Trades & Services : M&E News

Journey Energy Solutions reduces Rygor’s carbon impact by 980 tonnes

Lighting technology upgrade across eight van and truck retail showrooms, using a variety of the latest LED solutions. Operational costs reduced by more than £95,000 over 12 months Carbon reduction of 980 tonnes over the term of the contract Significant positive impact on employee wellbeing Eight commercial retail sites operated

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Chubb’s New Evacuation System Sets Standard for Performance and Compliance

Chubb, a leading global provider of fire safety, security and monitoring solutions and services, today launched a High-Rise Evacuation Alert System to assist the UK’s Fire and Rescue Services in safely evacuating residential buildings over 18 metres. Responding to the new Code of Practice recommendations outlined within British Standard (BS)

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Influential electrical body SELECT welcomes 8 industry organisations into the fold as founder members of new Associate Membership scheme

Influential electrical body SELECT has launched a new Associate Membership scheme that will give manufacturers and service providers the chance to become part of Scotland’s largest construction trade association. Eight leading industry organisations have already signed up as founder members of the new scheme rolled out by the campaigning trade

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Legrand Signs BEAMA Climate Commitment

Legrand Signs BEAMA Climate Commitment

As part of its ongoing support for the decarbonisation of the electrical industry, Legrand has signed BEAMA’s Climate Commitment to industrial decarbonisation and sustainable product development across the whole electrical industry. The commitment has been made to support electrical industry professionals faced with the challenge of implementing energy efficient and sustainable solutions

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Heat Pump Supplier Welcomes Strict CO2 Emission Cuts for New Homes

Heat Pump Supplier Welcomes Strict CO2 Emissions Cuts for New Homes

New commitments to reduce CO2 emissions from homes by up to 30 percent over current standards has been welcomed by the UK’s leading supplier of ground source heat pumps, and UK-based manufacturer, Kensa Heat Pumps. Coinciding with the manufacture of it’s 10,000th heat pump, the Cornish-based company calls for the

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Chubb Collaborates with Airbox Systems to Integrate Situational Awareness Tools with Security Solutions

Chubb, a leading global provider of fire safety, security and monitoring solutions and services, today announced a collaboration with Airbox Systems, a provider of asset tracking solutions for frontline professionals, to integrate situational awareness tools with Chubb’s security solutions. The collaboration provides CCTV and access control solutions that orientate users

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Heat Pumps – Pros and Cons

Heat pumps have been very much in the news recently. Interest in them began to increase when it was announced that from 2025 gas boilers could no longer be installed in new homes. Then more recently gas prices soared, and the government announced that there would be grants available for

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Latest Issue
Issue 326 : Mar 2025

