Scottish cleantech spinout SeaWarm has secured £550,000 in funding to accelerate the rollout of its renewable heating technology, designed to cut fossil fuel use and lower carbon emissions across communities.
The University of Edinburgh venture received £250,000 from angel investment syndicate Equity Gap, £250,000 from Scottish Enterprise, and £50,000 from Old College Capital, the university’s in-house venture fund.
SeaWarm’s modular, low-cost heat exchanger system draws stable temperatures from rivers, lochs, seawater and minewater to provide affordable heating and cooling. Operating like a heat pump but using water rather than air, the pods deliver greater efficiency in cold conditions and resilience against salt corrosion, drilling costs and noise.
Each unit, roughly the size of a domestic oil tank, can generate 13kW of heat from just one litre of water per second, sufficient to warm most small to medium homes. The design is compact, scalable, and can be self-serviced by owners, making it well-suited to rural and coastal areas.
Compared with oil and gas, the system can reduce CO₂ emissions by up to 90%, and around 70% compared with electricity, while also cutting energy bills for households and businesses.
SeaWarm’s immediate focus is Scotland’s coastal communities, where heating costs and fuel poverty remain high. The company aims to cut 20,000 tonnes of CO₂ and save 10 MWh of electricity over the next five years, before expanding into wider UK, European and international markets.
Initial demonstration sites include Port Edgar Marina, LAR Housing Trust in South Queensferry, Growforth Ltd in Hillend, and the Museum of Lead Mining in Wanlockhead. Longer-term, the company is targeting high-demand commercial facilities such as marinas, hotels, leisure centres, ferry terminals, and community buildings.
Professor Christopher McDermott, co-founder of SeaWarm and academic at the University of Edinburgh, said: “Our mission is to bring affordable, renewable heating to communities most exposed to rising costs and carbon-intensive systems. This funding allows us to accelerate growth, build partnerships and deliver practical, cost-effective solutions that cut emissions by up to 90% while lowering bills.”
Fraser Lusty, Managing Director at Equity Gap, highlighted the scale of opportunity: “Heating and cooling are among the largest contributors to household costs and carbon emissions. SeaWarm’s technology provides a practical, scalable solution with strong potential to make a measurable difference.”
Scottish Enterprise Director Derek Shaw added that the investment reinforces Scotland’s position in the energy transition: “By investing in clean heat, we can help Scottish companies capitalise on significant economic opportunities linked to the shift away from fossil fuels.”
Heating and cooling account for more than 40% of UK energy consumption, yet many rural and coastal communities still rely on expensive, carbon-intensive systems. SeaWarm’s modular solution is tailored to these environments, with Scotland’s market estimated at £340 million and global demand for heating and cooling set to exceed £100 billion by 2028.
With a clear focus on scaling production, building installer networks and growing internationally, SeaWarm is positioning itself at the forefront of clean energy innovation.