Exergy3 has raised £10 million in seed funding to move its industrial heat technology from pilot stage into commercial deployment. The Edinburgh-based company, a spinout from the University of Edinburgh, is developing thermal energy storage systems that turn surplus renewable electricity into high-temperature heat.
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The platform is designed to absorb excess renewable generation, including curtailed wind power, and convert it into heat for industrial processes. Units deliver temperatures from 50°C to 1,200°C across applications from direct process heat to steam generation.
In doing so, it links grid flexibility with industrial demand and addresses two connected issues: rising curtailment of renewable electricity and the difficulty of decarbonising industrial heat. In the UK, balancing costs reached £2.7 billion in 2024/25, highlighting growing imbalances between supply and demand. “These are two sides of the same problem,” said CEO Markus Rondé. “Industry needs reliable, high-temperature heat, while large amounts of renewable electricity are going to waste.”
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Exergy3 says its technology has been validated in real-world conditions, including at a distillery in Scotland. The next phase will focus on scaling production and rolling out systems more widely across industrial customers. The round was led by Axeleo Capital and will support expansion of manufacturing capacity, team growth and deployment across industrial sites. Exergy3 also plans to open a Munich office as part of its European expansion.
Investors are positioning the technology within a broader push to decarbonise energy-intensive sectors. “Decarbonising heavy industry is one of the most compelling climate hardware opportunities in Europe,” said Guillaume Sarlat, venture partner at Axeleo Capital. (TF)
