Harvey's, a veteran of N.L.'s home-heating market, enters mini-split business

As the home heating landscape continues to change in Newfoundland and Labrador, one company says it'sdetermined to stay on top by buying up more of the competition in the furnace oil delivery businesswhileentering the booming mini-split heat pump market.

Harvey's Home Heating announced this week it has acquired the St. John's-area customer base of one of its oil furnace competitors, North Atlantic, and at the same time signalled it's jumping with both feet into what's quickly becoming a game-changer in reducing carbon emissions from homes and buildings: electric heat pumps.

"We always say the air and the water doesn't know what's heating it. So whether it be electricity or fuel, we feel that there's a place for Harvey's Home Heating to serve the public," general manager Chris Forward told CBC News.

It's the latest sign that factors such as a growing awareness about climate change, taxes on pollution, and government incentives are shaking up the home heating sector.

A tough time for oil furnace users

Not too many years ago, Harvey's Home Heating was delivering furnace oil to more than 10,000 homes in the St. John's area, but that number has dropped to about 7,000, despite acquiring independents such as Forward's, Tibb's and Maher's over the years.

When the deal with North Atlantic takes effect on Feb. 1, Harvey's will add another 900 homes to its customer base.

According to the Newfoundland and Labradorgovernment, roughly 40,000 homes in the province are heated by oil furnaces.

WATCH I How Harvey's Oil is staying competitive, according to its general manager:

This N.L. home heating company feels some pressure when oil prices go up but isnt worried

9 months ago

Duration 1:14

A few years ago, Harveys Oil and Harveys Home Heating served around 10,000 customers that number hovers around 7,000 today. But general manager Chris Forward tells the CBCs Terry Roberts the company is still in a good spot, noting it acquired North Atlantic (and its customers) and its going to offer people mini-splits and heat pumps.

The deal doesn't include North Atlantic's propane delivery service; Forward saidNorth Atlantic was looking to exit the home heating business.

"It just seemed a natural fit for them to move that portion of their businessover to us," said Forward.

The days of installing an oil furnace in a new or renovated home are about as common as a coal-fired train on the Gaff Topsails, and a growing number of homeowners are either removing their oil furnaces and switching to electric heat, or installing heat pumps as a supplement for their carbon-emitting oil furnaces.

The shift took onextra urgency in 2022 when the price of a litre of furnace oil briefly surpassed $2, and again last summer when Ottawa slapped an extra 17-cent carbon tax on home heating oil.

In October, however, with the federal Liberals facing an internal revolt and growing public pressure, Prime Minister Justin Trudeau agreed to exempt home heating fuel from the carbon tax for three years.

Meanwhile, mini-split salesare being driven by generous government rebates, promises of significantly reduced energy costs, and their ability to both heat and cool a home.A flurry of companies have entered the mini-split business, and installation prices have steadily climbed as the market heats up.

• Ottawa exempting home heating oil from carbon tax for 3 years, Trudeau says
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Companies like Harvey's Home Heating can either adapt to the changinglandscape, or go the way of the printed phone book and rotary dial telephones. Harvey's has been a local business stalwartsince 1865, and Forward said that's not about to change.

He said the company adapted to the shift from coal to stove oil and then furnace oil, and is determined to be a strong player in whatever option emerges in the home heating sector. And he's promising to correct what he believes is an unfairly inflated market for mini-splits as suppliers, lured by the government rebates, jack up their prices.

But don't write the final chapter for furnace oil, either, said Forward.

He said Harvey's furnace oil delivery trucks will be navigating metro St. John'sstreets for decades to come, until the very last furnace is switched off.

"Anybody whostill chooses to heat their home with oil, we will provide the same paramount service that we've always done, even back when home heating oil was in its glory days," he said.

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