University of Edinburgh spinout Exergy3 has raised £10m in seed funding to scale its proprietary technology and address industrial decarbonisation, grid balancing and energy security.
Exergy3 is an innovative cleantech company that specialises in ultra-high temperature thermal energy storage solutions. Its mission is to revolutionise the clean heat market by providing scalable, affordable and sustainable sources of clean industrial heat that enable the global transition to a low-carbon future.
Industrial heat represents a significant share of global energy demand and emissions, yet remains structurally difficult to decarbonise due to its requirement for high, continuous temperatures across a wide range of processes.
At the same time, increasing volumes of renewable electricity are reduced as the system struggles to absorb generation in real time.
Exergy3 is built to address this mismatch with technology that converts surplus renewable electricity – such as curtailed wind power – into high-temperature heat for industrial use, turning excess generation into a usable energy source rather than wasted supply.
The funding will be used to scale its manufacturing capacity, expand the team and enable broad deployment across industrial sites. The startup will also open a Munich office later this quarter as part of its expansion into Germany.
“These are two sides of the same problem – industry needs reliable, high-temperature heat while large amounts of renewable electricity are going to waste,” says Markus Rondé, CEO of Exergy3.
“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.”
The seed round was led by Axeleo Capital, with participation from Bavaria-based public venture capital investor Bayern Kapital and Singapore-based Kibo Invest. Existing investors Scottish Enterprise, Zero Carbon Capital and Old College Capital, the University of Edinburgh’s in-house venture investment fund, also participated.
