ESG Today writes that Stockholm-based Aira provides cleantech energy solutions aimed at accelerating the rate of electrification in residential heating, including through using energy-efficient heat pumps.

Heat pumps are devices that use a technology similar to that found within our refrigerators, meaning that it extracts heat from a source, such as air, geothermal energy or water. Using that heat, it amplifies it and sends it through pipes within a building.

"If a heat pump uses one kilowatt of electricity, then it outputs 5 kilowatt-hours of energy, so it's a really efficient way to produce heating, compared to other kinds of heating systems", we learned from Adam Jonsson, Global Product Manager Indoor Units, Water heaters & Storage tanks, NIBE Sweden.

Aira experts say that by switching to an air-based heat pump from a gas boiler, household heating costs can be reduced by 40%, while emissions, by 75%, which can grow up to 100%, if the energy used to power the heat pump system comes from renewables.

The 200 million euros investment, representing debt commitments came from BNP Paribas.

Eirik Winter, CEO of BNP Paribas Group Nordic region, said that "clean and affordable home energy solutions is a crucial component in the transition to an inclusive net-zero economy. We are pleased to support Aira on this important initiative to accelerate heat pump adoption and the energy shift."

Earlier this year, Aira also received another 145 million euros funding through a Series B round to support the company's plans to expand to Italy and Germany.