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.
The launch arrives as Australia accelerates its transition away from natural gas.
In Victoria, 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 new system harnesses energy from the air to heat water up to six times more efficiently than a traditional gas or electric resistance system.
CO₂-based hot water systems are estimated to reduce household greenhouse gas emissions by up to 6.8 tonnes over 10 years when compared with a four-star natural gas hot water storage system, equivalent to 112 tree seedlings grown for a decade.
Michael Pietro-Paolo, National Sales Manager of Hot Water at Daikin Australia, said the system’s design centres on the environmental advantages of CO₂ refrigerant.
“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,” Pietro-Paolo said.
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 system and $770 for a conventional electric system.
Households with rooftop solar can reduce costs further by scheduling the heat pump to run during peak generation periods.
All units qualifying for government incentives must be tested against AS/NZS 4234:2021, the Australian and New Zealand standard assessing the energy performance of water heating systems.
Daikin’s systems meet these requirements, a factor that can translate into greater rebate incentives for consumers.
“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,” Pietro-Paolo said, pointing to the combination of proven technology and government support now available to consumers.
The system is available in 250L or 315L tank sizes, suited to households with up to five bedrooms.
Its duplex stainless steel construction, featuring a high chromium composition, is built for superior corrosion resistance and long-term reliability.
Engineered and tested for Australian conditions, the unit’s refrigerant circuit is fully contained within the outdoor component.
It operates across an ambient temperature range of -10 degrees Celsius to 43 degrees Celsius and runs at a low 38 dB(A), making it suited to residential installations.
The CO₂ Hot Water Heat Pump is now available across New South Wales, Victoria, Tasmania and the Australian Capital Territory, with a phased national rollout to follow.