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Old 11-13-2008
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tankless heater

I assume you mean propane fired instant water heaters. Up here in Canada they are illegal in boats even though thousands were installed in C&C's, Whitby's and Hinterhoellers. They are also very common on Gemini catamarans. (side note: the propane refrigerators in Gemini's are also illegal in Canada).

Our "Transport Canada Small Vessel Construction Standards" state that any appliances installed in a boat must be installed according to the manufacturers instructions. Of the five brands I am familiar with they all state in their manuals that these are not approved for boats.

I have been told (don't know for sure) that the issue is the valves are designed to operate in a vertical position and can fail at an angle of heel thereby releasing propane into the cabin.

Port Credit Marine Surveys
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