New renewable heat investment for warm and cosy homes

News

02 Dec 2021

We’ve committed to a new stage of investment in Rendesco, a company which designs, installs and maintains ground source heat pumps.

Article written by alex.lomax

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In 2019, Thrive invested £350,000 in Rendesco as part of a £4.1 million capital raise, enabling the company to successfully roll out over 50 heat pumps at new build retirement homes across the country.

Space heating currently represents around one third of the UK’s total greenhouse gas emissions, with 45% of the UK’s energy consumption a result of making our buildings warmer[1].

Following the successful repayment of the 2019 bond, we have now invested a further £350,000 into Renewable Heat Holdings Limited (RHHL) so that the company can continue to reduce natural gas usage in care homes and additionally install ground source heat pumps in new build domestic properties.

Ground source heat pumps significantly reduce our reliance on burning fossil fuels by using underground pipes to extract natural heat from the ground to heat radiators, underfloor or air systems and water. The Government’s recently announced Heat and Buildings strategy sets out an ambition for 600,000 devices to be installed each year by 2028 in replace of gas boilers.

“We are delighted to continue our investment in renewable heat, especially given the huge expectations when it comes to how this technology will play into the wider net zero journey. We look forward to continuing to make a difference to care homes up and down the country, at the same time as supporting the growth of this technology within new build residential and commercial properties.”

Monika Paplaczyk, Investment Director, Thrive Renewables

Established in 2018, RHHL owns and operates over 70 projects with a combined capacity of 11.55MW, generating more than 17,000MWh of renewable heat per year for new-build retirement homes.

Thrive’s investment forms part of a new £3 million seven-year bond, promoted by Triodos Bank UK Ltd, which will provide the working capital to grow the design and installation business of Rendesco Limited, a sister company, by expanding its team and infrastructure. The company’s growth efforts follow the announcement of the Future Homes Standard – planned to come into effect in 2025 to ensure that new homes in England are built with low-carbon heating systems and high levels of efficiency.

In addition to contributing to the UK’s net zero goals, it could also provide a number of green jobs across the UK. Rendesco Limited expects to generate over 50 new jobs to deliver the planned growth.

“Low carbon domestic heating is a crucial part of the UK’s transition to net zero. With the recent support of the UK government through regulatory changes, Rendesco is extremely well positioned to support the implementation throughout the next decade and beyond. By investing in this bond, Thrive is supporting us on our journey to bring accessible low-carbon heating to homes across the UK.”

Alastair Murray, Managing Director, Rendesco Ltd

[1] Uncomfortable Home Truths: why Britain urgently needs a low carbon heat strategy, Policy Connect