BG Group plc and Rinnai Corporation of Japan have today announced
a joint project to complete development of MicroGen, an innovative
gas appliance to provide heating and electrical power for the
home from a single unit. Under the agreement, the companies
will invest up to US$40 million in the development of the product
through to launch.
Building on advanced technology pioneered by BG Group in the
UK, the partners expect to market the technology in the UK
in 2003 and worldwide thereafter. Rinnai will be BG Group's
sole manufacturing partner and will provide marketing support
in key target markets.
The expected capital investment over the next two years will
be US$4 million (Yen 500 million) for moulds and tooling; US$14
million (Yen 1,800 million) for facilities; and the remaining
expenditure for product design, development and testing. BG
Group and Rinnai will share this investment on a 50:50 basis.
Sean Sutcliffe, Executive Vice President, BG Group plc, said: "We
are delighted to partner Rinnai. We believe that there is a
large market both in the UK and globally for this type of innovation
and we are moving ahead to take our technology to the next
stage of commercialisation. This agreement highlights the continued
success of BG Group in developing new markets, in growing new
businesses leveraged from core assets, and in building on the
environmental benefits of gas."
Mr. Naito, Chairman of the Rinnai Corporation, said: "We
are proud to be in partnership with BG Group for this innovative
new approach to micro co-generation in the home. It continues
our corporate focus on technologically advanced and environmentally
friendly gas appliances offering convenience, efficiency and
safety for domestic users and will allow us to continue to
expand our business activity on a global basis. We are very
confident of consumer acceptance of the benefits of this new
range of appliance which will appeal to a broad spectrum of
users."
The MicroGen system uses technology that converts the energy
in natural and liquid petroleum (LP) gas supplied to the home
into whole house heating, hot water and electricity. The system
uses energy normally wasted by conventional boilers to drive
the novel Stirling generator, which produces electricity directly
for use in the home.
This new appliance represents an alternative to fuel cell
based micro co-generation systems and has been derived from
the evolution of existing mechanical and electronic technologies.
This means that the product can be produced inexpensively to
provide between 15 kilowatts (kw) and 36kw (50,000 to 120,000
British Thermal Units per hour) of heating capacity plus 1.1kw
of electricity.
Product design will allow either floor or wall installation
and the unit will be marketed to home and small commercial
users, replacing conventional heating, boiler and other hot
water systems. At the same time electrical power will be generated
to reduce electricity costs.
Environmentally, BG Group has calculated that the average
UK home, using this new appliance, could reduce greenhouse
gas emissions by around 1.5 tons per year while substantially
reducing overall energy costs by up to £200 (Yen 40,000)
per year. The system can also maintain the supply of heat and
electrical power in the event of power cuts.
BG Group has launched field trials of the MicroGen system
in UK homes, building on several years extensive laboratory
proving of the technology.
Notes to Editors
BG Group plc is a leading international natural gas company
with interests in some 20 countries worldwide. A FTSE 100 company,
its core operations span exploration & production, transmission & distribution,
liquefied natural gas and power.
Rinnai Corporation, a US$1 billion Japanese company, is a
world leader in design and production of sophisticated gas
appliances and specialises, particularly in, electronic control
of gas combustion.
|