Swedish manufacturer Qvantum raises €42 million for accelerated R290 residential heat pump deployment

February 01, 2023

Swedish manufacturer Qvantum has raised €42 million (US$45.8 million) in capital funding to accelerate the launch of its “next generation” residential propane (R290)-based heat pump, according to a statement from the company.

The new modular heat pump is designed to be an “integrated part of a local energy system,” said Qvantum, which has been developing heat pumps and heat pump-based district heating/cooling systems since 1993.

“The heat pumps are emission free, reliable and cost-efficient and will be accessible to many application fields, including in densely populated areas,” it added.

The first applications of the R290 heat pump platform, which will be introduced at the ISH trade show in Germany March 13–17, are designed for single-family houses and for apartments in multi-family residential systems, noted Qvantum.

“Qvantum’s R290 heat pumps are adapted to low-temperature systems and based on a modular concept that allows for a flexible use and combination of the modules, thereby addressing the complexity of customer requirements that are common for retrofit,” the company said.

Low-temperature systems, where the most suitable energy source –air, ground source, surplus heat or a combination – is used for one or several large buildings in a common low-temperature grid, are “a cost[-] and energy-efficient solution for replacement of gas in apartment or commercial buildings,” said Qvantum.

With the funding, the manufacturer also plans to finalize its new production site in Åstorp, Sweden, which has the capacity to produce up to 50,000 heat pumps per year.

“Qvantum [will] be a driving force in the decarbonization and electrification of cities across Europe by providing emission-free, reliable and affordable electric heat pumps to the mass-market,” said the company.

European demand for heat pumps

As the EU works to reduce its reliance on Russian fossil fuels and boost its climate targets, heat pumps have a significantly important role to play in the bloc’s decarbonization efforts.

According to the European Heat Pump Association, more than 2 million heat pump units were sold across Europe in 2021, up from 1.6 million the previous year. This trend is likely to continue, with the International Energy Agency (IEA) expecting the heat pump sector to grow significantly in Europe.

The growing demand for heat pumps in Europe is largely thanks to the European Commission’s ambitious REPowerEU plan, which aims to have 30 million heat pumps installed across the region by 2030.

“Qvantum is uniquely positioned to become a major player providing solutions to combat the climate crisis,” said Fredrik Rosenqvist, Qvantum’s CEO. “The heat pump market is growing exponentially, and our offering can contribute significantly to decarbonizing European cities.”

“We give people living in urban areas the chance to become fossil fuel-independent by making carbon-neutral heating easily accessible,” he added. “We can mitigate the impact of rising energy prices while accelerating the clean energy transition.”

Investing in decarbonization

Lead investors in Qvantum’s Series B round of fundraising include IMAS Foundation – a sister foundation of the INGKA Foundation, which owns IKEA’s operating group – and Munters, a multinational cooling technology manufacturer that will also enter into a “co-operation agreement” with Qvantum.

“IMAS is committed to decarbonization and is looking for investments that enable the transition towards a sustainable society and where our capital can make a difference,” said Petter Odhnoff, CEO of IMAS Foundation. “Energy transition is an important theme and Qvantum represents an interesting opportunity to support the clean transition for heating.”

“We are thrilled to have the support from professional long-term investors [that] allows us, as a firm, to develop even further and faster,” added Rosenqvist.