Trades : M&E News

Journey Energy Solutions reduces Rygor’s carbon impact by 980 tonnes

Lighting technology upgrade across eight van and truck retail showrooms, using a variety of the latest LED solutions. Operational costs reduced by more than £95,000 over 12 months Carbon reduction of 980 tonnes over the term of the contract Significant positive impact on employee wellbeing Eight commercial retail sites operated by UK Mercedes-Benz dealership Rygor have been equipped with the latest LED lighting systems courtesy of a comprehensive upgrade initiative implemented by Journey Energy Solutions (Journey). Established to help organisations get closer to Net Zero emissions without the burden of up-front capital outlay, Journey designs, installs and maintains carefully tailored, energy-efficient LED lighting systems. The starting point for the recent project was the realisation by the auto dealership that the existing lighting needed to be upgraded in order to reduce operational costs and carbon emissions. The lighting at three sites in particular – Heathrow, Swindon and Westbury – was also increasingly unfit for purpose and subject to frequent costly replacements. But during the course of conversations with the specialist energy solutions company that provided the upgrade, the scope of the scheme was expanded to include eight van and truck retail showrooms: the three aforementioned sites as well as Chilcompton, Kidderminster, Newbury, Nuneaton and Oxford. In terms of choosing a partner to implement the lighting upgrade and provide support post-installation, there were multiple key factors that worked in the favour of Journey. These included the ability to start work immediately, maintain a seamless transition between each site, and work in such a way that any operational disruption was kept to a minimum. For example, to avoid negative impact during installation in the active workshop service areas, advanced notice was given to each service manager so they could schedule work on particular days – ensuring that any possible conflicts were avoided. The outcomes The upgrade programme took three months with each of Rygor’s sites now featuring a complementary blend of the latest LED lighting products. As well as carrying out all the design and installation work, Journey has also been contracted for six years to provide ongoing service and maintenance support – giving further reassurance to the Rygor team and allowing the dealer’s internal technical resources to be directed elsewhere. Whilst the figure could rise further due to a greatly reduced need for replacements and associated maintenance, it is already predicted that Rygor will benefit from an impressive reduction in its carbon emissions of 980 tonnes and an energy cost saving of £648,514 over the term of the contract. This would be a huge step forward for any business at any time, but in the midst of an unpredictable economic cycle and with climate change concerns escalating, it has a truly transformative potential. In addition to the energy savings, the improved quality of the lighting – especially in the most badly affected areas at the sites deemed most urgently in need of an upgrade – has been widely commented upon by employees and visitors. In particular, feedback from personnel who have been employed in the company’s workshops for many years has been very strong, with many pinpointing the much more sympathetic and consistent nature of the lighting. The testimonials   In reflecting on the project, Rygor praises the “excellent” nature of the Journey installation teams and the entire experience of collaborating with the company before, during and after the upgrade. Stuart Gemmell, Rygor Group Facilities and Health & Safety Manager, commented: “Our ageing lighting systems didn’t provide the quality of lighting that we required, in particular our workshops were quite gloomy,” he says. “The upgrades have transformed our working environments, making it easier for staff to operate efficiently. The staff are certainly benefiting and the feedback they have provided us with has been extremely positive.” The operational and carbon savings being achieved by the project have impressed the Rygor team on their journey to Net Zero. He added: “It almost goes without saying that we are also delighted with the massive contribution that the new lighting will make to our carbon emissions reduction strategy. In fact, it’s going to be a major milestone on our way to becoming a Net Zero business.” The on-going support offered by Journey will also be beneficial to the business. He finished: “The other really positive aspect is that the partnership is very much ongoing because Journey will be providing long-term support and maintenance. And of course, that means valuable extra peace of mind as we move forward.” To help motor dealers on the path to energy savings and carbon reduction, Journey has launched a free, downloadable guide – ‘The Journey to Net Zero – How to cut costs, save energy and deliver decarbonisation: a guide for motor dealers’. To download the free guide, click here.

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Chubb’s New Evacuation System Sets Standard for Performance and Compliance

Chubb, a leading global provider of fire safety, security and monitoring solutions and services, today launched a High-Rise Evacuation Alert System to assist the UK’s Fire and Rescue Services in safely evacuating residential buildings over 18 metres. Responding to the new Code of Practice recommendations outlined within British Standard (BS) 8629:2019, the High-Rise Evacuation Alert System will facilitate the immediate evacuation of any floor within a building to securely phase the evacuation process and provide the highest levels of tenant and asset protection. The system’s operating panel is housed within a tamper-proof enclosure that features an STS 205 BR2 security rating and can only be opened by a patented key and lock mechanism conforming to BS EN 1303. The easy-to-use toggles enable Fire and Rescue Services to instantly activate alarm sounders, whilst the LED indicators provide a clear overview of evacuation zone status to support quick and straightforward implementation of evacuation strategies. Suitable for both new build and retrofit applications, the system’s hybrid network capabilities offer building owners the flexibility to tailor the system to meet their specific requirements and the system can be continuously upgraded and extended to meet future legislative updates. The flexible nature of the system also provides building owners with the ability to wirelessly interlink each individual alarm sounder and visual alarm device to the hardwired evacuation alert control and indicating equipment panel. “For over 200 years, Chubb has been committed to making our customers world a safer place. The launch of our new High-Rise Evacuation Alert System is a reflection of this dedication, providing building owners with the highest possible standards of protection and performance,” said David Foord, Fire Sales Director, Chubb: “We understand the importance of ensuring the successful and safe evacuation of tenants in the event of a fire, which is why our latest system has been designed in accordance with BS 8629:2019, to provide complete peace of mind.” Supporting the installation and reporting stages, Chubb also provides proof of testing upon handover, in addition to regular testing in accordance with complete compliance. Featuring technology recommended within BS 8629:2019, the High-Rise Evacuation Alert System is also supported by Chubb’s nationwide network of dedicated engineering and support teams that provide building owners with industry-leading advice, knowledge, and service. To find out more, visit https://www.chubbfiresecurity.com/en/uk/products/fire/evacuation/evacuation-alert-system/

