LG Electronics is expanding its supply of solutions in the European clean tech market in collaboration with the British electricity company Octopus Energy (hereafter referred to as Octopus).
The two companies announced on the 2nd that they signed a memorandum of understanding (MOU) for strategic collaboration in the clean tech sector at Octopus's headquarters in London, England, on the 28th of last month.
Octopus is the electricity supplier with the most customers in the UK. Aiming for decarbonization, it is currently working on expanding the distribution of heat pumps instead of gas boilers, primarily in the UK. Additionally, through its AI-based energy management platform 'Kraken', it provides customers with real-time renewable energy price information to help them choose and use affordable energy. Since its establishment in 2016, it has secured approximately 10 million customers in over 30 countries, establishing itself as a representative electricity company in the UK.
The two companies plan to showcase a solution that integrates LG Electronics' high-efficiency heat pump heating and cooling system with Octopus's Kraken in key European markets such as the UK and Germany. This solution aims to provide the optimal heating and cooling experience to European customers, who have become more sensitive to energy costs due to the energy crisis and price surges experienced in recent years, while also reducing energy expenses. Furthermore, they plan to expand the scope of collaboration based on their respective strengths in terms of products and regions.
Heat pump heating and cooling systems operate using waste heat or unused heat sources from the environment, resulting in lower carbon emissions and higher energy efficiency compared to heating and cooling devices that use fossil fuels. LG Electronics explained that its high-efficiency heat pump utilizes an inverter scroll compressor based on its core technology, 'CoreTech', ensuring high energy efficiency, durability, and stability.
LG Electronics expects to secure a foothold for growth in the European market and further expand its business areas through strategic collaboration with Octopus.
Greg Jackson, CEO of Octopus Energy, said, 'Heat pumps are a key technology for eco-friendly and economical heating, and LG Electronics has top-level products and technology in the industry,' adding, 'Through the integration of LG Electronics' high-efficiency heat pump heating and cooling system and Octopus's Kraken, customers can achieve cost savings on heating and environmental protection.'
Yoon Tae-bong, head of overseas sales at LG Electronics (vice president), noted, 'Collaboration with Octopus is a significant momentum for the growth of the clean tech business in Europe,' and stated, 'We will explore various business opportunities that deliver differentiated customer value to secure a continuous growth engine in the global market.'