France-based Newheat scores €30M to decarbonise large industrial sites and district heating network

Bordeaux, France-based Newheat, a renewable heat supplier, announced that it has secured €30M led by SWEN Capital Partners via its SWIFT 2 (SWEN Impact Fund for Transition 2) strategy.

The company’s long-term partners, including Noria, Bpifrance, via its France Investissement Energie Environnement (FIEE) sector fund, the Etchart group, and the Holdheat holding company, also participated in the funding round.  

Fund utilisation

Focused on decarbonising large industrial sites and district heating networks, Newheat will use the funds to accelerate the development tenfold, to deploy 15 new projects within three years with a total investment of €150M in France. 

 These projects will deliver an annual volume of 200 GWh of renewable heat.

With the funding, the French company also expects to expand its team further, doubling its current workforce of 45 employees to approximately 80 by 2025/2026. 

The workforce expansion will focus on strengthening the business development and operations departments, as well as supporting functions such as finance and administration.

Newheat has deployed and operated five plants since its launch eight years ago. The announcement follows after raising €1.8M and €7M in 2017 and 2021, respectively. 

“We are delighted to complete this transaction with our historic investors and to welcome SWEN Capital Partners to our capital. The confidence of this major player in financing the energy transition is both a recognition and a lever to enable us to accelerate the development of our business,” says Hugues Defréville, co-founder and Chairman of Newheat. 

What does Newheat solve?

Renewable heat is recognised as crucial in achieving climate targets and reducing dependence on fossil fuels. 

In France, heat production accounts for 45 per cent of total energy needs, with 60 per cent coming from fossil fuels. 

Decarbonising heat is crucial to reduce greenhouse gas emissions and achieve energy independence, yet it has been a neglected area in energy policies until recently.

In recent years, public and private decision-makers have prioritised the transition to renewable heat due to extreme weather events, energy supply disruptions, and rising energy prices.

Here’s where Newheat comes into play!

Newheat: Design, build and operate renewable heat production

Founded in 2015 by Pierre Delmes and Hugues Defreville, Newheat offers innovative decarbonisation solutions for major heat consumers, large industrial sites, and district heating networks.  

It develops, designs, builds, finances, and operates projects that combine waste heat recovery, solar thermal energy, short- and long-term thermal storage systems, industrial heat pumps, and the combustion of renewable resources. 

The French company has developed technical expertise in designing, implementing, and operating customised decarbonisation solutions. 

Each project integrates heat recovery/production, storage, distribution, and energy supply within the client’s facilities. 

Currently, the company has five sites in operation, totaling 40 MW. 

Newheat currently employs 45 people and aims to have an installed base representing a cumulative investment of €1 billion by 2030, with an annual volume of renewable heat delivered of 1.5 TWh, avoiding almost 300,000 tonnes of CO2 emissions per year.

Hugues Defréville says, “2023 is a pivotal year in Europe’s and France’s energy transition. According to a forecast for 2035 produced by a platform of associations representing local authorities, renewable heat production should reach 284TWh in 2035, covering almost 60 percent of needs. That’s what we’ve been working towards since 2015, and that’s the ambitious challenge that this fundraising campaign will enable us to help meet on a massive scale! 

The investor

SWEN Capital Partners is a leading player in sustainable investment in private equity, infrastructure, and mezzanine debt, with over €8B (cumulative commitments) in assets under management and advisory services.

SWIFT 2 strategy (SWEN Impact Fund for Transition 2) is a European impact strategy launched in 2021, dedicated to the energy transition and, more specifically, to investment in renewable gas infrastructures (notably in biomethane and green hydrogen production assets). 

Olivier Aubert, Managing Director at SWEN Capital Partners, says, “We’re convinced that tomorrow’s energy mix will include renewable heat, and it’s clear that Newheat is one of the most advanced and relevant players to meet this challenge, thanks to its positioning and expertise. We are delighted to support them in achieving the ambitious goals they have set themselves.