(Yicai Global) Sept. 29 -- Chinese manufacturers of air source heat pumps are experiencing explosive growth in Europe where governments are keen to promote this eco-friendly heating system that draws its source of heat from the surroundings and as geopolitical tensions drive up the price of gas.

Some 60 percent of Europe’s imports of air source heat pumps come from China, according to data from the China Household Electric Appliance Association. Sales of Chinese air source heat pumps to Bulgaria surged more than seven-fold in the first half from the same period last year, they increased almost five times to Poland and they tripled to Italy.

As a result, stocks of Chinese air source heat pump makers are on the rise. An industry index jumped 6.5 percent today from the same period last year to 2,382.3 points, according to Wind data. And another Wind-compiled index of energy stocks soared 14 percent to open at 2,527.3 points.

A carbon neutral agenda means that many European governments are keen to encourage the use of these green heating devices that have zero emissions and can be used as air conditioning system in homes and offices as well as in hot water systems.

The EU is planning a EUR565 billion (USD545.7 billion) overhaul of the electricity grid and intends to install 10 million heat pumps over the next five years, Luo Anyang, chief analyst for home appliance sector at Cinda Securities, said in a recent research note.

A 9-kilowatt heat pump costs around EUR9,000 (USD8,693), Yuan Xi, chief executive of German heat pump maker Dream Maker Technologie, told Yicai Global. But after five to six years, the accumulated expense will be less than that of conventional heating devices such as air conditioners and geysers as gas and electricity prices rise.

A heat pump is able to generate three to four kilowatt hours of energy from consuming just one kilowatt hour of electricity. This is much more energy efficient than appliances that use electricity to directly produce heat.

Although Chinese exports of air source heat pumps to Europe have increased considerably, the most popular brands on home appliance website Pickhvac are still mostly from the US and Europe.

European customers tend to prefer local brands as services are a significant consideration, Yuan said. The heat pump needs to be installed and after-sales services are important. It would cost Chinese vendors too much to provide similar services overseas, he added.

Last year, sales of air source heat pumps jumped 40 percent in Europe from 2020, with 2.1 million units shipping in 21 countries, according to data from the European Heat Pump Association. France, Germany and Italy made up for almost half of this total. Some 17 million units were installed in the EU, accounting for 14 percent of the heating appliance market.

Editors: Shi Yi, Kim Taylor