Exergy3 Marks Historic Milestone for Industrial Heat with Official ETES Launch at Annandale Distillery

Edinburgh, UK, 6 July 2026: Exergy3 celebrated a historic milestone for industrial heat with the official launch of its electro-thermal energy storage (ETES) system at Annandale Distillery. The event took place on 2 July, bringing together project partners, industry colleagues and supporters to mark the completion of the project and see the technology live on site and in action.

The pioneering ETES system supports Annandale Distillery’s ambition to become one of the world’s first distilleries to produce whisky in a lower-carbon way. Industrial heat remains one of the most challenging areas to decarbonise – projects like this show that it’s possible.

David Thomson, owner of Annandale Distillery, said: “Annandale is a historic distillery, but we are always looking ahead. We have a clear plan to reduce our emissions, and finding cleaner ways to produce our spirit is central to that. Hosting this pioneering technology is a privilege, and we’re proud to be part of a project that brings new thinking to a historic industry.”

On the day prior to the launch, Exergy3 charged its ETES using electricity purchased at a negative price of -£56/MWh via our aggregator partner Flexitricity, from the Local Constraint market (LCM), a trial market mechanism run by the National Energy System Operator (NESO). The LCM helps manage periods when high levels of wind generation in Scotland cannot all be transported through the electricity network at once. In those moments, generators or flexible electricity users can bid to turn down generation or increase demand, helping balance the grid. For many industrial sites, these opportunities are difficult to capture because process heat demand does not always align with periods of low-cost electricity. ETES changes that by separating when electricity is drawn from the grid from when heat is required on site. It absorbs surplus electricity, stores it as heat, and dispatches that heat on demand.

Gus McIntosh, Chief Commercial Officer at Exergy3, said: “Wasted renewable energy and expensive industrial heat are arguably the same problem, seen from opposite ends of the power system. Our ETES allows industrial sites to respond to electricity market conditions without disrupting production. The modules charge when power is low-cost, abundant and otherwise wasted, store that energy as high-temperature heat, and deliver it when it is needed.”

Exergy3 would like to thank our project partners Annandale Distillery and Cochran, whose collaboration made this project possible, the UK Government through the Department for Energy Security and Net Zero for funding the project, and our investors for their continued support. Exergy3 was also delighted to welcome Dr Fiona Armstrong, Lord-Lieutenant of Dumfries, the Rt Hon David Mundell MP, and Sir Malcolm MacGregor of MacGregor, alongside many others who joined the celebration.

The launch marks a significant step in demonstrating how flexible thermal energy storage can help decarbonise industrial heat, turning low-cost renewable electricity into practical, reliable heat for energy-intensive sites in Scotland and beyond. It shows that cleaner, more flexible industrial heat is no longer just an ambition, but something that can be delivered on site.