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Energy in the UK, and how we generate and conserve it, is high on the agenda with Government and business leaders debating as to where our energy will come from in the future and how we can use it in smarter ways.
Today, this has been recognised in the launch of the Government’s Clean Growth Strategy which outlines the objectives for the UK to meet its carbon targets. NIBE Energy Systems welcomes the publication and today shares its own policy paper which highlights what it believes is required to drive forward the installation of renewable energy systems and ensure that all homes can accommodate low carbon heating in the future.
The paper focuses on opportunities to deploy heat pumps, initially in the off gas grid market, which is dominated by carbon intensive fuels such as heating oil and coal that the Government aims to transition away from. NIBE welcomes the Government’s committement to phase out these high carbon heating fuels during the 2020s.
“There has never been a better time for the UK to champion heat pumps in domestic applications and to encourage greater market penetration of such heating systems, learning from what our European counterparts have achieved,” said Phil Hurley Managing Director NIBE Energy Systems. “It is our aim to work with the Government to encourage homeowners to replace fossil fuels with renewable heating systems, thereby unlocking the potential for homeowners to make significant contributions in reducing UK carbon emissions.”
NIBE’s paper provides five policy recommendations which support the Clean Growth Strategy:
1. Ensure homes built today are constructed to modern standards which should enable low carbon heating systems to be easily and cost-effectively installed. This is particularly important in off-grid areas.
2. Target off-grid properties with either regulation (mandating a carbon intensity value for the heating system) or by pricing the emission externality to facilitate a shift away from the most carbon intensive fossil fuels.
3. Help tackle the upfront cost barrier by providing some of the domestic RHI subsidy as an upfront payment, or by supporting an oil/coal boiler scrappage scheme.
4. Engage the installer base. Reduce the barriers they face and provide incentives to offer heat pumps as an alternative technology in off-grid areas.
5. Build policy which takes advantage of the flexibility and load shifting services that heat pumps can provide to the National Grid. Enable time of use tariffs so the smart heat pumps can adjust usage based on grid and market signals.
The implementation of a co-ordinated long-term strategy to decarbonise our buildings is needed and the release of the Clean Growth Strategy sets a clear direction of travel towards low carbon heating technologies.
“It is evident that the UK heat pump market is not achieving its full potential and this needs to be addressed as a matter of urgency,” said Phil. “It is imperative that the discrepancies on specific targets are challenged and that policy is written to support this. By targeting off grid areas to remove expensive, inefficient and unsustainable oil systems, the Government can make homes warmer and more comfortable whilst reducing our carbon footprint and reliance on polluting fuels.”
Phil concluded; “We remain committed to raising awareness for positive change and the implementation of policies to support the UK’s carbon targets and see no reason why this can’t be attained with cohesive thinking and strategy between manufacturers, installers and Government.”
Read NIBE's Policy Paper
Never before have climate issues been more discussed with the recent extreme weather events and international leaders coming together to drive action on climate change. These extreme weather events are getting worse and there will be more of them. Urgent action is needed to address climate change and this means that renewable technologies need to take on a bigger and more important role in the UK which should lead by example. The Renewable Heat Incentive (RHI) is an area where the UK has led; the RHI was the world’s first financial incentive of its kind and it continues to play a significant part reducing our dependency on fossil fuels for heating, lowering our carbon emissions and tackling climate change.
In November 2015, the Government renewed its commitment to the RHI and in March 2016 it set out its proposals to reform the scheme. The industry has waited with bated breath for the regulations to come into force, unsure of what advice to give to clients and hesitant to speculate over timescales. The changes were anticipated in Spring 2017, however the election, followed in quick succession by summer recess, pushed back the implementation date further. Again, we waited for the uncertain conditions to pass.
The long wait for clarity was finally brought to an end on the 29th August when the regulations were laid before Parliament. Whilst this end to uncertainty is most certainly welcomed, the short time scales have caused some concern. The time between the regulations being laid and implementation was only three weeks, giving installers very little time to prepare for any changes. The short time-frame also means that some customers may have accelerated their projects so Ofgem are likely to have seen a last-minute flood of applications before the new regulations come into play.