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Influential electrical body SELECT welcomes 8 industry organisations into the fold as founder members of new Associate Membership scheme

Influential electrical body SELECT has launched a new Associate Membership scheme that will give manufacturers and service providers the chance to become part of Scotland’s largest construction trade association. Eight leading industry organisations have already signed up as founder members of the new scheme rolled out by the campaigning trade body for the electrical sector in Scotland. As well as offering Associate Members a wide range of benefits, the initiative will also allow them to build beneficial relationships with SELECT’s 1,260 member businesses, who between them have an annual turnover of around £1 billion. Iain Mason, Director of Membership & Communications at SELECT, said: “Associate Member schemes are frequently used by modern trade associations to help develop a mutually complementary network of industry-specific partners. “Designed to accommodate organisations who don’t meet the usual criteria of membership, our new scheme will give some of the industry’s biggest names the opportunity to ally themselves with an established and successful trade body. “At the same time it will allows us trade to build stronger relationships with organisations that can offer relevant and useful services to our members.” The eight founding members of the new SELECT scheme are: Aico – European market leader in home life safety Flexel – manufacturer of innovative electric heating systems and accessories Linian – innovative UK manufacturer of cable-fixing products Luceco Group – global manufacturer and distributor of high-quality electrical products Megger – industry leader in electrical test and measurement simPRO – leading job management software solution for service, project and maintenance contractors Tala Training – leading provider of health and safety training and consultancy services Thorn Lighting – internationally leading supplier of integral lighting solutions. Mr Mason said: “The response to our new category of membership has been extremely positive, with these leading enterprises enthusiastically signing up well before the official launch. “We are delighted that so many well-respected industry names have already joined us and we look forward to welcoming many more in the weeks and months to come.” The scheme, which was formally launched on January 1, is open to service providers, manufacturers and any other commercial organisations related to the electrical industry. They do not have to be UK-based and may have a European or international remit. Among the benefits are a prominent logo and biography on a dedicated section of the SELECT website, networking and promotional opportunities, the chance to host webinars and events and the ability to promote goods and services via a wide range of member communications.  Associate Members will also be eligible for preferential discounts on advertising, sponsorship and events, including the association’s popular Toolbox Talk roadshows, which are due to tour Scotland in May and June after a two-year absence. Mr Mason added: “SELECT has always been a strong advocate of collaboration and cooperation within the construction sector and we believe this new initiative will allow members and Associate Members alike to enhance and expand their networks to everyone’s benefit.” Founded in 1900, SELECT was first trade association in the world to serve the electrical industry and is today regarded as an exemplar in the construction sector, especially in the fields of training, technical skills and communications. It delivers a wide range of services to around 18,500 professionals and apprentices, trains more than 3,500 electricians each year, and is committed to regulation of the electrical industry for a safer Scotland.

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Rising cost of materials will be the biggest challenge in 2022, say UK electricians

Other key challenges include getting hold of materials and struggling to recruit staff A fifth (20%) of UK electricians think 2022 will be a better year than 2021 for their companies   Almost one in five (19%) electrical companies are looking to hire new staff in 2022 The rising cost of materials will be the most significant challenge facing UK electricians in 2022, according to a new report assessing the confidence of the industry. The study, conducted by ElectricalDirect, specialist retailer of electrical products, surveyed electricians about their views on the year ahead and found that, while some are quietly optimistic, they are well aware of the upcoming difficulties. Overall, a fifth (20%) of UK electricians think 2022 will be a better year for their companies than 2021, and one in seven (14%) believe the industry will grow stronger over the coming months. In fact, almost one in five (19%) electrical workers believe their company will have fully recovered from the pandemic by this time next year, and the same number (19%) are looking to expand and hire new staff. Furthermore, more than one in six (18%) electricians think they’ll be in a stronger financial position in 2022, with more work (18%) and better job security (21%). However, some electricians are naturally more cautious about the next 12 months. Almost a quarter (22%) think their company will find business tough in 2022 and one in seven (14%) think the industry will struggle. All the respondents acknowledged that there will inevitably be challenges, and the rising cost of materials is the number one concern (23%). Simply getting hold of materials is also a worry (22%), as is the ability to recruit people to fill job vacancies (22%). Interestingly, the main challenges vary slightly by generation. Recruitment (24%) is the biggest cause of apprehension amongst millennials (25-34s), while for 35–44-year-olds, the rising cost of materials (22%) tops the list. For 45-54s, getting hold of tools and equipment (24%) is the major stressor. Dominick Sandford, Managing Director at ElectricalDirect, said: “It’s been an incredibly difficult couple of years for both the country and the electrical industry, and while there is still a long way to go before a full recovery can be expected, it’s encouraging to see that some electricians are feeling positive as we approach 2022. “However, it’s clear that for many, the next 12 months will involve challenges of all shapes and sizes, and we hope that electricians are able to ride out the storm until the landscape finally stabilises.” For more information about the report, including data breakdowns by age, gender and region, visit: https://www.electricaldirect.co.uk/blog/a-bright-future

