Baxi and British Gas deal for domestic micro-CHP

Baxi Group announce that it has signed a preferred supplier agreement with British Gas to distribute the Baxi Ecogen micro combined heat and power (m-CHP) unit.

Ecogen boiler could make substantial savings on energy bills and could cut CO2 emissions by 20%.

The agreement could generate revenue for the group of up to GBP40m per annum.

The agreement will result in the units being made exclusively available to British Gas customers from the second quarter of 2009.

Baxi's Ecogen boiler, the first commercially available wall-hung micro-CHP in the UK, could make substantial savings on annual energy bills and cut households' CO2 emissions by 20 per cent1.

It is capable of generating 1kWh of electricity, which can be exported back to the National Grid, whilst also providing heating and hot water.

Approximately 1.5 million boilers are replaced each year in Great Britain and it is forecast that residential CHP could take 30 per cent of this market by 20152, providing strong growth potential for the Ecogen.

Baxi Group Chief Executive Martyn Coffey said: "This is a big step forward for Ecogen".

"It is an outstanding micro-CHP product and we are delighted to be working with such a strong partner in British Gas".

"It will provide the platform for Ecogen to become established and prove its worth with domestic customers".

"Baxi Group believes it has developed the most effective technology to date for the residential micro-CHP mass market and this deal puts the supply chain in place to make this long awaited development a present day reality in peoples' homes".

Eddy Collier, Managing Director, British Gas New Heating, said; "This technology challenges the way we heat our homes and the way we generate and distribute electricity".

"The Ecogen unit replaces an existing gas boiler, generates electric power, saves energy costs and reduces carbon emissions".

"We are delighted to work with Baxi to make this technology a great success".

The Ecogen uses a free piston Stirling engine and has been developed by Baxi Group for domestic applications to operate virtually noise and vibration free in a casing that is no bigger than a standard domestic boiler.

Energy and Climate Change Minister Mike O'Brien said: "People who install small scale boilers to generate heat and electricity can reduce their household energy bills and their carbon footprint".

"The deal between British Gas and Baxi means customers installing this kit will benefit from new Government plans to give them money for producing their own energy".

Martyn Coffey commented; "We also see good opportunities in other international markets to roll out the Ecogen technology".

"With recent rises in energy costs and with governments in many countries increasing regulation because of climate change we see strong potential for this product".

Earlier this month the first permanent hydrogen powered house connected to the National Grid was unveiled in the UK, featuring a Baxi Innotech fuel cell unit.

Baxi Group is working with the University of Birmingham and the Black Country Housing Group on the trial.

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