Prime Minister Boris Johnson has announced his government’s plan for a ‘green industrial revolution’.

The 10-point plan is backed by £12bn of government investment, with claims it could create up to 250,000 new jobs.

Key points for heating and plumbing engineers are:

• Extension of the Green Homes Grant scheme for another year
• Extend Energy Company Obligation to 2026
• 600,000 heat pump installations per year by 2028
• The UK to develop 5GW of low-carbon hydrogen production capacity by 2030
• 20% blending of hydrogen into the gas distribution grid for all homes on the gas grid by 2023
• End the sale of new petrol and diesel cars and vans by 2030
• £1.3bn to accelerate the roll out of EV charging infrastructure

The government also pledged to set out the Heat and Buildings Strategy in 2021. However, confusion reigned when due to a clerical error, a promise to outlaw gas boilers in new homes by 2023 was accidentally included.

While this has now been removed, Kevin Wellman, CEO of the Chartered Institute of Plumbing and Heating Engineering (CIPHE) is concerned that damage has been done:

“While the Government’s Ten Point Plan supports the EU Energy Performance of Buildings Directive – which says that all new developments in the UK are required to be nearly zero-energy buildings (NZEB) before 2021 – at present, installers can still fit and indeed retrofit combi gas boilers to the current Boiler Plus Standard in England (and certain property types in Wales), with a minimum ERP efficiency of 92%. 

“Currently, the Future Home Standard is due to come into play from 2025 – though this could now be earlier – meaning that gas central heating appliances in all new build properties will be banned, and will therefore require an alternative heating source such as a heat pump or hydrogen powered boiler. Existing properties will not be affected by the legislation and are expected to be able to use gas boilers for the foreseeable future. However, with the Government’s commitment to Net Zero by 2050, it’s true that natural gas fired boilers are on borrowed time.

“The infrastructure will not be in place by 2023 to abolish gas boilers. The Hydrogen network is not due to be trialled at scale (in limited areas) until 2023 and heat pump production will need to increase significantly to reach demand. Additionally, we need approximately 100,000 engineers trained to competently install the new technology. If we fail to adequately train engineers, the public and those working in the industry will be put at considerable risk.”

Carl Arntzen, CEO of Worcester Bosch invited to join the Prime Minister as he launched his Ten Point Plan for a Green Industrial Revolution.

Carl was one of twenty business leaders also asked to join in a roundtable debate following the announcement.

Carl commented: “We at Bosch welcome the new “green industrial revolution” that has been set out by the Prime Minister. The UK is leading the world in its drive towards net zero carbon emissions by 2050, and we look forward to working with the Government to help turn admirable ambition into accelerated action. Although 2050 may seem a long way off, action needs to be taken now to ensure that we can reach it.

“The 10 steps set out by the Prime Minister are bold and we are delighted to see that hydrogen will play a key role in delivering them. The investment of £500 million in Hydrogen is a positive start and can help to reduce carbon emissions significantly – particularly in the way that we heat our homes, power our transport (especially heavy transport) and meet the challenges of increasing electricity demand through decentralised power supply.

“With the foundation of solid Government backing, hydrogen will be a ready-to-go solution in the near future and therefore making a strong impact in the fight against climate change. It demonstrates the role that technology can and should play in finding practical solutions to the challenges that we face.”

Graham Wright, Chairman of the Heat Pump Association (HPA), welcomed the annoucement:

“As we have stated in our recent report, there is no ‘silver bullet’ solution to the decarbonisation of heat. However, as the Committee on Climate Change has already stressed, heat pumps are an established technology and can provide one of the solutions for an urgent and widespread shift to low carbon heating and must be supported immediately. This plan is therefore welcome news for the heat pump industry as it does appear to agree with our recommendations.

“We also recognise industry’s need to make the required heat pump installation training widely available. This is something the HPA is also committed to and the Government’s plan makes it clear there will be new jobs created in order to help carry out this move to greener technology.”

The BESA said the government deserved credit for delivering a “bold and progressive” plan, but added that significant investment in training and skills would be needed to turn vision into reality.

It also believes that reinstating the 5% rate of VAT that used to apply to all energy efficient heating systems would give another boost to the market for low carbon upgrades.

Heat pumps were highlighted by the Prime Minister as a key technology for delivering many of the government’s decarbonisation goals and he wants the industry to be installing 600,000 a year by 2028. The Committee on Climate Change (CCC) has already set a target of one million a year by the 2030’s towards an eventual total of 19 million to achieve the government’s net zero targets.

“This represents a “massive surge in the market that will both excite and alarm the industry”,” according to BESA’s head of technical Graeme Fox. “It is an absolutely colossal opportunity, but we will have to rapidly scale up our capacity and will need considerable investment in skills to deliver all of this.”

However, STA Chief Executive Chris Hewett believes solar was noticeably absent from the Prime Minister’s announcement: “It is disappointing that Number 10 has yet to grasp the opportunity presented by solar in the UK. Not only is it set to be the cheapest power source for years to come, it also provides good jobs and business opportunities up and down the country.

“Whilst the Prime Minister might have a blind spot for solar, decisions in the market are likely to outpace his thinking. Today the City of London signed a 15-year deal to fund a new solar park, residential solar installations have already bounced back to pre-pandemic levels, all major utilities are expanding their solar ambitions and costs continue to fall. Delivering net-zero is now as much about economics as it is policy.”