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Legrand Signs BEAMA Climate Commitment

Legrand Signs BEAMA Climate Commitment

As part of its ongoing support for the decarbonisation of the electrical industry, Legrand has signed BEAMA’s Climate Commitment to industrial decarbonisation and sustainable product development across the whole electrical industry. The commitment has been made to support electrical industry professionals faced with the challenge of implementing energy efficient and sustainable solutions in buildings to meet Government targets for net zero emissions by 2050. Crucial to helping contractors and consultants deliver more sustainable buildings, signing this commitment is part of Legrand’s wider aim to drive sustainability across the UK’s electrical installations, as its CEO Pascal Stutz, explains: “As a leading manufacturer of electrical equipment across an entire breadth of buildings, it is our responsibility to support professionals with energy efficient products and expertise across all sectors of construction to achieve sustainability targets. This forms part of our wider mission of improving lives by transforming the spaces where people live, work and meet. “In signing this agreement, we want to show contractors and consultants that we are with them every step of this journey and are a trusted partner when it comes to decarbonising and futureproofing their projects.” Beyond providing the electrical solutions and experts who can help specify and implement technologies, Legrand is also transforming its own operations to be more sustainable. For example, the company upgraded its Consett manufacturing facility using its own energy saving lighting control innovations in conjunction with solar panels to reduce the consumption of operations. Pascal adds: “The work at Consett represents just part of our commitment to creating a more sustainable electrical industry. Not only are we demonstrating how our own technologies can help in the energy efficiency challenge, but we are also creating environments that promote wellbeing for our own people. “Our mission is to improve lives, not only of clients and their end users, but of our own teams of experts who are key in helping customers integrate solutions in their projects. We want our people and the wider industry to be proud to work with us, and signing the BEAMA Commitment is just part of us showing how we can drive this progress forward.”

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Heat Pump Supplier Welcomes Strict CO2 Emission Cuts for New Homes

Heat Pump Supplier Welcomes Strict CO2 Emissions Cuts for New Homes

New commitments to reduce CO2 emissions from homes by up to 30 percent over current standards has been welcomed by the UK’s leading supplier of ground source heat pumps, and UK-based manufacturer, Kensa Heat Pumps. Coinciding with the manufacture of it’s 10,000th heat pump, the Cornish-based company calls for the revised Building Regulations standards for new build homes, due to be brought in from June 2022, to be a catalyst for flexibility to be viewed as a key factor when assessing renewable energy solutions rather than efficiency alone, and hopes for Standard Assessment Procedure (SAP) ratings to reflect this following the Part L and F revisions to the regulations. “We welcome the launch of the latest Part L standards which will encourage more housebuilders to consider low carbon heating choices. We remain convinced that our solution – small ground source heat pumps in each dwelling, linked to a communal ground array – provides the best outcomes for the house builder, house purchaser, environment, and electricity system especially as our ‘split ownership’ model divorces the cost of the ground array from the housebuilder,” explains Simon Lomax, CEO of the Kensa Group. “To support deployment, it is vital that SAP can accurately assess the performance of emerging system architectures and technologies. Many ground arrays can utilise waste heat to bolster the source temperature to improve efficiency and reduce running costs and carbon emissions. This advantage must be reflected in SAP. Equally, the most appealing solutions, for house builders and house owners, will be heat pumps integrated with heat batteries to maximise the ability of the heat pump to operate when electricity is both low cost and low carbon. Pure efficiency is no longer the key metric: flexibility is more important to deliver the best outcomes for all stakeholders.” Kensa’s ‘split ownership’ model is currently being demonstrated through an ERDF funded scheme in Cornwall called Heat The Streets, featuring street-by-street ground source heat pump deployment delivered by Kensa Utilities. Kensa Utilities, and other entities, will fund, own and maintain the underground infrastructure in return for a small standing charge levied on each connected property. Simon continues, “the superior efficiency, flexibility, reliability, and durability of a ground source heat pump will ensure total running costs and ownership costs fall below those of an air source heat pump.” Kensa’s Green Streets augmented reality experience, premiered at COP26 and modelled on the real ‘Green Street’ in Glasgow, demonstrates how a 30% reduction in carbon emissions in new builds along with the decarbonisation of heat in existing homes and business can be achieved, and the flexibility the technology brings to the electricity grid, whilst lowering environmental and societal costs.

