Truro-based Kensa Heat Pumps (www.kensaheatpumps.com), a manufacturer of ground-source heat pumps, has started construction of a new 900m² manufacturing and office building on its current site at the former Mount Wellington Mine.

The new facility, adjacent to its existing factory, will enable Kensa to ramp up production to produce 30,000 environment-friendly ground-source heat pumps every year.

The expansion, due to be completed by January 2020, will make Kensa the largest low-carbon business in Cornwall, providing 150 jobs.

With a market share of nearly 50%, the company forecasts annual growth of around 50%, as the UK Government introduces regulations to ban the use of high-carbon fossil fuels, particularly in new-build housing in just six years’ time.

Like Kensa’s current factory, the new facility will have underfloor heating and hot water provided by a heat pump using the heat from water in a flooded mineshaft below.

James Standley, Kensa’s managing director, said: “Our new manufacturing facility gives us the capability to build on what we started here in Cornwall 20 years ago, and to make a huge impact on the UK’s transition to a low-carbon economy.

“While we are the UK’s number-one ground-source heat pump supplier for the seventh consecutive year, we remain proudly Cornish, with a strong local workforce and infrastructure.”

A finance package from HSBC has been provided for the expansion.

Mark Self, HSBC UK’s business banking area director (for Cornwall, Devon and Somerset), said: “We’re committed to helping sustainability businesses thrive, so it’s been fantastic to see Kensa expand its facilities in reaction to increasing demand for more eco-friendly heating systems.

“We’re looking forward to seeing the new factory take shape, as the business continues to grow and invest in the local area.”