The cash was raised thanks to the Clean Growth Fund, Eurazeo’s Smart City fund, and Aviva Ventures. The trio join existing investor Copley Point Capital in the 12 year old company.

Cheltenham-based Rendesco works with property developers including Cala Homes & Telford Homes to install low-carbon, networks based on ground sourced heat.  It also operates networks which supply clean heat and hot water to over 8,000 homes nationwide.

As Britain’s third largest source of CO₂ emissions, ridding carbon from heating buildings is a critical challenge.  Rendesco says it is at its forefront.

Today’s new investment comes Whitehall’s closing earlier this year of final consultations on the Future Homes Standard. Its final measures will underpin the incoming government’s plans to decarbonise home heat, including banning from next January the installation of gas boilers in new homes. Similar legislative measures are also driving decarbonisation across Europe.

The cash will accelerate Rendesco’s growth plans, aimed at providing a low-carbon alternative to gas grids and cutting consumers’ bills.  Part of the money will be directed at higher tech, yielding cleverer, more consumer-focused systems to manage home energy.

The new investment is separate from, but complementary to, Rendesco’s joint venture with 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 with other low-carbon heat sources.  The joint venture has already developed a pipeline of £150m worth of clean heat infrastructure, boosting futureproofed heating of dwellings.

Rendesco’s founder Alastair Murray said: “I am pleased to welcome Clean Growth Fund, Eurazeo & Aviva Ventures as investors in Rendesco.

“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 homes.”

Susannah McClintock of specialist investors the Clean Growth Fund enthused: “Decarbonising heat is critical to achieving Britain’s Net Zero targets. Rendesco’s heat network solutions provide a cost-effective, efficient route to delivering the low carbon heat required for the transition away from gas to renewables. This investment aligns with our commitment to empower early-stage entrepreneurs to tackle the climate change crisis.”

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In new research published in the Journal of Cleaner Production, they show that electrifying Ukraine’s steel sector to have near zero emissions would generate $164 billion worth of additional gross value added, compared to a pathway based on traditional coal-based steelmaking.

Electrifying eastern Ukraine’s coal-fired forges to run on low carbon renewables could radically also shift the nation’s steel industry from the coal fields of the Donbas towards western and southern regions, and accelerate economic growth.

Robust production of green steel would have ripple effects across Ukraine’s entire economy, argues lead author Dr Alli Devlin, from Oxford University’s Department of Engineering Science

“The vast destruction of Ukraine’s iron and steelmaking assets represents a stark opportunity to rebuild a thriving industrial sector which is independent of fossil fuels”, writes Dr Devlin.

“Ukraine is well positioned to supply European green steel markets, which will provide employment throughout the value chain, and deliver returns to the economy well beyond the original investments.”

Steel makes up a big chunk of Ukraine’s economy. Before Putin’s psychosis, its 21.4 million tonnes produced in 2021 ranked Ukraine as the world’s 14th biggest producer.  But its steel is among the world’s dirtiest, with 2020’s 48 Megatonnes of CO_{2 equivalent}, making up 15% of the country’s entire carbon emissions.

Ukraine wants to join the Eurpoean Union. When it succeeds, it will become subject to the trading block’s EU Green Deal’ target, which mandates for steel at near zero emissions by 2030.

Curiously, south Wales nurtured eastern Ukraine’s early history of producing iron, then steel in industrial volumes, first for Imperial Russia, then for the Soviet Union.

Donetsk, capital of the Donbas coalfield, was named Yuzovka for nearly 50 years until 1919, in honour of Merthyr Tydfil-born John Hughes. Hughes was the forgemaster who sailed from Britain in 1869with over 100 of his countrymen, miners and skilled iron smelters, to set up one of Imperial Russia’s first high-volume iron furnaces.

A Welsh-speaking community in eastern Ukraine with an English-language school and churches dedicated to saints David & George, prospered until 1919. In that year Russia’s new Bolshevik government nationalised the town’s iron works, forcing many families to return to Wales.

So great was Donetsk’s affinity with Britain that, after Putin’s annexation of the Donas region in 2014, locals even jokily campaigned to have Britain assume sovereignty of the city, in view of the region’s debt to John Hughes.

In their new paper, Dr Devlin & colleagues suggest new electrified steel mills should be situated close to cross-border rail hubs and close to the best sources for solar & wind energy.

This strategy would significantly increase demand for land and sea transport services, re-routing them towards Western/EU markets, and also create new demand for the production of green hydrogen and green ammonia for fossil-free fuels.

The report lays out an investment bill of $62 billion over 20 years for Ukraine’s full recovery in steelmaking: $46bn for renewable energy kit, $7bn for energy storage, and $9 billion for electric furnaces. Based on recent performance, the team believe every $1 invested in Ukraine’s basic metals industry would yield an additional $3.28 elsewhere in the economy.

