A UK-based workplace pension provider is investing in the development of a geothermal heat pump network at Parc Eirin in South Wales.
A geothermal heating project at Parc Eirin in South Wales is set to become the UK’s first investor-funded ground source heat pump network. This comes with the decision of Smart Pension, a UK-based workplace pension provider, to make an initial £330m strategic investment in two funds managed by Octopus Energy Generation.
Smart Pension will be investing 5% of its default fund into two flagship funds managed by Octopus Energy Generation – Sky (Octopus Renewables Infrastructure SCSp) and OETF (Octopus Energy Transition Fund SCSp), both carrying the highest sustainability ratings. This commitment will help finance a wide range of green energy projects, including the Parc Eirin geothermal heat pump project which will be delivered by ground source heat pump manufacturer Kensa.
The project will deliver afford renewable heating and hot water to 114 new homes at Parc Eirin and position ground source heat pump networks as an investable low-carbon utility. The development will also contribute to the UK’s shift towards net zero.
The move is part of a 15% allocation commitment to private markets within Smart Pension’s default fund and reinforces its commitment to long-term sustainable investment while helping the UK to accelerate the transition to a net zero economy. As part of the investment, Smart Pension’s 1.5 million members will have access to a range of materials including case studies and carbon reporting to help them better understand how their pension savings are making a real difference both financially and environmentally.
“Our reforms are about unlocking investment to deliver higher returns for savers, drive growth, and create good jobs. This means more money in the pockets of working people, our Plan for Change in action,” commented Rachel Reeves, Chancellor of the Exchequer. “That’s why I’m so excited about Smart Pension’s investment in the UK’s first commercially funded ground source heat pump network in South Wales, delivering returns, growth and jobs.”
“As a leading workplace pension provider in the UK, we’re always looking for innovative ways to grow our members’ pensions and support the UK economy. That’s why we’re so proud to be investing in Octopus Energy, a fantastic British tech company, who set up next door to us when we set up our first offices a decade ago,” added Andrew Evans, Group CEO and co-founder of Smart Pension.
“This collaboration will help deliver strong, long-term returns for UK retirement savers, and also will support efforts to lower household bills and reduce emissions for homeowners. It’s a great example of how UK tech businesses can come together to tackle important challenges, and create a positive impact.”
“As pioneers in ground source heat pump technology, we are proud of our role in delivering the switch to better, more affordable heating and hot water, powered by ultra-efficient, ground source heat pumps designed and made here in the UK. The Parc Eirin investment demonstrates the transformative role private funding will play in helping both housebuilders and homeowners transition to effective, low-carbon heat – the critical next frontier in the UK for carbon reduction, which currently contributes around 13% of national greenhouse gas emissions,” further said Tamsin Lishman, CEO at Kensa.
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Source: Email correspondence