Sweden-based Aira, which is backed by funds including Lingot and Temasek, is due to announce the new funding just weeks after pledging to create 8,000 jobs in the UK, Sky News reported.
Mark Kleinman, City Editor Mark Kleinman Sky
Monday 15 January 2024 19:55 UK
Companies that supply heat pumps and other home energy technologies to European consumers have secured more than £100 million in new funding, just weeks after promising to create thousands of jobs in the UK.
Aira Group, set up by the founder of prominent battery start-up Northvolt, is due to announce on Tuesday that it has secured 145 million euros (125 million pounds) from some of the world’s largest investors, including Alter, Kinnevik and Singapore government-backed investment fund Temasek Holdings, Sky News understands.
Lingotto, the Italian investment firm chaired by former Chancellor of the Exchequer George Osborne, also participated in the investment round.
Sweden-based Aira says it is on a mission to get European homes off gas, but it says there are still 130 million fossil fuel boilers in use across the continent.
The company hopes to eventually create 8,000 jobs in the UK, with hundreds already working at its Manchester and Sheffield sites, and its London headquarters.
The jobs pledge, made by the government at the Global Investment Summit in November, will create jobs over the next decade.
Isla is the latest company in the sector, along with the likes of Britain’s Octopus Energy, to raise significant funding to help drive the transition away from gas to cleaner energy sources.
The company announced that its funding round had been subscribed, far exceeding its initial target of €85 million (£73.1 million).
As well as raising equity funding, Ayla has secured a €15m (£12.9m) grant from the Polish government to build a manufacturing facility to produce the heat pumps.
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Martin Leworth, CEO of Ayla Group, said: “Ayla is investing across the UK to help British homes accelerate the vital transition from polluting gas boilers to clean heat pumps.”
“Recent research from Ayla has revealed that almost six million UK households will be considering investing in intelligent heat pumps in 2024, with sales expected to increase by 20% in 2023, which is encouraging.
“With this in mind, it is vital that we invest in the training and upskilling of our engineers to achieve our target of reaching one million customers across the UK over the next decade.”
