A private equity firm specialising in clean energy has bought a 30% stake in Lancashire heat infrastructure company Vital Energi to back its UK expansion plans.
Blackburn-based Vital Energi owns and operates low-carbon heat networks and is also growing its work in related technologies including solar, battery and heat storage, and electric vehicle charging.
Now Corran Capital says its investment will help Vital Energi to “rapidly scale” its operations. Corran’s investment in Vital has been backed by partners including Strathclyde Pension Fund and Lexington Partners.
Vital has been operating for 30 years and today has 700 employees with offices in London, Glasgow, Hereford and Burton-on-Trent. It has connected more than 100,000 homes to heat networks in cities including Glasgow, Manchester, Liverpool, Leeds, Hull and London, working with councils and housing authorities. Just yesterday, BusinessLive reported on progress at a heat network in Liverpool being built by Vital.
New government regulations will require new developments to connect to low-carbon heat networks where available, which Corran believes will drive more interest in companies like Vital Energi.
The private equity company has also appointed Lucy Graham as a partner. Ms Graham, who previously worked for private equity group Cairngorm Capital and for Virgin Money, will work with Vital’s management on new opportunities and to deliver capital needed to accelerate the development of renewable heat projects.
Gary Fielding, founder and chairman of Vital Energi, said: “This investment will enable Vital Energi to play an even greater role in tackling climate change while delivering affordable energy for homeowners and building occupiers. We want to build on our existing client relationships and develop new low carbon infrastructure projects to scale-up the pace of decarbonisation and provide more green jobs for the future.”
Gary Le Sueur at Corran Capital said: “We are excited to partner with the Vital Energi team to capture the significant growth opportunities in renewable heat and accelerate the broader energy transition. It is a long term journey and will require substantial amounts of capital – both private and public sector – over the next 50 years. Vital Energi is in pole position with its expertise and skills to play a critical role in delivering important renewable heat and energy efficiency solutions for its customers across the UK.”
Corran has already supported Glasgow battery storage company Renewco Power, which was formed in 2021 with a £24m commitment from SSE plc through Corran.
Renewco now has a pipeline of renewable power opportunities across the UK, Spain, Italy and the US, backed by a further £24m commitment from Corran and SSE.
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