Hemiko to expand low carbon heating offer in Lambeth and Wandsworth
Hemiko, a leading heat network investor and developer, has acquired two heat networks from Foresight Group in Southwest London. The networks, one in Lambeth and the other in Wandsworth, represent an exciting growth opportunity and a springboard for more decarbonised heat connections to be offered to homes and businesses in Southwest London.
Heat networks connect homes and businesses with locally wasted heat via a network of underground pipes. They will need to be developed in every major town and city for the UK to reach its net zero commitments by 2050.
Bringing these networks under ownership will mean that Hemiko can deliver scaled heat networks in Southwest London by expanding out from the existing heat networks in Clapham (Lambeth) and Tooting (Wandsworth). Hemiko’s long-term vision is to interconnect these two networks.
This week’s acquisition represents the first major investment by Hemiko since it was acquired by DIF Capital Partners in 2023, with more announcements to be made soon by the firm. Hemiko has previously said that it plans to invest £1bn into district heating between now and 2030, through its dedicated Heat Network Fund.
Toby Heysham, CEO of Hemiko said, “Hemiko are delighted to have acquired these two networks, which we will be decarbonising and expanding, working closely with our project partners. District heating will be the most affordable way for most buildings in Southwest London to decarbonise. We will therefore focus on growth in Lambeth and Wandsworth, to ensure that more of the surrounding community can benefit from low carbon heating.”
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About Hemiko Limited
Hemiko is a leading UK heat networks investor, developer and operator. Hemiko has been operating in the UK heat networks market for 12 years, and been involved in over 100 heat network projects since its inception. It is currently involved in networks in Worthing, Greenwich, Crawley, Cardiff, Lambeth and Wandsworth, amongst others. Hemiko plans to invest £1bn into low carbon heating by 2030. It has offices in London, Carlisle, Sheffield and Copenhagen. Hemiko was acquired by DIF Capital Partners in 2023.
About Foresight Group Holdings Limited
Foresight Group was founded in 1984 and is a leading listed infrastructure and private equity investment manager. With a long-established focus on ESG and sustainability-led strategies, it aims to provide attractive returns to its institutional and private investors from hard-to-access private markets. Foresight manages over 400 infrastructure assets with a focus on solar and onshore wind assets, bioenergy and waste, as well as renewable energy enabling projects, energy efficiency management solutions, social and core infrastructure projects and sustainable forestry assets. Its private equity team manages an extensive footprint of regionally focused investment funds across the UK and Ireland. This team reviews over 3,000 business plans each year and currently supports more than 250 investments in SMEs. Foresight Capital Management manages four strategies across seven investment vehicles.
Foresight operates in eight countries across Europe, Australia and United States with AUM of £12.4 billion*. Foresight Group Holdings Limited listed on the Main Market of the London Stock Exchange in February 2021 and is a constituent of the FTSE250 index. https://www.foresightgroup.eu/shareholders
*Based on unaudited AUM as at 31 December 2023.