RIFT (Renewable Iron Fuel Technology) announced it closed a € 11 million Series A funding round €. Pension investor PGGM (on behalf of the Dutch healthcare pension fund, PFZW), Invest-NL, and Oost NL have joined as new investors. Existing shareholders Rubio Impact Ventures, the Energy Transition Fund Rotterdam, and Brabant Development Agency (BOM) are also joining the funding round.
With this funding round, RIFT will conduct 2 GWh of durability tests in its current industrial pilot facilities, located in Arnhem and Helmond, the Netherlands. Additionally, the investment will be used to finalize the first commercial contracts. And these are the final steps before technology can be rolled out commercially.
RIFT (a spin-off from student team SOLID at Eindhoven University of Technology) focuses on decarbonizing industrial heat in sectors like food and beverage, pulp and paper, ceramics, and special chemicals. These industries have been seeing increasing pressure to achieve net-zero emissions and reduce their reliance on fossil fuels, but they often lack feasible, sustainable alternatives.
RIFT provides a solution through its iron fuel technology, which is easier to implement without significant modifications to existing infrastructures and is economically competitive with fossil fuels. And this addresses the challenges other alternatives face, like hydrogen and electrification, which often encounter obstacles.
This technology utilizes iron fuel, which involves burning iron powder in a boiler system developed by RIFT. And during combustion, high-temperature heat is released at temperatures of up to 2,000°C without any direct CO2 emissions. The byproduct (rust powder) can be efficiently converted back into usable iron powder using hydrogen, making the process completely circular. Iron fuel offers logistical advantages: the powder can be transported easily and safely over short and long distances, similar to the storage and distribution of oil or coal, potentially providing a global alternative to fossil fuels.
KEY QUOTES:
“We are proud to have engaged a strong consortium of both public and private parties who not only provide us with capital but also crucial knowledge and experience in sustainable value chains and infrastructures. This is essential for large-scale implementation and allows us to complete the final testing phases for commercial application. This collaboration increases our chances of a successful rollout and brings us one step closer to our ambition of reducing global emissions by one gigaton per year by 2050. We are ready to make a tangible impact in the industry.”
-Mark Verhagen, CEO and co-founder of RIFT
“We selected RIFT two years ago for the Breakthrough Energy Fellows Program due to their groundbreaking innovation in iron fuel technology. By tackling one of the biggest challenges in reducing CO2 emissions—decarbonizing industrial heat—RIFT’s solution offers a breakthrough for energy-intensive sectors. RIFT has distinguished itself by building a strong team and achieving both technical and commercial milestones at a rapid pace. We are excited to see what the future holds for the team and their technology.”
-Ashley Grosh, Vice President of Breakthrough Energy
“This investment on behalf of PFZW, the pension fund for Dutch healthcare workers, fits very well in the funds’ ambitions: to make a tangible contribution to the energy transition with investments that deliver sound financial returns. With its technology, RIFT is a frontrunner and in the next few years the company should be able to contribute to decarbonizing industrial processes and large-scale district heating networks like Ennatuurlijk, which is part of the PFZW investment portfolio.”
-Tim van den Brule, investment director at PGGM Infrastructure investments
“RIFT offers an innovative, sustainable alternative for industrial heat, a sector that is one of the world’s largest sources of greenhouse gas emissions and difficult to decarbonize. RIFT’s Iron Fuel Technology can help companies reduce their CO2 emissions without requiring extensive infrastructure changes. This investment aligns perfectly with Invest-NL’s mission to support innovative solutions that accelerate the energy transition.”
-Remco Westerbeek, Investment Manager at Invest-NL
“In addition to the benefits for industrial decarbonization, RIFT’s solution is also circular, as the iron powder can be reused multiple times. In an era of raw material scarcity, it’s essential to manage resources carefully. This makes us believe in RIFT’s solution to accelerate the industrial heat transition. We are proud to contribute to RIFT’s mission alongside pension fund PGGM, various regional development funds, Invest-NL, and the market, with this investment.”
-Ian de Graaff, investment manager at Oost NL (Oost NL is investing through Perspectieffonds Gelderland, a fund of the Province of Gelderland)
“CO2 reduction is a key component of our investment philosophy because we believe that sustainability and innovation are essential for a future-proof economy. We are proud to have supported RIFT closely in the phase leading to the industrial pilots. The Dutch ecosystem provides a solid foundation for companies with significant impact potential, such as RIFT, to realize their ambitions. We are confident that RIFT will play a key role in industrial decarbonization, and we look forward to the next steps with great confidence.”
-Existing investors Rubio, ETFR, and BOM
“We, as a university, are very proud of RIFT. It is fantastic to see the trust from investors in this TU/e spin-off. The idea of using iron as fuel truly took off at our university through Professor Philip de Goey, who initiated a research program from which RIFT emerged. Investing in start-ups and scale-ups like this is crucial to optimally utilizing the knowledge we possess in the Netherlands—the only raw material we still have. Numerous green TU/e start-ups in the Brainport region are at the forefront of developing the clean technologies that are urgently needed for the massive transitions our country is facing. It is essential that these start-ups have the opportunity to grow in the Netherlands.”
-Robert-Jan Smits, president of executive board Eindhoven University of Technology
