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Reflections On The End Of 2022

As we come out of COP27, a mild autumn and a somewhat turbulent time in UK politics I thought it would be worth setting out how we see the near future developing. Whilst the future is always uncertain and unknown events may well impact on us all I hope this gives a little help to those of you planning projects.

COP27 and the science behind it is very clear that time is running out and action is required. There was some accord but little progress since Glasgow. This is disappointing but points clearly at us as individuals and businesses to take action. With heat being 40% of our carbon footprint installing a heat pump with a low carbon power tariff is a quick and effective win.

Countries all around the world have recognised this and heat pump installations are taking off, with Germany installing the same number in one month as they did all last year. This is fantastic to see but it will further stretch the global supply chain of components. We expect disruption to continue, forward ordering is the best mitigation against these effects.

Inflation is biting many economies, construction materials are amongst many materials that are affected. We expect this to have a twin impact on heat pumps by raising our production costs and also in raising the prices of pipe and installation materials. Unfortunately we’re expecting to have to raise our prices in the first quarter of 2023.

Energy price and security are hard to predict. The potential impact of a cold winter and further reductions in supply from Russia would raise prices. An economic slow down and a warm winter may stabilise prices. Overall we do not expect to see reductions in energy prices in the near future.

On policy, the EU is leading the world in natural refrigerants and heat pump technology. I’m pleased to say Clade are at the forefront of this with our digital and low noise products. There are strong moves to increase the pace of the f-gas draw down and ban many chemicals which are mobile, persistent and toxic in our environment. We expect the UK to follow EU policy.

What does all this mean for your heat pump projects?

Natural refrigerants are the only choice. Zero risk of early replacement or high running costs, high performance, low costs and environmentally friendly.

Early ordering of heat pumps and equipment is essential to avoid price rises and supply problems.

What are we doing to help?

Over the past few months we’ve worked with our customers to help them by helping us to bulk and forward order. To reward our customers who have responded we’ve been able to offer better value via free commissioning and free aftercare.

We will continue to do our very best for our customers, but please do work with us to ensure mutual success.

Tim Rook

Clade CMO