Magnesium Capital to partner with Inopower A/S, the leading provider of E-Boilers and Power-to-Heat solutions to support the electrification and decarbonisation of district and industrial heating
(London, England, May 31, 2023) Denmark-based Inopower A/S (“Inopower” or “the Company”), the leading provider of Power-to-Heat technologies, has agreed to be acquired by funds advised by Magnesium Capital LLP (“Magnesium”). Closing of the transaction is pending customary regulatory approvals.
Funds advised by Magnesium have signed an agreement to acquire a majority of Inopower, the leading provider of Power-to-Heat solutions. Inopower’s E-Boilers replace fossil fuels used in hot water and steam production, enabling businesses and communities to reduce their carbon footprint by transitioning to digitised and electrified heating systems.
Magnesium’s investment in Inopower represents its seventh investment to date and aligns with its strategy of investing in fast-growing technology and tech-led businesses that are accelerating the shift to a decentralised, decarbonised and digitised energy system. As part of the transaction, Inopower’s management team will continue to lead the Company and will remain significant minority investors post completion.
“Inopower has experienced unprecedented demand for its technology over the last several years. In order to scale rapidly and effectively, we wanted a partner that could would bring financial resources, deep market understanding and strong operating capabilities. Given Magnesium’s pan-European strategy, established presence in the Nordics and sole focus on technology enabling the energy transition, we feel we have found the right partner to help us accelerate Inopower’s growth,” said Troels Davidsen, Chairman and Founder of Inopower.
In Europe, fossil-fuels account for over 60% of total energy used in heating, with a significant reliance on imported natural gas. This acquisition aligns with Europe’s goal of achieving a net-zero carbon economy by 2050. The electrification of heat plays a crucial role in the EU’s decarbonisation ambitions by promoting a higher share of renewables in heating’s energy mix and enhances Europe’s energy security by reducing reliance on imported fossil fuels.
“We are delighted to add this investment into the Magnesium Capital portfolio,” said Ian Jones, Managing Partner of Magnesium Capital. “Their expertise in Power-to-Heat technologies along with an enviable track-record of delivering solutions to the World’s most experienced district heating operators and dominant position in this high growth area, make Inopower a perfect fit with our investment strategy. We look forward to working with Troels, Kenneth and the rest of the management team in supporting the Company in this next phase of their journey.”
The investment in Inopower would mark Magnesium’s second investment in Denmark this year. Magnesium was advised by DLA Piper Denmark and Walker Morris (legal), KPMG (financial & tax), and ESG Capital (ESG & Impact). Management were advised by Clearwater International and Dahl. Financial details of the transaction have not been disclosed.
About Inopower A/S
Inopower is a technology and service provider specialising in the electrification of heat. Their solutions empower individuals, businesses, and communities to transition from fossil fuel-based heating systems to cleaner alternatives, contributing to the decarbonisation of heat and a more sustainable future.
About Magnesium Capital
Magnesium Capital is a London-based Energy Transition-focused private equity firm that advises on investments in fast-growing technology and tech-led businesses that are enabling the shift to a decentralised, decarbonised and digitised energy system. The firm has a flexible investment approach and looks to partner with exceptional management teams to provide capital and strategic support to companies looking to accelerate their growth and enable the ongoing energy transition.
Magnesium Capital LLP is authorised and regulated by the Financial Conduct Authority in the UK.
