With the heat supply season approaching, the rise in natural gas price has impacted the lives of European people, and the demand for heating equipment in Europe has increased dramatically. Europe continued to increase orders for heat pump products, driving the export volume of domestic heat pump products to rise significantly. The heat pump concept stocks performed well on the market this week.

Luen Mei Quantum: Heat Pump Will Play a Vital Role in Heat Supply Industry Upgrading

On September 29, Luen Mei Quantum (600167. SH) held an online investor exchange meeting with the theme of “Luen Mei Quantum: Heat Pump Will Play an Important Role in the Upgrading of the Heat Supply Industry”.

When talking about the current situation of the industry at the meeting, Wu Haibin, the Chief Engineer of Luen Mei Quantum and the President of Luen Mei Academy of Environmental Sciences, said the heat pump industry developed relatively early in China. At present, the production and research of the whole industry chain has been localized from the core components, such as compressors, condensers and evaporators to the core equipment such as expansion valves. From the perspective of the whole industry chain, the development of the heat pump industry chain in China is relatively complete. Thanks to the relatively complete industrial chain support, the heat pump manufacturers in China have the opportunity to export domestic cutting-edge heat pump technology to foreign countries in the event of the energy crisis in Europe. Focusing on the domestic heating industry, under the background of "peak carbon dioxide emissions and carbon neutrality", the continuous development of heat pump technology will be a reconstruction of the traditional heating mode for the whole market.

"In order to achieve the goal of reducing pollution and carbon in the future, electrified heating is a new development direction, so the use of electrified heat pumps will play a very critical role in the future energy transformation."

 Luen Mei Quantum Fully Promotes Clean Heat Supply with Obvious First-Mover Advantage of Heat Pump Application

Industrial insiders pointed out that Luen Mei Quantum, a leading A-share heating enterprise, has the first-mover advantage in heat pump applications, especially in heating scenario applications.

 It is reported that Guohui Environmental Protection New Energy Co., Ltd. (hereinafter referred to as "Guohui New Energy"), a subsidiary of Luen Mei Quantum, began to explore the recovery and recycling of urban sewage as early as 2007, and invested in the construction of the reclaimed water source heat pump heat supply project in Yuhong New City, Shenyang, using the patented self-developed thermodynamic centrifugal water source heat pump technology.

During the heat supply season from 2021 to 2022, Guohui New Energy further expanded the reclaimed water source heat pump project, which can currently provide zero-carbon heat supply to the building of more than 3 million square meters, and play a valuable demonstration role for the comprehensive utilization of urban sewage and zero carbon clean heat supply.

In the first half of 2022, Shenyang Guoxin Environmental Protection New Energy Co., Ltd., a subsidiary of Luen Mei Quantum, carried out the construction of flue gas waste heat recovery project. In this project, the heat pump is used to extract heat from flue gas and is expected to be put into operation by the end of this year. According to Luen Mei Quantum, it is estimated that more than 470000 GJ of heat can be recovered every year to meet the heat supply demands for building of more than 1 million square meters, saving nearly 20000 tons of standard coal and reducing about 50000 tons of carbon dioxide emissions after the project is completed.

When answering investors' questions, Wu Haibin said, "Because the heat is extracted from the reclaimed water or some waste heat, the operating costs of our reclaimed water source heat pumps and flue gas waste heat recovery pumps are relatively low, and even lower than the coal costs. This makes the application of heat pumps in the heat supply industry have economic advantages, so it is also a very important reason that the heat pumps start to become hot at this time point.”

Luen Mei Quantum said that priority would be given to the renewable clean energy for the new heat supply business to further strengthen the application of various heat pumps in the future; new renewable energy technologies such as sewage source heat pumps, air source heat pumps, river water source heat pumps, ground source heat pumps and medium-deep geotherm can be selected according to local conditions so as to continuously expand the proportion of renewable clean energy. It is estimated that the heat supply area of Luen Mei Quantum’s heat pumps will exceed 10 million square meters with smooth implementation of various projects.