DOE Selects Team to Develop Combined Heat and Power System for Residential Use

Business Wire, Sept 9, 2004

CAMBRIDGE, Mass. -- TIAX, Rheem Manufacturing, GAMA, and Propane Education and Research Council to create Micro-CHP system that provides more reliable and less costly power to homeowners

The Department of Energy (DOE) has selected a team of appliance industry leaders to develop a combined heat and power system that will provide more reliable and less costly energy for residential use.

The system commissioned by the DOE - known in the industry as a Micro-Combined Heat and Power (CHP) system - will generate electricity and then utilize the rejected heat for useful household purposes, such as space and water heating. In addition to these attributes, the prototype will provide emergency power to the home when grid power is lost.

The team selected for the DOE award includes TIAX LLC, a leading collaborative product and technology development firm with extensive expertise in appliance innovation; Rheem Manufacturing Company, a major manufacturer of residential and commercial water heaters, central warm air furnaces and air conditioners, and swimming pool heaters and commercial boilers; GAMA, a national trade association of manufacturers of residential, commercial, and industrial appliances and equipment; and the Propane Education and Research Council, which will provide funding for the project.

"We are delighted to be working with a team of industry experts who have the breadth of experience, know-how and creativity to develop a more affordable and reliable power system for American homeowners," said Patricia Hoffman, Acting Program Manager for DOE's Distributed Energy Program. "Not only will Micro-CHP systems save considerable energy nationwide, they also will help prevent dangerous and costly blackouts."

Currently, manufacturers have commercialized Micro-CHP systems in both Europe and Japan, however these products are typically not designed for use in homes with forced hot-air heating, the dominant heating system in the U.S. Most foreign Micro-CHP systems also do not provide emergency back-up when grid power is lost, which will be a critical factor now that the U.S. population is aging and increasingly vulnerable to issues of power reliability.

The DOE project will be divided into several phases of work. The first phase of the project, which will last a year, will involve system analysis and design. Members of the team will identify the market potential and market requirements, analyze design options to satisfy market requirements, develop a proof-of-principle design, and develop a commercialization strategy. Subsequent phases will focus on prototype development and testing.

"We are very excited that the DOE has selected TIAX to play a central role in developing a Micro-CHP system for the American market," said Kenan Sahin, President of TIAX. "Today more than ever before, our national security and economic stability depend on reliable power. We commend the DOE for bringing together top experts in the field to create a consistent power system for the American home that is also environmentally friendly and saves energy costs."

About TIAX LLC

TIAX LLC (pronounced Tie-ax) is a leading collaborative product and technology development firm that accelerates innovation to help its clients create an impact in the market--and in people's lives. It integrates business, industry, and hands-on technology expertise to transform ideas into products and problems into solutions. Formed out of Arthur D. Little's Technology & Innovation business, TIAX (www.tiaxllc.com) builds on more than a century of breakthrough innovation and client success using collaborative R&D. TIAX was selected as a Technology Pioneer 2003 by the World Economic Forum and is ISO 9001 certified with more than 50 research and development laboratories.

About Rheem Manufacturing Company

Rheem Manufacturing Company, a major manufacturer of residential and commercial furnaces, water heaters, and air conditioners, provides a compelling strong brand, along with the capabilities in product development, design, manufacture, distribution, sales, support, service and marketing that only a manufacturer of Rheem's status can provide.

About GAMA

GAMA is an association of appliance and equipment manufacturers that provides a critical understanding of appliance commercialization issues, including regulatory requirements, large-scale market acceptance issues, and commercialization strategies.

About the Propane Education and Research Council

The Propane Education & Research Council promotes the safe, efficient use of propane as a preferred energy source. With the passing of the Propane Education and Research Act (PERA) in 1996 by Congress, the industry began to conduct a referendum among propane producers and marketers, who overwhelmingly approved the formation of the Council.