South Korean firm LG Electronics (LG) has signed a memorandum of understanding (MoU) with UK energy utility Octopus to strengthen its presence in Europe’s clean technology sector.

The partnership will combine LG’s high-efficiency heating and cooling products with Octopus Energy’s AI-driven energy software platform, Kraken, to accelerate the transition to sustainable energy in Europe.

Octopus Energy is the UK’s largest energy supplier, driving the shift towards a decarbonised future with innovative clean energy options. The company provides electricity and gas, and is spearheading the adoption of heat pumps as sustainable alternatives to gas boilers. Its proprietary Kraken platform enables consumers to optimise energy use through real-time renewable pricing. Since its founding in 2016, Octopus Energy has expanded into more than 30 countries, now serving around ten million customers worldwide.

Through this collaboration, LG and Octopus will launch a joint offering that integrates LG’s high-efficiency heat pumps with the Kraken platform in key European markets, including the UK and Germany. The combination is designed to optimise home heating and cooling while lowering energy costs for consumers. Looking ahead, both companies plan to expand the partnership across additional products and markets, leveraging their strengths to deliver greater value to users.

LG’s heat pumps use waste heat and ambient energy sources to deliver efficiency while reducing carbon emissions compared with fossil fuel-based systems. Powered by LG’s proprietary CoreTech inverter scroll compressor, the systems deliver durability, safety and energy performance.

This partnership positions LG (www.lg.com) to build on its expertise in high-efficiency heating and cooling, enhance its brand presence in Europe, and expand its global footprint in the clean tech sector.

“Heat pumps are the linchpin of clean, affordable heating, and LG makes some of the best on the market,” said Greg Jackson, CEO of Octopus Energy (www.octopus.energy). “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.”

The MoU signing ceremony took place last month at Octopus Energy’s London headquarters. Attendees included Jackson and Thomas Yoon, head of LG’s overseas sales and marketing.

“This partnership with Octopus Energy represents a significant milestone in our European growth strategy,” said Yoon. “We will continue to explore new opportunities that create differentiated customer value and secure sustainable growth drivers in the global market.”