A key change to the domestic RHI is the introduction of heat demand limits which will prevent larger properties from taking a significant share of the RHI budget. We support the introduction of these limits as they will help to ensure that the scheme continues to be cost-effective. However, whilst this change will allow the scheme to support more installations, without assistance for those without access to finance to cover upfront costs, uptake may be limited to those with cash in the bank. The forecast could therefore be a decline in RHI applications leading to an underspend RHI budget.
Fuel poverty is most prevalent in areas off the gas grid, where most RHI installations take place. These households are often faced with few options but to use dirty, polluting, fossil fuel heating systems such as oil, putting them at risk of price fluctuations. Switching these homes to clean, renewable heating systems is a quick win in terms of reducing carbon emissions, lowering fuel bills and improving comfort. Renewables are the only real energy-secure, future-proof solution to the UK’s energy crisis but without assistance, many of those most in need simply cannot afford to switch and therefore are unable to benefit from cleaner and greener energy solutions.
Tweaking the scheme to allow consumers to access a proportion of the subsidy upfront could create a better incentive. Allowing those on lower incomes to install renewables whilst not involving a significant change in the scheme’s budgeting or operation. This could provide the step change needed to drive the uptake of renewable heating systems in homes across the UK.
We are finally seeing the clarity after of months of uncertainty, but there are still some improvements that could be made to make it easier for all homes to access renewable, clean heat.
Read Phil Hurley's Blog
NIBE Industrier AB has acquired 100% of the Grand Heater. The company will become part of the NIBE Element Business Area.
Grand Heater is the market leader for Electrical Tubular Elements in Thailand. The company was founded in 1990 in Bangkok. The main product groups are tubular element for the white goods sector, comfort sector and small appliances. Main customer groups are Japanese companies with established production in Thailand, for example Panasonic, Hitachi and Sharp.
This acquisition strengthens the position of NIBE Element in Asia and also establish creates another facility production for the Asian market outside of China.
The turnover of Grand Heater is approx. THB 130 millions (Euro 3,5 million). The number of employees is 120. The company will operate under the name Backer Grand Heater and the existing management will continue to manage the company in close cooperation with Backer HTS in China.
Backer Grand Heater will be consolidated in NIBE as of August 1, 2017
The Government’s announcement to end the sale of new petrol and diesel cars by 2040 has been hailed a significant milestone by many in the transport and energy sectors. But critics of the transition have warned that the switch to electric vehicles will ‘put unprecedented strain on the National Grid’.
Following the announcement, there has been a lot of speculation in the media regarding the effects of EVs on the energy system. There have been reports that this proposal could increase peak demand by 30GW (the same as 10 new nuclear power stations). But feedback from National Grid suggests their Future Energy Scenarios report, which I commented on in my previous blog, has been cited incorrectly and out of context by the media leading to exaggerated effects being reported. The Two Degrees scenario, which the National Grid see as the most probable outcome if this ambition is to be fulfilled, estimates an increase in peak demand by just 5GW. This scenario assumes that drivers will be using smart chargers which means that the chargers are able to optimise when the car is charged based on demand and time of use tariffs.
By 2040, it will not only be the transport system that is smart, our homes will also have to embrace smart technologies and could participate in demand side response. Heat pumps are already able to provide grid services by responding to real time prices and reducing peak demand. In Sweden, NIBE heat pumps automatically optimise to minimise bills in response to variable time of use tariffs. The Committee on Climate Change has highlighted the role of heat pumps as a low regret option, noting that they could provide demand side response when installed alongside storage. At the same time, the National Grid has found that together, electric vehicles and heat pumps could provide an annual average of 80% of projected frequency response requirement and could deliver £100 million of annual revenue to be shared between suppliers, aggregators and consumers.
Further support for the combined role of these two technologies can be found in other recent studies. For example, one study found that heat pump peaks occur in the morning around 7:00 - 8:00 compared to the national grid peak which occurs around 17:00 – 18:00; whilst electric vehicle charging is likely to occur during national grid peak times when drivers return home from work. Green Alliance says that the concern around demand is therefore not one of overall capacity, but a possibility of unexpected surges and additional demand during peak times. Heat pumps, controls and thermal storage could be used to decrease demand when EV charging is high and balance intermittent renewables. Other studies, in the Netherlands, have shown that if heat pumps and electric vehicles become popular, residential load shifting can almost completely flatten electricity loads, removing peaks and troughs.
