Daikin Australia, one of the world's leading air conditioning and heat pump manufacturers, has announced the Australian launch of its CO₂ hot water heat pump. The system uses R744 (CO₂) natural refrigerant and delivers one of the highest Coefficient of Performance (COP) ratings on the market, marking a major step in the company’s commitment to helping Australian households reduce carbon emissions and energy costs.

The launch comes as Australia accelerates its transition away from natural gas. In Victoria[1], all new homes must be built all-electric from January 1, 2027, and from March 1, 2027, gas hot water systems in existing homes that reach end of life and cannot be repaired must be replaced with an electric alternative such as a heat pump.

Powered by advanced CO₂ heat pump technology and designed with lead-free components, the hot water heat pump harnesses energy from the air to heat water up to six times more efficiently than a traditional gas or electric resistance system[2]. In general, CO2 based hot water systems are estimated to reduce household greenhouse gas emissions by up to 6.8 tonnes over 10 years[3] when compared with a four-star natural gas hot water storage system – equivalent to 112 tree seedlings grown for 10 years[4].

“We’ve built this system around CO₂ (R744),” said Michael Pietro-Paolo, National Sales Manager of Hot Water, Daikin Australia. “It’s a natural refrigerant with a GWP of just 1 and zero Ozone Depletion Potential, and with a nominal COP of 6.15, it offers one of the highest efficiency ratings in the market.”

For a typical four-person household using 150 litres of hot water per day, annual running costs with the Daikin system on an off-peak electricity tariff are approximately $200, compared with $820 for a gas and $770 for an electric system[5].

All units qualifying for government incentives must be tested against the AS/NZS 4234:2021 – the Australian & New Zealand standard assessing energy performance of water heating systems. Daikin systems meet these requirements, which can lead to greater rebate incentives for consumers. Households with rooftop solar can lower their overall costs even further by scheduling the heat pump to run during peak generation periods.

“Australia is on the path to net zero, and hot water heating is one of the biggest opportunities for households to reduce their carbon footprint and energy bills at the same time,” said Pietro-Paolo. “With Daikin’s proven heat pump technology, the natural CO₂ refrigerant, and strong government incentives now in place, the case for making the switch has never been stronger,” he added.

Available in either 250L or 315L tank sizes to cater for households of up to five bedrooms, the duplex stainless steel construction with high chromium composition ensures superior corrosion resistance and long-term reliability.

Engineered and tested for Australian climates and conditions, the refrigerant circuit is fully contained within the outdoor unit. It operates across an ambient temperature range of -10°C to 43°C and runs at a low 38 dB(A), making it an ideal solution for residential properties.

The CO₂ hot water heat pump system is now available across New South Wales, Victoria, Tasmania and the Australian Capital Territory, with a phased national rollout to follow.

References:

[1] https://www.energy.vic.gov.au/households/electric-and-efficiency-standards-for-buildings

[2] https://eec.org.au/article/back-to-basics-heat-pumps/

[3] https://www.sustainability.vic.gov.au/energy-efficiency-and-reducing-emissions/save-energy-in-the-home/water-heating/calculate-water-heating-running-costs

[4] https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator-calculations-and-references#seedlings

[5] https://www.sustainability.vic.gov.au/energy-efficiency-and-reducing-emissions/save-energy-in-the-home/water-heating/calculate-water-heating-running-costs

Architecture & Design Team

Daikin Australia

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