Lennox International, Inc. (NYSE:LII), Lsb Industries Inc. (NYSE:LXU) – With UK Incentivizing Switch To Heat Pumps, These Companies May Gain
The UK has launched a $ 400 million program to scrap boilers in favor of low-carbon alternatives like heat pumps, the Times reported recently.
What happened: The project is set to provide $ 7,000 in grants to ease the transition for UK residents as the country plans to install 60,000 new heat pumps. But the UK government has bigger goals: 600,000 heat pumps are to be installed by 2028.
According to Newswire reports, heat pump markets will reach over $ 94 billion in size by 2023. According to The Guardian, the UK government also hopes to invest £ 4 billion ($ 5.5 billion) in the hydrogen industry by 2030.
Why it matters: Natural gas is a large emitter of CO2, and many households are trying to move away from energy storage. Heat pumps are an important replacement that will occupy 15.4% of households by 2025 and 22.1% of households by 2030, according to a report by the International Energy Agency.
The decision could give several companies an additional boost. Lennox International (NYSE: LII) has already climbed its share price to $ 330.43 per share after falling to $ 181.79 in March 2020.
For a cheaper purchase, LSB Industries (NYSE: LXU) is up after falling to $ 1.16 per share in June 2020.
Modine production company (NYSE: MOD) is also on a brief spike and is a relatively cheap buy at $ 12.65 per share.
What else: The Biden administration plans to move America over to energy-efficient devices, according to the $ 1 trillion infrastructure bill recently passed by the Senate.
According to the US Energy Information Administration, one in four American households is already fully electric.
Photo: Craig Curtis via Unsplash.
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