EvoInfra acted as financial advisor to DIF Capital Partners on its investment in Pinnacle Power (now Hemiko), a significant transaction for the UK District Heating Sector, unlocking £1bn of capital investment for city-scale networks.
DIF’s investment will accelerate Pinnacle Power’s already impressive growth and fund the development and ownership of city-scale district heating networks across the UK. The transaction will see DIF owning a significant majority in the company, with the management team retaining a minority stake. This is following an agreement with Pinnacle Power’s previous shareholder, Pinnacle Group Limited. DIF’s investment will be executed through its DIF Infrastructure VII fund.
Pinnacle Power is a leading developer and turn-key contractor in the UK district heating market. Founded in 2012 and headquartered in London, the company has a successful track record, having delivered over 100 projects since its inception. Notably, it has developed and is the operator of the £87m Greenwich Peninsula network. With 87MW of heat capacity and servicing 15,700 residential units, this is one of the largest city scale networks in the country.
District heating networks are widely expected to play a crucial role in the UK’s journey to net zero. Today, heat-related activities are the biggest contributor to greenhouse gas emissions in the country, representing 37% of total emissions. District heating networks are a cost effective, low-carbon solution to traditional gas boilers in urban locations. As a result, the country’s district heating market is widely expected to undergo a sustained period of high growth, with substantial capital investment required to meet these net zero ambitions.
Daniel Tyerman, Managing Partner at EvoInfra, said: “This transaction represents an important milestone for the UK district heating market. This sector can be instrumental in the UK’s net-zero roadmap, and this partnership can go a long way to deliver city-scale heat networks, and attract the further investment required. Congratulations to the DIF and Pinnacle Power teams, and a massive well done to our deal team”