DIF Capital Partners is buying a majority interest in UK district heating company Pinnacle Power for an undisclosed sum.

The €15bn infrastructure fund manager, investing on behalf of its DIF Infrastructure VII fund, said it has agreed to buy the “significant majority” stake from Pinnacle Group with Pinnacle Power’s management team retaining a minority interest.

DIF said it is investing to help Pinnacle Power “accelerate its growth and fund the development and ownership” of city-scale district heating networks across the UK.

Founded in 2012, Pinnacle Power has delivered over 100 projects including the Greenwich Peninsula network.

Gijs Voskuyl, partner and head of infrastructure at DIF Capital Partners, said Pinnacle Power represents a “compelling investment proposition” for DIF, with an opportunity to invest in a build-to-core sustainable energy platform operating in a rapidly growing market.

Toby Heysham, CEO of Pinnacle Power, said: “We are excited to be working with DIF to deploy the scale of investment this market needs. We know that the industry needs to deploy at least £60-80bn into low-carbon heat networks to unlock the vast amount of local, wasted heat and deliver that heat into homes and businesses.

“Many towns and cities have declared climate emergencies but very few have credible solutions to the ‘heat challenge’. This investment offers a clear pathway to achieving decarbonisation, through local investment in locally generated, low-carbon heat.”

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