University of Edinburgh spin-out announces £10m seed-funding round

University of Edinburgh spin-out, Exergy 3, has raised £10m in seed funding to scale its proprietary technology, which addresses the challenges of industrial decarbonisation, grid balancing and energy security.

The Edinburgh-based firm’s technology converts surplus renewable electricity into high-temperature heat for industrial use, turning excess generation into a usable energy source rather than wasted supply.

Dr Markus Rondé, Exergy3 chief executive, said: “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."

The seed round was led by Axeleo Capital, which was joined by 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 in the round.

Guillaume Sarlat, venture partner, Axeleo Capital said: "Decarbonising heavy industry – accounting for over 20 per cent of global energy consumption and still largely fossil-based – is arguably one of today's most compelling climate-hardware venture-capital opportunities in Europe. Exergy3 leverages curtailed and negative-priced renewable electricity, storing it at ultra-high temperatures to deliver low-cost, zero-carbon heat to industrial customers.

“Convinced by the Exergy3 team's deep technological expertise and exceptional execution capabilities, we are proud to lead this £10m seed round in support of their commercial roll-out."

The funding marks a pivotal step in Exergy3’s transition from demonstration to scale, following the successful delivery of its first-of-a-kind system and validation of the technology in ‘real-world’ conditions. The capital will accelerate this next phase, scaling manufacturing capacity, expanding the team and enabling broad deployment across industrial sites.

Exergy3 plans to double its headcount by the end of the year. It will also open a Munich office later this quarter as part of its expansion into Germany, establishing a strong European presence to capture growing demand across key industrial markets.

www.exergy3.com 

Photography: Exergy3, of Dr Markus Rondé