A new industrial strategy for heat pump manufacturing in the UK is essential to achieving green economic growth, according to a new report from the Institute for Public Policy Research.
Heat pumps will be needed to replace exhaust gas boilers, and the UK is well placed to produce these products and capture a share of much-needed jobs and investment.
If we don’t start this process now, six million manufacturing jobs will be at risk as boiler installations are phased out, but a just transition to heat pump production will be It will bring huge economic benefits to the people.
promise
The new Labor government is working on a green industrial strategy, drawing inspiration from bold measures in the US Anti-Inflation Act.
The government’s industrial strategy could help UK-based manufacturers seize green growth opportunities in heat pump manufacturing.
Heat pumps are a key element in helping the UK decarbonise home heating away from gas boilers.
They are more energy efficient than gas boilers and can reduce dependence on volatile gas markets in favor of domestic renewable electricity, reducing utility bills and enhancing energy security.
A ban on boiler sales in 2035 is essential if the UK is to meet its commitment to become carbon neutral by 2050, the report says.
transition
The country needs to install at least 5 million heat pumps during the next parliamentary term and at least 19 million by 2050.
However, the UK still installs disproportionately more boilers than heat pumps, with 29 gas boilers sold for every heat pump sold in the UK.
This creates a huge market opportunity for UK heat pump manufacturers. Although the UK is Europe’s largest boiler manufacturing country, it is not among the top 10 heat pump manufacturing countries in Europe.
Because boiler and heat pump manufacturing share common skills and equipment, boiler manufacturers can diversify into heat pump manufacturing relatively easily and with low capital investment.
Coupled with a large untapped domestic market, the UK is in a unique position to transition and specialize in heat pump manufacturing.
targeted
Research shows that regions such as the Midlands, the North East and Scotland stand to benefit most from growth in heat pump manufacturing.
IPPR calls for a more ambitious, coherent and long-term industrial strategy with a comprehensive approach focused on:
- Promote domestic demand for heat pumps with more generous subsidy schemes and low-cost financing to reduce installation costs.
- In order to maximize the reduction in utility costs for heat pump users, we will take temporary measures such as reducing rates for heat pump users.
- Public financing instruments, such as the newly established National Wealth Fund, will be used to help boiler manufacturers move into large-scale production of heat pumps.
Simone Gasperin, IPPR Associate Fellow, said: However, this advantage is coming to an end as gas boilers are being phased out to meet net zero targets.
“Nonetheless, the huge untapped market potential for heat pumps, combined with existing capabilities in heating and cooling manufacturing, puts the UK in a strategic position to achieve a just transition.
“This change has the potential to boost economic growth, protect skilled jobs and meet climate goals, but only if a coherent industrial strategy that aligns demand pull and targeted business support measures is in place. It is necessary.”
golden
Russell Dean, deputy general manager of Mitsubishi Electric’s living environment systems division, agrees.
“To take the UK to net zero by 2050, we need to encourage the adoption of renewable alternatives such as heat pumps.
“The uptake of heat pumps could also drive economic benefits, which are comprehensively detailed in this report.
“We found that myths about the cost of heat pumps and a fundamental lack of awareness of the benefits of this technology are suppressing demand in the UK.
“A stable, long-term heat pump strategy set out in the report, and a campaign to overcome these barriers, will provide the new government with an excellent opportunity to unlock the economic and environmental benefits of this technology. ”
this author
Brendan Montague is the editor ecologist. This article is based on a press release from the Public Policy Research Institute.
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