Energy waste-to-heat firm Exergy3 raises £10m – Daily Business

Exergy3 is decarbonising industry

Thermal energy company Exergy3 has raised a further £10 million to convert surplus electricity into low-carbon industrial heat.

The seed round for the Edinburgh firm was led by an Axeleo Capital fund which backs deeptech startups aiming to reduce the environmental impact of industrial processes across Europe.

Exergy3 was spun out of Edinburgh university in 2023 and secured a £3.6m grant from the Department for Energy Security and Net Zero to build a full-scale demonstrator at Annandale Distillery.

Markus Rondé, CEO, said: “Industry needs reliable, high-temperature heat, while large amounts of renewable electricity are going to waste. Exergy3 brings them together.

“That means lower emissions, lower energy costs, and a more resilient energy system. This funding allows us to move rapidly from pilot to commercial deployment.”

Axeleo Capital was joined by Bavaria-based public venture capital investor Bayern Kapital and Singapore-based Kibo Invest, whose climate tech fund supports companies transforming industries and addressing urgent climate challenges.

Existing investors Scottish Enterprise, Zero Carbon Capital and Old College Capital, the University of Edinburgh’s in-house venture investment fund, also participated in the round.

Guillaume Sarlat, venture partner, Axeleo Capital, added: “Decarbonising heavy industry – accounting for over 20% of global energy consumption and still largely fossil-based – is arguably 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.”

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