Exergy3 Raises €11.4M Seed Funding To Scale Thermal Energy Storage For Industrial Decarbonisation

The round was led by Axeleo Capital, with participation from Bayern Kapital and Kibo Invest. Existing investors, including Scottish Enterprise, Zero Carbon Capital, and University of Edinburgh’s venture fund Old College Capital, also joined the round.

The funding will help Exergy3 scale its technology, which is designed to support industrial decarbonisation, grid balancing, and improved energy security through advanced thermal energy storage solutions.

Founded in 2023 as a spinout from the University of Edinburgh Exergy3 is a CleanTech startup focused on transforming the clean heat market by delivering scalable affordable and sustainable industrial heat solutions.

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The company highlights growing pressure on Europe’s energy system where rising grid balancing costs and renewable energy curtailment expose inefficiencies between supply and demand. In the UK alone billions are spent each year managing grid imbalances, as renewable generation often exceeds real time consumption capacity.

Exergy3 targets this challenge by converting surplus renewable electricity, such as curtailed wind power, into high-temperature industrial heat. This helps industries decarbonise while reducing wasted clean energy, supporting a more efficient and low-carbon energy system for the future.

Exergy3’s system is built for easy and fast integration in industrial environments. Its modular thermal energy storage units convert renewable electricity into high-temperature heat delivering process temperatures from 50°C to 1,200°C while staying compact and requiring minimal infrastructure for installation.

This flexibility allows the technology to support a wide range of industrial applications, including direct heat use and steam generation, making it suitable for multiple energy-intensive sectors.

With the new funding, Exergy3 plans to scale manufacturing, grow its team, and expand deployment across industrial sites. The company also aims to double its headcount by the end of the year and open a Munich office as part of its expansion into Germany.

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.”