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Market Presence Grows with Environmental Concerns.

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Presentation on theme: "Market Presence Grows with Environmental Concerns."— Presentation transcript:

1 Market Presence Grows with Environmental Concerns

2 2 Itomic Corporate Profile Founded in 1948, Itomic is a leading manufacturer of electric water heaters for business use in Japan. IKS, a subsidiary of Itomic in Kyoto, along with Tokyo Electric Power Company (TEPCO), have co-developed Eco-cute. The product was put into the Japanese market in 2002, and so far over 1300 units have been sold since then. 1 Company profile

3 3 What is Eco-cute? 2 Heat pump water heaters which make hot water with the heat generated from pressured air, with the following conditions; are officially called CO2 Heat Pump Water Heater, or ECO-CUTE as commercial name. 1 Using CO2, not HFCs 2 COP is more than 3.0 (COP:Coefficient of Performance)

4 4 What is Heat Pump? 2 By using CO2 as refrigerant, Eco-cute has realized 300% energy consumption performance. Notable is that it heats up water as hot as 90 even in the ambient temperature at around Electricity 3 Heat from the Air 4 HW Supply Energy What is Eco-cute?

5 5 Effect caused by various refrigerants on the environment Refrigerant 2 What is Eco-cute?

6 6 Refrigerant 2 Real volume of HFC emission ×3,100 Approximately 1kg of HFC gas is filled in one air conditioner. This is equivalent to 3,100 swimming pools of 25m, when converting to volume of CO2. Appliances using CFC/HFC/HCFC refrigerants Proper collection of those gases is required to prevent global warming HFCs equivalent to 56 ton of CO2 (GHG) are used What is Eco-cute?

7 7 Refrigerant 2 Compared with Eco-cute, other combustion type water heaters show 2.5 times more CO2 emission, which undoubtedly puts considerable stress on the Environment. HFC water heater contributes to the emission of CO2 either from leakage or in the process of treating it at high temperature. CO2 emission comparison with other energy sources CO2 emission basic unit Power 0,378 kg-CO2/kWh) Natural gas 2,36 kg-CO2/N unit kg What is Eco-cute?

8 8 Refrigerant 2 Advantage for choosing CO2 as the refrigerant Characteristics of R410A,HFC 1 Heat exchange temperature is at about 65 2 Compression ratio of 5.3 results in poor operational efficiency. Characteristics of CO2 1 It enables smooth heat exchange for the absence of ts*. 2 Compression ratio of 3.5 brings out better operation efficiency. *ts denotes temperature saturation What is Eco-cute?

9 9 Characteristics of CO2 1 It enables smooth heat exchange for the absence of ts*. 2 Compression ratio of 3.5 brings out better operation efficiency. Refrigerant 2 *ts denotes temperature saturation What is Eco-cute? Characteristics of R410A,HFC 1 Heat exchange temperature is at about 65 2 Compression ratio of 5.3 results in poor operational efficiency. Advantage for choosing CO2 as the refrigerant

10 10 History Diffusion of Eco-cute in Japan 3 Domestic market growth of Eco-cute Residential Jointly developed with Denso and TEPCO Initially marketed in 2002 Approx.1.7million units have been sold by Japanese makers Commercial use. Industrial Co-developed by IKS (a subsidiary of Itomic) and TEPCO Itomic marketed it in the world as the first of its kind. Approx units sold domestically, of which 1300 are by Itomic.

11 11 Factor Diffusion of Eco-cute in Japan 3 Supports by Government / Extra-governmental organization 1 Set up organizations to promote high-efficient water heaters 2 Established awards like Energy Conservation Award and Thermal storage gathering 3 Conducted events to propagate and teach the public for the product merits. 4 Allocated funds for subsidy (For Eco-cute only) Domestic market growth of Eco-cute

12 12 Factor Diffusion of Eco-cute in Japan 3 1 Successful marketing with a pet name of Eco-cute, used by any manufacturers. 2 Traditionally inefficient industry has turned to be energy saving and ecological. 3 Offer new power contract menus (Commercial thermal storage contract) 4 By drawing in other makers to co-develop the products, a competitive market was induced. 5 Take joint actions with makers to increase sales promotional campaigns. 6 Conducted series of events, such as as workshops, exhibitions, and talk shows. Strong back up from the power companies. Domestic market growth of Eco-cute

13 13 Constituents of Purchasers 4 Constituentes of purchasers of Industrial Eco-cute domestic 50unit Itomic Commercial Eco-cute Reason: Low running cost Fire hazard

14 14 Cost Reduction 4 Example Nursery home Application:Bath rooms / kitchens System: Standard size with 4 units Reason Low running cost, low risk of fire hazard (compared to oil/gas boilers) Note Itomic offered the optimized operation based on one year survey. Over all 40% Cost-down is contributed by reduction of re-heating in daytime and increase for night time operation. Itomic Commercial Eco-cute

15 15 Example Upscale Condominium Application Overall HW System: Standard size with one unit Reason Solution for high running cost of 3 large-sized gas WH for 9 house holds Low risk of fire hazard Note Cut down 51% annual running cost. Cost Reduction 4 Itomic Commercial Eco-cute

16 16 Example Golf Club Application Bathrooms / Kitchens / Washing hands System: Combination Reason Solution for oil price spike which put the management in a crisis Low stress on environment Note Golf clubs in Japan are usually equipped with large sized bath tabs since players enjoy it after hitting the green. To meet varying volume of HW, a combination of storage-type Eco-cute and boilers with instantaneous power has been adopted and proven high efficiency. Cost Reduction 4 Itomic Commercial Eco-cute

17 17 Itomic Commercial Eco-cute 4 Characteristics of Itomic Eco-cute Large volume of HW with CO2(negligible impact on global warming) Down sizing(all piping at back side no side maintenance space needed) COP:4.0

18 18 Variety in Systems of Itomic Eco-cute 4 Itomic Commercial Eco-cute Circulation System Combination System Return pipe is connected to storage tank for warming. Combine the unit with a boiler to make up the supply shortage. Combination w/ a unit for well/natural water This unit prolongs the life of the system unit. Mixture with other water heaters Rotation operation Optimized combination with small water heaters. Even out the HW for several units installation.

19 19 THANK YOU


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