New renewable energy spinout SeaWarm launches with £550k

University of Edinburgh spinout SeaWarm has secured £550,000 in funding to roll out its renewable heating system across Scotland’s communities.

This news story was originally published by Edinburgh Innovations: view original news story here

 

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 been supported by Edinburgh Innovations, the University’s commercialisation service.

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 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.

SeaWarm’s modular, low-cost, heat exchanger technology.
SeaWarm’s modular, low-cost, heat exchanger technology. From left to right: Professor Christopher McDermott, Dr Gus Fraser-Harris and Cameron Muir. Image credit: Sandy Young.

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.

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.

Professor Christopher McDermott The School of GeoSciences

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.

Ken Macintosh, Chair of Lar Housing Trust, which has installed SeaWarm’s technology in its properties at the former Port Edgar Naval Barracks, 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 to 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.

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.

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.

Director of Venture Creation at Edinburgh Innovations, Lizzie Withington, said:

It’s a fantastic team effort when a company spins out, involving EI’s business development support, technology transfer and early-stage funding from OCC, as well as, of course, the cutting-edge research and inventions of the University’s academics. 

Investment from Scottish Enterprise and Equity Gap now enables SeaWarm’s team to go on to help meet the world’s sustainable energy challenge, starting with Scotland’s coastline, with this exciting new technology.

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