A Cornish heat pump firm has secured a seven-figure working capital funding package.
Truro-based Kensa Group, which installs more than half of the UK’s ground source heat pumps each year, said the loan would support its manufacturing and distribution operations, amid rising demand.
It comes after the company secured its largest-ever investment, £70m from Octopus Energy's generation arm and Legal & General Capital, as it targets the installation of 50,000 ground source heat pumps a year by 2030. Kensa said the funding package would also assist the continued growth of its 200-strong workforce.
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Mel Adderley, group finance director at Kensa Group, commented: “We’re thrilled to be expanding the business and continuing to invest in its growth with the help of HSBC UK.
“The whole heat pump industry, including Kensa, is scaling dramatically while working to reach the government's net-zero targets. Funding like this allows us to significantly step up our efforts as we continue to prepare for further rapid growth.
The firm’s latest funding was secured through HSBC, and included the bank's first green trade loan facility in the South West region.
Christopher Hudson, corporate banking relationship director at HSBC UK, said: “I am thrilled to support the growth plans of Kensa Group through this multi-million funding package.
“Kensa Group are at the forefront of driving change through their innovative ground source heat pump solutions that support the decarbonisation of homes by providing more sustainable means of how households heat their homes. I look forward to seeing Kensa’s growth and being there to support them along that journey.”
Kensa Group, which assembled a new top team last year, has estimated it has saved more than one million tonnes of carbon through installation of its underground infrastructure - across social housing, new build and retrofit homes and businesses - since its formation in 1999.
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