News

Government backs £12m boost for UK heat pump production

Ideal Heating and Gledhill have received almost £5.2m in government funding to expand their UK heat pump and hot water cylinder production capabilities.

Three people in an office

With an additional £6.8m pledged by the companies, the total investment exceeds £12m, marking a significant step forward for British manufacturing and the UK’s net-zero goals.

The funding, awarded through the government’s Heat Pump Investment Accelerator competition, will support increased production at Ideal Heating’s site in Hull and Gledhill’s facility in Blackpool. The programme aims to produce 115,000 air source heat pumps and 120,000 pre-plumbed hot water cylinders annually by 2030.

Leading the green heating transition

Jason Speedy, Ideal 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.”

John Cook, production director at Ideal Heating, added: “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.”

Supporting the UK’s net-zero ambitions

The funding highlights the government’s commitment to building a robust homegrown heat pump industry, reducing the UK’s reliance on gas boilers, and supporting low-carbon jobs.

Heating homes accounts for almost a fifth of the UK’s greenhouse gas emissions, rising to 40% when commercial buildings are included, making decarbonisation in this area critical for achieving the UK’s 2050 net-zero target.

Miatta Fahnbulleh, minister for energy consumers, visited Ideal Heating’s headquarters in Hull to mark the funding award and tour the company’s National Training and Technology Centre.

Driving innovation in Hull and Blackpool

Ideal Heating is part way through a £60m investment programme at its Hull site, which includes new manufacturing, distribution, and research facilities. This includes a £19m UK Technology Centre, under construction, to serve as a hub for product innovation, including heat pumps.

Gledhill’s Blackpool site is a leading UK manufacturer of hot water cylinders, producing solutions for both renewable and traditional heating systems. Together, the two companies are well-positioned to drive the future of UK heat pump technology and help meet the government’s decarbonisation targets.

Image: Ideal Heating