U.K.-based Flowgroup plc said that its subsidiary Flow Products has signed a Memorandum of Understanding with NRG Energy, Inc. to initiate a trial for the testing and evaluation of Flow’s microCHP products for the U.S. heating market.

The purpose of the trial is to assess the Flow boiler for its potential for commercialization in the U.S. The companies will now commence a planning and preparation phase for the trial in advance of two Flow boilers being delivered for evaluation to begin. The trial units will be deployed in a dedicated facility in Texas. The evaluation will examine the performance characteristics and the various heating applications together with installation and service requirements for the product in the U.S. market. The testing is planned to take place in three stages and be completed in the Spring of 2015. During the final stage Flowgroup and NRG Energy will assess the potential for commercialization before deciding whether or not to progress to the planning of a subsequent commercialization in the U.S.

"The US has 79.5 million natural gas connected homes with the average annual gas consumption 46% greater than the UK average. In addition, the electricity price is three times higher than natural gas prices in twenty states. Flowgroup therefore believes that the market and economics for microCHP are attractive in the US," Flowgroup said.

"This MoU represents the first step into the US retail energy market, linking up with one of the leading players in US energy," said Tony Stiff, CEO of Flowgroup.

Elizabeth Killinger, President of NRG Retail, was quoted in a Flowgroup news release as stating, "As we enter into this new Era of Personal Power where consumers can safely generate power in their own homes, we believe consumers will come to rely on appliances like the one Flowgroup offers. We are delighted to work with Flowgroup as we create a portfolio of distributed generation solutions for residential customers."

Tags:
NRG Energy   Flowgroup   Innovation   microCHP  

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