French Firm Newheat Raises €7 M for Renewable Heat Development

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French renewable heat supplier Newheat has announced the completion of a €7 million fundraising to support its development of renewable heat in France and internationally.

Under this fundraising, Bpifrance bank is investing via its FIEE fund dedicated to energy and environment, alongside Newheat’s main original shareholders Noria and Etchart.

Newheat offers decarbonization solutions for large thermal energy consumers, such as manufacturers, communities and large greenhouse installations, by combining solar thermal technology, waste heat recovery, short- and long-term thermal storage and heat pumps.

As a result of its R&D effort, the Bordeaux-based company has twice been a winner of the “I-nov” Innovation Competition funded by the Investments for the Future programme (PIA).

Newheat has six solar heat plants in operation and under construction in the French market. Of the six solar heat plants of over 1000 sq m, four have been built and are operated by Newheat (two on district heating networks and two on industrial sites), and the construction of two further plants is due to start in the coming months, giving the company a total 40 MW of installed capacity.

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In a first fundraising in 2017, the company raised € 1.8 million to accelerate its development, finance its first solar thermal plants and further its R&D work; in 2020, it secured € 15 million in funding to finalize five heat production plants.

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Newheat intends to utilise the €7 million euro raised to achieve the following:

• Pursue its recruitment, R&D and sales deployment activities.
• Confirm its position as an integrated provider of a “turnkey” heat production solution for its clients, by having the equity necessary to remain the majority owner of its projects. Newheat develops, designs, finances, builds and operates its plants to provide clients with directly competitive renewable heat, in return for a 15- to 25-year commitment to purchase.
• Confirm its international ambitions following the signing of a first project abroad, in Croatia. Decarbomalt Croatia, which will avoid 4,000 tonnes of CO2 emissions a year, was selected by the EU Innovation Fund which has particularly demanding award criteria.

Hugues Defréville, CEO and co-founder of Newheat, said, “We are very happy with this fundraising,” adding, “Decarbonizing the heat sector, whether for industry or district heating networks, is one of the main challenges in the fight against global warming in which France and Europe are already far behind schedule.”