As a producer of heating and hot water systems, BDR Thermea is gearing up for the energy transition. That calls for not only far-reaching innovation in products and services but also a change in the organisation. Tjarko Bouman, who recently became CEO, sees this as a great opportunity to make impact and innovate at the same time.
New competition
Past success is no guarantee for the future. BDR Thermea had the luxury of a strong market position, but now it will have to prove itself all over again. To stay just as successful – or become even more successful – after the energy transition, they also need to make a transition internally, CEO Tjarko Bouman realises. ‘We’re now making the move towards a completely new product, which requires new know-how and applications.’ A change like that takes time, but he’s convinced it’s going to work. ‘I also see this transition as a great chance to reinvent ourselves for a long future.’ The company has the right credentials for a successful turnaround, believes Bouman. ‘We really key into local needs in the different markets that we serve. One example can be seen in the hybrid heat pumps that we supply for the Dutch market, which is dominated by gas. That makes us, with Remeha, the leader.’
In all-electric heat pumps, he expects that they could become one of the leaders. ‘We’re a fully fledged player in that market. But there’s competition on the horizon, some of which are newcomers or different rivals than before.’ To beat them, BDR Thermea invests heavily in innovation, such as with four large European R&D centres. One advantage is that they are able to use the expertise from any one of their companies and countries in another company and country. Like the Dutch hybrid heat pump solution, which is now also used in Germany.
Consistent government policy
Bouman thinks that a lot still needs to happen to make the energy transition possible. ‘The first steps have been taken. The government has been stimulating the transition to new sources of energy such as heat pumps, and demand is rising.’ But there is still much work to be done on connecting to the network and finding enough employees.
❝ According to the European Heating Industry, 750,000 extra installers with new skills are needed in the Europe for the energy transition. That’s a tall order. To speed things up, we’re making our systems easier to install so that fewer workers are needed. We also help to train the employees of the future. ❞
Looking beyond
The energy transition is making BDR Thermea look beyond their own organisation. They’ll have to work with more partners in the chain to make the transition a success. So they’ve been talking to governments on all levels: locally, nationally and European. Bouman: ‘There are still some big national differences in regulations around the energy transition. That’s why the European Union has called for greater unification in the industry. BDR Thermea also looks beyond its direct customers, such as installers. Just as much focus is placed on end users.
Innovation capital
Banks constitute an important partner for the energy transition. BDR Thermea will need extra innovation capital for the energy transition. BNP Paribas, with whom they have a good relationship, can certainly help them out with that. This bank has an active policy to speed up the energy transition. They use scientific data to decide in which technologies to invest or not to invest. They have their own scientific experts for that. BNP Paribas uses that information to invest in green power generation and companies that develop new technological solutions.
The bank encourages companies that produce sustainable solutions to set the bar high, says Matijn van Went, co-head of coverage at BNP Paribas. ‘We also have ambitious key performance indicators (KPIs) for companies that are really geared towards the energy transition, like BDR Thermea. We do that in a financing consortium with other banks in this case. The KPIs for BDR Thermea were developed together with BNP Paribas and are based on the reduction of greenhouse gasses but also on other sustainability objectives, such as employee diversity. That also boosts their power to innovate. If they comply with those KPIs, we give a discount on the financing expenses. Coming up with the right KPIs together was a real driving force to take some extra steps and stick to them. That has made our existing relationship even stronger.’
Making the difference
BDR Thermea is a key player in the energy transition because of the large impact that they can make, thinks Van Went. ‘40% of CO2 emissions are attributable to built-up areas. Most CO2 emissions come from homes and buildings. That’s where BDR Thermea can make the difference and where it has great potential to grow and develop. Given the innovative history of this company, I am fully confident that they’ll make that happen. We’re happy to join them on that journey.’