Ideal Heating awarded Government funding to accelerate heat pump production

The funding will enable increased production capacity of monobloc heat pump units and controls at the UK heating industry market leader's site in Hull as well as hot water cylinders at the Gledhill manufacturing facility in Blackpool.

It is the first funding award from the Government's Heat Pump Investment Accelerator competition, which aims to unlock significant private sector investment in the UK heat pump market.

Ideal Heating and Gledhill, the country's leading cylinder manufacturer, are both part of the UK operations of Groupe Atlantic, which has a long-standing history of manufacturing heat pumps and is a market leader in many countries across the world in this field.

The two businesses have been awarded almost £5.2m and have pledged a further investment of over £6.8m in heat pump production, taking the total to just over £12m.

It represents a major boost for British manufacturing, as the Government works with leading companies in the UK heating sector to kickstart a homegrown heat pump industry, boost the UK's energy security and support hundreds of low carbon jobs.

To mark the funding, Miatta Fahnbulleh, Minister for Energy Consumers, visited Ideal Heating's headquarters in Hull and industry-leading National Training and Technology Centre near the Humber Bridge.

The Government funding and the investment by Ideal Heating and Gledhill will enable the production of 115,000 air source heat pumps and indoor controls at Ideal Heating's site in Hull annually by 2030. It will also enable production of 120,000 pre-plumbed hot water cylinders every year at the Gledhill site in Blackpool, within the same timescale.

Jason Speedy, Ideal's Heating's Chief Operations Officer, 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.

"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. When you factor in commercial properties, that figure jumps up to almost 40 per cent.

Decarbonising the way homes and businesses are heated is therefore vital to achieve the UK Government's 2050 net zero target.

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