Operator of non-gas heat networks Rendesco has raised £6 million to boost its operations and develop more under-home pipelines in the UK & continental Europe.
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.”
