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Rendesco Secures £6 Million to Revolutionize Low-Carbon Heat Networks in the UK and Europe

Published by Todd Bush on June 14, 2024

Paving the Way for a Sustainable Future

Rendesco, a leading clean heat network developer and operator, has secured a significant £6 million investment to propel its mission of providing sustainable heating solutions across the UK and Europe. This funding round comes at a critical juncture as the UK intensifies its efforts to decarbonize its energy sector, particularly the heating of buildings, currently the third largest source of CO2 emissions in the country.

RELATED: Rendesco Raises £6 Million to Replace Gas Grids With Low-Carbon Heat

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The investment was led by a consortium of prominent backers, including Clean Growth Fund, Eurazeo's Smart City fund, and Aviva Ventures. Alastair Murray, CEO and founder of Rendesco, expressed his enthusiasm about the new partnership: "I am pleased to welcome Clean Growth Fund, Eurazeo, and Aviva Ventures as investors in Rendesco. The completion of this funding means Rendesco is incredibly well capitalised, in parallel to the significant capital available to deploy into capex costs via Last Mile Heat. Their collective expertise and support will be invaluable as we pursue our ambitious growth plans, rapidly expanding our clean heating solutions to reach millions of homeowners and making a major – and much needed – dent in the UK's carbon reduction efforts."

Supercharging Growth and Innovation

The £6 million injection will fuel Rendesco's ambitious plans to expand its operations and further develop its low-carbon heating technologies. A key focus will be on broadening the company's climate technology capabilities, specifically in the development of intelligent and user-friendly home energy management systems. This aligns perfectly with the Future Homes Standard, a recent legislative measure in the UK that mandates the phasing out of gas boilers in new homes by 2025.

Rendesco raises £6 million to replace gas grids with low-carbon heat

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The Power of Ground Source Heat Pumps

Rendesco's technology hinges on ground source heat pumps, a proven and eco-friendly alternative to traditional gas grid infrastructure. These pumps extract heat from the ground, a naturally occurring and constantly replenished source. This method boasts significant environmental benefits. Rendesco estimates that their networks can enable households to reduce their energy bills and collectively slash CO2 emissions by over 100,000 tonnes annually. That's the equivalent of taking 44,000 cars off the road each year!

Leading the Clean Heat Network Revolution

Rendesco is already a leader in the clean heat network space, partnering with prominent property developers like Cala Homes and Telford Homes. They are also behind the UK's largest water-source heat network currently under development at Welborne Garden Village. This innovative project paves the way for large-scale clean heat network implementation, offering future homeowners the advantage of clean and affordable heating and cooling solutions.

The environmental impact of Rendesco's work resonates with investors. Susannah McClintock, Investment Partner at Clean Growth Fund, emphasized the critical role clean heat plays in achieving net-zero targets: "Decarbonising heat is critical to achieving our net zero targets. Rendesco's heat network solutions provide a cost effective and efficient route to delivering the low carbon heat required for the transition away from gas to renewable alternatives."

Aligning with Legislative and Market Forces

Legislative measures like the Future Homes Standard and similar initiatives driving decarbonization across Europe create a fertile ground for Rendesco's growth. Their technology offers a timely solution that aligns perfectly with these regulations.

Building a Network of Success

Rendesco's journey extends beyond the £6 million investment. Their joint venture with Last Mile Infrastructure, Last Mile Heat, allows housebuilders to install ground source heat pump solutions at a considerably lower cost. Additionally, Rendesco has already designed and installed hundreds of networks across the UK, providing clean heat and hot water to over 8,000 homes. These projects serve as a testament to the company's proven track record and ability to deliver large-scale solutions.

Looking Forward: A Brighter, Greener Future

With substantial funding, a proven track record, and a commitment to innovation, Rendesco is poised to revolutionize the way homes are heated in the UK and Europe. Their innovative approach offers a compelling solution for reducing carbon emissions and creating a more sustainable future for generations to come.

The continued support and investment in clean heat technologies like those championed by Rendesco are crucial for achieving ambitious climate goals. As Anthony Barker, Director at Aviva Ventures, highlighted, "This investment forms part of Aviva's commitment to back British companies with a strong sustainability mission and which will help support growth in important UK sectors, helping the UK get-ready for the future." By embracing clean heat network solutions, we can collectively move towards a greener future.

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