Exergy3, a University of Edinburgh spinout, has secured £10 million in seed funding to advance its thermal energy storage technology. The round, led by Axeleo Capital, will enable the company to scale its solution for converting surplus renewable electricity into high-temperature industrial heat. This investment aims to address critical challenges in grid stability, energy security, and industrial decarbonisation across Europe.
Addressing Europe's Energy Dilemma
Europe's energy system faces a costly paradox, with billions spent on grid balancing while vast amounts of renewable power are curtailed. Simultaneously, heavy industry struggles to decarbonise its high-temperature heat processes, which are a major source of global emissions. Exergy3's innovation directly targets this disconnect between wasted clean energy and industrial need.
A Technological Bridge for Decarbonisation
Exergy3's technology provides a direct solution by capturing surplus renewable electricity and converting it into high-temperature stored heat. Its modular units can deliver process temperatures from 50°C to 1,200°C, making them highly adaptable for various industrial applications. The system is designed for rapid integration, requiring minimal changes to existing infrastructure.
Strategic Funding for Commercial Scale-Up
The company has secured £10 million in a seed round led by Axeleo Capital to accelerate its move from pilot projects to commercial deployment. CEO Markus Rondé emphasized that the funding enables Exergy3 to turn surplus power into a reliable, low-cost heat source for industry. This investment will help lower emissions and build a more resilient energy system.
The round saw participation from new investors Bayern Kapital and Kibo Invest, alongside existing backers including Scottish Enterprise, Zero Carbon Capital, and Old College Capital. This strong syndicate reflects broad confidence in the company's mission to tackle industrial decarbonisation. The diverse support highlights the technology's perceived market potential across Europe.
Investor Outlook on Industrial Innovation
Investors have voiced strong confidence in Exergy3's approach, with Axeleo Capital calling it a compelling climate hardware opportunity. Guillaume Sarlat of Axeleo praised the team's expertise in leveraging curtailed renewables to deliver zero-carbon heat. This sentiment was shared by Bayern Kapital, which noted the significant commercial potential in this key growth market.
Plans for Growth and European Expansion
The new capital will be used to scale manufacturing capacity, expand the team, and facilitate widespread deployment across industrial sites. Exergy3 plans to double its headcount by the end of the year to support this rapid growth phase. These steps are crucial for meeting the growing demand for its decarbonisation solution.
As part of its European growth strategy, the company will establish a new office in Munich, Germany, later this quarter. This strategic move into a key industrial market will strengthen its continental presence. It also positions Exergy3 to effectively serve a growing base of customers seeking to decarbonise their operations.
This £10 million investment marks a critical milestone for Exergy3, empowering it to commercialise a solution for some of the energy transition's toughest challenges. By transforming wasted renewable power into a valuable industrial asset, the company is set to enhance grid stability and accelerate decarbonisation. As Exergy3 enters its next phase of growth, its technology will play a vital role in improving energy security and efficiency for industries across Europe.