£1bn of heat networks unlocked in new partnership

A deal between Pinnacle Power and DIF Capital Partners has been announced, facilitating critical investment in UK energy infrastructure. 

The joint initiative is aimed at boosting the pace and scale of delivery for low-carbon domestic heating in boroughs across Britain.

This means it will now be possible to construct small city-sized networks, bringing tens of thousands onto green energy supplies far faster than has previously been possible. According to official figures, this investment could save up to 200,000 tonnes of CO2 each year once all related projects are live.

Heat networks take waste heat from nearby industrial and commercial buildings and connect this to the local community. In doing so, individual boilers are no longer needed in each connected building, meaning tens of thousands of boiler flues can be disconnected and removed

once the Pinnacle Power and DIF work completes. Not only will this have a substantial impact on energy efficiency, it will also go some way towards reducing air pollution caused by domestic infrastructure. This solution to urban heating needs is already commonplace across Northern Europe. Currently, penetration within the energy market of a typical country in the region ranges from 20 to 70%, hence the technology being seen as vital in the path to decarbonisation.

‘As recognised in the Government’s Energy Security Plan, heat networks will play a critical role in delivering affordable, low-carbon heating, and help hit the UK Government’s legally binding carbon targets,’ said Toby Heysham, Pinnacle Power CEO. 

‘We are excited to be working with DIF to deploy the scale of investment this market needs. We know that the industry needs to deploy at least £60-80bn into low-carbon heat networks to unlock the vast amount of local, wasted heat and deliver that heat into homes and businesses. Many towns and cities have declared climate emergencies but very few have credible solutions to the ‘heat challenge’. This investment offers a clear pathway to achieving decarbonisation, through local investment in locally generated, low-carbon heat,’ he continued. 

We share Pinnacle Power’s view that district heating networks will play a pivotal role in the energy transition story of the UK. We are impressed with what the Pinnacle Power management team has achieved to date and firmly believe in their ability to grow the business, backed by strong regulatory tailwinds. Pinnacle Power represents a compelling investment proposition for DIF, with an opportunity to invest in a build-to-core sustainable energy platform operating in a rapidly growing market,’ added Gijs Voskuyl, Partner and Head of Infrastructure at DIF Capital Partners. 

According to a recent House of Lords Environment and Climate Change Committee analysis, the UK Government’s Boiler Upgrade Scheme is failing to deliver. Find out why here.

Image: Pinnacle Power, DIF Capital Partners




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