Edinburgh’s Exergy3 Raises €11.4 Million to Transform Surplus Renewable Power into Clean Industrial Heat

In a significant stride towards industrial decarbonization, Edinburgh-based CleanTech startup Exergy3 has successfully secured €11.4 million in Seed funding. This fresh capital injection is set to propel the company’s innovative approach to transforming surplus renewable power into clean industrial heat, addressing pressing issues such as industrial decarbonization, grid balancing, and energy security.

Introduction

In a significant stride towards industrial decarbonization, Edinburgh-based CleanTech startup Exergy3 has successfully secured €11.4 million in Seed funding. This fresh capital injection is set to propel the company’s innovative approach to transforming surplus renewable power into clean industrial heat, addressing pressing issues such as industrial decarbonization, grid balancing, and energy security.

Funding and Leadership

The funding round was spearheaded by Axeleo Capital, with contributions from Bayern Kapital and Kibo Invest. Existing supporters, including Scottish Enterprise, Zero Carbon Capital, and Old College Capital, also participated. This diverse investor base underscores the growing confidence in Exergy3's potential to revolutionize the industrial heat market.

Guillaume Sarlat, Venture Partner at Axeleo Capital, highlighted the opportunity: “Decarbonising heavy industry is one of today’s most compelling climate hardware venture capital opportunities in Europe. Exergy3 uniquely leverages curtailed and negative-priced renewable electricity, storing it at ultra-high temperatures to deliver low-cost, zero-carbon heat to industrial customers.”

Revolutionizing Industrial Heat

Founded in 2023 as a University of Edinburgh spinout, Exergy3 aims to tackle the energy paradox plaguing Europe. With renewable generation often exceeding grid capacity, valuable low-carbon electricity is wasted. Meanwhile, industries face escalating energy costs and pressure to reduce emissions.

Exergy3’s technology converts this surplus renewable electricity into high-temperature heat, providing a sustainable energy source for industrial applications. CEO Markus Rondé emphasized, “Industry needs reliable, high-temperature heat, while large amounts of renewable electricity are going to waste. Exergy3 brings them together – turning surplus renewable power into reliable, low-cost heat for industry.”

Technology and Deployment

The company’s modular thermal energy storage units are designed for rapid integration, offering process temperatures from 50°C to 1,200°C. This flexibility allows the technology to cater to diverse industrial needs, from direct heat applications to steam generation.

With the new funding, Exergy3 plans to scale its manufacturing capacity, expand its team, and facilitate widespread deployment across industrial sites. The company intends to double its headcount by year-end and establish a Munich office to strengthen its presence in Germany.

Implications for Startups and Investors

Exergy3’s breakthrough highlights a burgeoning opportunity for startups and investors in the CleanTech space. The decarbonization of industrial heat is not only crucial for reducing emissions but also presents a lucrative market for technological innovation. As Monika Steger, Managing Director of Bayern Kapital, noted, “The decarbonisation of industrial process heat is a key lever for the transformation of energy-intensive industries.”

This development sets a precedent for other startups aiming to bridge the gap between renewable energy surplus and industrial energy demands. It also signals a shift towards more sustainable industrial practices, driven by technological advancements and strategic investments.

Conclusion

Exergy3's recent funding round marks a pivotal moment in the CleanTech industry, as it pioneers the conversion of surplus renewable energy into a valuable industrial resource. By addressing both energy waste and industrial emissions, Exergy3 is poised to play a significant role in the global transition to a low-carbon future. This success story serves as a compelling example for startups and investors looking to make an impact in the realm of sustainable energy solutions.

Source: EU-Startups