Exergy3 has closed a £10m seed round to commercialise technology that converts curtailed renewable electricity into high-temperature heat for industrial use, tackling grid waste and factory emissions in one go.
The Edinburgh University spinout has developed modular thermal energy storage units that take surplus power, such as wind generation the grid cannot absorb in real time, and deliver process heat at temperatures ranging from 50°C to 1,200°C.
The system is designed to slot into existing industrial environments with minimal infrastructure, covering everything from direct heat applications to steam generation.
Exergy3 provides a solution to a multi-billion-pound problem: the UK alone spent £2.7bn on grid balancing in 2024/25, driven by a growing mismatch between renewable supply and demand.
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 round was led by Axeleo Capital through its Article 9 Green Tech Industry fund, which backs European deeptech startups targeting the environmental impact of industrial processes. Bayern Kapital and Singapore-based Kibo Invest also came in, alongside existing backers Scottish Enterprise, Zero Carbon Capital and Old College Capital, the University of Edinburgh’s venture fund.
Exergy3 says the technology has already been proven at a Scottish distillery in Annandale, supporting low-carbon whisky production, and will now progress to a full-scale rollout.