The transaction complements Legal & General`s existing clean energy investment portfolio, which now includes low-carbon heat, transport and power generation, and follows Legal & General`s increased stake in Pod Point, one of the UK`s largest electric vehicle charging companies, alongside EDF. The investment in Kensa invests in small-scale industries that can use its platform to grow rapidly in the post-crisis period and supports Legal & General`s ambition to be part of the UK solution to achieve net-zero carbon emissions by 2050. We are delighted to invest in a company that will play an important role in the transition to low-carbon heating in the UK and support job creation in the low-carbon sector. Our investment in clean energy supports businesses that already employ more than 400 skilled workers in the UK`s green economy and we expect job growth in the sector to continue to accelerate as the UK invests in the post-Covid-19 future, where tackling climate change is expected to dominate the agenda. Heat pumps will play a key role in the UK`s transition to net zero, with the government announcing a target of 600,000 heat pump installations per year by 2028 as part of its ten-point plan in November 2020. Currently, between 30,000 and 40,000 pumps are installed each year. As one of the UK`s largest asset managers, we have a duty to invest in a more resilient and responsible future. With heating accounting for such a large share of the UK`s total energy consumption, investment in providing low-carbon heating solutions will play a crucial role in the sustainability of our society and the move towards a zero-carbon future. Kensa has increased the production of its geothermal heat pumps by 150% in recent years. Image: The Kensa Group. We look forward to continuing to support a company that plays an important role in the transition to low-carbon heating in the UK, while supporting job creation in the low-carbon sector. Simon Lomax, CEO of Kensa, said in a press release that this significant investment boosts the research and development program of Kensa Heat Pumps Ltd., the underground district heating loop network business of Kensa Contracting Ltd. and offer free grounding networks through funding programs through Kensa Utilities Ltd.

Kensa says the investment will advance its heat pump research and development program, expand Kensa Contracting`s underground district heating loop network facilities and fund free heating infrastructure through Kensa Utilities. Legal & General Capital (LGC) announces the acquisition of a 36% stake in The Kensa Group, one of the UK`s largest players in ground-source heat pump technology, as it increases its investment in decarbonisation. Kensa Group and Legal & General Capital joined forces in April 2020 with the common goal of ensuring a secure and reliable future through clean energy. Legal & General Capital invests in green companies that offer scalable solutions to address the climate crisis. Kensa is the only integrated provider of geothermal technology and its connected heat pump and infrastructure solutions are among the most advanced and efficient in providing homes with the lowest carbon heating at the lowest cost. LGIM Real Assets announces that it has provided debt capital to HeatRHIght, a renewable energy financing scheme that supports the provision of air-source heat pump technology for social housing, on behalf of institutional clients and the Climate Change Committee and Government have ambitions for the UK to install 600,000 heat pumps per year by 2028. To date, between 30,000 and 40,000 pumps are installed each year. Legal & General acquires 36% stake in geothermal energy company Kensa Heating and hot water for UK households accounts for 25%1 of total energy consumption and 15%2 of our greenhouse gas emissions. By 2025, the current consultation on new building codes is likely to ban fossil fuel heating systems for new buildings, providing an important and immediate opportunity for an alternative low-carbon heating solution.

Modernisation represents an important market opportunity: around 23 million households in the UK use (carbon-intensive) pipeline gas as heating fuel, two million electrically heated households (high operating costs) and the remaining two million use fuel oil or other fossil fuel systems (carbon-intensive and high operating costs). As the UK`s largest manufacturer and installer of ground-source heat pump technology, Kensa is the only integrated supplier and one of the most developed and efficient in delivering homes with the lowest operational carbon emissions. Legal & General`s investment in Kensa offers a unique opportunity to work with a market leader at a time when industry growth is rapidly accelerating. As well as offering an alternative heating solution for existing and newly built homes across the UK, this partnership will provide Legal & General`s vast ecosystem with a low-carbon heating solution as it works with local authorities, governments and key industry players to create solutions at scale. Within Legal & General`s fast-growing housing platform, which includes build-to-rent, build-to-sale, later and affordable housing, as well as modular construction, plans are already underway to make the entire new housing stock operationally carbon neutral by 2030. In this context, the future company, Inspired Villages Group, is in advanced talks with Kensa to implement geothermal energy, and has introduced Pod Point chargers for electric cars, among other things. This second investment from Legal & General Capital consolidates the successful partnership we have established over the past two years and marks an important milestone in the development of Kensa`s geothermal heat pump solutions. Kensa is a UK-based manufacturer and installer of geothermal heat pump technology.

“With the delivery of our expanded production facilities, Kensa`s partnership with Legal & General aims to install 50,000 geothermal heat pumps in the medium term. a major contribution to the rapid fight against carbon emissions, air pollution and energy poverty,” said Lomax. Today, more than 23 million households in the UK use carbon-intensive gas as a heating fuel; two million electrically heated households; and the remaining two million with fuel oil or other fossil fuels[4]. In its “ten-point plan”, the UK government has set a target of installing 600,000 heat pumps per year by 2028 to ensure homes are greener, warmer and more energy efficient[5]. Air and floor heating technology will play a crucial role in the UK`s path to a `green industrial revolution`. Summary: The ground-source heat pumps manufactured and installed by Kensa will provide the lowest carbon heating solution for the UK`s first carbon-free retirement community, creating a sustainable future for older generations. Read the full story on kensacontracting.com The Millfield Green site in Caddington, Central Bedfordshire, will produce 200 new sustainable buildings. It also signalled its support for the technology in the Heating and Buildings Strategy published in October 2021, which reveals £5,000 grants to install heat pumps as part of the £450 million boiler modernisation scheme, which became operational in April 2022. Kensa Group, a UK manufacturer and installer of ground-source heat pumps, today announced that Legal & General Capital (LGC) has invested a further £8 million in the company, bringing LGC`s total investment to £15.7 million over two years.

Kensa Group, the leading specialist in geothermal heat pumps, has appointed a dynamic new management team to achieve the UK target of 600,000 heat pump installations per year by 2028. With gas prices rising in the UK, heat pumps can also help reduce household fuel costs and save up to 25% or £261 a year for the average household. This long-term funding will accelerate HeatRHIght`s provision of low-carbon heating to housing associations across the UK, demonstrating Legal & General`s commitment to its ESG and decarbonisation programme. The Climate Change Committee and the Government`s Heating and Buildings Strategy have made it clear that low-carbon heat pumps are a key part of the UK`s journey to zero carbon and can reduce the fuel bill of the average household by up to 27%, saving around £26111 and helping people lift themselves out of energy poverty. Legal & General Capital (LGC) has invested a further £8 million in heat pump manufacturer Kensa Group to further expand its ground-source heat pump development. Kensa GroupFounded in 1999 and headquartered in Cornwall, Kensa Group is a growing group of award-winning companies involved in the manufacture and installation of ground-source heat pumps and the ownership of the associated underground infrastructure. The Kensa Group now employs over 100 people and includes Kensa Heat Pumps Limited, Kensa Contracting Limited and Kensa Utilities Limited. Kensa Heat Pumps remains the only manufacturer of ground-source heat pumps in the UK and is the long-standing market leader, according to BSRIA`s annual reports.