Clean heat technology company Exergy3 has secured funding for its novel ultra-high temperature thermal energy storage system.
Deep-tech climate investor Zero Carbon Capital led the £1 million pre-seed funding round, with support from the University of Edinburgh’s in-house venture investment fund Old College Capital (OCC), and Scottish Enterprise, both of which have invested in the company before.
Exergy3 was spun out from the University of Edinburgh last year and offers modular thermal energy storage systems that convert green electricity into heat. What sets the technology apart is the temperature at which the energy is stored, reaching peaks of 1300°C, being supplied as hot gas for industrial and thermal processes.
The company’s technology removes the need to burn fossil fuels to reach the high temperatures needed in industrial settings and the storage element also provides grid stability. Stored thermal energy can further be a source of revenue through participation in demand side response.
CEO of the company, Dr Marcus Rondé, said the funding will help Exergy3 to accelerate the commercialisation of its technology and expand its market research.
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.”
UK decarbonisation of heat
According to Exergy3, over 50% of global CO2 emissions are from high temperature processes. Decarbonising heat will be a critical step in reaching net zero targets, which means the sector has seen huge amounts of investment from both private and government-led sources.
At the start of 2023, the Department of Energy Security and Net Zero granted Exergy3 £3.6 million funding to produce a full scale prototype of its offering. To decarbonise operations at Annandale Distillery, a 36MWh unit will power a 4MW boiler, requiring a 2MW grid connection. The product will run seven days a week, charging the storage element overnight.
Zero Carbon Capital’s portfolio includes Aed Energy, which also develops thermal battery technology. It couples battery materials with smart photovoltaics for very low cost modular long duration energy storage, with the aim of powering microgrids in the place of diesel generators.
Further, distribution network operator (DNO) UK Power Networks (UKPN) recently completed an innovation trial that used thermal storage to ‘charge’ home heating systems outside the highest demand hours, storing energy as heat until it is needed.
According to the National Audit Office, heating UK homes accounted for 18% of the nation’s greenhouse gas emissions in 2021 (the most recent year for which data is available).
Another home heating decarbonisation solution is the establishment of heat networks in built-up areas. One such project, Leeds Pipes, developed in partnership between Leeds City Council, Vital Energi, and Ener-Vate, was recently recognised as an international exemplar of a city-wide heating solution. The project burns black bin waste that cannot be otherwise recycled, and the steam it creates is converted into hot water.
According to Caroline Bragg, CEO of the Association for Decentralised Energy (ADE), heat network infrastructure is an “enormous multibillion-pound opportunity” for Great Britain, with a pipeline of projects” exceeding £3 of private investment secured for every £1 of public funds”.
