"Your first cost may be lower, depending on what type of a combo system you're purchasing, versus having a separate heating, ventilation and air- conditioning system, as is traditionally installed in a home," said Mr. Heeley who was in Halifax for the institute's 32nd annual general meeting.

"But it's more the longer-term operating costs, the life costs, where an integrated system can save the consumer some significant dollars."

Mr. Heeley made the comments after the announcement Friday in Halifax and Ottawa of a $14-million industry-government initiative, called the Advanced Integrated Machanical Systems Project.

The project, announced in Ottawa by Natural Resources Minister Ralph Goodale and Environment Minister David Anderson, will help manufacturers develop and test gas-fuelled systems that combine ventilation with space and hot-water heating in one unit.

The Institute, which represents 1,000 industry members nationally, will administer the three-year project, which will receive $3.6 million from the federal government. The balance will come from industry participants.

Mr. Heeley said integrated heating and ventilation systems are becoming increasingly popular in new home construction across the country.

"They typically use up less space, and there's less maintenance," he said. "They're essentially using energy going into a single appliance to provide a number of different needs for the homeowner."

The development of integrated gas-fired systems in new homes could prove popular in Nova Scotia, where natural gas will become available for the first time this fall through the development of the $3 billion Sable Offshore Energy Project, led by Mobile Oil.

Mr. Goodale said the initiative will lead to costs reductions as well as benefit the environment.

"Space heating, hot-water heating and ventilation are responsible for most of the greenhouse gas emissions associated with operating a Canadian home," he said in a release.

"This project could reduce emissions, save Canadian consumers money, and create jobs and economic growth."

Mr. Anderson said the plan shows the government's commitment, questioned by some, to reduce greenhouse gas emissions in collaboration with industry.

"The project is another tangible example of a government-and-industry partnership taking early action to help reduce greenhouse-gas emissions and improve the environment," he said.

"Canadians will benefit from lower energy costs and more comfortable homes, while helping us meet our international climate change commitments."

The institute's chairman, Drew Keirstead said the organization "is pleased to be able to demonstrate our members' commitment to reducing greenhouse gas emissions by administering this project." He was announcing the initiative to more than 100 industry delegates at the Halifax meeting.

"Not only can these appliances be efficient, they also have the potential to gain market share by responding to market trends such as elimination of duplicate components via integration of product functions, increasing ventilation demands and reductions in space heating loads."

A half-dozen manufacturers are expected to participate in the project's system development, with others involved in developing components.

The testing and field trials will be carried out in about 150 homes, and a performance rating system will be developed. Training programs to help system designers and installers are included in the project.

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