PHIL HURLEY, managing director of NIBE UK, hit me with the controversial part of the interview first.
His latest range of heat pumps, he insists, is made for the British climate, working down to around -10 degrees Celsius. This means, he says, that unlike many air-to-water heat pumps which are made for colder climates, the NIBE heat pump works efficiently between 0 degrees Celsius and 7 degrees Celsius - which are the average UK winter temperatures. Some in the range have a COP of 4.0, which, he says, is a higher COP than some inferior ground-source heat pumps with none of the associated costs.



NIBE (pronounced Nybay) heat pumps are manufactured in Sweden and are designed for harsh Nordic conditions, making them ideal for the mild UK climate. Further, he says, the NIBE units use a two-step control which achieves greater economy, even at low outdoor temperatures.

For installers, the company has put together pre-selected packs, which make it easier to find the correct products for each application. And the range of packs mean the prices are more attractive because all components are included. And, Hurley maintains: 'our air-to-water heat pumps should cover the heating and hot-water requirements all year round'.

He adds, that, as an alternative, a heat pump with a smaller output than the heat demand can be docked with new or existing heating systems.

'The heat pump provides efficient heating for most of the heating season, with supplementary energy from the alternative heat source being required only in extreme winter periods.'

NIBE UK is a wholly-owned subsidiary of NIBE Heating which, in turn, is part of Swedish company, NIBE Industries.




The company started in 1952 making water cylinders. NIBE Heating, one of three divisions, still makes hot-water cylinders and, since the 1970s, heat pumps. It is the leading manufacturer of hot-water cylinders in Scandinavia and the third largest in Europe.

NIBE Element produces elements for immersion heaters, kettles, cookers, washing machines and even for heated car windscreens. He adds this part of the business, as an OEM, never has its name on the products but some well known heating and domestic products all use NIBE elements.

The third division makes wood-burning stoves and is the market leader in Northern Europe.

NIBE Heating represents around half the turnover of the group. And in the last 18 months export sales have overtaken those in the home market (of Denmark, Sweden and Norway).

Group turnover is (depending on the exchange rate) around £600M and the plan is to double that figure in the next five years. Hurley says that this growth will be partly organic and partly through acquisition. 'The company has grown every year since 1952 and never made a loss.'

The UK arm is the first NIBE has ever set up from scratch. When it has expanded into other countries, it has bought firms - usually cylinder manufacturers - and used this base to launch its products in that country.

So why not in the UK? It did look around but for various reasons it did not buy here. 'Don't forget, the UK has been wedded to gas boilers and NIBE is not in this market.'

Hurley adds: 'Until a few years ago, heat pumps were a very, very small part of the heating mix. Two years ago, there were only 500 ground-source heat pumps in the UK.'

Now it is a different story. Hurley says that in the first month sales were zero. This month will be the third anniversary of the UK company and 'it is a multi-million pound business with 21 staff (and Hurley is still recruiting) selling only heat pumps', says Hurley proudly.

The range of ground- and air-source heat pumps NIBE offers in the UK goes from domestic to small commercial such as schools and leisure centres. For new-build domestic use, NIBE also has an exhaust air unit.

'As homes get more and more air tight, the need for ventilation is greater. Air is drawn out of the wet rooms and exhausted to atmosphere over a heat recovery unit. Here the exhaust air is used to drive the heat pump.'

Again, an all-component package, called a Compact Service Unit - hot-water cylinder, heat pump, controls, ventilation fan - makes it easier for the installer.

Hurley sees a great future for an exhaust air heat pump in social housing.

'From April 2008, all social housing must achieve a minimum of code level 3 of the Code for Sustainable Homes. This will mean developers will find it hard to just install traditional systems and will have to look at alternatives, this especially on apartment blocks that have been predominately electrically heated' he suggests.

'First option could be solar but it will still only be for hot water. You still have to heat the place.'

Gas, he adds, is also a nightmare. Often when a building is knocked down to be replaced with apartments, there is one gas main and this would need to be up-rated with costs running into thousands. Then there is the cost (and work involved) of flueing each apartment.

The building is ripe for exhaust air heat pumps. They will fit in the cupboard which was originally for the cylinder and work with radiators or underfloor. Because of the air tightness, the developer would have had to install ventilation in the wet areas anyway.

'For the developer, it is a win-win situation. It is easy to install. There is not much to change. It will count towards the code level 3 standard and the 20% carbon reduction target.' And developers should not forget that next year Code level 3 will be the norm for all new-build housing.

NIBE has, says Hurley, one of the largest ranges of ground-source heat pumps - from 5kW to 60kW and up to 540kW when placed in series. (A 5kW HP would be enough for a new two/three-bedroomed house.)

But ground-source heat pumps are still small beer - maybe 2000 a year - compared with gas boilers. However, one of NIBE's ground-source heat pumps is the most efficient on the market currently with a COP of 5.03, Hurley assures.

So how is NIBE going to go after the one million gas boiler installations which are currently going on? Some domestic installers will never change but, for the more switch-on ones, NIBE offers a full range of courses.

Level one, which costs £75 for instance, should be enough for a plumber to complete his first installation plus the first commissioning is free. 'We have tried to price it so it is not daft money.'

The first courses took place at the company's offices in Chesterfield but Hurley intends to go regional this year with level one courses in the spring in the south-east, south-west and Scotland. Plus the company is introducing level two courses as well. Plus, if there is any trouble, there is a technical helpline as backup. NIBE units are supplied through plumbers merchants.

The company is a member of the Heat Pump Association and HHIC. All their products are now Micro Generation Certification Scheme approved products. It is also working with HHIC to write a benchmark for heat pumps.

'What we are trying to do is make the technology more mainstream and less of a black art.'

Good products and sound common sense when it comes to installation and commissioning means NIBE UK with Hurley at the helm will take every advantage to stay ahead of the pack, even if this means more package units. No wonder NIBE UK is doubling its turnover every year.

Foundations

NIBE was founded in Sweden in 1952, and initially produced hot-water cylinders. The families of the founders severed their links with NIBE in 1984 when there was a management buyout led by CEO Eric Linquest. The company was floated on the Swedish stock market in 1989.