Exergy3, a University of Edinburgh spinout, announced it has raised £10 million in seed funding to accelerate deployment of its energy storage technology targeting industrial decarbonization, grid balancing, and energy security.
The round was led by Axeleo Capital, with participation from Bayern Kapital and Kibo Invest, as well as existing investors Scottish Enterprise, Zero Carbon Capital, and Old College Capital. The funding will support the company’s transition from pilot projects to commercial-scale deployments across industrial sectors.
Exergy3’s core technology converts surplus renewable electricity, such as curtailed wind power, into high-temperature heat for industrial use. This approach addresses a growing imbalance in energy systems, where excess renewable generation is often wasted while industries continue to rely on fossil fuels for heat-intensive processes.
Industrial heat accounts for a major share of global energy demand and emissions, yet remains difficult to decarbonize due to the need for continuous, high-temperature operation. Exergy3’s solution enables storage and reuse of renewable energy as process heat, improving efficiency while reducing emissions and system costs.
The technology has already been deployed at Annandale Distillery in Scotland, where it supports low-carbon whisky production, demonstrating its applicability in real-world industrial environments.
The raise comes as energy markets across Europe face increasing pressure from grid balancing costs and volatility, creating demand for solutions that can both stabilize energy systems and decarbonize industrial operations.
Exergy3 plans to use the funding to scale manufacturing, expand deployments, and further develop its technology platform for broader industrial adoption.
KEY QUOTES:
“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.”
Dr Markus Rondé, CEO, Exergy3
“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.”
Prof. David Thomson, Co-Founder, Annandale Distillery
“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.”
Katharine Fox, Head Of Investment, Old College Capital
