Northvolt owner enters heat pump business

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Vargas, the investment company that owns Northolt’s battery business, has entered the heat pump business with a new venture called Aira.

The Sweden-based company said it aims to become “Europe’s No. 1 direct-to-consumer brand.” It will assemble heat pumps in a new facility in Wroclaw, Poland, where production is scheduled to start in 2024. Aira’s heat pump business will assemble parts manufactured by other providers, according to a recent report by Sifted.

Aira says it makes heat pumps affordable and accessible by offering “zero up-front costs” with a monthly fee payment model. This purportedly lowers heating-related costs by 30%.

The company guarantees a fast, seamless customer experience, moving from the initial quote to installation in just four weeks. This is significant because high demand for heat pumps in Europe has resulted in extended waiting times for the technology.

The company is currently testing its solutions in Italy and will launch in Germany and the United Kingdom later this year. It aims to establish a presence in more than 20 markets by 2030, with more than 10,000 clean energy experts and technicians employed across Europe. Within 10 years, Aira says its heat pumps will serve 5 million European homes.

Aira also plans to integrate heat pumps with home energy storage and rooftop PV. It said in a statement that its complete home energy ecosystem will be managed by its fully integrated digital platform.

“With clean energy tech for every home, Aira is transforming residential heating and accelerating Europe’s energy transition and decarbonization,” said Aira CEO Martin Lewerth. “Today, consumers spend thousands of euros on inefficient, dirty, and expensive gas-based heating. We will make heat pumps affordable and cut energy bills and emissions. Our unique direct-to-consumer model will dramatically change how European families heat their homes.”

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