SeaWarm secures £550,000 to cut fossil fuel use and slash CO₂ emissions by up to 90% in Scotland’s communities

The investment includes £250,000 from Equity Gap, one of Scotland’s leading angel investment syndicates, £250,000 from Scottish Enterprise, and £50,000 from Old College Capital, the University of Edinburgh’s in-house venture investment fund.

SeaWarm’s modular, low-cost heat exchanger technology harnesses natural warmth from rivers, lochs, seawater, and minewater to deliver affordable, sustainable heating and cooling. By replacing oil and gas systems, it can cut CO₂ emissions by up to 90 per cent, while also saving households and businesses hundreds of pounds on energy bills.

The system works like a conventional heat pump, but instead of using air, it uses water, which provides more stable temperatures, greater efficiency in cold weather, and reliable performance. SeaWarm’s pods capture the natural energy released when water freezes, making them highly efficient even in the coldest conditions. Its modular units are compact, cost-effective to install, and designed to overcome coastal challenges such as salt corrosion, expensive drilling, and noise. 

Each modular unit is roughly similar in size to a domestic oil tank, being two metres in diameter and 1.5 metres high, making it easy to install, simple to scale, and cost-effective for a wide range of sites. They are resilient in icy conditions, deliver warmer heat on cold days, and can be easily self-serviced by owners. By drawing just 3°C from about one litre of water per second, the unit produces 13 kW of heat, enough to comfortably warm most small and medium-sized homes.

Compared with oil and gas, SeaWarm’s technology cuts CO₂ emissions by up to 90 per cent, and around 70 per cent versus electricity. Over the next five years, the company aims to help minimise fuel poverty in coastal communities, reduce emissions by 20,000 tonnes, and save 10 MWh of electricity annually.

The company is targeting high heat demand commercial sites such as marinas, hotels, leisure centres, ferry terminals, museums, community buildings, and horticulture facilities, with the long-term aim of expanding into domestic markets. Demonstration sites already include Port Edgar Marina, LAR Housing Trust in South Queensferry, Growforth Ltd in Hillend, and the Museum of Lead Mining in Wanlockhead.

SeaWarm was co-founded by Professor Christopher McDermott, of the University of Edinburgh’s School of Geosciences, former University hydrogeologist Dr Gus Fraser-Harris, and CSM Plumbing and Heating’s Cameron Muir. It has also been supported by Edinburgh Innovations, the University’s commercialisation service.

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.”

Fraser Lusty, Managing Director at Equity Gap, said: “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, said: “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.”

Heating and cooling account for over 40 per cent of UK energy consumption, yet many rural and coastal communities remain reliant on costly, carbon-intensive systems. SeaWarm addresses these challenges with a modular, low-impact design tailored for the unique demands of coastal environments.

The Scottish market is estimated at £340 million, with global heating and cooling demand expected to exceed £100 billion by 2028, providing strong growth potential for SeaWarm as it scales production, strengthens installer and distributor partnerships, and expands internationally.

For more information, visit the SeaWarm website here. 

 

Case studies 

Port Edgar Marina, Fife

SeaWarm installed its modular seawater-source heat exchanger at Port Edgar Marina, providing

efficient heating to the historic Naval Battery Guard House and associated facilities a peer

workshop. The system draws renewable thermal energy directly from the Firth of Forth,

reducing reliance on conventional heating systems, cutting carbon emissions, and delivering

measurable energy cost savings.

 

LAR Housing Trust, South Queensferry
SeaWarm has partnered with LAR Housing Trust to install modular heat exchangers in its properties at the former Port Edgar Naval Barracks. The technology delivers efficient heating to high-demand units while minimising carbon emissions and energy costs. Its modular design allows for flexibility across multiple property types and provides a scalable solution for future housing projects.

Ken Macintosh, Chair of Lar Trusting Trust, said: “The idea of being able to heat our properties with energy taken from the sea is so exciting and potentially of huge benefit both to our tenants and for the environment.

“We were delighted to support SeaWarm develop its technology and even more encouraged to see how successful the company has been in effectively heating what was initially a very poorly insulated building. As we build out the site, we are now looking to explore the options for installing similar units at our new café or even to heat a larger communal area.”

 

Wanlockhead Museum, Dumfries & Galloway

At Scotland’s highest village, the Museum of Lead Mining benefits from a temporary prototype of the system using riverstream-source heat pump powered by SeaWarm’s technology. The system taps into nearby water resources to provide sustainable, reliable heating in a challenging rural environment, where traditional heating solutions are often costly and inefficient.

-ENDS-

 

NOTES TO EDITORS 

About Equity Gap

Equity Gap is an Edinburgh based angel investment syndicate, established to help match investors with entrepreneurs looking for early-stage business funding.  Equity Gap members currently invest in over 30 companies, leveraging over £70m in total investment into this portfolio.  Equity Gap investee companies have created over 400 jobs, primarily in Scotland, across a range of sectors including consumer product, food and drink, life science and SaaS.

 

About SeaWarm

SeaWarm is a Scottish clean-tech company developing modular, low-cost heat exchangers that

harness renewable energy from rivers, lochs, seawater, and minewater. Born out of research at

the University of Edinburgh, the technology adapts traditional heat pump principles to water

sources rather than air or ground, offering a more stable, efficient, and resilient solution for

challenging environments. Its systems are specifically designed for rural and coastal

communities, helping to cut heating bills and reduce carbon emissions while supporting the

transition to net zero.

 

About Scottish Enterprise

Scottish Enterprise (SE) is Scotland’s national economic development agency and a non-departmental public body of the Scottish Government. It supports businesses to innovate and scale to transform the Scottish economy by focusing on new market opportunities through targeted investment, innovation and internationalisation. Follow us on X (formerly Twitter) and LinkedIn.

 

About Old College Capital 

Old College Capital (OCC) is the University of Edinburgh’s venture investment fund. OCC manages Edinburgh’s early-stage investment activities and shareholdings; supporting exciting ideas and technologies emerging from the University.

OCC is part of Edinburgh Innovations, the University of Edinburgh’s commercialisation service.