Market Update

Market Update

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The market has evolved significantly in its understanding and approach to achieving Net-Zero goals. Stakeholders have gained a clearer picture of what this entails and where existing technologies fit into the marketplace, including their viability and gaps needing attention.

Hydrogen and Heat Pumps

Hydrogen: Initially considered as a potential replacement for domestic gas, hydrogen has been deemed too expensive and impractical for large-scale use at this time. This aligns with earlier industry insights, but policy-makers have now acknowledged hydrogen is not a viable option at this time for mass adoption for domestic energy and it being better suited to commercial and industrial applications.

Heat Pumps: Heat pumps have emerged as a prominent solution, but they face heavy criticism due to high installation and operational costs, as well as user complaints about heat and noise and now their high embodied carbon cost is coming under scrutiny. 

Recent industry reports highlighted that heat pumps could have an average embodied carbon of 27.4 tons CO2 per unit. This indicates that it may struggle to offset the carbon cost over its useful lifetime. This calculation is made even less appealing by taking into account the embodied carbon from any of the additional remediation work required to install a heat pump, such as additional insulation.

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Accelerating the adoption of heat pumps could inadvertently cause further increases in global warming due to their high initial carbon footprint.

The Heat Wayv Option

Embodied Carbon and Efficiency: In response to these concerns, Heat Wayv has conducted a product component and manufacturing review, estimating the embodied carbon of a Heat Wayv unit at under 1 ton CO2. This vastly lower footprint means a Heat Wayv unit would achieve net carbon neutrality within a few months and then continue to reduce that households overall carbon emissions throughout its operational life.

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Given its longer lifespan of 20+ years, compared to heat pumps our Heat Wayv units could potentially prevent over half a gigaton of carbon emissions annually when scaled up. This significant environmental benefit is a source of great pride for us.

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Collaboration with Academia: Heat Wayv has partnered with the University of Edinburgh as an independent research partner. Their report, shared with the UK Government, underscores Heat Wayv’s strategic market position and its potential contribution to the UK's Zero-Carbon objectives.

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Market Dynamics and Opportunities

Heat Pump Market Share: It is now generally accepted that heat pumps can only serve up to 20% of the market, with slow uptake among potential installers further limiting their impact. This presents a substantial opportunity for Heat Wayv to target the remaining 80% of the market, facing minimal barriers and potentially even capturing some share from heat pump installations due to our cost and performance advantages.

Industry Engagement: Heat Wayv’s compelling value proposition has opened discussions with major boiler installers which combined account for over 10% of the UK annual installed volumes. Additionally, Heat Wayv is collaborating with several key organisations across different sectors.​​​

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Market Position and Future Prospects

The market’s growing maturity has positioned Heat Wayv prominently among key operators in the new housing sector, social housing sector, and major private sector installers and specifiers. This evolving market landscape demonstrates a broader understanding of where various technologies fit and highlights the need and desire for Heat Wayv’s innovative solution.

Conclusion

Heat Wayv is well-placed to capitalize on the current market dynamics, offering a sustainable, cost-effective, and low-carbon alternative to traditional heating solutions. With strong academic backing and industry engagement, Heat Wayv is poised to make a significant impact in helping achieve Net-Zero targets, addressing market needs and contributing to substantial carbon emission reductions.