World News

Industry news and insights from Europe and around the World

UK News

Latest news and developments in the United Kingdom

Products

Keep up-to-date with the latest new products and technology

Features

General articles, applications and industry analysis

Energy supplier acquires heat pump manufacturer RED

UK: Octopus Energy has taken a controlling interest in Irish heat pump manufacturer Renewable Energy Devices (RED), with the promise of scaling production to over 1,000 units per month.

The multi-million pound deal sees energy supplier Octopus completing the full acquisition of the Craigavon-based business by the end of this year.

Octopus says that the deal will disrupt the market, allowing the companies to build quiet, highly efficient and stylish-looking heat pumps initially for UK customers. The products will come in a range of different sizes, with a focus on smaller options suitable for the most common homes in the UK.

When bought with the UK government’s new Boiler Upgrade Scheme, the company says they will cost about the same as a gas boiler. By scaling production, the partners are planning to bring costs down even further, with a view to eliminating the need for government support over time.

RED’s existing factory in Craigavon will see a significant expansion following the investment, creating 100 new jobs by 2024. Octopus is expecting the factory to produce over 1,000 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.

Renewable Energy Devices Ltd was incorporated in March 2014 and produces a range of air source heat pumps along with controls, hot-water distribution and storage systems.  

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. 

“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,” said Octopus Energy Group founder and CEO Greg Jackson.

“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.”

RED founder and MD Dr Jason Cassells commented: “When I founded RED, I had a dream to make heat pumps affordable, to put as many heat pumps in as many homes as possible and to make green heating accessible to everyone. With Octopus’ financial backing, industry knowledge and tech expertise combined with our heat pump know-how, this dream will finally become reality. We’re at the cusp of a clean heating revolution.”

Latest News

25th April 2025

Commission rules out earlier F-gas review

EUROPE: The European Commission has again rejected a call for an earlier review of the F-gas regulation (2024/573).
24th April 2025

Cooling AI brings data centre efficiency gains

USA: Critical cooling company Airedale by Modine is now offering an AI-enhanced version of its Cooling System Optimizer for high-density data centres. 
24th April 2025

Beijer Ref sales up 16% in Q1

SWEDEN: Wholesaler Beijer Ref has reported a net sales increase of SEK8,898m (€813m) in Q1, a 16% increase on the same period last year. 
23rd April 2025

Birds Eye view of solar-powered trailer

UK: Birds Eye is to employ two solar-powered Sunswap refrigerated trailers in its fleet transporting produce from its production facility in Lowestoft to its distribution hub at Wisbech.
22nd April 2025

Contractor guilty of £50,000 Covid loan fraud

UK: A contractor offering plumbing, heating and air conditioning installation has been convicted of fraudulently claimeing a £50,000 Covid Bounce Back loan.
22nd April 2025

Daikin and Hitachi trial AI for fault diagnosis

JAPAN: Daikin and Hitachi are to begin a collaborative trial to commercialise a generative AI agent that supports equipment fault diagnosis in factories.