The shift to electric vehicles is inevitable and we must embrace it; we must move away from polluting fossil fuels across power, transport and heat. Industry incumbents may resist this move initially but electric vehicles may in fact be in the final flip of the switch, which is needed to power up the role for heat pumps and other smart, low carbon heating solutions in our energy system.
Phil Hurley's Blog
“We’ve had a positive first half of 2017 with good growth in both sales and earnings. Despite the relatively large amount of political uncertainty in the world, NIBE has achieved good growth, both organically and through acquisitions. In addition to low interest rates, increased consumption and steadily increasing construction activity, the transition to a more sustainable social order is having positive effects for us”, says Gerteric Lindquist, CEO of NIBE.
“NIBE Climate Solutions is at the forefront with its broad, sustainable climate control product range for all types of properties, and is continually strengthening its market position. Major focus is being placed on integration of the most recently acquired companies, which still have lower operating margins than the business area in general, as well as adjustment of costs in the companies affected by the fact that subsidies for heat pumps have been discontinued in the US”.
“Operating margin and volume continue to develop well in the NIBE Element business area. With strategic acquisitions and good organic growth, NIBE Element continuously enhances its role as an international market leader.”
“The NIBE Stoves business area also continues to grow internationally and now has a good geographical balance with a unique opportunity to grow in Europe, North America and Australia.”
We have a strong product programme and a timely business philosophy that focuses on sustainability and energy efficiency. Even though it’s difficult to make predictions in the current business climate, we remain cautiously optimistic about 2017 thanks to stable profitability and good financial preparedness for acquisitions, says Gerteric Lindquist, CEO of NIBE.
Read Full Report
Countries across the world are signalling an end to the use of carbon intensive fossil fuels for heating and transport, with Norway being the latest country to increase the pressure on the oil industry by introducing a ban on the use of oil and paraffin for heating in all buildings from 2020. This combined with Norway’s pledge to ban the sale of fossil fuel cars by 2020, sets a high benchmark for other countries to follow.
The electric vehicle (EV) market is booming in Norway, EV sales have seen more than a 90% annual growth rate on average! This staggering shift in buying behaviours and consumer preferences shows that a clear Government vision and targeted policy can generate widespread and rapid change. Could this recent announcement initiate a similar step change in the heating industry?
The Environment Minister Vidar Helgesen thinks so, he has quite clearly stated that “those using fossil oil for heating must find other options by 2020,” and indicated that the legislation could be widened to include restrictions on the use of natural gas to heat buildings. This is a strong signal to industry and the public that Norway is committed to a cleaner and greener future and the markets have responded positively.
It is not just Norway making clear statements on the use of fossil fuels, on 6th July France announced that as part of its five-year plan to fulfil commitments under the Paris Agreement, it would ban all petrol and diesel vehicles by 2040 with the aim for the country to be carbon neutral by 2050. Germany and Belgium have also signalled a ban on all petrol and diesel cars, whilst Sweden has announced plans to become carbon neutral by 2045. The Netherlands has focused its efforts on moving away from natural gas as part of its pledge to reduce emissions by 80% by 2050. With these announcements and surely more to come across Europe, the future of fossil fuels is looking bleak.
In the UK, we are waiting for the Government to publish a Clean Growth Plan which will outline how the government plans to deliver carbon emissions reductions to meet the fourth and fifth carbon budgets. After a year of uncertainty and political instability, the plan is now expected in Autumn 2017. Claire Perry, the new Minister of State at BEIS, has stated that the plan must be ‘ambitious, robust and clear,’ and declared it a high priority. NIBE welcomes this commitment and hopes that the plan will provide a long-term, ambitious pathway to lower carbon emissions from our buildings.
As highlighted in the National Grid’s Future Energy Scenarios report, there is no one solution for the heating dilemma, we need a range of technologies to ensure a secure, low carbon energy mix. But the report states that to meet the two-degree scenario, heat pump deployment will need to increase substantially. The Clean Growth Plan must pave the way for the inevitable transition away from oil towards efficient, low carbon heating technologies or the UK could be left behind as other countries around the world embrace renewables. The solutions exist and industry is equipped to make the switch, but the right policy frameworks and government targets are needed to drive the transition.
