Exergy3 Raises €11.4M to Revolutionize Clean Industrial Heat, Reducing Emissions by Up to 90%

Exergy3, an Edinburgh-based CleanTech startup, has secured €11.4 million in Seed funding to scale its innovative thermal energy storage solutions. This technology addresses industrial decarbonisation, grid balancing, and energy security by converting surplus renewable power into clean industrial heat.



The investment round was led by Axeleo Capital, with participation from Bayern Kapital and Kibo Invest. Existing investors, including Scottish Enterprise and the University of Edinburgh’s in-house venture investment fund, also contributed to the round. Guillaume Sarlat, Venture Partner at Axeleo Capital, noted that decarbonising heavy industry is a critical climate hardware venture capital opportunity in Europe.



Exergy3’s proprietary technology stores surplus renewable electricity at ultra-high temperatures, delivering low-cost, zero-carbon heat to industrial customers. Founded in 2023 as a CleanTech spinout from the University of Edinburgh, the company aims to provide scalable, affordable, and sustainable sources of clean industrial heat. This mission is crucial, given that industrial heat accounts for a significant share of global energy demand and emissions.



The strain on the European energy system is intensifying, with £2.7 billion spent on grid balancing in the UK alone in 2024/25. Exergy3’s solution addresses this mismatch by converting excess renewable electricity into high-temperature heat for industrial use. Markus Rondé, CEO of Exergy3, stated that the company’s technology brings together the needs of industry and the surplus of renewable electricity, resulting in lower emissions, lower energy costs, and a more resilient energy system.



The funding will enable Exergy3 to scale manufacturing capacity, expand its team, and deploy its technology across industrial sites. The company plans to double its headcount by the end of the year and open a Munich office later this quarter as part of its expansion into Germany. Monika Steger, Managing Director of Bayern Kapital, highlighted the importance of decarbonising industrial process heat, a key challenge in the transition to a low-carbon economy.



For everyday users, this technology could mean reduced energy costs and lower emissions. From an industry perspective, Exergy3’s solution offers a reliable and affordable source of clean industrial heat, enabling companies to reduce their environmental footprint while maintaining competitiveness. As the energy landscape continues to evolve, Exergy3 is well-positioned to play a critical role in the transition to a low-carbon future.



The implications of Exergy3’s technology extend beyond the industrial sector, with potential applications in grid balancing and energy security. As the company scales its operations, it is likely to have a significant impact on the clean energy market, driving innovation and growth in the sector. With its innovative approach to clean industrial heat, Exergy3 is poised to make a lasting impact on the environment and the economy.



The company’s modular thermal energy storage units are designed for rapid integration across industrial environments, delivering process temperatures from 50°C to 1,200°C while remaining compact and easy to install. This flexibility enables the technology to suit various industrial processes, from direct heat applications to steam generation, making it suitable for a wide range of energy-heavy industries.



As Exergy3 continues to grow and expand its operations, it is likely to face increasing competition in the clean energy market. However, the company’s innovative technology and strategic partnerships position it for success in the sector. With the support of its investors and the growing demand for clean energy solutions, Exergy3 is well-placed to drive the transition to a low-carbon economy.



In conclusion, Exergy3’s €11.4 million funding round marks a significant milestone in the company’s mission to revolutionize the clean heat market. With its innovative technology and strategic expansion plans, Exergy3 is poised to make a lasting impact on the environment and the economy. As the energy landscape continues to evolve, Exergy3 is likely to play a critical role in the transition to a low-carbon future.