Legal & General takes 36% stake in British ground source heating firm

LONDON (Reuters) - Legal & General Capital has taken a 36% stake in Kensa Group, a small British firm specialising in ground source heat pump technology, the investment company said on Friday.

Around 80% of UK homes are heated by using natural gas and finding new ways to keep homes warm is seen as vital if the country is to meet its target of reducing greenhouse gas emissions to net zero by 2050. Heat pumps use natural heat sources to warm homes reducing the need for fossil fuels.

“Retrofit represents a significant market opportunity, with around 23 million homes in Great Britain using mains gas (carbon intensive) as their heating fuel,” Legal & General Capital said in a statement.

Kensa Group chief executive Simon Lomax said the investment would enable the company to increase its research and development programme and increase the scale of its ability to install systems.

No financial details were revealed.

Legal & General Capital, which is the early-stage investment arm of the Legal & General Group, has a stake in British electric vehicle charging company Pod Point, which is majority owned by French utility EDF.

Reporting By Susanna Twidale; Editor Mike Harrison