The World Bank estimates that Ukraine’s full post-war recovery and reconstruction needs will require $486 billion.

The Oxford paper says Ukraine’s green steel requirements amount to only 6% of the country’s total $486 bn post-war reconstruction bill, as calculated by the World Bank for the nation’s first decade free of Russian attack.

Ultimately, says the paper, Ukraine could provide the world’s template for the urgently needed transition towards low-emission steel . Now comprising around 8% of total global emissions, steel ranks top of all human production sectors, at 2.8 Gigatonnes of CO₂ per year. In comparison, air transport accounts for only 2.5%.

The war-ravaged country last year outranked England in the new capacityof onshore wind capacity which it commissioned.

With prospective international donors and private investors gathering in Berlin today and tomorrow for the Ukraine Recovery Conference 2024 , the Oxford researchers hope that green steel will be high on the agenda.

“This research is not just another feasibility study”, declared report co-author Dr Vlad Mykhnenko, the university’s associate professor of sustainable urban development.

“It is a call to action for steelmakers, investors, and politicians to ensure that after the war we really build back better.

“Green steel would become a sustainable growth promotion machine for Ukraine’s post-war development, and would generate almost twice as much economic growth than the traditional coal-based steel. This means more income and higher living standards for all Ukrainians”.

Through its research commercialisation arm Oxford University Innovation, Oxford is the number one filer of patents among Britain’s universities.  It’s ranked first in Britain too for commercial spin-offs, having created more than 300 new companies since 1988. Over a third of those have sprung into life since 2019.

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Manufacturers have invested significantly in green bus innovation with some 13 different zero emission models now available in the UK. More than four in 10 new single- and double-deckers joining British fleets last year were either electric or hydrogen, and analysts predict and the market could be fully decarbonised as early as 2030, if all the right enablers are put in place.

At present, however, the benefits – from improved local air quality and reduced noise pollution to a more enjoyable passenger experience – are unevenly distributed.

Of all new ZEV buses registered last year, Greater London, at 46.8%, accounted for almost half, despite the capital accounting for fewer than one in six new bus registrations of all types.

While government support has enabled some specific cities to invest, uptake outside the capital is far lower. The rest of England outside London took 30.3% of new ZEV buses, while Northern Ireland received 3.3%, just slightly more than Wales, which accounted for just 2.2%.  Ironically Northern Ireland is home to leading manufacturer Wrightbus, based in Ballymena, County Antrim.

Scotland has enjoyed robust levels of ZEV bus uptake, accounting for 17.5% of all new ZEVs reaching UK roads last year.  This is in part due to operators benefitting from funding from the Scottish Zero Emission Bus Challenge. Holyrood’s cash spurs decarbonisation switchovers by smaller operators of scheduled services, and operators providing rural community and home-to-school services

Equally, the national Zero Emission Bus Regional Area (ZEBRA) fund has been instrumental in spurring greater green uptake across the UK. However, the scheme’s lengthy grant application process and narrow time windows for applications mean only the biggest operators with the most resources are successful.

Smaller and rural operators also face a tough challenge due to longer routes and lower passenger numbers, despite the opportunity of mass green mobility helping to boost passenger numbers in semi-urban and rural areas by as much as 65%.

In a new paper Next Stop, Net Zero: The Route To A Decarbonised UK Bus Market, the SMMT sets out the case for a clear timetable to put every region, operator, driver and passenger on the journey to Net Zero.

But the trade body says that timetable must be backed by long-term, accessible support for fleets of all sizes. Passenger levels fell sharply in 2020 as Covid lockdowns took hold. The tight margins faced still by operators as the market recovers dictate that government incentives remain necessary.

The challenge of switching is made steeper – and the need for incentives even more critical – by the higher upfront cost of zero emission vehicles, compared to their predecessors running on fossil fuels such as diesel.

Decarbonising buses also depends on charging & refuelling infrastructure in depots, and establishing the best locations for shared replenishing. Developing this takes time, prompting the trade body to call for smart thoughts and smart actions today.

As Europe’s biggest ZEV market, the SMMT, says Britain needs a strategy to deliver the infrastructure that’s needed as well as incentives required to help operators deliver a mature, functioning ZEV market.

SMMT chief executive Mike Hawes said; “Britain’s bus industry is in a strong position to become the first vehicle sector to decarbonise.

“Reaching that destination, however, requires a clear timetable and appropriately ambitious support. Governments have played a vital role in driving uptake through grant funding, and every region should be supported so that all passengers can enjoy the advantages of going green. Only then will the full benefits of sustainable public transport be realised nationwide”.

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Fewer end-of-life blades sent to landfill and less carbon embedded in steel for towers are goals for the partnership.