The UK is committed to developing domestic green energy industries and tackling climate change. Heat pumps are one of a range of technologies that can substantially lower carbon and NOx emissions from UK buildings. Indeed with buildings becoming more energy efficient, the grid becoming increasingly powered by renewables, and the UK looking to support domestic energy industries and supply – the case for heat pump deployment is becoming stronger, especially in off-grid areas and new-build properties.
This report provides policy lessons from European markets that have successfully created the conditions for the deployment of heat pumps, and builds policy recommendations.
The UK Government in its Heat in Buildings consultation published in 2016 expressed its desire to ‘reduce the use of coal and oil in buildings, and how best to promote a transition away from high fossil fuel heating over the coming decades’. The consultation also highlighted the need to ‘consider which kind of policy interventions could support this change’.
NIBE firmly supports the Government’s efforts to develop policy to phase out coal and oil in buildings. The place to start is off gas grid buildings, a market dominated by carbon intensive fuels such as heating oil and subjected to higher and often volatile energy prices. There are some barriers for consumers looking to make the switch and Government has a role to play in enabling the transition to sustainable low carbon heating technologies like heat pumps.
All European markets that have successfully unlocked the potential of heat pumps, like Sweden and Austria, have taxed heating oil in line with its high carbon content and promoted the use of heat pumps where it makes most sense like new build and off gas grid properties. More recently, Norway announced that it will prohibit the use of heating oil by 2020.
The UK should also push forward in its efforts for decarbonisation in the off-gas grid markets and resist calls to maintain the status quo such as the recent report by OFTEC (the trade association for the oil heating industry). The report sets out OFTEC’s vision for the future of off grid heating, recommending the delivery of policy incentives to encourage the replacement of existing oil boilers with more efficient oil fuelled models while suggesting that at some point in the future biofuels will replace heating oil. But boilers installed today will continue to emit carbon over their lifetime and the development of mass market biofuel is uncertain.
The report also argues that technologies such as heat pumps are not cost effective or market ready for widespread deployment. NIBE stress that the Government should not be encouraging homeowners and businesses to install oil boilers, it goes against the Government’s emissions reduction targets and efforts to phase out oil and coal use, and promotes the use of an unsustainable and polluting limited resource.
The UK must be more ambitious than this. The Committee on Climate Change, in its 2017 Report to Parliament, released on 29th June, emphasised the need to significantly increase the delivery of heat pumps in cost effective locations. They remain the leading low carbon option for homes off the gas grid and are also one of the main options for reducing emissions from heating in buildings on the gas grid. The Committee estimates that at least 2.5 million heat pumps should be installed by 2030 in our homes if we are to meet the fifth carbon budget. If we are to move to a cleaner and greener future, coal and oil must be replaced by energy sources that do not cause irreversible damage to our planet. Renewables are the only energy secure, future proof solution. The UK needs to look at the policy levers used by successful Scandinavian countries to phase out oil in off gas grid buildings by 2025. Heat pumps are a proven low carbon solution and they are only bound to become more cost efficient for decarbonisation purposes as installation costs reduce with scale and the electricity grid carbon intensity steeply declines. On the other hand, as the future availability of biofuel in the UK market for domestic heating remains speculative.
NIBE UK Managing Director Phil Hurley commented:
‘Replacing oil with oil will not address the higher carbon and air pollution emissions from these heating systems in the off-grid market, instead these systems will continue to spout out pollution for the next 20 years. In off-grid areas there are sustainable alternatives such as heat pumps which provide clean, green energy. NIBE will continue working in close collaboration with policy stakeholders to realise the potential of heat pumps in the UK and develop policy that reflects their benefits. As part of this effort, NIBE will develop more detailed analysis on appreciating the risks of promoting an approach that maintains the status quo to heating off gas grid buildings.’
NIBE are one of the UK’s leading manufacturers of heat pumps and the market leading heat pump manufacturer in Europe. NIBE also develops a wide range of other renewable heating technologies. NIBE focuses solely on the renewable heating market in accordance with its principles of offering low carbon, efficient products that deliver energy for life. With a growth model that focuses on marketing directly to the consumer and collaborating with specialist installers, NIBE brings unique insight into the UK renewable heat market as well as unrivalled understanding on what has worked in other European renewable heat markets.
