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Thermal energy company Exergy3 has raised a further \u00a310 million to convert surplus electricity into low-carbon industrial heat.<\/p>\n
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. <\/p>\n
Exergy3 was spun out of Edinburgh university in 2023 and secured a \u00a33.6m grant from the Department for Energy Security and Net Zero to build a full-scale demonstrator at Annandale Distillery. <\/p>\n
Markus Rond\u00e9, CEO, said: \u201cIndustry needs reliable, high-temperature heat, while large amounts of renewable electricity are going to waste. Exergy3 brings them together.<\/p>\n
\u201cThat means lower emissions, lower energy costs, and a more resilient energy system. This funding allows us to move rapidly from pilot to commercial deployment.\u201d<\/p>\n
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.<\/p>\n
Existing investors Scottish Enterprise, Zero Carbon Capital and Old College Capital, the University of Edinburgh\u2019s in-house venture investment fund, also participated in the round.<\/p>\n
Guillaume Sarlat, venture partner, Axeleo Capital, added: \u201cDecarbonising heavy industry \u2013 accounting for over 20% of global energy consumption and still largely fossil-based \u2013 is arguably one of today\u2019s most compelling climate hardware venture capital opportunities in Europe. <\/p>\n
\u201cExergy3 uniquely leverages curtailed and negative-priced renewable electricity, storing it at ultra-high temperatures to deliver low-cost, zero-carbon heat to industrial customers.\u201d<\/p>\n
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