ESB Novusmodus leads £12m investment round in Geothermal International
ESB Novusmodus has lead a £12m investment in Geothermal International. ESB Novusmodus has invested £8.6m and other investors, including SSE Ventures, have subscribed for new shares in the amount of £3.5 million. The capital will be used to fund growth in the UK market, finance the acquisition of Endurant Energy (“Endurant”) in the US, and support ongoing international expansion.
Based in Coventry, the company is Europe’s largest designer and installer of Ground Source Heat Pump (“GSHP”) systems. As an industry pioneer, it has been behind some of the most advanced projects ever undertaken including the UK’s largest “closed loop” GSHP system, and the world’s largest “lake loop” GSHP system.
Space heating accounts for a significant proportion of Europe’s carbon footprint, and as governments increase their focus on reaching carbon emissions targets at the lowest possible cost, we expect a continued trend towards low cost emission reduction technologies such as GSHP.
Geothermal International is extremely well positioned to take advantage of this expanding market. It has an unparalleled track record and expertise, built over a decade of growth. It has strong relationships with both public and private sector clients across Europe, and solid plans for further expansion, backed by Novusmodus’ support.
In addition to its environmental benefits (a reduction of energy usage and CO2 emissions by 50%), GSHP systems have significant financial advantages over other commercial heating technologies. Even against the most cost effective conventional heating systems, Geothermal International’s technology has a short payback period and a significantly longer life of over 50 years. Furthermore, because the system consumes no, it represents a significant hedge against future energy price fluctuations.
Part of the capital will be used to finance the acquisition of Endurant Energy, a designer and installer of Combined Heat and Power (“CHP”) systems in the US. The combination with Endurant will give Geothermal International the ability to offer combined GSHP and CHP system solutions, and it will provide the company with a network of offices and an experienced contracting team to further accelerate its recent successful entry into the US market.
Bertrand Gautier, Novusmodus partner, said:
“Geothermal International is a world class company with a superb future. It is the clear leader in both the UK and European GSHP sectors and is well positioned in international markets to expand rapidly. GI has set industry benchmarks as a pioneer in the large scale GSHP market, and we look forward to helping it to accelerate this growth.”
Brian Davidson, CEO of Geothermal International said:
“We are delighted with the investment from ESB Novusmodus, a partner that understands the transformation we are effecting. With our latest acquisition in the US, the beginning of the RHI in the UK, and further regulatory benefits on the horizon, it is an exciting time for Geothermal International and for the industry as a whole.”