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 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 LXU has been on the rise after falling to $1.16 per share in June 2020.
Modine Manufacturing Company 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.
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