Building Decarbonization Startup Kelvin Raises $30 Million
Intelligent HVAC solutions provider Kelvin announced today that it has raised $30 million, with proceeds from the financing supporting the company’s growth and the buildout of its platform of solutions to decarbonize legacy buildings.
HVAC technologies are playing an increasingly central role in the global movement to address and reduce greenhouse gas (GHG) emissions. Buildings are a significant contributor to global GHG emissions, and one of the hardest to replace, given their long-term nature. Overall, buildings are estimated to contribute to about 15% of global carbon emissions, with heating and cooling representing about 35% of that. Several major initiatives have been launched to address emissions derived from the built environment, including a proposed rule in the EU requiring all new buildings to be net zero by 2030, and a multi-billion dollar plan by the Biden administration to reduce emission from 300,000 government buildings.
Founded as Radiator Labs in 2013 by material science engineer Marshal Cox, New York-based Kelvin designs and installs HVAC systems that help decarbonize buildings and save costs, without the need to prematurely retire existing systems. The company released its flagship product, Cozy, in 2016, a retrofit device that encloses radiators and controls their heat output. More recently, Kelvin developed a bespoke heat pump that replaces room air conditioners, which when paired with Cozy provides a “hybrid electrification” system, significantly reducing the use of fossil fuels. According to Kelvin, pairing Cozy with the heat pump and a thermal battery enables 20% decarbonization for 20% of the cost.
“Our new identity as Kelvin symbolizes the next phase of our broader mission: to provide energy-efficient temperature control that benefits building owners, tenants, and the larger communities they serve. With this new capital, we’re excited to expand our team and platform, helping more buildings in more cities meet electrification goals while reducing operating costs.”
The series A funding round was led by climate-focused venture capital firm 2150. Kelvin said that it will use the funding to hire more talent and to support its platform growth, as the company grows beyond radiators and expands in U.S. and European markets.
Christian Hernandez, Partner and co-founder, 2150, said:
“Kelvin’s hybrid electrification approach aligns with our support of breakthrough technologies that transform urban environments into sustainable cities of the future. Having demonstrated their ability to bring smarter, more sustainable heating and cooling to New York for over a decade, we’re eager to see them apply their unique expertise to more cities across the U.S. and the world, offering an affordable, effective path to lower building emissions.”