Octopus Energy Group has acquired Northern Irish heat pump manufacturer Renewable Energy Devices (RED).
The multi-million-pound deal will see Octopus become the majority shareholder in RED and fully acquire the company by the end of this year.
The investment, which aims to make heat pump technology more affordable, will be used to expand the RED’s factory and scale heat pump production capacity to more than 1,000 heat pumps a month.
The partnership is forecast to create 100 new jobs in Craigavon, Northern Ireland.
Last month, the boss of Octopus Energy highlighted the need to accelerate the heat pump rollout in the UK.
Energy Minister Lord Callanan said: “The government’s Boiler Upgrade Scheme will make grants of up to £5,000 available for fitting this green technology and together with private sector investment such as this by Octopus Energy, we are making heat pumps an affordable, convenient and obvious choice for consumers – especially with global gas prices at record highs.”
Greg Jackson, Founder and Chief Executive Officer of Octopus Energy Group, commented: “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.”