The votes have been counted, and the results are coming in. Whilst there remains some uncertainty about the characteristics of the new government, what we do know is that all the major parties agreed to tackle climate change and high energy costs. We, at NIBE, will welcome the opportunity to work with the political parties to develop solutions that drive innovation, grow the market and ensure that homes are warm, comfortable and affordable to heat.
Both the Conservatives and Labour in their election manifestos spoke about their wish to deliver energy that is reliable and affordable, and that the UK should continue to meet its global commitments on climate change. Renewables are the only real energy-secure, future-proof solution to the meeting the climate change targets.
A week before the General Election, Donald Trump announced that the USA would be pulling out of the Paris Agreement on Climate Change. The announcement was not unexpected but still came as a shock to those of us committed to tackling climate change and the transition to a low carbon economy. Addressing climate change is the greatest challenge the world faces, we have a social duty to work together to reduce our impact on the environment and a moral obligation to ensure that the well-being of future generations is not harmed by what we do today.
Whilst the USA moved away from the international agreement, Theresa May, Jeremy Corbyn and other leading politicians stressed their commitment to the Paris Accord and criticised the decision. We must not let Trump’s choice change our stance on climate change, if anything we should increase our efforts to tackle it and shout louder to bring international stakeholders together.
The UK has been and must continue to be a world leader in global action against climate change, but at home, we have much more to do to reduce our impact on our environment. Emissions from homes and non-domestic buildings account for 17% of the UK’s direct greenhouse gas emissions. Efforts by successive governments have failed to encourage significant penetration of low carbon heating technologies in buildings, as opposed to greater success in the fields of electricity and belatedly transport.
As the Government will focus on delivering Brexit, a British Industrial Strategy and plan to reduce emissions, the time has never been better to put a stop to the combustion of fossil fuels in off-grid homes and encourage a greater penetration of heat pumps in the UK. By using local natural power, we can build a more sustainable future for our children and grandchildren.
The UK has managed to significantly reduce its emissions from the power sector as more renewables come onto the grid. This means that electrically powered heat pumps have even greater carbon reduction potential. Using the Committee on Climate Change’s projections for 2027, heat pumps will produce emissions which are 90% lower than oil boilers. This is why oil boilers should not be being installed in our homes; they are unsustainable, polluting and carbon intensive.
NIBE are keen to work with any new government to develop policies that support the deployment of affordable, low carbon heating solutions for homes located off the gas grid. These homes are subjected to higher and often volatile energy prices which is a particular concern for those living in fuel poverty. Many parties have put forward an ambition for the UK to have lower energy costs - we welcome this, however energy bill tariff caps are not the way to achieve lower energy costs. Reducing energy demand, changing consumer behaviours and fuel switching is the only way to deliver lower energy costs today and provide a cleaner, greener future!
Phil Hurley's Blog
Air quality is a hot topic and featured in the main party manifestos published last week. But dangerous emissions from heating have not been given the attention it deserves. Last year ClientEarth successfully took the UK Government to the High Court over what the court ruled to be illegally poor plans to tackle the country’s current air quality crisis. Levels of NOx in the air have regularly exceeded safe and legal levels in the UK, and the court ruled that the Government should develop a new plan to tackle these issues “as quickly as possible.”  After some delay, this plan was published on 5th May 2017. With 40,000 UK deaths linked to air pollution, and related health problems costing the UK economy more than £20 billion every year, the Government must take radical steps to tackle this issue.
The Government’s plan focused solely on transport and whilst road transport accounts for 34% of UK NOx emissions, the remaining two-thirds come from other sources including domestic heating. It is essential that these sources are also tackled. An obvious solution is the replacement of oil boilers with low emission, future-proofed heating systems.
There are 1.1 million oil boilers in the UK, together they emit 4,540 tonnes of NOx per year. This is equivalent to the emissions from over 2.3 million Euro 5 (2009 standard) diesel cars, driving a typical annual mileage. This suggests that running an oil boiler is equivalent to running two additional diesel cars per household!
One of the key proposals from the Air Quality Plan is a diesel car scrappage scheme. Whilst the Government focuses on taking diesel vehicles off the road, they could additionally be helping off-grid households to switch away from oil, providing similar benefits. There is much crossover between the need to support users of old diesel cars to buy new low-emission cars, and off-grid homes saddled with old, inefficient and dirty oil boilers. The Government can help these households make the necessary switch from a polluting fossil fuel technology, to a modern low pollution heating system. Heat pumps offer consumers renewable and reliable heat without the high carbon and NOx emissions associated with the use of oil. Rolling out an oil boiler scrappage scheme across the UK would provide that support.
