Exergy3 Raises GBP 10 Million to Convert Surplus Renewables into Industrial Heat

University of Edinburgh spinout Exergy3 raised GBP 10 million equivalent to approximately USD 13.5 million in a seed funding round to scale its ultra-high temperature thermal energy storage technology, which converts curtailed renewable electricity into clean industrial process heat. The company addresses two simultaneous energy challenges: the difficulty of decarbonizing industrial heat and the waste of surplus renewable generation.

Founded in 2023, Exergy3 develops modular thermal energy storage systems that convert surplus renewable electricity, such as curtailed wind power, into industrial process heat ranging from 50 degrees Celsius to 1,200 degrees Celsius. The units require minimal infrastructure and are designed for rapid integration across industrial environments, with applications from direct heat use to steam generation in energy-intensive industries. The company validated its first commercial system in real-world conditions before the seed round. Proceeds will fund scaling of manufacturing capacity, team expansion, and broad industrial deployment, including opening a Munich office in Germany.

Industrial heating accounts for a significant share of global energy consumption and remains largely fossil fuel-based, representing one of the hardest-to-decarbonize sectors. At the same time, grid constraints in markets with high renewable penetration are resulting in increasing volumes of curtailed renewable electricity that cannot be absorbed in real time. Exergy3's technology addresses both challenges by converting wasted renewable generation into a commercially useful zero-carbon energy source for industrial customers, reducing both emissions and energy costs. The round was led by Axeleo Capital alongside Bayern Kapital and Singapore-based Kibo Invest.

Axeleo Capital Venture Partner Guillaume Sarlat cited industrial decarbonization as one of the most compelling climate hardware investment opportunities in Europe, noting that Exergy3's use of curtailed and negative-priced renewable electricity enables delivery of low-cost, zero-carbon industrial heat. The company plans to double headcount by year end as it scales toward commercial deployment. For India, where industrial heat demand is large and growing across textiles, food processing, chemicals, and manufacturing, and where solar curtailment is emerging as a grid management challenge, thermal energy storage technology of this kind could have significant future market relevance.

Key figure — GBP 10 million seed funding round (USD 13.5 million)