Exergy3 receives EUR 11.5 million for up to 1,200 °C

The Scottish clean-tech start-up Exergy3 has closed a seed financing round of 11.5 million euros. The round was led by Axeleo Capital. Other investors include Bayern Kapital, Kibo Invest and existing backers such as Scottish Enterprise, Zero Carbon Capital and Old College Capital.

Exergy3 intends to use the fresh capital to commercialize its technology, expand production capacities and implement its first large-scale industrial projects. At the same time, the company is planning to establish a European headquarters in Munich.

Industrial process heat as a key problem in the energy transition

The decarbonization of industrial process heat is considered one of the greatest challenges of the energy transition. Many industries are dependent on constantly high temperatures, which have so far mainly been generated by fossil fuels. At the same time, there is increasing pressure on companies to reduce emissions and make their energy supply more sustainable without losing competitiveness.

Technology converts renewable electricity into high-temperature heat

Exergy3 is developing a modular thermal energy storage system that converts surplus renewable electricity into process heat. The technology covers a temperature range from 50 °C to 1,200 °C and is therefore suitable for numerous energy-intensive sectors such as food production, chemicals, pharmaceuticals and the cement industry.

The solution has already been tested in an industrial demonstrator under real conditions and is characterized by low heat losses and a scalable design. The aim is to provide an economically viable and CO₂-free alternative to fossil fuels.

Contributing to the stabilization of the energy system

In addition to decarbonization, Exergy3 addresses another problem: the increasing discrepancy between electricity generation and demand for renewable energy.

As surplus electricity often has to be curtailed, the technology offers the opportunity to store this energy in a targeted manner and make it usable for industrial applications. In this way, Exergy3 contributes both to making the electricity system more flexible and to the more efficient use of renewable energy.

Expansion into Germany and focus on growth

Exergy3 intends to use the new capital to complete the transition from the pilot phase to commercial scaling. There are plans to expand production and implement the first major projects with industrial partners.

The fact that Exergy3 also intends to develop its technological potential from Munich in the future also underlines Bavaria's attractiveness as a location for industrial innovation.

Monika Steger, Managing Director of Bayern Kapital

One component of the strategy is to enter the German market. With the new location in Munich, the startup wants to move closer to industrial customers and partners. A team is to be set up there by the end of 2027 and collaboration with research institutions is to be intensified.

Billion-euro market for industrial electrification

The market for electrifiable industrial process heat is enormous. In Europe alone, the potential is estimated at around 1,400 TWh per year. This results in a long-term investment volume of around 200 billion euros. Against this backdrop, Exergy3 is positioning itself as a provider of a key technology for the industrial energy transition.