Industrial decarbonisation has a heat problem. The grid has a waste problem. Exergy3 just raised £10M to solve both.

We’re incredibly excited to announce our continued support for Exergy3 as part of their £10 million Seed round!

The round was led by Axeleo Capital , alongside investments from Bavaria-based Bayern Kapital, Singapore-based Kibo Invest , and our fellow existing investors Scottish Enterprise and Old College Capital. This new capital marks a massive step forward in taking their technology from demonstration to broad commercial scale.

The Two-Sided Energy Problem

In our first post about Exergy3, we talked about how industrial heat represents a huge share of global energy demand and emissions. Because industrial processes need continuous, high temperatures, they remain incredibly difficult to decarbonise.

But as the energy transition accelerates, there’s a second, equally massive problem. As we add more wind and solar to the grid, we are seeing a growing mismatch between supply and demand. When renewable generation exceeds what the system can absorb in real time, that clean power gets curtailed (turned off).

The result is a costly paradox: we are wasting huge volumes of low-carbon electricity, and it is costing us billions. In the UK alone, an astonishing £2.7 billion was spent balancing the grid in 2024/25. In Germany, around €2.77 billion was spent on similar grid bottleneck management in 2024.

The Solution: Bridging the Gap

That’s exactly the mismatch Exergy3 is built to solve. If you can take that surplus, curtailed renewable electricity and convert it into high-temperature heat for industrial use when you need it, you turn wasted supply into a highly valuable, usable energy source.

Their modular thermal energy storage units are incredibly flexible:

High-Performance: Temperatures from 50°C to 1,200°C (enough for even the most demanding industries).
Plug-and-Play: Modular units designed for minimal infrastructure disruption.
Versatile: Compatible with both direct heat and steam generation.

Scaling Up and Expanding

Since our initial investment, Markus, Adam, and the team have proven their tech in real-world conditions at Annandale Distillery, successfully delivering their first-of-a-kind system. This £10 million in fresh capital will allow the team to move rapidly from pilot to commercial deployment.

To capture the growing demand across Europe's energy-intensive industries, Exergy3 is expanding its footprint. They plan to double their headcount by the end of the year and will be opening a new office in Munich, Germany later this quarter to drive European growth.

Decarbonising heavy industry is essential for reaching net zero—and solutions like this are exactly what’s needed to drive meaningful change. We couldn't be prouder to continue partnering with the Exergy3 team on this next phase of their journey.

Congratulations Exergy3!

From Stealth to Scale: Epoch announces $12M raise to deliver first demo plant ›

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