Clean heat technology company Exergy3 has announced the successful closure of a £1m pre-seed funding round for its novel ultra-high temperature thermal energy storage system.

The round was led by Zero Carbon Capital with participation from existing investors Old College Capital and Scottish Enterprise.

Exergy3, which span out from the University of Edinburgh last year, offers modular thermal energy storage systems that convert green electricity into heat, which is then stored at ultra-high temperatures of up to 1300°C.

With around half of greenhouse gas emissions worldwide coming from high temperature processes, used in many industries from food and drink to district heating networks and

combined heat and power plants, being able to store energy at high temperatures in an efficient, cost-effective way could be a game-changer in the journey to net zero emissions.

Dr Markus Rondé, CEO of Exergy3, said: “We are excited to have the support of such esteemed impact investors as Zero Carbon Capital, Old College Capital, and Scottish Enterprise. This funding will enable us to accelerate the commercialisation of our technology, expand our market research, and continue to drive innovation in the clean heat sector. “Our mission is to provide a practical and affordable pathway towards decarbonising heat, and this investment is a significant step forward in achieving that goal.”

The funds raised will be used to scale up the company: advancing market research, expanding the team and strengthening its partnerships across the energy sector.

Alex Gawley, Founder and General Partner of Zero Carbon Capital, said: “Decarbonisation of industrial heat is a huge outstanding challenge in our fight against climate change. Exergy3's innovative thermal storage system has the characteristics needed to drive down the costs of heat-electrification across a large number of global industries.”

Andrea Young, Head of Investment at Old College Capital, the University of Edinburgh’s in-house venture investment fund, said: "Old College Capital is proud to follow-on our existing investment in Exergy3, a company based on over 10 years of R&D from the University of Edinburgh and with the potential to offer significant decarbonisation benefits. We are excited to continue to support the company as it accelerates towards commercialisation."

Kerry Sharp, Director of Entrepreneurship and Investment at Scottish Enterprise, said: “It’s great to see Exergy3 taking the next big step in its growth journey and capitalising on the thriving global market for clean heat solutions with its innovative technology. The energy transition has been identified within our new approach as a key opportunity area for the Scottish economy and the decarbonisation of heat is an important part of this.”

About Exergy3:

Exergy3 is an innovative company based in Edinburgh, specialising in ultra-high temperature thermal energy storage solutions. A spinout from the University of Edinburgh, Exergy3’s mission is to revolutionise the clean heat market by providing scalable, efficient, and sustainable energy storage systems that support the global transition to a low-carbon future. www.exergy3.com

About Old College Capital:

Old College Capital (OCC) is the University of Edinburgh’s venture investment fund. OCC manages Edinburgh’s early-stage investment activities and shareholdings; supporting exciting ideas and technologies emerging from the University. OCC invests from pre-seed to series A stages, to accelerate the journey of startups and spinouts looking to make a positive

impact on people and our planet. OCC is part of Edinburgh Innovations, the University of Edinburgh’s commercialisation service.

About Scottish Enterprise:

Scottish Enterprise (SE) is Scotland’s national economic development agency and a non-departmental public body of the Scottish Government. It supports businesses to innovate and scale to transform the Scottish economy by focusing on new market opportunities through targeted investment, innovation and internationalisation. Follow us on X (formerly Twitter) and LinkedIn.

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