SeaWarm secures funding to scale heating system

A Scottish renewable energy company is set to bring low-carbon heating to homes and businesses across the country.

University of Edinburgh spinout SeaWarm has secured £550,000 in funding to expand its modular, low-cost renewable heating system. 

The investment comprises £250,000 from angel syndicate Equity Gap, £250,000 from Scottish Enterprise and £50,000 from Old College Capital, the University’s in-house venture fund, which bosses say will enable SeaWarm to “accelerate growth” and continue to “build partnerships and deliver practical, cost-effective solutions”.

Co-founded by Professor Christopher McDermott, Dr Gus Fraser-Harris and Cameron Muir, SeaWarm’s technology harnesses natural warmth from rivers, lochs, seawater and minewater, delivering heating and cooling while cutting CO₂ emissions by up to 90 per cent compared with oil and gas. 

The system operates like a heat pump but uses water instead of air, providing greater efficiency in cold conditions and reliable performance even in icy climates. 

Each compact modular unit, roughly the size of a domestic oil tank, is cost-effective to install, easily scalable and simple for owners to service.

From left, Professor Christopher McDermott, Dr Gus Fraser-Harris and Cameron Muir with one of SeaWarm's heating systems

Professor McDermott said: “Our mission is to bring affordable, renewable heating to communities most exposed to rising costs and carbon-intensive systems. 

“Scotland’s coastal communities are our immediate focus, where we aim to establish a strong track record before expanding across the UK, Europe and internationally. 

“This funding allows us to accelerate growth, build partnerships and deliver practical, cost-effective solutions that cut emissions by up to 90 per cent while lowering bills for households and businesses. 

“While our near-term focus is heating, the same technology can also deliver cooling, a huge global opportunity as demand rises toward 2050.”

Targeting high-heat commercial sites such as marinas, hotels, leisure centres and community buildings, SeaWarm has already installed demonstration units at locations including Port Edgar Marina, LAR Housing Trust and the Museum of Lead Mining, in Wanlockhead. 

Over the next five years, the company aims to cut 20,000 tonnes of CO₂ and save ten megawatt-hours of electricity annually, while reducing fuel poverty in coastal communities.

Fraser Lusty, managing director at Equity Gap, added: “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. 

“We are delighted to support the company’s next stage of growth alongside Scottish Enterprise and Old College Capital, and to continue Equity Gap’s track record of backing innovative Scottish businesses with global potential.”

Derek Shaw, director entrepreneurship and investment at Scottish Enterprise, added: “We previously supported SeaWarm through our High Growth Spinout Programme aimed at academic teams with strong commercially viable propositions. 

“Our additional support now as an investor really underscores our commitment to creating an internationally competitive energy transition industry in Scotland. 

“By investing in technologies such as clean heat we can help Scottish companies drive innovation and capitalise on the significant economic opportunities linked to the shift from fossil fuels to renewable energy.”

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