KRAFTBLOCK secures 20 million euros in Series B

Six investors led by Shell Ventures participate in Series B financing round to accelerate ambitious decarbonization of heavy industries

Saarbrücken/New York City - Kraftblock, a manufacturer of sustainable high-temperature energy storage systems, has raised a total of €20 million in a Series B financing round. Six companies led by Shell Ventures have joined the German scale-up to drive the decarbonization of heavy industry. The new investors are:

• Shell Ventures, the venture capital arm of global energy company Shell.
• Finindus, a Belgian VC investment firm funded by global steel producer ArcelorMittal and the Flemish Region
• Moore Strategic Ventures from the USA
• A&G Energy Transition Tech Fund, the VC arm of A&G, one of Spain's largest independent private banks
• TechEnergy Ventures, the Techint Group's fund focused on energy transition technologies worldwide
• Future Industry Ventures, a European fund initiated by Redstone and SBI Holdings

Through its patented and sustainable thermal storage technology, Kraftblock is enabling the energy transition and decarbonization of processes in the energy sector as well as in industries ranging from food to chemicals, paper, ceramics and steel. The storage technology shifts waste heat or renewable energy to replace fossil fuels with green heat above 2,500°F (1,300°C). Kraftblock recently announced a project with PepsiCo and Eneco to build the world's largest commercial high-temperature storage system at a food facility.

Investment with impact to decarbonize heavy industry

Kraftblock's mission is to decarbonize high-temperature energy. "We have created a great opportunity to pursue our goal of reducing carbon emissions," says CEO and co-founder Dr. Martin Schichtel. "The last few years have shown us extreme weather conditions and the devastating effects on the world due to climate change. We must do everything in our power to stop this."

Where industrial processes require more than 60% oftheir energy in the form of heat, Kraftblock's solutionswill be game changers in ensuring cost effective and net zero heat energy availability.

Hans Maenhout, Investment Director Finindus

Jermaine Saaltink, Investment Director at Shell Ventures, commented, "As the need for decarbonization solutions in hard-to-decarbonize sectors continues to grow, Kraftblock has a critical role to play in creating a pathway for renewable electrification and increased use of waste heat. Both require credible storage solutions to overcome volatility. We are excited to join the team on their journey as they expand their global footprint."

Sign of recognition in the global market

Susanne König, CFO and co-founder of Kraftblock, emphasizes the importance of this funding round, "At a time when funding opportunities for startups are very limited, we are proud to have closed this Series B round. This demonstrates the resilience and strength of Kraftblock's business and underlines our great potential." The investment will be used, for example, to further expand the team and increase production capacity.

Kraftblock already operates in Europe, and the new partners will strengthen its presence globally. "We have specifically selected investors who have roots in industries such as food, steel and energy and will help us consolidate our leading market position," explains CEO Schichtel. In addition to expanding in Europe and entering energy-intensive industries such as steel, glass and ceramics in Europe and East Asia, the partners will create new opportunities in the U.S. market and provide access to industries such as mining and energy in Latin America.