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UKs leading heat pump supplier welcomes strict CO2 emission cuts for new homes in revised Building Regulations

But flexibility of the renewable heat solution is key, not just efficiency, says Kensa Heat Pumps New commitments to reduce CO2 emissions from homes by up to 30 percent over current standards has been welcomed by the UK’s leading supplier of ground source heat pumps, and UK-based manufacturer, Kensa Heat Pumps. Coinciding with the manufacture of it’s 10,000th heat pump, the Cornish-based company calls for the revised Building Regulations standards for newbuild homes, due to be brought in from June 2022, to be a catalyst for flexibility to be viewed as a key factor when assessing renewable energy solutions rather than efficiency alone, and hopes for Standard Assessment Procedure (SAP) ratings to reflect this following the Part L and F revisions to the regulations. Simon Lomax, CEO of the Kensa Group explains: “We welcome the launch of the latest Part L standards which will encourage more housebuilders to consider low carbon heating choices.  We remain convinced that our solution – small ground source heat pumps in each dwelling, linked to a communal ground array – provides the best outcomes for the house builder, house purchaser, environment, and electricity system especially as our ‘split ownership’ model divorces the cost of the ground array from the housebuilder.  To support deployment, it is vital that SAP can accurately assess the performance of emerging system architectures and technologies.  Many ground arrays can utilise waste heat to bolster the source temperature to improve efficiency and reduce running costs and carbon emissions.  This advantage must be reflected in SAP. Equally, the most appealing solutions, for house builders and house owners, will be heat pumps integrated with heat batteries to maximise the ability of the heat pump to operate when electricity is both low cost and low carbon.  Pure efficiency is no longer the key metric: flexibility is more important to deliver the best outcomes for all stakeholders.” Kensa’s ‘split ownership’ model is currently being demonstrated through an ERDF funded scheme in Cornwall called Heat The Streets, featuring street-by-street ground source heat pump deployment delivered by Kensa Utilities. Kensa Utilities, and other entities, will fund, own and maintain the underground infrastructure in return for a small standing charge levied on each connected property.  Simon says, “the superior efficiency, flexibility, reliability, and durability of a ground source heat pump will ensure total running costs and ownership costs fall below those of an air source heat pump.” Kensa’s Green Streets augmented reality experience, premiered at COP26 and modelled on the real ‘Green Street’ in Glasgow, demonstrates how a 30% reduction in carbon emissions in new builds along with the decarbonisation of heat in existing homes and business can be achieved, and the flexibility the technology brings to the electricity grid, whilst lowering environmental and societal costs. Visit Green Street here.

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Chubb Collaborates with Airbox Systems to Integrate Situational Awareness Tools with Security Solutions

