London, November 2024
In a recent interview with Unigestion, Andrew Wettern, CEO of 1Energy, shared insights into the platform’s groundbreaking work in transitioning from gas boilers to efficient, city-centred, low-carbon heat networks. This shift is a key part of 1Energy’s mission to revolutionize urban heating solutions.
Asper, on behalf of its clients like Unigestion, is dedicated to supporting 1Energy’s ambitious growth plans. Through our investment vehicle, Duke, we are backing 1Energy, a greenfield platform focused on developing, building and operating sustainable heat networks in city centres across the UK. The investments in Duke, from Unigestion and other institutional investors, has been instrumental in helping 1Energy scale its operations, moving from the development phase to large-scale project delivery – starting with the Bradford Energy Network.
The interview highlights the following key messages:
- 1Energy’s Vision and Leadership
In the video, Andrew highlights 1Energy’s pioneering role as the first platform to deploy institutional investor financing into city heat networks, setting a new standard for financing low-carbon infrastructure in the UK. This model has now been adopted by others, demonstrating 1Energy’s leadership in the sector. The platform has multiple projects in the pipeline, aiming to significantly expand over the next five years by capturing ten greenfield projects. - Achieving Environmental and Social Impact
A key part of 1Energy’s mission is decarbonisation in densely populated areas by replacing gas boilers and using into local, clean heat sources. This strategy not only supports the environment but also leverages efficiencies of scale, reducing the costs associated with heat generation and distribution. This affordable, scalable model is crucial for achieving the UK’s climate targets while ensuring that the transition to low-carbon heating remains accessible to all. - 1Energy’s Strategic Role in Policy Development
1Energy’s leadership extends beyond operations into policy influence. Andrew explained how the platform is part of the Heat Network Industry Council, where it engages directly with government ministers to shape the future of heat network regulation and fiscal measures. This allows 1Energy to stay ahead of regulatory shifts and remain adaptable to political changes that affect the district heating sector. - Looking Ahead: Heat Network Zoning and Future Growth
For Andrew, one of the most exciting developments on the horizon is the upcoming heat network zoning policy in the UK. This new regulatory model will provide a framework for urban heat distribution, and Andrew highlighted how 1Energy, with its leadership position, is well-placed to take advantage of this emerging opportunity. Over the next five years, the 1Energy platform plans to complete its first investment fund and raise a second, continuing to scale as the heat network zoning model is implemented. Andrew shared his confidence that, despite potential market fluctuations, 1Energy’s pipeline of projects remains robust and will continue to grow.
Through Duke, Asper and Unigestion are excited to continue driving the transformation of the UK’s low-carbon heat network infrastructure. 1Energy’s innovative approach is not only reducing greenhouse gas emissions but also creating long-term value for both investors and local communities.
Duke’s project in Bradford, the Bradford Energy Network (“BEN”), has recently reached financial close. This marks a significant milestone for Duke and the Partnership, as it is the first project to reach this critical stage. Using Bradford as a blueprint, this partnership aims to make significant strides in the decarbonisation of urban heat networks over the next five years, further solidifying 1Energy’s position as a leader in the sector. Together, we are committed to building a cleaner, more efficient energy future for the UK, ensuring financial outperformance and sustainability while contributing to a low-carbon economy that delivers environmental and social benefits at scale.
About Unigestion:
Founded in 1971, Unigestion is an international boutique asset manager, providing innovative investment solutions for institutional clients and high net worth individuals worldwide. We believe that intelligent risk-taking is key to delivering consistent returns over time. Unigestion has a long track record of innovation. We were one of the early investors in hedge funds in the 1980s, were an early adopter of private equity strategies such as secondaries and emerging managers, and pioneered low volatility equity investing in the 1990s. Visit our website: www.unigestion.com
About Asper Investment Management:
Asper Investment Management is an independent investment management firm specialised in sustainable real assets. Its investments and commitments managed by Asper total in excess of €1.4 billion dedicated to energy transition investments in Ireland, the Netherlands and the UK. Visit our website: www.asper-im.com
About 1Energy:
1Energy Group is the UK’s leading independent developer, funder and operator of low-to-zero (LZC) heat networks in city centres. 1Energy is accelerating the transition to a net zero future by decarbonising heat in cities and towns across the UK. Visit our website: www.1energy.uk
