Japan's Daikin picks Manchester, UK as test bed for green tech

Daikin Industries

06/02/2023 07:00

MANCHESTER, England, Feb 6 (Reuters) - Japanese
industrial company Daikin  6367.T  has signed a deal with the
northern English city of Manchester to deploy heat pumps in some
of its public buildings and act as a test bed for the
technology, the company told Reuters exclusively.
    Daikin - one of the world's largest air conditioning
manufacturers - will provide heat pumps and cooling systems to
public buildings including social housing in the city that will
be monitored and tested remotely. 
    Demand for heat pumps - which rely on electricity to
transfer heat - has been booming in Europe amid soaring natural
gas prices, with consumers in many countries waiting months for
heat pump installations.
    Manchester, one of the birthplaces of the industrial
revolution, plans to become carbon neutral in 2038, 12 years
ahead of the rest of Britain.
    "Daikin's aim is to demonstrate and promote technology to
achieve carbon neutrality that can be deployed ... around the
world," Masatsugu Minaka, chairman of the board of Daikin
Europe, told Reuters.
    "The two parties' intentions were aligned and they
recognised each other as the most suitable partners, leading to
the conclusion of this agreement." 
    Greater Manchester Mayor Andy Burnham said the partnership
with Daikin symbolised the city's industrial ambitions.
    "Obviously with that ambition around 2038, we're a place
that's going to move faster. In doing so that presents
opportunities to organisations like Daikin," Burnham said.
    Installations will take place over the next two years, the
parties said, without giving any further details. 
    Under the agreement, Daikin will also establish a training
programme in Manchester for heating and cooling system skills
that are in short supply in Britain. 
    The deal, financial details of which were not disclosed, is
part of a wider push by the north of England to attract
investment in renewable energy and green tech.
    Liverpool plans to become a global leader in tidal energy,
while the north east already has a large wind energy industry.
    Manchester hopes its universities, known for their strength
in science and engineering, will help spur foreign investment.
    "Having access to that wealth of talent I think is a big
attraction," said Jo Ahmed, a partner at accountants Deloitte
and an honorary consul of Japan in Manchester.
    Heat pumps, sometimes described as reverse air conditioners,
use electricity to concentrate heat potential and are
comparatively more energy efficient than gas boilers.
    Daikin, headquartered in Osaka, last year said it would
build a heat pump factory in Poland as part of its expansion
plans.
 (Reporting by Andy Bruce; Editing by David Holmes)
 ((andy.bruce@thomsonreuters.com; +442075134461; Reuters
Messaging: @brucereuters))