Promoting the Use of Heat Pumps - Progress from 2001 to the 2020s

Promoting the Use of Heat Pumps - Progress from 2001 to the 2020s

Since 2001, the use of geothermal heat pumps has been pursued as an environmental technology with the potential to save energy and reduce CO2 emissions. This technology uses the constant temperature of the ground for efficient heating and cooling, and its application has been promoted especially in buildings and agricultural facilities.

Challenges and Progress in 2001
In 2001, the biggest challenge was the high initial cost. Heat exchange equipment had to be buried underground, and installation costs averaged 5 to 7 million yen per installation. This made it difficult for small and medium-sized businesses and private residences to adopt the system. In Hokkaido and the Tohoku region, there have been cases of fuel cost reductions of 20 to 30 percent as a result of installing the system in agricultural facilities.

Developments in the 2010s
In the 2010s, subsidies of up to 3 million yen per case were provided through the Ministry of the Environment's "Geothermal Heat Utilization Expansion Support Program," which encouraged the introduction of geothermal systems in public facilities and schools. Hachinohe City in Aomori Prefecture installed geothermal heat pumps in its public library, reducing annual energy consumption by 30 percent and CO2 emissions by about 40 tons. Another major manufacturer, Panasonic, developed a geothermal heat pump for the residential market that can be installed for less than 3 million yen, increasing awareness in the residential market.

Improvements in material use have also been made, and in 2015, the introduction of a new brine solution improved heat exchange efficiency by 10 percent. Installation costs were reduced by about 20 percent per installation, bringing the installation cost down to 4-5 million yen.

Current Status and Prospects for the 2020s
In the 2020s, the introduction of a group of agricultural greenhouses in Kitami City, Hokkaido, Japan, has resulted in a 20 percent reduction in annual CO2 emissions (about 30 tons) and a 30 percent reduction in fuel costs (2 million yen per year). In 2022, the Ministry of the Environment will subsidize a total of 5 billion yen as part of the "Re-energy Utilization Promotion Project," and major companies Mitsubishi Heavy Industries and Daikin Industries have developed systems that reduce costs to 3 to 4 million yen. This has accelerated the introduction of the system throughout Japan.

In terms of efficiency in material use, the use of high-performance brine solution has resulted in a 15% improvement in energy efficiency compared to conventional systems. In Setagaya-ku, Tokyo, the "Eco-Residence" developed by Mitsui Fudosan achieved a 50-ton reduction in CO2 emissions per year through the adoption of geothermal heat pumps. At a public facility in Daisen City, Akita Prefecture, CO2 emissions were reduced by 80 tons, along with an annual fuel cost reduction of 12 million yen.

Future Challenges
Further policy support is required to increase subsidies and introduce low-interest loans. The Ministry of Land, Infrastructure, Transport and Tourism is promoting the "Carbon Neutral Building Promotion Plan" and plans to establish standards for the installation of geothermal heat pumps in public buildings by 2025. Through this plan, the Ministry aims to introduce geothermal heat pumps in at least 20 percent of public buildings nationwide by 2030.