The deal is made, say the pair, in response to what they identify as law-makers’ and developers’ demand for lower embedded emissions. It covers all the pair’s worldwide installations.  Both firms a major presence in British offshore wind, which the government wants reach 50GW in capacity within seven years.

Electricity made from wind comes in at a mere 1% per unit of the carbon content of coal-fired power, they note.  But Vestas and Ørsted say they must go further.

By committing to sustainable procurement in all future offshore projects they share, they say the Danish developer is creating demand for Vestas’ innovative low-carbon and circular solutions.

Ørsted group president and CEO Mads Nipper said: “There’s no playing defence when it comes to climate change. And no progress without partnerships.

“Ørsted is are very proud to partner with Vestas to integrate and scale cutting-edge decarbonisation and circularity solutions to meet future customer demands for net-zero wind farms. Together, we’re leading the industry towards Net Zero.

The Dane called for decision-makers across the globe to also take action and help drive demand for low-carbon and circular solutions within renewable energy.“

His Vestas counterpart Henrik Andersen added;  “The energy transition requires unprecedented scale and pace, and we need strong partnerships between leading companies and industries to succeed.

“We are excited to partner with Ørsted to expedite the deployment of our cutting-edge circular blade recycling technology.

“This partnership is a leap forward for developing circular wind power projects and sends a powerful message that commercial agreements and collaboration are vital in our urgent fight against the climate crisis.“

For all shared new offshore projects, the two companies now pledge to :

• install a minimum of 25 % low-carbon steel towers. Use of scrap steel re-cast with renewable electricity can cut embedded carbon by as much as 70%, Vestas says
• opt for re-purposed second-life blades and scale up technology for recycling blade materials

Over two years partnering in the CETEC project, Vestas were first to break down composite materials in both existing and future epoxy-based blades, using the recovered epoxy resin for new blades.

It is currently working to upscale recycling with partners Olin and Stena Recycling.

Ørsted and Vestas have been leading the renewable energy industry towards a sustainable build-out of wind energy, while increasing scale and reducing costs.

Ørsted and Vestas claim leadership as the first renewable energy developer and manufacturer, respectively, to have validated 1.5 ºC-aligned science-based targets for decarbonisation of their entire value chain. Both companies say they’ve implemented industry-leading programmes, helping suppliers strip carbon from their operations.

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The technology firm told investors this morning it has exercised its option to buy the industrial estates operator out of their shared shell joint venture, formed two years ago to ease a Powerhouse factory into production on Peel’s Protos Park near Ellesmere Port.

Protos Park is designated by its landlord as Britain’s leading industrial estate dedicated to making low carbon energy for high-volume industrial consumers.

Powerhouse develops its proprietary method, dubbed Distributed Modular Generation (DMG), to convert end-of-life plastics and rubber into the carbon-free gas.

Powerhouse has paid a nominal £1 to buy Peel NRE out of their shared special purpose vehicle company.  The purchase brings to an end the possibility of PHE taking a 50% shareholding in the SPV.  A twelve-months extension to the SPV’s loan to Powerhouse forms part of today’s deal.

Powerhouse’s acting CEO Keith Riley commented: “This is a significant and exciting development for (us) as we will now be solely responsible for the development of the project at Protos.

 “Having spent some time considering the best option for the Protos project, we have agreed with Peel that PHE will assume full control of the project and its further development.

“The next step will be to seek commercial agreements for the offtakes, whether this be electricity, heat, hydrogen or other products, prior to seeking to raise finance for the construction”.

Last year’s review called into question the manufacturer’s intention announced in 2021 to open its second plant in Glasgow’s Rothesay Dock, followed by up to 70 more.

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The government has added an extra £25 million to the pot ahead of the first round of auctions for low carbon generation contracts.

The auctions, which begin on Friday (29 January), are designed to incentivise low carbon power generation technologies such as wind, solar and biomass. Generators bid from a limited pots to receive 15 year contracts, which guarantee them a price for power. The aim is to ensure that low carbon technologies can compete with cheaper, fossil-based generation. Offering the subsidies in an auction-based format is designed to drive down costs to consumers, given that all levies and subsidies are added to their bills. Those levies are capped under the Levy Control Framework.

Auctions are to be held once a year, with the extra £25 million announced today taking the initial total pot to £325 million.

The auction process has been criticised by some renewables groups for favouring larger companies. However, Decc has insisted that all stakeholders have been engaged and that the process will be reviewed this summer ahead of next year’s auctions.

The department has stated that it is not planning to increase the frequency of auctions, as this may impact liquidity.

Budgets for next year’s auction will be confirmed in Autumn.

Announcing the extra funding today, Energy and Climate Change secretary Ed Davey said:

“The high demand for contracts shows that we’re one of the top places for renewables investment, and the best place in the world for investing in offshore wind.”

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