An Orkney company is fast developing as a market leader in the supply of innovative renewable energy technology that allows private, commercial and public sector customers to make dramatic savings on their fuel bills.

Ice Energy Scotland provides heating and hot water systems that use special equipment to harness solar energy stored in the ground around homes, schools and other buildings.

Called ground source heat pumps, they supply a constant source of heat and hot water for as little as a third of the cost of oil-based systems.

The technology is so effective that more than 90 per cent of new homes in Sweden are now fitted with heat pumps.

Ice Energy Scotland is convinced that it will become increasingly popular in the UK and is already supplying heat pumps to householders and larger properties that include a care home for the elderly.

The company has been created by heating engineer Alton Copland and renewable energy consultant Richard Land and is being supported by Orkney Enterprise as it develops new markets.

Orkney Enterprise development manager Harvey Stevenson said: "Helping locally-based businesses to expand into providing services throughout Scotland is a priority for us.

"This is a unique business within Orkney and there are very few offering a similar service anywhere else in Scotland.

"The development we're supporting will allow the company to become a market leader on a national basis - and is also creating high quality new employment within Orkney."

Ice Energy Scotland designs, supplies and installs heat pump systems based around technology developed in Sweden over the past 30 years.

With more than £10,000 of support from Orkney Enterprise, the business is investing in sophisticated testing equipment that will allow systems to be tailor made to suit a range of ground conditions.

The Hatston-based company also plans to manufacture thermal collectors - special pipes buried in the ground that absorb the stored solar energy the pump converts into a source of room heating and hot water.

"Using a heat pump, household heating and hot water can currently be provided at between a third and a half of the cost of an oil-based system," said Mr Copland. 

"With oil prices going up, North Sea gas supplies running down and pressure on us all to reduce greenhouse gas emissions, we believe this is the high-efficiency, low-maintenance solution more and more people will turn to in future."

The company, which is creating four new jobs, includes Orkney Islands Council and Orkney Housing Association among its clients.

Heat pumps are being installed as part of two council developments, an extension to Glaittness Aurrida School in Kirkwall and a new care home for 26 elderly people in Dounby.

"The care home will be the biggest residential building in the UK to use heat pumps," said Mr Land.

The technology will also be used to provide room and water heating for people living in 19 flats currently under construction for Orkney Housing Association at Great Western Road, Kirkwall.

Here, an elderly person living in a one-bedroom flat can expect an annual heating bill of between £150 and £170.

"That is considerably less than the £200 they may well be entitled to under the Government's Winter Fuel Allowance," said Mr Land.

Mr Copland added: "In recognising the many benefits of this technology, the council and the housing association are leading the way for public sector organisations in Scotland.

"Orkney Enterprise have been equally visionary in the tremendous support they've offered us - they've been instrumental in helping us get the company off the ground."

The business holds the Scottish franchise for supplying technology created by Swedish company IVT, Europe's largest manufacturer of heat pumps.

As well as a growing client list in Orkney, it is also handling inquiries from across Scotland.