Boilers installed today will continue to spout pollution for the next 20 years until they are replaced. Using the Government’s numbers on the costs of NOx emissions to society (health costs etc.), the emissions from oil boilers have a social cost of more than £66 million a year (if we monetise the CO2 impact of heating oil this figure would be even higher, but that will be covered in one of my next blogs). More needs to be done to encourage homeowners to replace their systems before they reach the end of their life and install efficient, low emission heating systems like heat pumps. Not only will this reduce air pollution, improve well-being and health, it will also reduce carbon emissions thus contributing to tackling climate change. The truth is, renewables are the only real energy-secure, future-proof solution to the UK’s energy crisis.
If the Government is committed to addressing air pollution, it must also consider the full impact of fossil-fuel based heating. Introducing a boiler scrappage scheme to install ultra-efficient renewable technology like heat pumps alongside the diesel car scrappage scheme, will encourage homeowners to change their inefficient, polluting boilers now rather than allowing them to continue to pollute the environment, damage health and contribute towards climate change over the coming years.
 Courts and Tribunal Judiciary (2016) https://www.judiciary.gov.uk/judgments/clientearth-v-secretary-of-state-for-the-environment-food-and-rural-affairs/
 Royal College of Physicians (2016) https://www.rcplondon.ac.uk/projects/outputs/every-breath-we-take-lifelong-impact-air-pollution
 DEFRA (2017) https://www.gov.uk/government/news/new-air-quality-plan-published-for-consultation
 DEFRA (2015) https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/460398/air-quality-econanalysis-damagecost.pdf
NIBE Industrier AB has acquired 80% of the shares in HT S.p.A., Susegana, Italy (“HT”). The company will become part of the NIBE Element business area.
HT has its headquarters in Susegana, Italy, and has produced highly engineered heating solutions for heating, ventilation and air conditioning, commercial food products, packaging and other industrial applications since 1978. HT’s heating product range consists of cartridge heaters, PTC heaters, strip heaters and heating systems.
HT has one production facility in Italy and two in Romania. Revenue in 2016 amounted to approx. EUR 23 million with an operating margin of 14%. The company has approx. 330 employees.
“The acquisition of HT adds another well-known brand to our European element business providing cost synergies and commercial advantages to the NIBE Group. Their market and technical position and customer base will provide yet another platform for profitable growth,” says Gerteric Lindquist, CEO of NIBE Industrier AB.
The company will continue to run its operations under the present management of Mr. Costante Dall´Anese and Mr. Veniero Peroni. Both Mr. Dall´Anese and Mr. Peroni will remain part owners of HT. NIBE has the option to eventually acquire the remaining 20% of HT S.p.A.
HT will be consolidated into the NIBE Group as from 1 May 2017.
Hello “It´s in our nature”! NIBE Energy Systems to launch new products and a new brand promise at ISH 2017.
The ISH exhibition held in Frankfurt am Main is the world’s largest showcase for energy efficient heating, air-conditioning technology and renewable energies. For the 9th time in a row, NIBE Energy Systems will be there –this year loaded with new products, the largest booth ever and a new brand statement, “It´s in our nature”. A message that salutes the power of nature.
At ISH in Frankfurt am Main, 14-18 March, NIBE Energy Systems will be presenting a broad product portfolio that encompasses heating/cooling, hot water and ventilation. NIBE Energy Systems will be showcasing a strong, wide and smart range of products that meet the expectations of today and tomorrow. Alongside the product range, NIBE Energy Systems will also be presenting the latest in inverter-controlled heat pumps, ground source heat pumps, exhaust air heat pumps and air/water heat pumps and championing the NIBE F2120 with its groundbreaking efficiency and SCOP of over 5.0. Visit our stand and find out about all our new products, such as the NIBE F1355-28, NIBE AMS 10-6,NIBE F2040-6 and NIBE F2120.
