European heat pump businesses secure funding

Octopus Energy has agreed to invest $89 million to scale up Kensa Group, a ground-source heat pump business, while KfW IPEX-Bank has agreed to provide $129.6 million of financing to German heat pump manufacturer Valliant.

Heat pump manufacturers in Europe continue to secure financial support from relevant lenders and investors. In the United Kingdom, Octopus Energy’s generation unit and investment firm Legal & General Capital have jointly committed GBP 70 million ($89 million) to Kensa Group, a specialized ground-source heat pump producer.

Kensa Group plans to use the funds to expand its operations and facilitate the installation of 50,000 heat pumps per year by 2030. This expansion is expected to create more than 7,000 green jobs in the United Kingdom. The investment aims to enhance accessibility to heat pumps for various properties, encompassing retrofits for social housing, terraced housing, and non-domestic buildings.

In a separate development, Germany’s Vaillant has secured €118 million of financing from KfW IPEX-Bank GmbH, a wholly owned unit of German development bank KfW. The funds will be used for the advancement of innovative heating systems, specifically aimed at elevating the capabilities of climate-friendly heat pumps. The funds will support significant investments in energy and heating transition initiatives in the years ahead.

As part of its expansion strategy, the German heat pump manufacturer is currently investing approximately €2 billion. Notably, the company inaugurated a new factory in Senica, Slovakia, in March. Alongside assembly lines, this facility encompasses a training center for partners, a visitor center, and a logistics hub. It is expected to be powered by 100% renewable electricity and will be heated with heat pump technology.

This post appeared first on PV Magazine.

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