Specialist clean energy private equity firm, Corran Capital, has acquired a 30% stake in Vital Energi, the UK’s leading heat infrastructure company, to help accelerate the UK’s transition to net zero.
The investment will enable Vital Energi to rapidly scale as an owner and operator of low-carbon heat networks. The company is also targeting new markets, moving at pace into adjacent technologies including solar, battery and heat storage, and electric vehicle charging.
The transaction comes as new government zoning regulations are introduced requiring new and existing buildings and developments to connect to low-carbon heat networks where available. This is expected to drive significant private investment into the sector.
With a 30 year track record and 700 employees, Vital Energi is already the UK’s market leader in developing and delivering heat networks. Based in Blackburn and with offices in London, Glasgow, Hereford and Burton-on-Trent, the company has connected over 100,000 homes to heat network schemes, including in Glasgow, Manchester, Liverpool, Leeds, Hull and London, working with local authorities and housing associations to tackle fuel poverty.
Corran will work closely with Vital Energi management to help deploy further institutional capital to accelerate the delivery of low-carbon generation, infrastructure and energy efficiency solutions across the UK in private and public sector properties.
Backers of the deal include major institutional investors like Strathclyde Pension Fund and Lexington Partners, representing over $30 billion in assets globally. Through their commitment to Corran, they will help provide the institutional capital to accelerate Vital’s leadership position and the deployment of further renewable heat projects, playing a part in ensuring the UK achieves its long-term climate goals.