Richmond Council’s pension fund has thrown its weight behind the UK’s ground source heat pump industry.

The council’s pension fund revealed plans to invest a substantial £80 million in two energy transition funds, with a focus on renewable projects such as battery storage, green hydrogen and carbon reduction initiatives.

Out of these funds, the Octopus Energy Transition Fund allocated £70 million from the pension funds to invest in Kensa Group, a ground source heat pump business.

This investment aims to replace gas boilers with heat pumps.

Through this financial backing, Richmond Council’s pension fund will enable Kensa Group to rapidly expand its operations and install 50,000 ground source heat pumps annually by 2030.

With a pension fund value of £2.7 billion, the council has set a net zero emissions target for 2050, aiming for a 60% reduction in emissions by 2030.