Centrotec blows fresh air into energy-efficient homes
31/05/2013 17:57
* Heat-recovery ventilation key for energy-efficient houses * To grow 15-20 pct per year in home ventilation mkt -CEO * Competes with Zehnder, Vaillant, Viessmann By Christoph Steitz FRANKFURT, May 31 (Reuters) - To prevent heat loss and cut energy consumption, modern houses are made airtight like submarines, but people must breathe, and German Centrotec CEVG.DE makes money blowing air into energy-efficient homes. Centrotec Sustainable sells heat recovery ventilation systems for residential and commercial buildings, using heat from stale-air exhausts to warm up incoming fresh air - a process that fits well with German plans to boost energy efficiency technology. Most old homes have natural ventilation, through cracks and ill-fitting door and window frames, but the super-insulated new homes that meet EU energy efficiency requirements need to evacuate stale air without losing the precious heat. Centrotec sees buoyant demand for domestic ventilation systems in Europe, as super-insulated new low-energy houses all need office-style ventilation systems. "There is no alternative. You have to insulate your house to save power and open it up in a smart way to allow fresh air in," Chief Executive Gert-Jan Huisman told Reuters. Heat recovery ventilation systems warm up or cool down fresh air from the outside before pumping it into houses, reducing the need for heating or air conditioning. Air exchange rates can be set to range from once a day - while inhabitants are on holiday - to twice an hour during parties. The system's heat exchanger lets outgoing air release its heat to incoming air without mixing the two flows. Ventilation systems for family homes cost 1,500-2,000 euros, and as much as 7,000 euros if heat recovery is included, depending on the size of the house. In this 830 million euro market, Centrotec competes with groups including Swiss-based Zehnder Group ZEH.S , Finnish Vallox and U.S.-based Carrier, part of United Technologies Group UTX.N . Heat recovery ventilation is part of Centrotec's climate systems unit, which accounted for 392 million euros ($512 million), or nearly three-quarters, of its 2012 sales. The company does not break out sales per division, but Huisman said the firm expected to grow 15-20 percent per year in the next few years in the home ventilation systems market. Germany's plan to update its existing energy infrastructure is expected to not only boost renewable energy sources like solar and wind but also energy efficiency technology that prevents or reduces power consumption. Europe's biggest economy expects investments of more than 300 billion euros to carry out energy-related renovation of the country's private households until 2050. Listed on the stock exchange in 1998, Centrotec earns most of its revenue by selling heating systems, heat pumps and ventilation systems that aim to reduce the energy demand of households. With a market cap of 255 million euros and sales of 534 million euros in 2012, the company is part of Frankfurt's smallcap index .SDAXI and competes with much bigger rivals Bosch ROBG.UL , Vaillant and Viessmann in the area of heating systems. ID:nL5N0E81BX . "There is a long-term trend in the area of energy efficiency. It's been a trend for the last 20 years and it will continue for another 20," Huisman said. ($1 = 0.7660 euros) (Editing by Geert De Clercq and Stephen Nisbet) ((christoph.steitz@thomsonreuters.com)(+49 69 7565 1269)(Reuters Messaging: christoph.steitz.thomsonreuters.com@reuters.net)) Keywords: ENERGY EFFICIENCY/VENTILATION