European heat pump company secures €150 million in equity investment
Aira, a leading Swedish clean-energy tech company, has secured €150 million in funding from five private equity investors. This investment will accelerate the electrification of residential heating in Europe, as the company aims to take Europe off gas and align with the EU’s target to replace 10 million gas boilers by 2030.
The funding round includes commitments from existing investors Altor, Kinnevik, Lingotto (US Manager), Kallskär (investment vehicle of Aira chairman, Harald Mix), and Temasek. This investment empowers Aira to transition from a start-up to scale-up, doubling down on its mission to bring clean energy-tech to millions of homes.
One of the key components of Aira’s plan is the expansion of its Swedish R&D center. The investment will bolster this facility, allowing Aira to develop an integrated portfolio of intelligent clean energy products, including energy management systems (EMS) that align with their clean energy-tech offering.
In addition, the funding will increase production capacity at Aira's factory in Wroclaw, Poland. This scale-up will help meet growing demand as the company expands its services in existing European markets such as Germany, Italy, and the UK.
Aira also aims to strengthen strategic partnerships with key players in the home and energy sectors. By building stronger relationships, the company hopes to deliver cost savings to customers through operational excellence.
The investment will also enable Aira to launch new innovations. Since its launch in June 2023, Aira has offered innovative customer propositions such as monthly payment plans, end-to-end service, and a 15-year guarantee to make heat pump adoption accessible and less risky.
Peter Prem, Aira Group CEO, stated that the investment reflects strong, long-term support from investors. He went on to say, "This funding round consolidates existing investor support and empowers Aira to lead the clean energy transition – one home at a time by combining innovation, operational scale, and strategic collaborations across Europe."
Fossil fuels still provide energy for half of the homes across the continent. With this investment, Aira is poised to play a significant role in reducing residential heating emissions, contributing to a cleaner and more sustainable Europe. The third largest CO2 emitter across the continent in residential heating is fueled by about half of the energy consumption.
This investment comes at a critical time, as the European Environment Agency reports that residential heating emissions are a significant contributor to the continent's carbon footprint. Aira's plan with this recent funding focuses on accelerating the electrification of residential heating in Europe by scaling operations, expanding production capacity, and deepening market presence.
In conclusion, Aira's €150 million funding round marks a significant step forward in the company's mission to take Europe off gas. With a target of producing up to 500,000 heat pump units annually by 2025, Aira is well on its way to becoming a market leader in clean energy solutions for residential heating.
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