Chubb, a leading global provider of fire safety, security and monitoring solutions and services, today announced a collaboration with Airbox Systems, a provider of asset tracking solutions for frontline professionals, to integrate situational awareness tools with Chubb’s security solutions. The collaboration provides CCTV and access control solutions that orientate users to real-time situations, informing decisions at all levels to frontline personnel in the field. Chubb is a part of Carrier Global Corporation (NYSE: CARR), the leading global provider of healthy, safe, sustainable and intelligent building and cold chain solutions. The collaboration integrates Chubb’s access management system, ADACS, with Airbox’s command and control software to create a real-time situational awareness system. This technology provides a live CCTV feed via a secured network, directly to frontline field professionals including military, law enforcement, special forces, fire and emergency services who support air and ground operations.  “Working with Airbox allows Chubb to further strengthen its security offering as Airbox seamlessly interfaces with Chubb’s extensive CCTV network, offering an unrivalled asset management capability,” said David Dunnagan, Managing Director, Chubb Systems, Chubb. ADACS is a specialist solution developed by Chubb’s in-house team that can safeguard security at the highest-risk sites. Its powerful and sophisticated information management system collates data and security information from multiple channels, and easily integrates with an organisation’s intruder detection, access control, CCTV monitoring and digital video recording technologies. “This collaboration with Chubb allows Airbox to make a positive impact on operative safety, and we are excited to work together to deliver cutting-edge situational awareness technology to our mutual customers,” said William Moore, CEO of Airbox Systems. Chubb has over 50 years of experience helping to secure the buildings, assets, facilities, systems, software, data and networks that are needed to keep the UK running. To learn more about Chubb’s collaboration with Airbox Systems please visit https://www.chubbfiresecurity.com/en/uk/systems/our-solutions/software-solutions/airbox.html.

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Heat Pumps – Pros and Cons

Heat pumps have been very much in the news recently. Interest in them began to increase when it was announced that from 2025 gas boilers could no longer be installed in new homes. Then more recently gas prices soared, and the government announced that there would be grants available for homeowners to purchase heat pumps. So, what is the deal with heat pumps? Heat pumps are by no means new. I was first introduced to heat pumps 30 years ago while visiting a community of sustainable housing. As a carbon reduction engineer, I have been recommending heat pumps for a very long time. This is because they can offer a low carbon solution to providing warmth, and with appropriate consideration can offer a versatile solution. Many places have already fitted heat pumps – they can be found in homes and on libraries, they are heating schools and even the most forward thinking of factory buildings. Yet to many there is still mystery surrounding them. There can be a misconception that heat pumps can only be fitted where there is enough land space to dig down into and fit a ground source heat pump, or to new builds. But there are three main types of heat pump – air to air, water source and geothermal or ground heat pumps, giving a range of application. Air source heat pumps are suitable for a wider range of buildings. They can be fitted to any building, either new build or existing. Air pump ones, for example, are suitable even for older buildings with no garden and examples of these can be found on Victorian terraces in London. Air pumps can have disadvantages though. One concern is noise, especially given the domestic setting, as the pump is fitted on the outside of the house, and so near neighbouring homes. Imagine one fitted in your street. Then imagine every house in the row having one. And if they are not well maintained they are noisier. In addition, homes they are fitted to will need more insulation, and ideally under floor heating. Heat pumps are also more expensive – relative to a new gas boiler they cost about £4,000 more. This disadvantage might be addressed by the recently announced government grants offering £5,000 to buy a heat pump. But the funding available will not meet the full cost of buying and installing a heat pump. It is likely that homeowners will need to find around £2,500 to install a funded heat pump. The funding pot will amount to around 90,000 grants – so the remaining hundreds of thousands of homes will not be able to benefit. As non-domestic heating incentives closed a while back the funding would be for homes only, not businesses, though there is the possibility it could be used for owners’ accommodation, or a home that is yet to be converted into a BnB. Even so, with rising costs for gas, and a need for solutions to carbon emission, and so the climate crisis, they may work out cheaper than the alternative of leaving global warming unchecked. Dr Torill Bigg, Chief Carbon Reduction Engineer, Tunley Engineering www.tunley-engineering.com

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Market leader Daikin invests to respond to growth acceleration in European heat pump category (+20% CAGR)

