German heating specialist Vaillant and Japanese firm Honda are to jointly develop a gas-powered micro-combined heat and power (CHP) system for the European market.
The two companies have signed a co-operation agreement to begin an intensive test program for the next two years. Honda and Vaillant, which is based in Remscheid, Germany, will focus development in Germany.

Honda has for several years been mass producing small gas-powered micro-cogeneration units (MCHP) for use in detached houses in the US and Japan. Vaillant has its gas-powered mini-CHP system for large homes and commercial buildings.

The deal will see Vaillant develop the complete hydraulics of the heating system, the control technology and the connection technology. Honda will develop its MCHP unit to suit the specific German and European requirements.

'The competence of Vaillant in heating and air conditioning systems and the long experience of Honda in the development and production of highly efficient systems for cogeneration can create the best product,' said Takayuki Arima, president of Honda Motor Europe (North) GmbH in Offenbach.

'We are pleased to have been able to win Honda, the world's leading engine manufacturer, as a partner. With this co-operation we will be able to further expand our portfolio of energy-saving and environmentally friendly products,' said Dieter Müller, managing director of the Vaillant Group.

In Germany, the federal government promotes decentralised cogeneration with the CHP law, which came into force on January 1, 2009. The goal is to increase the amount of electricity created by co-generation in Germany from around 12% today to 25% by 2020.

Through the efficient use of energy, heating and electricity, costs are reduced and any electricity which exceeds a household's needs is fed into the national grid. The federal government is promoting the purchase of CHP with an investment subsidy. The total amount of electricity generated over 10 years is promoted with a CHP bonus and supported indefinitely by relief from the current electricity tax. All the gas used is also free from the energy tax.