Green tech supplier invests €600m amid German heat pump boom

Stiebel Eltron, a German green tech supplier, has announced investment plans of €600 million ($600 million) into their heat pump development capabilities. The monetary injection comes in as the company expects to have produced 80,000 heat pumps by the end of the year.

With the investment, the company’s production capacities will be expanded, research and development financed and new jobs created for the production and supply of heat pumps in the gas-strung country.

“We have specialised in electricity-powered heat pump systems ‘Made in Germany’,” stated Dr. Kai Schiefelbein, managing director of Stiebel Eltron.

“Environmentally friendly heating technology does not require oil and gas and is therefore of outstanding importance both for climate protection and for Germany’s energy supply security. We will continue to expand in this market.”

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Strong demand

According to the heat pump producer, demand for the green technology is large and growing.

154,000 units were installed in Germany in 2021, 34,000 more than the year before. For the current year, an even greater leap to 250,000 heat pumps is now expected, and the company is hopeful that the 300,000 mark could be reached.

It is expected that from 2024, 500,000 heat pump systems will be installed in the country every year. All participants in the recent heat pump summit with German economy minister Robert Habeck and Federal Minister of Construction Klara Geywitz, also declared their support for this goal: “Together, we will create the conditions for the 500,000 heat pumps to be newly installed from 2024,” stated Schiefelbein.

The announcement comes in as Habeck, according to Reuters reporting, stated that Russia will not restore gas supplies to the country in response to the planned halt in response to the planned halt by Gazprom of gas to Europe through the Nord Stream 1 pipeline.