A Truro-based manufacturer and installer of ground source heat pumps has secured a further £8m investment from alternative asset platform Legal & General Capital (LGC).
The Kensa Group said the latest funding brought LGC’s total investment in the business to £15.7m over two years. The capital will support the Kensa Group as it continues to scale up to meet demand, the firm said.
The company's chief executive, Dr Matthew Trewhella, said the latest investment from LGC "cemented the successful partnership" the organisations had built.
He said: "The whole heat pump supply chain, including Kensa, will have to expand dramatically to meet the UK’s 2028 heat pump installation target. This investment will allow us to significantly step up our efforts in areas such as R&D and operations, as we continue to prepare for further rapid growth.”
The Government’s Heat and Buildings Strategy has outlined how low carbon heat pumps could help the country meet its zero-carbon targets - and reduce an average household’s fuel bill by up to 27%, saving approximately £261 a year.
The Climate Change Committee and the Government are aiming to install 600,000 heat pumps a year across the UK by 2028.
John Bromley, head of clean energy at LGC, said: “We invest our capital in clean energy assets, businesses and technologies which will help accelerate the UK’s progress to a low-cost, low-carbon economy. Our partnership with Kensa is delivering at pace and this further investment in Kensa will enable the business to continue to scale up, bringing vital capacity to the sector."
In the two years since LGC made its initial investment, Kensa Group has grown the business from 70 to 180 employees and group revenue has doubled from £15.5m to £31.5m.
Kensa Group’s manufacturing facility increased its production by 150% during the pandemic and the firm said it is working towards a further twofold increase in capacity by 2023.
The company said an estimated eight million tonnes of carbon would be saved every year by the ground source heat pumps it has installed since April 2020 - the equivalent of removing 2,797 combustion engine cars from the road.
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