Cleantech Startup Aira Secures €200 Million Financing with BNP Paribas to Drive Heat Pump Installation

Clean energy technology company Aira has announced securing €200 million in debt financing from BNP Paribas, aimed at facilitating the installation of heat pumps in homes throughout Germany.

Established in 2022 by impact company builder Vargas, Stockholm-based Aira specializes in providing clean energy technology solutions to accelerate the electrification of residential heating. Their offerings include a high-efficiency heat pump designed to replace traditional heating systems.

Heat pumps are becoming a popular, energy-efficient, and environmentally friendly alternative to conventional furnaces and air conditioners. They produce fewer greenhouse gas emissions and reduce dependence on fossil fuels. According to the European Commission Joint Research Center, nearly 90 million residential fossil fuel-based boilers are currently in use. Aira claims that switching from a gas boiler to an air source heat pump with their technology can reduce household heating costs by up to 40% and CO2 emissions by 75%, with a potential increase to 100% if powered by fossil-free energy.

Aira and BNP Paribas highlighted that this new financial commitment aims to pioneer a new asset class for heat pump securitization. This initiative is intended to address the upfront cost barrier for consumers transitioning to heat pumps. Aira plans to use the €200 million to install heat pumps at low or no initial cost to consumers, recovering the expenses through low monthly payments.

Eirik Winter, CEO of BNP Paribas Group Nordic region, stated, “Clean and affordable home energy solutions are crucial for transitioning to an inclusive net-zero economy. We are pleased to support Aira in this significant initiative to accelerate heat pump adoption and the energy transition. This partnership aligns with our strategic goals of fostering sustainable investments and developing an innovative asset class in Europe.”

This financing follows Aira’s €145 million Series B capital raise earlier this year, intended to support the company’s expansion across Italy, Germany, and the UK. The funding will also help introduce an affordable monthly payment model for European homeowners and enhance Aira’s clean energy product portfolio.

Martin Lewerth, CEO of Aira Group, commented, “With substantial debt financing from partners like BNP Paribas, we are poised to overcome one of the biggest barriers to heat pump adoption and expedite our rollout across Europe. This securitization with BNP Paribas marks the beginning of Aira’s consumer financing journey and signifies a major step towards transitioning Europe away from fossil fuel-based boilers.”

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