Heat network developer and operator Rendesco has raised £6 million to expand its operations in the UK and Europe.
The new investment has been led by Clean Growth Fund, Eurazeo’s Smart City fund and Aviva Ventures. They join existing investor Copley Point Capital.
The investment comes as the UK finalises its proposals to decarbonise heat in buildings following the conclusion of the Future Homes Standard consultation earlier this year, which will mean gas boilers will no longer be installed in new homes from 2025. Similar legislative measures are also driving decarbonisation across Europe.
Rendesco works with property developers, such as Cala Homes and Telford Homes, to design and install ground source heat networks. It also operates low-carbon heat networks which supply clean heat and hot water to 8,115 homes across the UK.
The new investment is separate from Rendesco’s joint venture with Last Mile Infrastructure, Last Mile Heat, which focuses on new-build ground source heat. The new capital from this raise is being directly channelled into innovation that improves the efficiency and affordability of Rendesco’s clean heat networks in order to deploy them at a much greater scal.
Recently Rendesco announced that it is designing and installing the UK’s largest water-source heat network at Welborne Garden Village, which will provide heating and cooling to 6,000 new homes. The first of its kind technology sets a viable blueprint for successfully providing clean heat networks to housing developments at scale, whilst also serving as a gamechanger for future homeowners who will benefit from clean and affordable heating and cooling.
Alastair Murray, CEO and founder of Rendesco, said: “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.”