Octopus Energy has teamed up with Legal & General (L&G) Capital to invest £70m in ground source heat pump (GSHP) manufacturer and installer the Kensa Group.
It is the biggest investment in the technology in Britain, according to Octopus, and will allow Kensa to rapidly expand and install 50,000 GSHPs a year by 2030.
Finance will also be provided to allow Kensa to offer housebuilders, housing associations and non-domestic customers its ‘networked heat pumps’ at a lower cost.
The investment is the first deal from the new £500m Octopus Energy Transition Fund, which is raising capital from investors and already has a cornerstone investment from Wandsworth Council’s pension fund.
John Bromley, MD – clean energy, at L&G Capital, said: ‘[We] continue to invest in leading energy transition businesses capable of delivering significant economic, social and environmental benefits for our economy.’
