Response to Climate Change
In recent years, growing environmental awareness has led to the spread of highly energy-efficient space and hot water heaters. In Europe in particular, which has a relatively cold climate, space and water heaters account for more than 80% of household energy consumption, thus there is an ongoing shift from conventional combustion-heat source equipment to heat-pump heating that emits less CO2.
Daikin is engaged in the development and promotion of hot water heaters and space heaters using highly energy-efficient heat pump technology while striving o increase comfort and reduce CO2 emissions.
In the heat-pump method used in air conditioners and other products, thermal energy stored in the air or water is extracted and transferred to perform cooling and heating. Compared to carrying out space and water heating using methods in which fossil fuels such as gas, oil, and coal are directly burned, heat-pump systems emit less than half of the CO2.
Daikin is engaged in the development and promotion of hot water heaters and space heaters using energy-efficient heat-pump technology.
The EU has set a target of having renewable energy such as wind and solar power account for 20% of the energy mix by 2020. In January 2009, heat pumps were recognized in the EU as technology that captures renewable energy and heat-pump heaters are being recommended as part of this target. In 2006, Daikin began developing and selling heat-pump-type Daikin Altherma space and hot water heaters in Europe. We have since been expanding the product lineup and we captured the top market share in 2019.
In addition, we are developing hybrid products combining heat pumps and boilers for extremely cold regions in an effort to increase comfort and reduce CO2 emissions.
In addition to these, in fiscal 2014 we began focusing on the development of highly energy-efficient gas-combustion heaters and moving to energy-efficient models that meet user needs. We have been working to spread the use of energy-efficient models through a policy that consists of switching from space heaters with a large environmental impact heat-pump type, switching medium-range products to hybrid models, which automatically change between heat pump or gas combustion, whichever is more efficient, and switching models with a small environmental impact to energy-efficient gas-combustion type.
In April 2018, we became the first company in the world to release models using R-32, a refrigerant with low global warming impact. We are also developing a small-capacity hybrid 4 kW space heater and heat-pump hot water heaters and space heaters that utilize geothermal energy intended for use by major home builders, local municipalities, public power companies and other entities.
Also, we are rolling out a number of products based on the varied climate conditions and market needs of Europe. This includes development of a R-32 high temperature discharge type that can replace oil-fired boilers in existing building markets and a R-32 geothermal heat source type suited to cold regions.
Our Asahikawa Laboratory in Asahikawa, Hokkaido has led efforts to develop new heating and hot-water systems that will offer comfort and energy efficiency for the world's extremely cold regions. We will expand the product lineup for the European heat market, and we will carry out meticulous marketing efforts as we make our heat-pump and gas-combustion-type products more energy efficient and thus contribute to reducing CO2 emissions.
In Europe, we sell the Hybrid Altherma, which automatically switches from heat pump to gas combustion mode when outside temperature drops significantly, thus providing the most efficient and economical heating possible. This product offers a more-than 35% reduction in CO2 emissions compared to gas combustion-type products.
In Japan, water heaters account for 25% of all residential electricity consumption, thus there is a need to switch over to systems with minimal environmental impact to control global warming.
Daikin's heat-pump technology is incorporated into ECOCUTE heat-pump water heaters and Hot Eco-Floor heat-pump hot-water floor heaters. The latest ECOCUTE model reduces annual energy consumption approximately 23% by improving heat transfer performance with a highly efficient water heat exchanger that facilitates agitation in the water pipe shape and an air heat exchanger with a uniquely shaped waffle guide fin.
In fiscal 2018, we released a residential hot water heater that can communicate with a home energy management system (HEMS), which allows users to save energy in the home. This hot water heater promotes the use of renewable energy and promotes the use of excess electricity that is generated from solar power in newly built zero-energy homes (ZEHs).
In this way, new products incorporating the latest technologies have greatly improved energy saving performance compared to past products, but if energy savings can be improved even in existing equipment, energy consumption can be reduced substantially throughout the entire market with the commercialization of replacement heat source units. In recognition of high energy savings and the lower introduction costs and shorter construction time compared to system replacement, Daikin received the Chairman Prize of Energy Conservation Center, Japan (ECCJ) in the Energy Conservation Grand Prize for fiscal 2017.
In Japan, we are marketing space and hot water heaters for the commercial market as well using highly energy efficient heat-pump technology.
In November 2012, we began selling a new model of the commercial heat-pump water heating system (MEGA-Q) for large-scale facilities such as hotels and hospitals, which we first introduced in April 2009. Compared to gas-combustion hot water heaters, this new model releases about 60% fewer CO2 emissions and reduces running cost by about 60%. Facilities like hospitals and golf courses require changing volumes of hot water daily, and Daikin meets this challenge with a hybrid hot water supply system that provides hot water during base periods with MEGA-Q and that switches to boiler operation during peak periods. In addition to commercial applications such as these, in the near future we will come out with products for processes in factories that must respond to environmental requirements.
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