Smart energy storage for a greener world

For more than 90 years, family-owned OSO Hotwater has manufactured water heaters. From its factory in Hokksund, the company supplies Norway and other countries with energy-efficient, long-lasting water heaters. Exports account for 65 per cent of its revenue.

In 2020, the subsidiary OSO Energy decided to focus exclusively on energy management. Its smart control units reduce electricity costs and carbon emissions.

Kristin Willoch Haugen, our Regional Director for Eastern Norway, is impressed by the family business's development and transformation. OSO is investing in robotic production and making a significant contribution to the green transition and Norwegian exports.

'Through what they call their ‘blue batteries’ – referring to the energy storage capacity of their smart water heaters – Norway will take a major step in the right direction when it comes to optimising energy use,' she says.

The transition from manufacturing company to provider of green digital technology brings new demands for development, business models and customer insight, and requires new expertise and opportunities to test the solutions.

'At an early stage of development involving unfamiliar technology, it is particularly important to get support to take the necessary steps,' says Kim Arild Tandberg, Head of Sales at OSO Energy.

'The financial support we received through our Pilot-E scheme has been crucial in developing the product into what it is today,' he says.

The company has received environmental technology grants from us on two occasions. We awarded the latest grant in early 2022 for a collaboration between OSO, Kongsberg Digital, Epos Consulting and Saint John Energy in Canada. The project aims to develop a smart system that enables water heaters to store energy in the power grid and help smooth out peaks in demand. The system will 'learn' the grid's consumption patterns and use this information to optimise how the water heaters are controlled.

The Nordic countries, the UK and Canada are the main markets for the new consumer-focused initiative and continued business-to-business sales.

'OSO has built up a sizeable international market with a traditional business model and finished products, while also using international markets to test new technology. They are now ready to scale up,' says Maria Lundstad Aulie, international business advisor at our Oslo Viken office.

OSO Hotwater is part of the Global Gateways export programme. Through the programme, the company has a dedicated adviser who works with them to develop a growth plan and provides support over several years. This makes OSO part of Norway's national export team, while we provide relevant expertise, advisory and networks at the right time. The programme helps companies reduce risk and gain faster access to new markets.

OSO has also taken part in our strategy workshop on international market development. There, the company gained access to frameworks that make it easier and more efficient to assess new markets. OSO has also received support from several of our international offices with market research, advice on establishing a local presence and collaborative projects.

OSO Energy sells water heaters and control units as a package, but also sells the control units separately for retrofitting to customers' water heaters.

A major benefit of avoiding peaks in consumption is that it reduces the need for polluting and expensive energy sources such as coal, gas and oil. This is particularly relevant for many European countries, where solar energy, for example, is generated in the middle of the day and can be used to heat water. As energy production becomes more variable, there is a significant need for cost-effective energy storage.

Because OSO's tanks are made from stainless steel rather than the glass-enamelled steel used by most other manufacturers, they can withstand higher temperatures. Storing water at 75°C instead of 60°C offers a significant environmental benefit. As the water is normally used at around 40°C, OSO's tanks can store more energy in the same volume. The product also has a considerably longer lifespan.

In a typical Norwegian household, water heaters account for 20–40 per cent of energy consumption. If you shower in the morning, you can schedule reheating for a time of day when prices are lower. An app lets you activate price optimisation and monitor your energy consumption.

A minimum temperature is programmed in to prevent the water from getting too cold, so you do not need to change your habits. If you go on holiday, you can put the water heater into sleep mode so that it uses little energy while your home is empty. As the water is heated regularly to prevent bacterial growth and you pay the highest electricity rate, OSO's energy management system is a smart way to reduce costs.

Read more about how OSO Energy presents its solution to international audiences on Business Norway.