Octopus Energy has announced a new partnership with LG Electronics to scale up affordable, low-carbon heating and cooling across Europe. The collaboration will combine LG’s heat pumps and air conditioning systems with Octopus’s proprietary technology platform, Kraken, which optimises energy use by running devices when power is cheapest and greenest.
The initiative will begin in the UK and Germany before expanding to additional European markets. By integrating hardware and software, the companies aim to lower household running costs, reduce reliance on fossil fuels, and accelerate progress towards net zero goals.
Tackling Europe’s heating challenge
Heating accounts for roughly 20% of Europe’s carbon emissions, and governments are encouraging the adoption of heat pumps to replace gas boilers. The UK has set a target of 600,000 heat pump installations annually by 2028. Octopus is already one of the continent’s largest installers, investing more than £50 million into factories, training centres, and research facilities to support expansion.
The new partnership will build on this foundation by combining LG’s global expertise in advanced heating and cooling systems with Octopus’s software-driven approach to flexible energy use.
Industry perspectives
Greg Jackson, founder and CEO of Octopus Energy, said: “Heat pumps are the linchpin of clean, affordable heating – and LG makes some of the best on the market. By plugging them and their air conditioning units into our Kraken tech, we can make them even cheaper to run, giving households an easy way to cut their bills while helping the planet.”
Thomas Yoon, President of LG’s Overseas Sales & Marketing Company, commented: “This partnership with Octopus Energy Group represents a significant milestone in our European growth strategy. We will continue to explore new opportunities that create differentiated customer value and secure sustainable growth drivers in the global market.”
Looking ahead
The partnership is expected to expand beyond heat pumps and air conditioners to other appliances, combining LG’s hardware with Octopus’s optimisation technology. The companies said this will provide households across Europe with access to greener and more cost-efficient energy solutions.
