The U.K. has launched a $400-million program to scrap boilers in favor of low carbon alternatives like heat pumps, as was recently reported in The Times. 

What Happened: The project is meant to offer $7,000 in grants to help British residents ease into the transition as the country aspires to install 60,000 new heat pumps. But the U.K. government has bigger goals: it wants 600,000 heat pumps to be installed by 2028. 

Heat pump markets are set to reach over $94 billion in size by 2023, according to newswire reports. The U.K. government is also hoping to invest 4 billion pounds ($5.5 billion) into the hydrogen industry by 2030, according to The Guardian's reporting.

Why It Matters: Natural gas is a big carbon emitter, and many homes are trying to move away from the energy storage containers. Heat pumps are a key replacement, which are predicted to occupy 15.4% of homes by 2025 and 22.1% of homes by 2030, according to an International Energy Agency report. 

Several companies could get an extra boost from the decision. Lennox International (NYSE:LII) has already seen its stock price rise to $330.43 per share after falling to $181.79 in March 2020.

For a lower-cost buy, LSB Industries (NYSE:LXU) has been on the rise after falling to $1.16 per share in June 2020. 

Modine Manufacturing Company (NYSE:MOD) is also on a short rise and is a relatively cheap buy at $12.65 per share. 

What Else: The Biden administration plans to transition America to energy efficient appliances, as seen in the $1-trillion infrastructure bill that recently passed the Senate.

One in four American homes are already all-electric, according to the U.S. Energy Information Administration. 

Photo: Craig Curtis via Unsplash.