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

The raise follows Rendesco's collaboration with Last Mile Heat to install low-carbon solutions in UK homes.
Rendesco raises £6M to replace gas grids with low-carbon heat

Clean heat network developer and owner-operator Rendesco has raised £6M to rapidly expand its operations and further develop its products in the UK and Europe.

The new investment was led by Clean Growth Fund, Eurazeo’s Smart City fund, and Aviva Ventures. They join existing investor Copley Point Capital.

The funding will accelerate Rendesco’s plans to reduce consumer energy bills, decarbonise heat at scale, and provide a low-carbon alternative to gas grid infrastructure. It will also enable a broadening of its climate technology capabilities with more intelligent and consumer-centric home energy management systems. 

As the third largest source of CO2 emissions in the UK, decarbonising heat in buildings is a pressing challenge; they hope to enable households to reduce their energy bills and save over 100,000 tonnes of CO₂ per year, at scale.

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 already works with property developers such as Cala Homes and Telford Homes to design and install low-carbon and low-cost 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, but complementary to, Rendesco’s joint venture with Last Mile Infrastructure, Last Mile Heat.  Rendesco’s new build home solutions are owned by Last Mile Heat, enabling house builders to install ground source heat solutions in their developments at a considerably lower cost than other low-carbon solutions.

Alastair Murray, CEO and founder of Rendesco, comented:“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.”

“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. This investment aligns with our commitment to empower early-stage entrepreneurs to tackle the climate change crisis.” said Susannah McClintock, Investment Partner at the Clean Growth Fund.

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