Heat Pump Startup Aira to Invest €300 Million in Poland Manufacturing Plant

Clean energy tech startup Aira announced today the inauguration of its first heat pump production site in Wroclaw, Poland, with the company planning to invest €300 million (USD$320 million) in the manufacturing plant, to produce up to 500,000 heat pumps per year.

Founded in 2022 by impact company builder Vargas, Stockholm, Sweden-based Aira provides clean energy-tech solutions aimed at accelerating the electrification of residential heating, including a high-efficiency heat pump. The company agreed to acquire the Poland facility from Volvo in 2023.

Heat pumps are rapidly emerging as a key energy efficient and climate-friendly alternative to furnaces and air conditioners, producing fewer greenhouse gas emissions and reducing reliance on fossil fuels. According to Aira, switching from a gas boiler to an air source heat pump with its clean energy solution can reduce household heating costs by up to 40% and CO2 emissions by 75%, rising to 100% if fossil-free energy is used as the source of power for the heat pump.

The company’s new investment plans follow a series of recent capital raise announcements by Aira, including a €145 million Series B financing round in January 2024, and €200 million in debt financing from BNP Paribas, announced earlier this month. The company also received a €15 million grant from the Polish government to support the establishment of the site in Wroclaw, Poland.

Martin Lewerth, Aira Group CEO said:

“The facility is not just a factory; it’s a beacon of our commitment to innovation, sustainability, and a decarbonised future for Europe. Today, 130 million boilers still heat homes across Europe, which presents a significant market opportunity and more importantly, heat pumps significantly reduce customer heating bills and carbon emissions. Our Polish production site is pivotal for this transformation, and it is great to get started now.”