Exergy3, a climate technology company developing thermal energy storage systems for industrial heat, announced a £10 million seed round to scale proprietary technology targeting industrial decarbonisation, grid balancing, and energy security across Europe.
The company converts surplus renewable electricity, including curtailed wind power, into high-temperature heat for industrial use. The model aims to reduce wasted clean energy while providing reliable and lower-cost heat for heavy industry.
Funding and Expansion Plans
The round was led by Axeleo Capital, with participation from Bayern Kapital and Kibo Invest. Existing backers Scottish Enterprise, Zero Carbon Capital, and Old College Capital also joined the financing.
New capital will support manufacturing scale-up, team growth, and broader deployment across industrial sites. Exergy3 plans to double headcount by year-end and open a Munich office to expand in Germany.
Technology and Market Opportunity
Founded as a spinout from University of Edinburgh, Exergy3 develops modular thermal storage units that convert renewable electricity into process heat ranging from 50°C to 1,200°C. Systems are designed for compact installation with minimal infrastructure changes, enabling use across multiple industrial applications.
Markus Rondé, CEO of Exergy3, said: “These are two sides of the same problem. Industry needs reliable, high-temperature heat, while large amounts of renewable electricity are going to waste. Exergy3 brings them together – turning surplus renewable power into reliable, low-cost heat for industry. 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.”
Investor View
“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," said Guillaume Sarlat, Venture Partner at Axeleo Capital.
“The decarbonisation of industrial process heat is a key lever for the transformation of energy-intensive industries and at the same time a highly relevant growth market for climate tech in Europe,” said Monika Steger, Managing Director of Bayern Kapital.
Following successful pilot validation, Exergy3 is moving into commercial deployment, positioning its technology to strengthen energy security, improve grid efficiency, and create new value from excess renewable power.