Newheat Secures €30 mn Investment for Expanding Renewable Heat Production

By Editor


Newheat, a leading provider of renewable heat solutions in France, has successfully raised €30 million from SWEN Capital Partners, in collaboration with its SWIFT 2 strategy, alongside its longstanding partners Noria, Bpifrance through its FIEE fund, the Etchart Group, and the holding company Holdheat.

This significant investment, an unprecedented sum for the company, underlines the burgeoning investor interest in renewable heat ventures and specifically recognizes Newheat’s distinctive business model and strategic positioning in the market.

Over the past eight years, Newheat has established and managed five operational plants, with ambitious plans to triple this figure within the next three years.

The need for decarbonizing heat is pivotal in France, constituting 45 percent of the country’s final energy requirements. Presently, 60 percent of France’s heat production relies on fossil fuels, contributing to 80 percent of domestic gas imports. Addressing this sector’s decarbonization becomes paramount for overall energy mix decarbonization and energy independence.

Recent years have witnessed a significant shift in attitudes toward this issue, attributed to extreme climate events worldwide, escalating energy market prices, and heightened concerns over energy supply. Public and private decision-makers are showing increased determination to expedite the transition in the heat sector, as evidenced by Newheat experiencing a substantial surge in inquiries from industrial companies, local authorities, and network operators.

Newheat’s latest funding allows the company to offer comprehensive renewable heat recovery and production solutions. Leveraging extensive in-house technical expertise developed over the years, the company specializes in tailoring decarbonization solutions for individual cases, encompassing energy recovery, production, storage, distribution, and direct energy supply to customers’ facilities.

Recognized for its pioneering R&D initiatives and selected for the esteemed French Tech 2030 program in September 2023, Newheat stands out for its technical prowess in dynamic energy system modeling, thermal-hydraulic design, and plant control optimization.

The capital infusion, following previous rounds of €1.8 million and €7 million in 2017 and 2021 respectively, reflects Newheat’s accelerated growth trajectory and the heightened interest in the renewable heat sector.

The majority of the raised funds will be directed towards investing in heat plant projects, with Newheat aiming for majority ownership in these ventures. Planning to undertake 15 projects totaling €150 million investment over the next three years, primarily in France, the company targets an annual delivery of 200 GWh of renewable heat.

With an eye on scaling up operations, Newheat has expanded its workforce to 45 employees, intending to double this number by 2025/2026. The expansion plans focus on bolstering Business Development departments, Operations teams (Engineering, Construction, and Operation), as well as support functions (Finance and Administration).

Newheat’s recent funding round signals an acceleration in project development, poised to quintuple in pace, and a threefold increase in capacity, cementing its commitment to driving the transition towards sustainable heat solutions.

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