New investment in Kensa is ‘a monumental moment for ground source heat pumps’

The Kensa Group, a leading manufacturer of ground source heat pumps, have received a £70m investment from Octopus Energy’s generation arm and Legal & General Capital, a development  described by Kensa CEO Dr Matthew Trewhella as ‘a monumental moment for ground source heat pumps’.

The investment is being heralded as the biggest ever made in ground source technology in the UK, one which will allow Kensa to expand to a level where, by 2030, they will be installing 50,000 ground source heat pumps a year. By this time Kensa believe that their growth will have created 7,000 new jobs in the green sector.

CEO Dr. Matthew Trewhella and COO James Standley of The Kensa Group

Considering that in 2021, only 55,000 heat pumps were installed in the UK in total, this would represent a significant acceleration towards the government’s target of 600,000 installations by 2028. That this investment should also drive down cost of heat pumps is an additional benefit.

Non-domestic customers such as house-builders and housing associations will be offered deals too enable them to install heat pumps at a lower cost. 

The Octopus Energy Generation investment is the first deal from its new £500m Octopus Energy Transition Fund, which is currently raising capital from investors.

Dr Matthew Trewhella, CEO of The Kensa Group, said: ‘This is a monumental moment for ground source heat pumps. This investment will help unlock Kensa’s vision of a mass transition to low carbon heating by replacing the gas grid with its 21st-century equivalent – an ambient temperature heat network.

‘Our approach harnesses the power of investment capital funding infrastructure, reduces the strain on our electricity grid and enables a just transition – keeping heating costs low and addressing fuel poverty simultaneously with climate change mitigation.’

Zoisa North-Bond, CEO of Octopus Energy Generation, said: ‘The heat pump revolution is off to a flying start: it’s a tried and tested replacement for gas boilers and can drive down consumers’ energy bills for good. Backing Kensa will help rapidly expand Britain’s fast-growing ground source heat pump economy. This is a huge milestone for our exciting new energy transition fund, as we invest in ambitious companies rolling out tech to turbocharge the clean energy shift.’