Octopus Energy has bought a Northern Irish manufacturer of heat pumps, the technology that experts believe could replace the UK's gas boilers in future.
The deal for Renewable Energy Devices will see Octopus take a majority stake in the Craigavon-based firm. The company's factory will be able to produce 1,000 heat pumps every month by the end of this year and there are potential plans in place to expand into new manufacturing sites.
Heat pumps work like reverse air conditioners and heat homes in highly efficient ways. The UK Government hopes that 600,000 heat pumps will be installed in homes every year from 2028.
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According to Express.co.uk, the company also announced plans to incorporate its “smart grid” technology into its heat pumps. Octopus' statement said: “This will enable the pumps to make the most of spare capacity on the electricity grid and distribution networks, and reduce the load at peak times - and lower running costs for customers.”
Octopus added that having electric vehicles or solar panel, the technology could further enhance efficiency, and reduce the running costs of a heat pump by as much as 70%.
Speaking to Express.co.uk, Greg Jackson, Founder of Octopus Energy said: "Heat pumps are already the most energy-efficient way of heating a house and now we just need to make them cheaper. Octopus Energy's investment will help drive the price down, making them more affordable and giving people a choice of how to heat their homes."
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