There is a need for more efficient water heating and space conditioning of both residence and commercial buildings. Existing electric heat pumps are available but their coefficients of performance are low. An absorption heat pump is an alternate device with a coefficient of performance that is almost double that of an electric heat pump. This proposed effort seeks to demonstrate the technical and economic feasibility of a new abosrption heat-pumped water heater. A new working fluid has been developed with distinct advantages over other fluids for heat pumps. Energy, corrosion and cycle studies, including both experiments and analyses, will be conducted and the economic viability will be assessed. If successful, this work will result in significant energy savings.