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AUTOMATIC REGULATION OF COMBUSTION PROCESS FOR WOOD STOVES AND FIREPLACES

Periodic Reporting for period 1 - FLORIAN (AUTOMATIC REGULATION OF COMBUSTION PROCESS FOR WOOD STOVES AND FIREPLACES)

Reporting period: 2017-02-01 to 2017-05-31

In 2025, sales of wood log stoves are estimated to reach in Europe 1.4 million units (European average CAGR ~ 3% for the period 2016-2025) resulting to an estimated €2.8 billion market size. If the stock of wood log stoves sets around 30 Mio units in 2025, counting a 1.5% market penetration, our market goal is 450.000 pieces within five years from 2020.
FLORIAN, an intelligent device installed on the flue gas pipe used in wood log stoves which automatically regulates the draft inside it, optimizes the combustion process -21% increased energy efficiency and analogue gas and particle emission reduction-.
The overall objective of FLORIAN project is to speed up the commercialization of the solution at highly competitive price, thus, disrupting the Solid Combustion Installations (SCI) segment.
FLORIAN prototype units have been tested under norm matching the certification criteria of the most exigent labs (TÜV labs), thus demonstrating its innovative technology core. Besides, several risks have been evaluated: major challenges will be related to a) size reduction to make the product more commercially attractive and b) based on the optimized designed (smaller and smarter) keep on within the certification value range (emission, efficiency, etc).
Meanwhile, the commercial assessment shows that FLORIAN will likely achieve the sales target. And this is not only based on its optimal performance, but because its competitive price (4 to 6 times cheaper than comparable solutions).
In addition, the project is highly profitable, (IRR=21%) as shown by the main indicators calculated and ATECH healthy financial structure. Therefore, the conclusion is that ATECH must go ahead with FLORIAN project.
FLORIAN is the best price and technologically robust solution that will generate optimal combustion conditions in wood stoves and ovens. Besides, FLORIAN is going to be beneficial for consumers in multiple ways: 1) Cost efficiency: savings up to -20% on fuel (wood), 2) Best price compared to competing solutions (at least 4 times cheaper), 3) Compliance with regulations regarding reduction in emissions and consumption (TÜV standards), 4) Absolute safety: automatic control & alarming, 5) Maximum user comfort: no overheating, no fast fires, reduces the times of refuelling.
Thus, our project will contribute to reduce emissions while improving the energy efficiency across the European Union.
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