University of Edinburgh spinout, clean heat tech company Exergy3 has raised £10 million in seed funding to scale its proprietary technology addressing three of Europe’s most pressing challenges: industrial decarbonisation, grid balancing and energy security.
The round was led by Axeleo Capital, whose Article 9 Green Tech Industry I fund backs European technology startups driving the ecological transition of industry, alongside Bavaria-based public venture capital investor Bayern Capital 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 joined the round.
Exergy3’s energy storage technology - invented by Dr Adam Robinson of the University’s School of Engineering - 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 technology addresses an energy paradox where renewable generation increasingly exceeds what the system can absorb in real time, costing the UK £2.7 billion last year on balancing the grid, even as energy costs rise for citizens.
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.
Dr 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. ”
The company’s technology was trialled at Annandale Distillery in the south- west of Scotland, which has now adopted it in a bid to produce one of the world’s first low-carbon whisky.
Prof. David Thomson, co-founder of Annandale Distillery, said:
This is a first – not just for the whisky industry or Scotland, but globally. Heat-intensive industries like ours are under increasing pressure to decarbonise, and solutions that can deliver high-temperature heat without fossil fuels have been hard to find. The fact that it does so economically, while also helping tackle the rising costs of balancing the electricity system, makes it incredibly powerful. ”
Katharine Fox, Head of Investment at OCC, said:
High-temperature industrial processes account for a significant proportion of global emissions, yet cost-effective solutions to decarbonise them have been scarce. Exergy3's thermal storage technology changes this, and our continued investment reflects OCC's conviction in what the team is building. Having backed them from the start with OCC launch funding, we are proud to support them as they bring this transformative technology to market. "
OCC Launch invests in pre-seed companies associated with the University of Edinburgh to help founders explore, experiment and build traction. The fund is currently open for applications. For more info visit the OCC Launch webpage.
