pump Penetration Rate in the UK

Source: HHIC PATHWAYS FOR DOMESTIC HEAT

Developing Technologies That Will Help Spread the Use of Heat-Pump Space and Hot Water Heaters

In heat-pump technology, heat is drawn from the air for air conditioning or heating. It produces less than half the CO2 compared to combustion-type methods. In 2006, Daikin released the Daikin Altherma air-to-water heat-pump space and hot water heater. To help heat-pump products make further inroads into the market, we are taking part in the Smart Communities Project in Greater Manchester, UK and developing new products suitable for extremely cold regions.

Heat Pump Mechanism

Solar energy stored in the outside air is extracted using a heat pump and used for heating air and water

Heat Pump Mechanism

Daikin Altherma Air-to-Water Heat-Pump for Space Heating and Hot Water

System using heat generated by heat-pump technology to provide underfloor or radiator heating

Daikin Altherma Air-to-Water Heat-Pump for Space Heating and Hot Water

Daikin in Smart Communities Project Incorporates Heat-Pump Type Space and Hot Water Heaters

Daikin was selected, along with Hitachi, Ltd., and Mizuho Bank, Ltd., by Japan’s New Energy Development Organization (NEDO) to execute NEDO’s Smart Communities Project in Greater Manchester, UK.

Under this demonstration project, which runs for three years until March 2017, about 600 electrical and gas hybrid heat-pumps will be installed in social housing to demonstrate their ability to reduce costs for space and hot water heating. There are worries that a bias in the electrical power supply and supply balance will limit the uptake of heat pumps in the UK. This project will verify the ability of the system to automatically adjust the operating schedule of the heat pumps so that users enjoy constant comfort while electricity costs are reduced during peak demand times. Another aim of the project is to build a business model in which the electricity usage at multiple residences is aggregated and excess electricity sold. This is the first time in the world for a project of this size (600 heat pumps) that demonstrates heat pump aggregation functions and electrical power aggregation functions for trading in the electricity trading markets.

Following this project, NEDO, along with Daikin, Hitachi, Ltd., and Mizuho Bank, Ltd., will come up with a plan to increase the uptake of heat pumps in the UK and will propose measures that the UK’s Department of Energy & Climate Change can implement to realize their objectives.

Smart Communities Project in Greater Manchester, UK

Smart Communities Project in Greater Manchester, UK

Manchester, UK

Developing Products, Like Daikin Altherma Hybrid Heat Pump, to Meet Needs in the World’s Extremely Cold Climates

Users who have become accustomed to combustion-type heating wonder how heat pumps can efficiently heat when the exterior air temperature is extremely low. To alleviate this concern, in Europe in September 2013, Daikin released the Daikin Altherma Hybrid heat pump, a product that automatically switches to gas boiler if exterior air temperature drops dramatically. Depending on factors like the exterior air temperature and gas and electricity costs, the product automatically selects the most efficient and economical method from heat pump, gas boiler, and hybrid. Because heat pump and hybrid are the best operation modes for European climates on average, the Daikin Altherma hybrid heat pump offers a more than 35% increase in heating efficiency compared to using only a boiler.

With the aim of developing a new space and water heating system which offers energy savings and comfort for extremely cold regions around the world, in December 2013 Daikin established the Asahikawa Laboratory in Asahikawa, Hokkaido, a city where winter temperatures drop below -20°C. The facility conducts projects that tie Daikin’s R&D and marketing divisions with the aim of providing world-class next-generation space and water heating solutions.

Daikin Altherma Hybrid Heat Pump

Daikin Altherma Hybrid Heat Pump

Stakeholder's Voice

Smart Communities Project: A Model for All the UK

In 2008, the UK formulated the Climate Change Act, the first law of its kind in the world. Under this act, the target is to reduce greenhouse gas emissions by 80% over 1990 levels by 2050. At the same time, the steep rise in natural gas prices is a problem. As part of a portfolio of measures to address these challenges, the UK government, under its Medium scenario of the UK’s 4th carbon budget, plans to shift to renewable energy and deploy 600,000 domestic heat pumps by 2020, rising to 2.6 million by 2025 and 6.8 million by 2030.

The eyes of the entire UK are on the Smart Communities Project in Greater Manchester. It will facilitate the energy shift that the country must make from natural gas, and it will contribute to fewer carbon emissions through the use of Daikin’s efficient space and water heating products.

Mark Atherton

Mark AthertonDirector of Environment for Greater Manchester Association of Greater Manchester Authorities (AGMA)

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