“As a premium brand in the market, quality and efficiency are guiding principles for NIBE Energy Systems. At ISH we are excited to be presenting innovative progress in heating solutions as well as a clear and important message. Energy-efficient, innovative and user-friendly products is in our nature, and we are proud to be meeting visitors with great solutions for a greener world and perfect indoor climate. In other words, maximum comfort and minimum carbon footprint,” says Kjell Ekermo, Director, NIBE Climate Solutions.
By using a climate system built on self-learning smart technology, users can easily minimise energy consumption, without having to sacrifice comfort.
At the same time, the importance of reducing carbon dioxide emissions is widely recognised. NIBE Energy Systems has incorporated this into its development and new brand message to emphasise nature’s role in human lives.
“It´s in our nature” means that we recognise the power of nature. When we develop our products, we ensure that they are equipped as much as possible to run on natural power, no matter what the outdoor climate conditions. NIBE Energy Systems converts this power into a perfect indoor climate. Naturally, with the least possible environmental impact,”says Magnus Axelsson, Market Communication Manager, NIBE Energy Systems.
At ISH 2017, 14-18 March, 2,500 exhibitors and 200,000 visitors will be teaming up to learn about the innovative future of heating and cooling products and renewable energy solutions. NIBE Energy Systems has attended ISH since 2001 and, in 2017, the stand area will have grown to 650 square metres. You can find NIBE in Hall 8.0, stand D65.
“2016 was a strong year for NIBE with a considerable increase in both sales and profit. The year was distinguished by an intense period of acquisitions, primarily in North America, stable organic growth and a successful preferential rights issue, together ensuring good future growth,” said Gerteric Lindquist, MD and Group CEO of NIBE
NIBE reports a significant increase in both sales and profit in the company’s 2016 year-end report.
“2016 was a strong year for NIBE with a considerable increase in both sales and profit. The year was distinguished by an intense period of acquisitions, primarily in North America, stable organic growth and a successful preferential rights issue, together ensuring good future growth,” said Gerteric Lindquist, MD and Group CEO of NIBE.
“The sales target of SEK 20 billion by 2020 now seems within reach – when the acquired companies are included calculated on a rolling 12-month basis, the Group’s sales amount to more than SEK 17 billion. The acquisition of Enertech Group was approved by the Swedish Competition Authority and it will be consolidated as of 1 March 2017.”
“The recent acquisitions strengthen NIBE Climate Solutions’ position and it is now one of the leading suppliers of sustainable end-to-end solutions in climate control in both Europe and North America.”
“Thanks to long-term, passionate, methodical efforts, the NIBE Element business area has now definitely exceeded a 10% operating margin, and by a good margin.”
“The NIBE Stoves business area has also passed a milestone. With the partial acquisition of Canadian company Fireplace International Ltd, it now has a solid platform in North America and Australia.”
“We have a timely product programme and business philosophy. Profitability is stable and we’re well prepared for additional acquisitions. In a world where it is difficult to make predictions, we remain cautiously optimistic about 2017.”
NIBE Industrier AB has acquired 50% of the shares in heat pump company CGC Group of Companies Inc. in Ontario, Canada, with an option to acquire the remaining 50% of the shares no later than spring 2022.
CGC was founded in 1995 and is headquartered in Mississauga, just outside Toronto, with its manufacturing facility in the nearby town of Fergus.
The company has about 80 employees, sales of approximately SEK 120 million (CAD 18 million) and an operating margin of 19%. CGC mainly targets commercial properties under the well known brands Bulldog Heat Pump, Compax and Varipak.“We now have an additional platform for heat pumps for commercial properties in North America and see good growth opportunities both in Canada and the US,” says Gerteric Lindquist, CEO of NIBE Industrier.
It’s really inspiring to continue the work of developing CGC together with the current owners and founders, Bill Browne and Bob Rutherford. Together they have more than 70 years of experience in the heat pump industry and they will continue to lead the company in strict accordance with our usual acquisition model.”CGC will be included in the NIBE Climate Solutions business area and will be consolidated from 1 February 2017.
The purchase price is not specified because the acquired business will only constitute a small part of the NIBE Group.
For more information: Benny Torstensson, NIBE Industrier AB: +46 433-73 070NIBE Industrier AB is required to disclose the information in this press release under the Market Abuse Regulation and NASDAQ Stockholm’s rules and regulations for issuers. The information was submitted by Benny Torstensson for publication on February 13, 2017 at 08.00.