We have developed an experimental ventilation system that features direct heat exchange between ventilation air and granules containing a phase change material (PCM). Measurement of outlet air temperature when the inlet air temperature was periodically varied to simulate changes of outdoor ambient air temperature showed that the outlet air temperature was stabilized and remained within the phase change temperature range. This effect is expected to be useful in practical ventilation systems. The potential of such systems for reducing ventilation load was examined through computer simulation for eight representative cities of Japan. This revealed how different temperature conditions would affect required heat storage capacity. (C) 2004 Elsevier Ltd. All rights reserved.