With the ongoing energy crisis, the European Union is taking several steps to ensure affordable, sustainable, and reliable energy supplies for residential buildings by incentivising the installation of heat pumps. Heat pumps are cost-efficient and make heating and cooling buildings more energy efficient.
To jump into this growing space, HeatTransformers, a Netherlands-based company specialised in the acceleration of heat pump installations, announced today the closing of its €15M Series A, led by Energy Impact Partners (“EIP”), a global investment firm supporting the transition to a sustainable future, with participation from existing investors, Fair Capital Partners’ Impact Fund and ENERGIIQ. Their total funding now accumulates to around €17 million.
With the investment round, HeatTransformers will cement its market leadership in the Netherlands, launch operations in Germany and the UK, and scale-up its workforce.
Stijn Otten, Co-Founder and Director of HeatTransformers tells TFN, “For households, heat pumps have an unbeatable CO2 reduction ratio per dollar invested. Compared to solar, this ratio is much higher. When we started in 2018, this was already the case, and it is even more so now.”
HeatTransformers, founded by Stijn Otten and Gijs van Vrede in 2018, is the first digital company focused on heat pump sales, advice, installation, and service. The two founders have complementary backgrounds, Gijs having spent five years working for Hal Investments, while Otten has experience in business development and marketing in sustainable mobility.
Otten adds, “The heat pump market is characterised by two types of companies: the very technical installation companies who lack the client-friendly process and the commercial companies who are selling products without in-depth installation knowledge. HeatTransformers bridges this gap through its 2-sided digital platform which matches a far-reaching network of suppliers and installers – both HeatTransformers full-time dedicated installers and third-party installers – with consumers to address issues that are associated with switching existing homes (retrofit) from fossil fuel heating systems to heat pumps.”
In addition to Engie, Bosch, BDR Thermea Group and dozens of local and national installers, HeatTransformers’ model has attracted global energy companies, heat pump producers and installers.
In addition to digital-led responses to initial interest and technical advice, HeatTransformers’ platform provides consumers with complete heat pump installation and post-installation support, including maintenance service, online monitoring, and optimisation. With a team of around 100 people, HeatTransformers’ digital-led approach is supported by its dedicated team of specialists, including its own heat pump installation workers, as well as an academy designed to increase the skills of HeatTransformers’ installation partners.
With the gas supply crisis, rising consumer bills, and a favourable policy environment in European countries, the European heat pump market is at a tipping point. Last year, heat pump sales increased nearly 38% in Europe, replacing roughly 4 billion m3 of natural gas and preventing about 8Mt of CO2 emissions. As demand for heat pumps has increased, production has been substantially scaled up.
“The unprecedented demand for heat pumps in Europe is good news for the energy transition, security of supply and consumers”, said Matthias Dill, CEO of Energy Impact Partners Europe. “As the Netherlands paves the way for the heat pump market and HeatTransformers is a leading player there, it is perfectly placed to play a significant role in decarbonisation of heat across the continent. We look forward to working together to drive this transformation”.
As a result of EIP’s investment, HeatTransformers will have the opportunity to learn from the global coalition of over 60 strategic partners focused on accelerating global decarbonization through technological advancements. Otten concludes, “Prior to today’s announcement, we have been funded by four founding partners. We received further investment after two years from investors Fair Capital Partners and InnovationQuarter, the regional economic development agency for Zuid-Holland, also known as greater Rotterdam.”
