In the Netherlands, central heating boilers will be banned by 2026 and its government has incentivized the installation of heat pumps. Meanwhile, the U.K. government estimates that heating buildings accounts for 25% of the U.K.’s greenhouse gas emissions. It passed the Energy Security Bill, and is aiming to install 600,000 heat pumps a year by 2028. All of this opens up opportunities for companies advising on, fitting and maintaining heat pumps, which is what Netherlands-based HeatTransformers, does. It just a raised €15 million Series A to go heavy on the (proverbial) gas.
“Heat pumps have an unbeatable CO2 reduction ratio per invested dollars for households,” says Stijn Otten, co-founder and director of HeatTransformers, “This ratio is much higher than with solar for instance. This was already the case back in 2018 when we started, but even more today.”
While heat pumps might not be new technology, the tech isn’t evenly distributed. More than 60% of homes in Norway are heated using heat pumps, for example, while the U.S. sees fewer than 6% so equipped. HeatTransformers seeks to address the traditional challenges of heat pump adoption by connecting heat pump producers and installation specialists with consumers. The HeatTransformers platform takes consumers through the process from the beginning, when they might only be thinking about the benefits of a heat pump, through installation and beyond, with maintenance, online monitoring and the optimization of heat pumps.
This is a model that has attracted global energy companies, heat pump producers and installers as committed partners, including Engie, Bosch, BDR Thermea Group and dozens of local and national installers. Its €15 million Series A funding round was 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 and InnovationQuarter.
Interestingly, HeatTransformers told TechCrunch that it could have done without the investment but felt that it needed to scale faster in order to address the general state of the global energy market: war in Ukraine, energy poverty and carbon emissions’ climate impact.
“In this process we were looking for truly professional investors who could help us scaling up across multiple markets,” says Otten. “But at the same time, we also wanted investors who share the same impact fundamentals we have. This is what we found in Energy Impact Partners — a leading investment firm in this space with experience scaling companies like us across multiple markets.”
With heat pump sales having risen by almost 38% across Europe last year, which replaced roughly 4 billion cubic meters of natural gas and avoided 8 million tons of CO2 emissions, HeatTransformers has recognized that right now is the time to be expanding, to meet the growing need for heat pumps not just in the Netherlands, but across Europe.
“This investment will cement our market-leading position in the Netherlands, it will enable us to grow into other markets like Germany and the U.K.,” says Otten. “Fundamentally, it will help us grow and increase our impact.”
For Otten himself, the excitement lies in growing his company and, further into the future, having a lasting impact on global residential heating, as well as climate change.
“I am specifically looking forward to building the teams, further developing the tech-platform and building our partnerships with suppliers, energy companies and installation companies across Europe,” says Otten. “In 10 years’ time, heat pumps will be the common way of heating your home across the entire globe. HeatTransformers will have played a pivotal role in speeding up this transition and [will still be] playing a role in the installation of heat pumps and optimizing the energy systems of households across multiple countries.”