LG Electronics is supplying its air-source heat pump “Therma V” and stainless steel buffer tanks from Norwegian hot water solutions company OSO as a single package to a 102-unit social housing complex in Ridderkerk, Netherlands. This is the first time the two products have been integrated into a unified system design and delivered to a new residential development of over 100 units in Europe.

On the 7th (local time), at the Ridderkerk construction site, approximately a 20-minute drive southeast of Rotterdam, the four-building apartment complex is being built by demolishing the existing structures while reusing the foundations and underground structures, then erecting new timber-framed buildings on top. Once completed sequentially by the end of this year, the units will serve as public rental social housing.

On the rooftops, white heat pump outdoor units bearing the LG logo were installed in evenly spaced rows. Inside, the Therma V units stand alongside person-height stainless steel buffer tanks. The Therma V supplies heating, cooling, and domestic hot water using thermal energy extracted from outside air instead of fossil fuels. According to LG Electronics, the system can produce approximately four to five times the thermal energy relative to its power consumption, reduce energy use by roughly 40–60% compared to conventional fossil fuel boilers, and provide heating even at minus 15 degrees Celsius.

The buffer tank stores hot water produced by the heat pump and supplies it to the heating circuit as needed, acting as a buffer. It reduces short-cycling—where the heat pump rapidly turns on and off in response to fluctuating heating demand—thereby lowering compressor strain and improving both efficiency and lifespan.

The key significance of this order lies not in product sales but in system supply. Previously, construction companies had to source heat pumps and buffer tanks from separate suppliers and independently match capacities, piping, and control methods. In this project, LG Electronics designed both products as a single system and assumes end-to-end responsibility from supply to after-sales service.

Robin Claus, ES Business Leader at LG Electronics Benelux, said, “Other companies often purchase components from multiple firms and assemble them into a single product. When problems arise, they end up disputing responsibility.” He added, “We have most of the products in-house, so we can manage the entire package. Being able to offer a complete package is our biggest advantage.”

The hassle of first identifying which product is faulty when a breakdown occurs also disappears. Kim Sung-bin, ES Business PD Team Leader at LG Electronics Benelux, explained, “If the heat pump is LG but the buffer tank is another brand, installers have to call multiple companies and often end up arguing over where the fault lies. Now we provide a blanket warranty for the entire package, so installer and customer satisfaction is high.”

A Market Created by Gas-Free Policy

The Netherlands is implementing a “gas-free” policy that effectively restricts gas use in new buildings. With the Energy Transition Act (VET) taking effect in July 2018, new buildings cannot be connected to the gas grid except in cases of significant public interest. Heat pumps, district heating, and other alternatives are filling the void left by gas boilers.

The 2019 Climate Agreement set a goal of transitioning approximately 7 million households and 1 million buildings to sustainable heating methods by 2050. The government provides partial subsidies for heat pump installation costs and offers tax benefits to companies investing in high-efficiency equipment.

Record heat waves are creating additional demand. Cooling-related energy consumption in European Union households nearly doubled in six years, from 40,500 terajoules (TJ) in 2018 to 80,400 TJ in 2024. This underscores the advantage of heat pumps that can handle both cooling and heating with a single device.

According to the European Heat Pump Association (EHPA), residential heat pump sales in 16 major countries reached approximately 2.62 million units in 2025, up 10.3% year-over-year. Market research firm Global Market Insights projects the European heat pump market will grow from $14.2 billion (approximately 19 trillion won) in 2024 to $82.6 billion (approximately 110.5 trillion won) by 2034.

A Reference Secured at Europe’s Gateway

The fact that the first large-scale package supply destination is the Netherlands carries additional significance. The Netherlands has long been called “Europe’s gateway” due to its geographic advantage connecting major continental European markets and the Port of Rotterdam. With high market openness and strong receptivity to new technologies and products, it serves as a “barometer” where global companies gauge European market response.

LG Electronics has already supplied heat pumps to over 100,000 households across five Southern European countries including France and Spain, and has delivered products to a residential complex of approximately 1,500 households in North Macedonia. In Germany, the company is collaborating with local installers, and in the UK, it has formed a partnership with electricity supplier Octopus Energy. In the Netherlands, beyond the 102 units in Ridderkerk, LG has secured heat pump projects for over 250 multi-family housing units, including 157 units in Eindhoven.

Heat pumps are a core growth business for LG Electronics’ Eco Solutions (ES) Business Division, which oversees heating, ventilation, and air conditioning (HVAC). LG Electronics has consolidated everything from residential air conditioners and heat pumps to commercial system air conditioners and data center chillers under one organization, with a goal of achieving 20 trillion won (approximately $15.0 billion) in HVAC revenue by 2030.

Claus said, “European customer demands are shifting toward integrated solutions encompassing heating, cooling, hot water, thermal storage, and control. We will develop hot water solutions combining heat pumps with various tank lineups beyond buffer tanks to secure new markets.”

From Products to Spaces

LG Electronics’ European strategy extends beyond the B2B market. At the “MediaMarkt Tech Village” electronics store in downtown Rotterdam, an experiment is underway to sell “spaces” rather than just products.

Late last year, LG Electronics nearly tripled its space in the store from approximately 28 square meters to about 73 square meters, completely transforming it from a product display area into an actual home layout featuring a kitchen, living room, and utility room. Among the roughly ten brands in the store, LG Electronics is the only one to present a living space in this format.

This store is a “Lighthouse Store”—a strategic hub created by MediaMarktSaturn, Europe’s largest consumer electronics retailer, in major cities. Among over 1,000 stores across Europe, these locations serve as testing grounds for new products and sales approaches.

In-store demonstrations showcase the integration of LG ThinQ with Homey, the Dutch smart home platform acquired by LG Electronics. When a window is opened, sensors detect it and automatically turn off the air conditioner; when laundry finishes, living room lighting or displays provide notifications. With Homey, users can connect not only LG appliances but also third-party devices such as lighting and various sensors.

Jay Lomers, Marketing Manager at LG Electronics Benelux, said, “Online, consumers can compare specifications and prices, but it’s difficult to experience how products integrate into daily life. Here, they can see firsthand how LG technology would work in their own homes.”

Showing the space has moved sales as well. Following the remodel in late November last year, LG Electronics product sales at this store increased approximately 20% in the first half of this year compared to the same period last year. Given the positive response, LG Electronics is considering expanding the space solution store concept to other regions.