Low-carbon networks transform home heating

One heat network developer is driving down green heating costs with this unique approach

Spotted: Heating our homes has a huge carbon – and financial – cost, amounting to 20 per cent of all CO2 emitted by the UK. Rendesco wants to change that and decarbonise domestic heating across the UK and Europe, by rolling out heat networks that can reduce costs for the consumer due to a unique financing approach. 

Most heating emissions in the UK come from burning natural gas, which is delivered by the nationwide ‘mains gas’ network. As a low-carbon alternative, Rendesco designs, installs, and maintains geothermal networks that use a central ground source heat pump and employ a system of underground hot water pipes and boreholes to directly distribute that heat to consumers. These kinds of heat networks also boost energy security by reducing the country’s reliance on imported fuels (such as natural gas). Alternatively, Rendesco also installs individual heat pumps that are located on and owned by just one property.

Rendesco is the UK’s leading independent clean heat developer, and Founder-CEO Alastair Murray explains how “over 10 years of heat use, borehole temperature, and operating data from our over 8,000 managed connections” gives the company leverage to make its installations “cheaper per unit than alternative solutions such as air source heat pumps.”

In addition, Rendesco’s joint venture with Last Mile Infrastructure, funded by InfraCapital and M&G, has enabled it to finance the networks upfront, something that other heat network developers aren’t usually able to do. This “innovative utility-style funding model reduces upfront capital expenditure and spreads costs across the system’s lifespan, leading to competitive pricing for customers and developers.”

Rendesco has already completed diverse projects, ranging from outfitting domestic new builds to complex retrofits. Alongside its Last Mile venture, the company recently completed a £6 million funding round to expand its operations in the UK and Europe. Investment was led by Clean Growth Fund, Eurazeo, and Aviva Ventures.

Written By: Oscar Williams