91Èȱ¬

UK energy company Octopus has bought a controlling stake in a Craigavon-based manufacturer of heat pumps.

Renewable Energy Devices (RED) was founded in 2014 by engineer Jason Cassells.

Octopus says the deal will mean a significant step up in production, with RED adding 100 jobs over the next two years.

Heat pumps are seen as a key technology for removing fossil fuels from home heating.

That will have to happen if the UK is to meet its target of net zero greenhouse gas emissions by 2050.

A heat pump is an electrically powered device that absorbs heat from the air, ground or water around a building.

For example, air-source pumps suck in outdoor air and pass it over tubes containing refrigerant fluids to produce heat.

Octopus has already invested in heat pumps, committing around £10m in research and the training of installers.

Octopus is expecting the Craigavon factory to produce more than 1,000 heat pumps a month by the end of this year and keep growing.

Greg Jackson, founder and chief executive of Octopus, said it was the 'Model T moment' for heat pumps.

That refers to the development of the Model T Ford which was the first mass-produced, affordable car.

He said: "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.

"Like the original Ford, we're planning to scale production every year, cutting costs even further and making heat pumps affordable for everyone."

Dr Cassells said when he founded RED he had an ambition 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."

The terms of the transaction have not been disclosed but it has been described as a multi-million pound deal.

Octopus is expected to increase its controlling stake to full acquisition by the end of this year.