Why did we invest in Qvantum ?
January 17, 2023
Climentum joins 🇸🇪 Qvantum €42M Series B and takes board seat to mass-scale electric heat pumps in Europe.
Qvantum’s next-generation electric heat-pumps
We’re thrilled to announce our investment in Qvantum Industries 🇸🇪.
The Swedish heat-pump systems and technology company has successfully completed its €42M Series B, to accelerate the launch of next-generation electric heat pumps.
The funds will support Qvantum’s accelerated growth and production power, as well as the development of its go-to-market strategy for next-generation electric heat pump systems and technology.
The electric heat pump market in Europe is experiencing significant growth, driven by increasing demand for sustainable heating solutions and government efforts to decarbonize the heating sector. According to a report by MarketsandMarkets, the global heat pump market is projected to grow at a CAGR of 9.5% from 2020 to 2026, reaching $83.5 billion by 2026.
Europe is the world’s fastest growing heat pumps market. Heat pumps are favored by European government policies suggesting a trend of rapid adoption and a mass scale-up.
The name of the game is to retrofit historical gas boilers by energy efficient electric heat-pumps
The retrofit of gas boilers in urban areas is a key area of focus for the growth of the electric heat pump market in Europe, as many cities are looking to phase out fossil fuel-based heating systems to reduce carbon emissions. Retrofitting existing buildings with electric heat pumps can significantly reduce their carbon footprint and help cities achieve their emission reduction targets.
The European Union has set a goal for all new buildings to be nearly zero-energy by 2030 and for existing buildings to be renovated at a rate of at least 3% per year to achieve a nearly zero-energy building stock by 2050.
In addition, several countries in Europe have implemented policies and incentives to encourage the adoption of electric heat pumps, such as subsidy programs and regulations mandating the use of renewable energy sources for heating.
The company’s mission is to be a driving force in the decarbonization and electrification of urban areas and cities across Europe. By providing emission-free, reliable, and affordable electric heat pumps to the mass market, Qvantum aims to play a significant role in reducing carbon emissions and addressing the urgent need for sustainable energy solutions.
The Series B funding round saw participation from a strong investment syndicate, with lead investors including Thomas von Koch & IMAS Foundation, and great investors such as Climentum Capital, SEB Greentech, DIG Investment (connected to the H&M Persson family).
Climentum will seat on the board and will guide the company to meet its strong impact objectives and Article 9 fund requirements.
The funds raised in this round will be used to accelerate the launch of Qvantum’s next-generation electric heat pumps, as well as to support the company’s growth and production power.
Rapid recap on the principle of electric heat pumps:
The heat pump works on the principle of mechanical-compression cycle refrigeration that can even be reversed to heat or cool the desired space of a facility. Hence, these are popular in cooling applications and space heating.
Heat pumps are comprised of two primary components: an outdoor unit similar to that of a central air-conditioner and an indoor air handler. The outdoor unit includes a compressor that circulates the refrigerant, whose function is to absorb and release heat that travels between outdoor and indoor units
Qvantum offers a wide range of efficient heat pumps for commercial properties. More details on their product page.
Mass-scale urban project in London to retrofit 1,000+ electric heat pumps
We are excited about the future and look forward to working with Qvantum to make next-generation electric heat pumps mainstream and make Europe independent from geopolitical war over gas and fossil fuels.
Team Climentum
