The growing importance of the ground source heating sector in Europe has been confirmed through investments made in the technology by two key British firms.

Scottish and Southern Energy (SSE) and ENER-G have both broadened their sustainable energy portfolios by purchasing stakes in Geothermal International (GI) and Ground Source Solutions, respectively.

Scottish utility SSE is to buy a 20 per cent stake in GI, which supplies ground source heating and cooling systems to the commercial building sector in the UK and Ireland. ENER-G, a sustainable energy technology company, has purchased an 80 per cent share in Ground Source Solutions, which designs and supplies ground coupled heat pump systems.

Ground source heat pump systems harness the energy absorbed by the earth to provide renewable energy for buildings’ heating, cooling and hot water requirements. They can dramatically reduce a building’s heating and cooling costs and are consequently under increasing demand in the UK as well as Europe.

SSE will invest up to £15 million in cash in UK-based GI in a phased basis over the next six months. It says the investment will give it a foothold in the geothermal sector and a significant stake in a business that is dominating a rapidly growing sector of the European heat market.

Ian Marchant, Chief Executive of SSE said: “SSE is rapidly building a strong portfolio of clean energy businesses that cover almost every part of the renewable and alternative energy market in the UK. Geothermal energy has been an obvious missing piece in this portfolio and this deal fills the gap very effectively.”

ENER-G has purchased an 80 per cent stake in Ground Source Solutions, which designs and supplies ground coupled heat pump systems. The acquisition brings ENER-G’s major transactions to three in six months.

“The acquisition is part of ENER-G’s ambitious growth programme, which has seen the group’s turnover rise almost four-fold over the past six years,” said ENER-G managing director Derek Duffill. “Our latest acquisition will deliver strong operational synergies and add another piece to the comprehensive range of sustainable technologies we offer.”

The deal with SSE will support GI’s growth plans by providing new commercial and strategic opportunities.