SSE Ventures and other, unnamed investors, have also subscribed for new shares in the company 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, a designer and installer of Combined Heat and Power (“CHP”) systems in the US, and support ongoing international expansion, the company said in a written statement.
“Geothermal International is a world class company with a superb future,” said Novusmodus partner Bertrand Gautier. “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.”
Geothermal International is behind some of the most advanced projects 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.
In addition to its environmental benefits (a reduction of energy usage and CO2 emissions by 50 percent), 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 fuel, it represents a significant hedge against future energy price fluctuations.
“We are delighted with the investment from ESB Novusmodus, a partner that understands the transformation we are effecting,” said Brian Davidson, CEO of Geothermal International. “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.”
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