Gas boilers still dominate the residential heating market in the UK and large swathes of Continental Europe. Despite rising customer and government demand for low-carbon solutions, transitioning to heat pumps is slow. By combining hardware with advanced machine learning software, our latest investment, Adia Thermal, provides a cost-effective and easily installable solution that makes heat pumps a feasible option for homes previously reliant on gas boilers.
The Solution
Two hardware components - The Adia Hub and Flow Balancing Valves - work in tandem with a machine learning algorithm capable of accurately predicting hot water flow throughout domestic heating systems. This allows heat to be distributed more effectively across a household, improving operational efficiency and ultimately lowering the homeowners' energy bill. This optimised performance allows Adia to eliminate the need for costly, time-consuming fabric changes to the home, unlike traditional heat pump installations, which often require extensive modifications.
The system also has the ability to match the installation time and talent pool of gas boilers, and combined with government subsidies like the £7,500 Boiler Upgrade Scheme (BUS), means Adia-enabled heat pumps are an attractive financial proposition. The upfront cost of a full heat pump installation with Adia, when the subsidy is included, is expected to be as low as £1,500 compared to ~£3,000 for a traditional gas boiler, undercutting competitors while offering a superior long-term operating cost.
Climate Impact
In 2022, space and water heating contributed nearly 10% of global CO2 emissions. By making heat pumps more affordable and easier to install, Adia could accelerate their adoption, potentially reducing CO2 emissions by up to 500 Mt annually by 2030, according to the IEA.
Each Adia-enabled heat pump reduces CO2 emissions equivalent to a Tesla—at just 3% of the cost. With the UK alone having 23 million gas boilers, responsible for 18% of the nation's emissions, Adia offers a compelling decarbonisation story.
Product and Technology
Heat pumps have struggled to gain significant traction in the UK for three key reasons: high upfront costs, complex installation processes, and a lack of qualified installers. Adia’s system directly addresses these challenges.
Cost Savings
While traditional heat pump systems can exceed £15,000 in upfront costs, an Adia-enabled heat pump installation can reduce system CAPEX by up to 40% exclusive of any green premiums or grants. This reduction is achieved by eliminating the need for expensive radiator and pipework modifications, removing the system design phase, and automating parts of the installation process.
Faster Installation
Traditional heat pump installations can take up to 4 weeks to install from first contact with an engineer, making them an impractical choice for most households, especially in cases of emergency boiler replacements. Adia's system, by contrast, can be installed in just 1-3 days, a comparable timeline to installing a gas boiler. This opens up the previously inaccessible distressed boiler breakdown market for heat pumps.
Increased Installer Pool
One of the most significant bottlenecks in heat pump adoption has been the limited number of qualified installers. While the UK has approximately 130,000 gas boiler engineers, only 11,000 are qualified to install heat pumps. Adia’s technology enables gas boiler engineers to install heat pumps without the need for additional specialised training, opening up a significantly larger workforce to meet the growing demand.
Team
Adia Thermal is led by a well-balanced team, combining deep technical expertise with strong commercial acumen. CEO, Luke and CFOO, Nikita previously worked together scaling a clean energy business in Mozambique. Meanwhile, the technical expertise is brought by Sam and Shaun who specialise in software development, fluid mechanics, and machine learning.
Conclusion
With the potential to significantly reduce CO2 emissions and offer homeowners a financially attractive alternative to gas boilers, Adia is set to lead the charge toward a cleaner, more sustainable future for domestic heating. We're very excited to support Adia in their technical and commercial development, accelerating adoption in the previously slow-to-move UK market.
