Strengthening UK leadership in natural refrigerant manufacturing

isentra designs, manufactures, monitors, and maintains advanced transcritical CO₂ refrigeration systems, heat pumps, and hot water plant that are capable of incorporating heat recovery technology, for large commercial and industrial users across the UK and beyond.

Since 2006, the company has been at the forefront of bringing carbon dioxide (CO₂) a safe, naturally occurring refrigerant with ultra-low global warming potential into mainstream commercial use. CO₂ has a far lower climate impact than traditional freons.

However, after completing a four-year research partnership with the University of Liverpool, isentra is now preparing to bring another game-changing technology to a significant global market.

But there is a problem …

In fact, there are two closely-linked problems, both of which the Government, through its June 2025 Modern Industrial Strategy, has already pledged to address.

The solution is a clear opportunity to support not only isentra as a leading British innovator, but also the wider development of a much-needed, resilient UK supply chain, with benefits for regional growth, national industrial capability, and British export competitiveness.

CO₂ vapor compression systems are rapidly becoming the leading international cooling and heating technology.

They provide excellent performance, are highly energy efficient, use naturally-occurring atmospheric gas, and offer a future-proof alternative to hydrofluorocarbons now restricted under tightening F-gas regulations.

But innovation in this field cannot stand still.

“We are continuously developing next-generation technologies for large-scale refrigeration and heat pump applications,” explains Stephen Allen, Chief Operating Officer at isentra.

“Our recent collaborative project with Professor Zhibin Yu at the University of Liverpool has now experimentally demonstrated a technology that will be a genuine step-change in cost, efficiency, and compliance with new F-gas requirements.”

This development is a major opportunity for the UK – if it is commercialised quickly enough.

Speed is critical. Large European competitors, backed heavily by their governments, can reach the market faster. Intellectual property cannot remain confidential forever.

“This is where we face real challenges,” says Stephen.

“During a recent procurement exercise we discovered that equivalent components sourced from Europe were up to 2.5 times cheaper than any supplier within 15 miles of our Lancashire base. Much of that cost difference is due to early-stage support and industrial policy overseas.”

This is very much what RedCAT it trying to demonstrate to the UK Government.

The second challenge is investment readiness.

isentra requires £200,000 to scale up and commercialise the technology. Investors can see the long-term potential – year-on-year revenue growth of 45%, a rapidly expanding team, and strong demand. But the economics of UK supply chains versus subsidised EU manufacturers create a gap that inhibits investment confidence.

RedCAT supports green-technology innovators as they navigate the notorious “valley of death” between a successful prototype and a commercially-ready product.

It has helped to guide isentra’s growth since its earliest stages and continues to support the company’s scaling journey.

In June 2025, RedCAT helped to showcase isentra at the British Chambers of Commerce Global Annual Conference – “Where’s the Growth?”.

Embedded support

RedCAT’s embedded technical expert, Ian Trow, has played a key role in shaping isentra’s 18-month scaling roadmap, industrial relocation, and commercial strategy.

“With Ian and the RedCAT team’s support, we’ve progressed on almost every front,” notes Stephen. “Turnover has risen by roughly 45% each year for the past two years. Our team has grown from 5 to 17. We’ve already moved into larger premises and expect to move again in the next two to three years. We’re now running around three years ahead of our original growth model.”

“Our biggest threat is competition from EU manufacturers who can invest earlier, scale faster, and purchase components at significantly lower cost,” Stephen explains. “We’re agile and innovative, but they have the advantage of scale, subsidies, and lower supply-chain costs.”

Targeted UK Government intervention would achieve far more than supporting one company. It would help to stabilise and grow regional advanced manufacturing, strengthen domestic supply chains, and give investors the confidence they need to back UK-based green-tech firms, he explains.

The Government has stated its intention to support high-growth British industry. isentra sits directly in the centre of that ambition.

“When large corporations like Jaguar Land Rover face challenges, they receive support because of the thousands of jobs involved. But the UK’s advanced manufacturing ecosystem is built on networks of SMEs – virtual corporations in their own right, collectively employing many thousands of people. They need a level playing field too.”

Government backing in the 1990s allowed the UK offshore wind sector to develop from an emerging idea into a globally respected industry. Government action later helped to drive down costs in solar.

The same approach is now required to ensure Britain does not fall behind in natural refrigerants, heat pumps, and industrial decarbonisation technology – all essential for achieving net-zero, improving energy resilience, and boosting productivity.

The basic problem is simple: the UK does not yet have a competitive supply chain,” Stephen says. “We recently had to go to Italy to buy major steel vessels because UK prices were more than double. Costs have soared across the last 6 – 12 months, and trading has become significantly harder.”

Without action, the UK risks losing domestic capability in a strategically important industrial sector.

The basic problem is simple: the UK does not yet have a competitive supply chain,” Stephen says. “We recently had to go to Italy to buy major steel vessels because UK prices were more than double. Costs have soared across the last 6 – 12 months, and trading has become significantly harder.”

Without action, the UK risks losing domestic capability in a strategically important industrial sector.

isentra designs and fabricates industrial scale transcritical CO₂ refrigeration plant, heat pumps, and hot water plant, typically ranging from 75 kW up to 2 MW, with bespoke systems tailored to each project.

Established and emerging markets

Early adopters of isentra’s refrigeration systems were primarily major food production and cold-chain companies. The same technology has since evolved into advanced heat pumps and hot water systems for commercial and industrial sites, both retrofit and newbuild.

Demand now spans:

• UK convenience retail
• Food chain
• Public and private buildings
• Hotels and leisure centres
• Industrial facilities with significant waste heat
• Large district heating networks
• University and public-sector decarbonisation projects
  (e.g., the Wolfson College heat pump project at the University of Oxford)

isentra’s systems can dramatically reduce natural gas use and carbon emissions when deployed as heat pumps or hot water systems. They are also well suited to capturing industrial waste heat or integrating with geothermal sources and represent one of the UK’s largest untapped decarbonisation opportunities.

The UK has the talent, research base, and industrial capability to lead the world in natural refrigerant manufacturing and advanced heat pump technology.

But without targeted Government support – particularly in early-stage commercialisation and supply-chain competitiveness – the country risks losing ground to heavily backed EU competitors.

isentra is already demonstrating strong growth, innovation, and commitment to British manufacturing. With the right support, it can anchor a robust UK supply chain, accelerate national decarbonisation, and become a major exporter of home-grown, world-leading clean-tech.

Hear more from isentra as they navigate the notorious “valley of death” between a successful prototype and a commercially-ready product to commercialise an existing company for wider world markets.