Octopus Energy has acquired of Renewable Energy Devices (RED), a British heat pump manufacturer based in Craigavon, Northern Ireland, in a deal that will expand the factory to produce over 1000 heat pumps a month for UK customers.
A statement released by Octopus says that the partnership will allow the companies to bring down costs for heat pumps by scaling production, whilst creating 100 new green engineering jobs in the next two years.
The multi-million pound deal sees Octopus take a controlling interest in Northern Irish firm RED, and full acquisition by the end of this year.
The company plans to offer a range of different sizes, with a focus on smaller options suitable for the most common homes in the UK.
RED’s existing factory in Craigavon will see a significant expansion following the investment. Octopus is expecting the factory to produce over 1000 heat pumps a month by the end of this year and keep growing from there. The partners are also in the process of scoping other locations to build further heat pump manufacturing facilities.
Octopus plans to incorporate its “smart grid” technology into the heat pumps. 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. For homes with electric vehicles and/or solar panels, the smart tech will further enhance efficiency – for example, solar panels could reduce heat pump running costs by as much as 70%.
Heat pumps are one of the main pillars of the UK Government’s roadmap for a greener and more secure energy future. In its recently released Energy Security Strategy, the government announced the launch of a Heat Pump Investment Accelerator Competition in 2022. The scheme will be worth up to £30 million and aimed at making heat pumps in the UK, increasing the country’s energy independence by reducing the demand for gas.
Greg Jackson, founder and CEO of Octopus Energy Group (pictured), comments: “This agreement will involve major investments into heat pump manufacturing, creating valuable green jobs across the UK and helping increase our energy security by getting more homes off gas, and drive down costs for customers.
“This is the “Model T” moment for the heat pump industry. Thousands of heat pumps rolling out of RED’s Craigavon factory a month is just the beginning. Like the original Ford, we’re planning to scale production every year, cutting costs even further and making heat pumps affordable for everyone.”
