Energy technology company Applied Energy Products has entered the low and zero carbon technology market, after signing an exclusive distribution deal with German manufacturer Stiebel Eltron.

Applied Energy is now the sole UK supplier of Stiebel Eltron’s products, which include ground source heat pumps and solar thermal water heaters.

Stiebel Eltron is the fourth brand to be added to Applied Energy’s products, which already include Creda’s heating systems, Xpelair’s ventilation technology and Redring’s water heating.

Turnover at Applied Energy rose 8.5% to £40.6m in the financial year ending 31 March 2004. Pre-tax profit increased from almost £1.5m to more than £1.7m in the same period. The company’s next results are due on 31 January 2006.

Richard Scott, business manager at Applied Energy, said the company was hoping to benefit from ventilation and energy regulations coming into effect on 6 April 2006.

He said that because the Part L had set stricter conservation targets the company would be able to take advantage of growing demand for low to zero carbon technology.

Scott added that, because of Part L changes making buildings more airtight and Part F increasing standards of ventilation, there would be greater demand for air purification technology.

“We’re not changing our traditional products but we recognise that the need to address the issue of climate change will affect the use of zero carbon technologies,” he said.

Stiebel Eltron will continue to operate as a separate business, based at Applied Energy’s Peterborough offices, and has an annual turnover of more than *300m (£200m).