Yahoo News Hull firm receives funding boost to ramp up heat pump production
A Hull-based company was visited by a government minister as it was granted substantial funding to speed up the production of heat pumps.
The award to Ideal Heating marks the first from the government's Heat Pump Investment Accelerator competition, which is designed to stimulate significant private sector investment in the UK heat pump market.
It will allow for an increase in the production capacity of monobloc heat pump units and controls at the firm's site in the city, as well as hot water cylinders at the Gledhill manufacturing facility in Blackpool.
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Both Ideal Heating and Gledhill are part of Groupe Atlantic's UK operations. The group has a long-standing history of manufacturing heat pumps and leads the market in many countries around the world in this area.
The two businesses have been awarded nearly £5.2m and have committed to investing more than £6.8m in heat pump production, bringing the total to just over £12m.
It represents a significant boost for British manufacturing as the Government collaborates with leading companies in the heating sector to kickstart a domestic heat pump industry, enhance the UK's energy security, and support hundreds of low carbon jobs.
To mark the funding, Miatta Fahnbulleh, Minister for Energy Consumers, paid a visit to Ideal Heating's headquarters in Hull and the industry-leading National Training and Technology Centre near the Humber Bridge.
The investment by Ideal Heating and Gledhill, bolstered by government funding, is projected to yield an annual production of 115,000 air source heat pumps and indoor controls at Ideal Heating's Hull facility by 2030. Meanwhile, Gledhill's Blackpool site is expected to manufacture 120,000 pre-plumbed hot water cylinders each year within the same timeframe.
Jason Speedy, chief operations officer at Ideal Heating, said: "We've been manufacturing market-leading heating products in the UK for well over a century. Across the heating industry we're now seeing a significant transition from gas boilers to sustainable solutions, such as heat pumps. That aligns closely with the UK's net zero targets.
"This funding is a vote of confidence in our business and our position at the forefront of the industry's move to low carbon heating solutions. It will enable us to accelerate our plans for heat pump production and complements the broader programme of investment across our operations as we lead the industry to a greener, low carbon future."
The government funding will support increased investment in infrastructure and equipment at the Hull and Blackpool sites to accelerate the design, development and manufacture of air source heat pumps, pre-plumbed hot water cylinders and associated components.
Ideal Heating is part way through a £60m investment programme at its Hull site, spanning production, distribution, and research and development capabilities, with a specific focus on heat pumps.
The business employs around 1,000 people, the vast majority of them in Hull, in roles ranging from production, distribution, research, development, IT and engineering.
In August 2023, Ideal Heating launched its first heat pump production line in Hull and has since invested further in this facility. Construction is also well advanced on a £19m UK Technology Centre at the Hull site, which will serve as a testbed for product innovation, including heat pump technologies.
In addition, Ideal Heating's Expert Academy training arm is playing a leading role in the re-training of gas engineers across the country to work with heat pumps and low carbon solutions.
Ideal Heating production director John Cook said: "As a proud UK manufacturer, we're embracing the technologies which will heat British homes and businesses for decades to come. Ideal Heating has already seen one significant transformation, from coal to gas-powered products. Now, we're evolving again to low carbon solutions.
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"We're delighted to have been awarded this significant funding which will further enhance our production capabilities at our sites in Hull and Blackpool."
Heating the nation's 28 million homes accounts for almost a fifth of all UK greenhouse gas emissions. Factoring in commercial properties, that figure jumps up to almost 40 per cent.
The UK Government is aiming for the nation to achieve net zero emissions by 2050 with decarbonising homes and businesses' heating seen as crucial to achieving this target.