“Ambitious investments in production capacity and R&D will allow Daikin Europe to expand market and product leadership,” says Patrick Crombez of Daikin Europe. Market leader Daikin Europe sees an inflection point in the European hydronic heat pump market, with growth rates anticipated to increase from 10% CAGR to 20% CAGR. This will lead to annual heat pump installations of 4 million heat pumps by 2030, up from 1 million in 2021. Daikin Europe is responding by investing in production and innovation capacity, warehousing and logistics and increased training for installers and service technicians across the EMEA region. Patrick Crombez, General Manager Heating and Renewables at Daikin comments, “Switching our heating systems to heat pumps represents a historical transformation to low-carbon heating, with benefits for climate change but also healthier living environments. We are proud to lead this transformation in Europe.” Daikin Europe’s business unit ‘Heating & Renewables’ is growing fast and – as the European market leader in this category – is outperforming the European heat pump category growth. “For us 2021 has been a turning point for heat pumps”, says Patrick Crombez. “Consumers and policy makers have never been more eager to decarbonize heating systems.“ Over the past decade, the European market for heat pumps has grown at a strong pace, with an annual growth rate of 10% (CAGR) from 2011 to 2020, resulting in the expected installation of 1 million heat pumps in 2021. In the coming years, Daikin – in line with other industry experts – anticipates a sharp acceleration in heat pump adoption. By 2030, it expects 4 million heat pumps will be installed each year, representing an annual growth rate (CAGR) of 20%. At that point, 1 out of 3 heating systems installed will be a heat pump, up from 1 out of 10 in 2020. While this represents steep growth compared to recent years, Daikin Europe considers this the minimum to ensure a move to a decarbonized residential heating market in Europe. Patrick Crombez: ”From all available data, it is clear that heat pump adoption is hitting an inflection point this year and the already robust growth of the category will only accelerate.” A key driver for heat pump growth has been the introduction of legislation governing new builds in many European countries, ranging from general regulations in France such as RT2012 (which sets a new minimum standard for thermal insulation of dwellings), to a ban on combustion boilers in the Netherlands. Additionally, incentives in France, Germany and Italy have successfully increased the appeal of heat pumps in the replacement- and renovation market. At the same time, heat pump technology has evolved to make heat pumps an attractive option: the arrival of ‘high temperature’ heat pumps means existing fossil fuel boilers can be replaced without the need to update or modify existing radiators. Daikin Europe invests in production capacity, innovation In the coming years market leader Daikin intends to more than triple its European heating production and expects their heating business to become one of the key pillars of Daikin’s revenue by 2025. Today, 5 of 14 Daikin’s EMEA factories are dedicated to heat pump production. All Daikin heat pumps sold in Europe are developed and produced in Europe, with main Daikin factories in Germany, Belgium and the Czech Republic. A recently announced investment plan for the next 5 years includes a sizable investment in the heat pump category. Patrick Crombez, Daikin Europe notes, ”Without offering a detailed breakdown of our investments, a substantial part of Daikin EMEA’s planned 840 million EUR investment over the next 5 years will be allocated to heat pumps. This will allow us to expand our European market leadership in heat pumps.” Part of the investment aims to expand production capacity to keep up with demand. Another area of investment is the planned construction of a cutting-edge development complex ‘European Development Center (EDC)’ in Ghent, Belgium, allowing Daikin to strengthen its leadership in innovation and to allow a faster and wider development of heat pumps. The EDC complex represents an investment of €140M, will offer 380 jobs locally and will also function as the Daikin global centre for heating product development. Daikin Europe expands European warehousing, training and deliveries to support transition to decarbonized heating In 2021, production of Daikin Europe heat pumps will amount to 1.5 million units (covering residential, commercial and industrial hydronic heat pumps produced within the EU).  It currently handles some 71,000 deliveries per day from its 30 warehouses all over Europe, and it is ready to scale this to meet demand.  Patrick Crombez comments, “In the next few years, we will increase our number of warehouses to allow us to reduce delivery distance to our customers. Our integrated stock and warehouse management approach allows us to move stock faster, offer better service and lower logistics costs.”  Finally, Daikin Europe offers support and training to installers in 54 training centers across Europe. Training ranges from starter courses on installation of heat pumps and direct expansion technology, to advanced troubleshooting courses and service controls on new products.  Patrick Crombez says, “Despite the difficult conditions due to COVID-19, we are proud to report that the number of trainees – both online and in real life – doubled in 2020. Our investments strengthen our existing production and distribution network and allow us to look forward to the next decade with confidence and excitement.”  Supporting “a historical transition” The investments and growth plans of Daikin Europe Heating and Renewables fit into its vision of decarbonizing residential heating throughout Europe. As fossil fuel-based residential heating is a major contributor to greenhouse gas emissions, this transformation will allow Europe to achieve its ambitious emissions reduction targets for 2030. Patrick Crombez states, “The coming years will be pivotal in decarbonizing the heating of residential and commercial buildings. It’s a truly historical transition that will contribute to a stable climate, safer and healthier homes, and more affordable energy bills. We are proud and we could not be more excited to take the

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