Legal & General takes stake in ground source heat firm as it looks to scale up investments in climate change, positioning for post-crisis environment
Legal & General Capital (LGC) announces that it has taken a 36% stake in The Kensa Group, one of the UK’s largest players in the ground source heat pump technology sector, as it scales up its investments in addressing decarbonisation.
Complementing Legal & General’s existing clean energy investment portfolio, which now includes low carbon heat, transport and power generation, the deal follows Legal & General’s increased stake in Pod Point, one of the UK’s largest electric vehicle charging companies, alongside EDF. Investing in sub-scale industries that it can use its platform to grow rapidly in the post-crisis period, the investment in Kensa supports Legal & General’s ambition to form part of the UK solution to reaching net zero carbon emissions by 2050.
Heating and hot water for UK homes make up 25%1 of total energy use and 15%2 of our greenhouse gas emissions. By 2025, the current consultation on new building regulations will likely outlaw fossil fuel heating systems for new build homes, presenting a significant and immediate opportunity for an alternate low carbon heating solution. Retrofit represents a significant market opportunity, with around 23 million homes in Great Britain using mains gas (carbon intensive) as their heating fuel, two million homes electrically heated (high running costs) and the remaining two million using heating oil or other fossil fuel systems (carbon intensive and high running costs).