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Disrupting the European domestic space heating market with the lowest cost, energy-efficient Gas Heat Pump

Project description

Innovative gas heat pump stores energy in salt

Experts deem gas heat pumps to be a promising solution for tackling the carbon emissions associated with providing domestic hot water and keeping buildings warm. However, their high cost and large size have impeded their commercial roll-out so far. The EU-funded GasHeatPumpSaltX project plans to develop an efficient gas heat pump that can compete against condensing gas boilers. The project’s groundbreaking innovation is to use salt as a heat storage medium. The envisioned system is expected to increase energy efficiency by up to 40 % compared to gas boilers, saving households up to EUR 500 per year in natural gas expenses.

Objective

Swedish SaltX, a listed 5m EUR revenue company, has identified a growth opportunity in the 7m units/yr European domestic space heating appliance market to deploy its patent protected storage technology SaltX. Experts forecast fast traction for gas heat pumps (GHP) in this market over the next few years, mainly driven by more stringent regulation for energy efficiency. A Phase I feasibility study by Fraunhofer ISE, the highly respected GHP experts, confirmed that the SaltX’s TRL6 prototype is indeed the most energy efficient and low-cost solution among GHPs: SaltX-GHP will be the only GHP system that can compete with condensing gas boilers for some time, whilst the high cost and bulkiness of competitive GHPs restrict them to premium niche segments.

The final system will increase energy efficiency compared to gas boilers by up to 40%, saving households up to 500 EUR/year in natural gas expenses. The system will be priced at a 15-20% premium to condensing gas boilers, or 750 EUR a unit, at an attractive 1.5 years pay-back.

The efficiency advance is enabled by SaltX’s innovation that uses nano-coated salt + matrix as a heat storage medium – both are protected by patents. SaltX has already licensed this technology in the thermal solar and truck air-conditioning markets, booking early revenues of 5m EUR in 2016.

In this project, SaltX will build and demonstrate a pilot GHP system. SaltX’s efforts to create momentum with OEMs via gas utilities, e.g Gas de France and British Gas, who are keen to promote gas driven innovation, has started to bear fruit. SaltX has now received strong interest from OEMs, such as Vaillant and NIBE, who will receive regular progress updates during Phase II.

Following completion, SaltX will deliver on joint development agreements with OEMs, agreed upon during Phase II, and launch its GHP to a significant portion of the 7m unit a year European gas boiler market, aiming at revenues of 225m EUR by 2024 and total job creation of 30

Keywords

Programme(s)

Topic(s)

Funding Scheme

SME-2 - SME instrument phase 2

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Call for proposal

(opens in new window) H2020-SMEInst-2016-2017

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Coordinator

SALTX TECHNOLOGY AB
Net EU contribution
€ 1 980 212,00
Address
VASTERTORPSVAGEN 135
12944 Hagersten
Sweden
SME
Yes
Region
Östra Sverige Stockholm Stockholms län
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)
Links
Total cost
€ 2 828 875,00